Equipment Upgrade Demand Halted or Delayed Due to Worsening Economic Conditions

「In our Group's major customer industries, including the chemical and steel industries, demand has remained sluggish and production equipment utilization rates have remained low against a backdrop of construction postponements due to labor shortages, progress toward decarbonization, increased production of petrochemical products in China, and the impact of trade policies, including those of the United States.」

「In our Group's major customer industries, including the chemical and steel industries, low equipment utilization continued against a backdrop of weak domestic demand and longer construction periods due to high material costs and labor shortages, as well as global oversupply of ethylene.」

「Capital expenditure plans under consideration include investments related to improving productivity and safety, security and quality through automation and labor saving amid progress in addressing social issues such as labor shortages caused by the declining birthrate and aging population, as well as various policies toward carbon neutrality; R&D investments using the Green Innovation (GI) Fund program; and investments related to disaster prevention, disaster mitigation and national resilience. However, deteriorating profitability due to soaring material prices and labor costs, and longer project schedules caused by labor shortages, remain challenges.」

「In our Group's major customer industries, including the chemical and steel industries, demand from the automotive and construction sectors has recovered, but production volumes of related materials remained sluggish due to the delayed recovery in semiconductors and slowing overseas demand, particularly in China.」

「Shipments of related materials remained solid as automobile production recovered due to improved semiconductor supply and demand. However, ethylene production plants continued to operate at below 90% utilization as the delayed recovery of the Chinese economy affected the global economy and high prices dampened consumer spending. Meanwhile, companies were considering investments using digital technologies to create safe and secure manufacturing sites and further improve quality and productivity, the introduction of energy-saving equipment to reduce environmental impact, research and development focused on switching fuels and raw materials, and disaster prevention and mitigation measures and the implementation of national resilience plans. However, higher manufacturing costs and difficulties securing personnel also led to moves to restrain capital investment.」

「Companies faced challenges from soaring material costs and securing personnel, and some moved to restrain capital investment.」

「Sales increased to the chemical, steel, manufacturing machinery and electrical equipment, and shipbuilding industries, where capital investment and replacement demand remained solid against a backdrop of high production equipment utilization,」

「The impact of longer delivery times for products resulted in substantial delivery delays for products handled by our Group, while the number of companies reducing relatively large-scale capital investments or postponing investment altogether increased, among other factors,」

「Demand for related commodity resins and steel products increased as demand for industrial machinery remained strong and personal consumption recovered, and production operating rates remained high. At the same time, significant supply-demand tightness was seen for semiconductors and other electronic components and for some resin products, and many companies placed orders early in anticipation of longer delivery times for these products.」

「In our Group's major customer industries, including the petrochemical and steel industries, exports, particularly to Asia, are recovering and equipment utilization rates are rising. However, the spread of COVID-19 again in Southeast Asia disrupted supply chains, and various concerns, including shortages of electronic components and higher raw material prices, became increasingly pronounced.」

「In our Group's major customer industries, including the petrochemical and steel industries, demand for steel products and ethylene recovered against a backdrop of a rebound in economic activity, and equipment utilization rates are rising, although the impact of higher raw material prices is beginning to materialize.」

「Although some companies postponed capital investment or reduced its scale, they continued to consider investments in the automation of production equipment, more efficient maintenance operations, remote monitoring, and safety measures for aging production equipment, under the themes of digital transformation (DX) and smart safety management at manufacturing sites.」

「In our Group's major customer industries, including the petrochemical and steel industries, demand for related synthetic resins and steel products recovered as overseas automotive demand improved, and production operating rates gradually increased. However, some companies remained cautious about capital investment.」

「In our Group's major customer industries, including the petrochemical and steel industries, demand for synthetic resins and steel products, particularly from the automotive industry, remained sluggish due to the deterioration of the global economy, and companies moved to temporarily suspend production equipment and adjust production.」

「In our Group's major customer industries, including the petrochemical and steel industries, concerns about a stagnating global economy due to US-China trade tensions and the slowdown in the Chinese economy were followed by lower operating rates and shutdowns at production plants caused by the spread of COVID-19, as well as moves to adjust production because the supply-demand balance for ethylene and crude steel production deteriorated.」

「Although production and shipment volumes declined due to the impact of US-China trade tensions, and companies gradually began postponing capital investment as a result of higher raw material and logistics costs,」

「In our Group's existing business areas, including the petrochemical, steel and machinery manufacturing industries, production volumes have continued to decline, particularly among export-oriented companies, although there have also been moves to bring materials related to next-generation 5G communications to market. In terms of capital investment, companies continue to implement investments in equipment management using IoT to improve productivity against a backdrop of a declining working-age population due to Japan's declining birthrate and aging population, research and development investments for the future, and replacement of aging infrastructure and production equipment. They are also considering investments to strengthen environmental performance, safety and security.」

「Demand remains high for capital investment in research and development for the future, automation investment to support work-style reform and improve productivity, replacement investment to improve the stability of aging equipment, and investment to strengthen environmental protection, security, and safety, and companies are considering implementation.」

「As in the previous fiscal year, companies are considering investments in automation to improve productivity amid labor shortages, replacement investments to ensure the stable operation of aging equipment, research and development investments to improve quality, and the introduction of predictive maintenance using IoT.」

「In our group’s existing business areas, including petrochemicals, steel, and machinery manufacturing, production declined in some areas because of scheduled repairs and equipment trouble, but domestic demand remained firm, particularly for functional materials and high-value-added products. Capital investment also remained solid, supported by high corporate earnings, including replacement of aging equipment, expansion of production equipment for high-performance materials, increased automation and labor-saving investment to improve productivity, and investment to restore quality and reliability.」

「In our Group's existing business areas, including the petrochemical, steel and machinery manufacturing industries, production temporarily declined in some areas due to scheduled maintenance and natural disasters, but demand for manufactured products remains high, supported by the resilient domestic economy. Companies are considering investments to automate production equipment to facilitate the transfer of technical expertise, improve productivity and reduce labor requirements, as well as the introduction of predictive maintenance systems using IoT and other forms of big data, and investments to enhance safety, security and reliability.」

「In our Group's existing business areas, including the petrochemical, steel and machinery manufacturing industries, longer delivery times and procurement difficulties for some raw materials and components have begun to emerge. However, supported by solid domestic and overseas demand, demand for commodity products and high-performance materials remains resilient, and production equipment continues to operate at high levels.」

「If worsening economic conditions in Japan and overseas cause capital investment trends to weaken, demand for equipment replacement could be suspended or delayed, which could have a significant impact on our Group's business performance.」

「In our group’s existing business areas, including petrochemicals, steel, and machinery manufacturing, demand conditions have remained firm and equipment utilization rates have stayed high. Companies remain willing to invest in automating production equipment using IoT and big data to improve productivity, as well as in research and development linked to new materials and technologies.」

「Against a backdrop of solid domestic and overseas demand, equipment utilization remains high, and companies' willingness to invest in automating production equipment using IoT and big data to improve productivity, as well as in improving the efficiency of aging equipment, remains undiminished,」

「Equipment utilization remains high, and companies are considering investments to automate production equipment using IoT and other forms of big data to improve productivity, as well as efficiency improvements for aging equipment.」

「In our Group's existing business areas, including the petrochemical, steel and machinery manufacturing industries, corporate earnings have been affected by higher raw material costs and foreign exchange movements. However, against a backdrop of recovering domestic and overseas demand, the supply-demand balance has improved and production is recovering. In terms of capital investment, expectations are rising for the use of IoT to monitor production equipment and meet demand for predictive maintenance, while companies are making renovation and replacement investments in aging production equipment to maintain quality and cost competitiveness.」

「In our Group's existing business areas, including the petrochemical, steel and machinery manufacturing industries, inventory adjustments have been prolonged due to weak domestic and overseas demand, and production remains structurally difficult to increase, although」

「If worsening economic conditions in Japan and overseas cause capital investment trends to weaken, demand for equipment replacement could be suspended or delayed, which could have a significant impact on our Group's business performance.」