Economic-cycle and inventory-adjustment risks in the manufacturing sector
First written in FY2016. 11 of 26 entries say "Worsened", first in FY2019. Latest entry: FY2026.
Nichiden moved to the "Worse" side of this theme in 2019, 3 years before the typical company in this theme (2022).
The whole theme swung hardest in 2023: 9 of 16 companies on the "Worse" side.
1 other company's latest entry also says "Other".
- FY2026Some declines alongside a recoveryAnnual report
「In the machinery and equipment-related industries surrounding our Group, some production machinery and transportation machinery-related businesses showed a declining trend. However, progress in tariff negotiations with the United States eased excessive concern, and signs of recovery emerged in production machinery and other areas.」
While some production machinery and transportation machinery-related businesses are trending downward, the statement indicates that progress in tariff negotiations with the United States has eased concern and led to signs of recovery in production machinery. - FY2026-H1Reduced tariff concerns and recovery in production machineryAnnual report
「In the machinery and equipment-related industries surrounding our Group, progress in tariff negotiations with the United States has eased excessive concern, and signs of recovery have emerged in production machinery and other areas. Investment aimed at rationalization and labor saving to address structural labor shortages remains firm.」
The statement updates the view from the previous fiscal year's environment of rising costs and cautious capital investment to a situation combining reduced concern following progress in tariff negotiations with the United States, recovery in production machinery, and firm investment in rationalization and labor saving. - FY2025Firm labor-saving investment amid rising costsAnnual report
「In the machinery and equipment-related industries surrounding our Group, conditions remain challenging due to surging raw material and fuel prices and higher manufacturing costs resulting from rising labor costs. However, demand for labor-saving investment aimed at decarbonization, digital transformation, and addressing labor shortages remained firm.」
While challenging conditions caused by higher raw material and fuel prices and rising labor costs continue, the statement updates the view that demand for labor-saving investment aimed at decarbonization, digital transformation, and addressing labor shortages remains firm. - FY2025-H1Recovery in semiconductor demand and firm demand for labor-saving investmentAnnual report
「In the machinery and equipment-related industries surrounding our Group, signs of a recovery in global semiconductor demand have emerged, and capital investment remained firm amid favorable market conditions. In addition, strong demand continues for labor-saving investment aimed at decarbonization, digital transformation, and addressing labor shortages.」
The statement updates the view from the previous fiscal year, when companies became cautious about capital investment due to the weaker yen, higher raw material prices, and disruptions to parts procurement, to an industry environment combining a recovery in global semiconductor demand, firm capital investment, and strong demand for labor-saving investment aimed at decarbonization, digital transformation, and addressing labor shortages. - FY2024WorsenedAnnual report
「In the machinery and equipment-related industries surrounding our Group, companies' previously firm appetite for capital investment has become more cautious due to the weaker yen, higher raw material prices, and rising labor costs, as well as disruptions to parts procurement caused by the Noto Peninsula earthquake at the beginning of the year and production stoppages resulting from misconduct issues at automobile manufacturers.」
In addition to the weaker yen, higher raw material prices, and rising labor costs, the statement newly identifies disruptions to parts procurement caused by the Noto Peninsula earthquake and production stoppages resulting from misconduct issues at automobile manufacturers, explaining that companies have become more cautious about capital investment. - FY2024-Q2WorsenedAnnual report
「In the machinery and equipment-related industries surrounding our Group, the weaker yen, higher raw material prices, and rising labor costs have affected corporate performance, while machinery orders have also turned negative, and signs of a pause in capital investment have begun to emerge.」
In addition to the existing supply constraints and uncertainty in the industry, the statement explicitly identifies the weaker yen, higher raw material prices, rising labor costs, negative machinery orders, and a pause in capital investment, updating the view of challenging business conditions. - FY2024-Q1Deferred semiconductor investment alongside strength in other manufacturing industriesAnnual report
「In the machinery and equipment-related industries surrounding our Group, some semiconductor manufacturers showed signs of postponing or curbing capital investment. However, investment appetite in other manufacturing industries remained firm, particularly for capital investment postponed during the COVID-19 pandemic, and conditions were generally solid.」
While some semiconductor manufacturers postponed or curtailed capital investment, the statement updates the view that investment appetite in other manufacturing industries remains firm, particularly for postponed investment, and that the industry as a whole is generally solid. - FY2023Easing supply constraints and solid industry conditionsAnnual report
「In the machinery and equipment-related industries surrounding our Group, there was a certain degree of progress in the previously disrupted procurement of parts. Conditions remained solid, supported by increased production of production machinery, electrical and information and communications machinery, and automobiles, as well as strong investment appetite looking beyond the post-COVID period, including initiatives toward decarbonization and digitalization.」
The statement explains that procurement of parts has made a certain degree of progress and that industry conditions remained solid, supported by increased production in major industries and investment in decarbonization and digitalization. - FY2023-Q3Gradual recovery driven by increased production in major industriesAnnual report
「In the machinery and equipment-related industries surrounding our Group, conditions remain solid, supported by increased production of production machinery, electrical and information and communications machinery, and automobiles. Investment appetite looking beyond the post-COVID period, including initiatives toward decarbonization and digitalization, remains strong.」
The statement updates the view from an environment of continuing supply constraints and uncertainty to solid industry conditions accompanied by increased production of production machinery, electrical and information and communications machinery, and automobiles, as well as strong investment in decarbonization and digitalization. - FY2023-Q2Easing supply constraints alongside the impact of yen depreciationAnnual report
「In the machinery and equipment-related industries surrounding our Group, the sharp depreciation of the yen is weighing on earnings in the materials industries, while having a substantial positive impact on processing industries. Companies continue to take an aggressive approach to investment, and investment in capacity expansion, as well as initiatives toward digitalization and decarbonization, remains firm.」
While noting that the sharp depreciation of the yen is putting pressure on earnings in the materials industries, the statement explains that companies continue to take an aggressive approach to investment and that investment in capacity expansion and initiatives toward digitalization and decarbonization remain firm. - FY2023-Q1WorsenedAnnual report
「In the machinery and equipment-related industries surrounding our Group, conditions remain challenging due to the impact of higher raw material costs resulting from surging resource prices, supply-chain disruptions caused by delays in the supply chain, and longer lead times for key components. However, capital investment aimed at reducing labor requirements and saving labor remains firm.」
The statement identifies higher raw material costs caused by surging resource prices, supply-chain delays, supply-network disruptions, and longer lead times for key components as specific industry constraints, and explains that challenging conditions continue. It also notes the continued firmness of investment aimed at reducing labor requirements and saving labor. - FY2022WorsenedAnnual report
「Subsequently, the prolonged Russian invasion of Ukraine, which broke out in the second half of the fiscal year, has accelerated increases in raw material and fuel prices and disruptions to parts supplies, creating downward pressure on the European and global economies.」
Regarding the manufacturing sector's business and supply-demand environment, the statement identifies the prolonged Russian invasion of Ukraine, in addition to the existing supply shortages, as a factor accelerating increases in raw material and fuel prices and disruptions to parts supplies. - FY2022-Q3Strong industry conditions alongside supply shortagesAnnual report
「In the machinery and equipment-related industries surrounding our Group, conditions remain strong, supported by continued growth in capital investment to expand semiconductor production capacity and a recovery in automobile production. However, shortages of parts and raw materials have not been resolved, and the possibility that production plans may be revised downward cannot be ruled out.」
The statement updates the situation by describing industry conditions as strong, supported by increased semiconductor-related capital investment and a recovery in automobile production, while noting that shortages of parts and raw materials continue and that production plans may still be revised downward. - FY2022-Q2WorsenedAnnual report
「In the machinery and equipment-related industries surrounding our Group, supply-chain disruptions caused by restrictions on economic activity in Southeast Asian countries have had a major impact on the automotive industry, contributing to production cuts along with shortages of resin materials and semiconductors. Meanwhile, other manufacturing industries, including production machinery and electronic components and devices, are on an upward production trend, capital investment is beginning to pick up, and a modest recovery is expected to continue.」
The statement provides greater detail on how restrictions on economic activity in Southeast Asia, supply-chain disruptions, and shortages of resin materials and semiconductors are contributing to production cuts in the automotive industry. It also notes increased production and renewed capital investment in other manufacturing industries. - FY2022-Q1RestatedAnnual report
「In the machinery and equipment-related industries surrounding our Group, shortages of semiconductors, resin materials, and other inputs continue, and longer lead times for products and equipment are a negative factor. However, signs of a resumption in capital investment have emerged, and a modest recovery is expected to continue.」
While shortages of semiconductors, resin materials, and other inputs and longer lead times for products and equipment continue, the statement also notes a resumption in capital investment and a modest recovery trend, updating the current view of industry conditions. Because supply constraints have actually materialized, materialized was set to true. - FY2021WorsenedAnnual report
「In the machinery and equipment-related industries surrounding our Group, production by manufacturers was beginning to recover, and there were also signs that postponed capital investment was restarting. However, in addition to shortages of shipping containers, shortages of engineering plastics caused by a large-scale power outage in Texas and chronic semiconductor shortages remain a drag, and challenging conditions continue.」
While noting signs of a resumption in production activity and capital investment, the statement explicitly identifies new constraints in the form of shortages of shipping containers, engineering plastics, and semiconductors, and explains that challenging industry conditions remain. - FY2021-Q3Recovery in production activity alongside challenging capital investment conditionsAnnual report
「In the machinery and equipment-related industries surrounding our Group, exports have begun to increase as countries reopen their economies, and production activity is also showing signs of recovery. However, investment sentiment, which had cooled as corporate earnings deteriorated, has not improved, and capital investment remains under challenging conditions.」
While exports and production activity are showing signs of recovery, the statement explains that investment sentiment has not improved and that challenging conditions for capital investment continue. - FY2021-Q2RestatedAnnual report
「Although some believe that the sharp economic downturn has bottomed out, companies remain highly cautious about capital investment against a backdrop of deteriorating performance caused by activity restrictions and weak demand, and investment on an execution basis remains below the previous year.」
While some believe that the sharp deterioration in business conditions has bottomed out, the statement explains that companies remain cautious about capital investment against a backdrop of activity restrictions and weak demand, and that investment continues to be below the previous year on an execution basis. - FY2021-Q1WorsenedAnnual report
「In the machinery and equipment-related industries surrounding our Group, production machinery has undergone substantial production cuts, particularly in the global automotive industry, where sales remain sluggish. As the recovery in exports is expected to take time, it has become clear that companies are taking a more cautious approach to capital investment.」
In addition to the previous economic downturn, production adjustments, and postponement of investment plans, the statement explicitly identifies weak global automotive sales, substantial production cuts in production machinery, and a more cautious approach to capital investment. - FY2020-Q3WorsenedAnnual report
「In the machinery and equipment-related industries surrounding our Group, demand for investment in labor-saving equipment remains firm, driven by labor shortages, responses to work-style reform, and the use of new IT technologies. However, manufacturing activity has stagnated against a backdrop of deteriorating business conditions, and the environment has become increasingly challenging.」
While stating that demand for investment in labor-saving equipment remains firm, the statement explains that business conditions have entered a downturn, manufacturing activity has stagnated, and the industry environment has become more challenging. Existing risks related to business cycles, supply and demand, and inventory adjustments have become more clearly adverse. - FY2020-Q2WorsenedAnnual report
「In the machinery and equipment-related industries surrounding our Group, demand for investment in labor-saving equipment remains firm against a backdrop of labor shortages and work-style reform. However, in addition to excess inventories of production goods at manufacturing sites and in intermediate distribution, companies have begun freezing or postponing investment plans, and the pause in activity has become increasingly pronounced.」
While demand for labor-saving equipment remains firm, the statement explicitly identifies excess inventories of production goods, frozen or postponed investment plans, and a deepening pause in activity, providing further detail on the weakness of the manufacturing sector's business and supply-demand environment. - FY2020-Q1WorsenedAnnual report
「In the machinery and equipment-related industries surrounding our group, investment demand for labor-saving equipment remains firm against a backdrop of labor shortages, but signs of weakness have also emerged, including declines in orders for semiconductor manufacturing equipment, machinery manufacturing, and industrial robots.」
While investment demand for labor-saving equipment remains firm, the company provides more specific details on industry weakness, including declines in orders for semiconductor manufacturing equipment, machinery manufacturing, and industrial robots. - FY2019WorsenedAnnual report
「In the machinery and equipment-related industries surrounding our group, demand for the replacement of aging equipment across a wide range of industries was strong, as was investment in automation and labor-saving equipment to address labor shortages and comply with work-style reforms. However, some production and inventory adjustments have been observed since the beginning of the year, and difficult conditions are expected going forward.」
In contrast to the existing risks of economic fluctuations, supply-demand imbalances, and inventory adjustments, production and inventory adjustments have emerged in some areas, and difficult conditions are expected going forward. - FY2018RestatedAnnual report
「Depending on imbalances between supply and demand in manufacturing, economic fluctuations, and inventory adjustments, the performance of our group may be affected.」
The company reiterates the risk of an impact on performance from supply and demand in manufacturing, economic fluctuations, and inventory adjustments. - FY2017RestatedAnnual report
「Our group handles a wide range of capital goods and conducts business across various industries in Japan. However, our business is closely correlated with statistical indicators such as the Industrial Production Index and the operating ratio index for manufacturing. Depending on imbalances between supply and demand in manufacturing, economic fluctuations, and inventory adjustments, the performance of our group may be affected.」
The company reiterates the risk that performance may be affected by supply and demand in manufacturing, economic fluctuations, and inventory adjustments. - FY2016First statedAnnual report
「Our group handles a wide range of capital goods and conducts business across various industries in Japan. However, our business is closely correlated with statistical indicators such as the Industrial Production Index and the operating ratio index for manufacturing. Depending on imbalances between supply and demand in manufacturing, economic fluctuations, and inventory adjustments, the performance of our group may be affected.」
Given the nature of the products handled, the company explains the risks associated with supply and demand in manufacturing, economic fluctuations, and inventory adjustments.