45% of new virus companies "deteriorate business performance" NHK questionnaire

45% of new virus companies "deteriorate business performance" NHK questionnaire February 17 18:10

NHK conducted a questionnaire survey of major domestic companies in connection with the spread of the new coronavirus, and found that 45% of the companies said that their business performance would deteriorate. We also found that nearly 30% of companies expect business to take about six months to return to normal.

From July 7 to 14, NHK conducted a questionnaire survey of 100 major companies in a wide range of industries, including manufacturing, retail and finance, and received 81 responses.

When asked about the extent to which the spread of infection would affect management, 27% of companies said that they had already had a negative impact. In addition, 6% of respondents said that "we anticipate adverse effects," and 60% said, "If the situation is prolonged, there is a possibility that adverse effects will occur." No company answered "no effect" or "a positive effect."

In addition, when asked about the specific impact in multiple responses, 57 companies were the most frequent, saying that "self-restraint and ban on business trips and a decrease in visitors from China are hindering traffic to and from China." There were 53 companies that said, "Production and sales at Chinese bases are hindered or could be hindered," and 40 companies saw "decrease in sales of products and services."

Regarding the impact on business performance due to the spread of infection, 45% of respondents said that they were "deteriorating", with 24% saying "No change", and no respondents saying "Improvement", with 29% saying "No answer".

On the other hand, when asked how long it would take for the business to return to normal, 28% of the respondents answered "about half a year", 17% answered "about 3 months", and "about 1 month" 4% answered "about a year" for some companies. "No answer" was 48%. The survey suggests that many companies in the country are worried about adverse business effects and prolonged events.

Manufacturers with factories in China

Due to the spread of the new coronavirus, Japanese electronic board manufacturers with factories in Hubei Province, China, etc., have been halting operations and have been working on measures such as examining transportation routes for parts to resume operations.

Headquartered in Chuo-ku, Osaka, "SEEKS" is the top manufacturer in Japan in the field of EMS and contract manufacturing services, which undertakes the manufacture of electronic boards and other products upon receiving orders from other manufacturers.

In China, there are three factories in Hubei Province, Xiaoguan and Shanghai, and in Guangdong Province and Dongguan. It mainly manufactures parts used in automobiles and delivers them to automobile manufacturers through parts manufacturers in China.

Following notice from the authorities, the company has postponed the reopening of Kokan's factory to early next month.

Until now, the company has transported the parts required for production from a warehouse in Shanghai, and first considered transporting it by truck to resume operations. However, shortages of drivers and traffic jams due to checkups provided information that logistics was not functioning.

The company also considered transporting parts by air from Shanghai to Hong Kong, but concluded that transportation could be severe due to the possibility of suspension of flights from Hong Kong. For this reason, we are currently considering trucking via Hong Kong.

The company's sales in China, including its three factories, make up about a quarter of the company's total. The company is increasingly concerned that prolonged shutdowns could affect business results.

Koji Yanase, Managing Director of SIIX's business, said, “Such a place in China, where many industries converge, has a huge impact because it has been blocked. However, in the future, we will have to consider moving production areas outside of China. "

Production sites review

With the spread of the new coronavirus infection in China, there is a movement among companies to review their production bases.

Of these, the order suit retailer, which has 15 stores in Tokyo, Osaka, and Kyoto, has outsourced sewing to a local company's factory in China for more than 10 years, and costs 50,000 yen for three suits. Has been the main product for sale.

However, the garment factories in Hubei Province, which are severely affected by the spread of the new coronavirus, are unable to resume operations after the end of the Lunar New Year, and two factories outside Hubei Province are responding.

Delivery of the ordered suit to the customer is usually in the order of one month, and there is no delay at the moment, but prolonged shutdowns and shutdowns of other factories can delay delivery.

The store explains to customers that their upcoming orders may be delayed, but they are worried that if this situation persists, some people will forgo purchases.

For this reason, suits sewn at domestic factories, which are more expensive than those made in China, are urgently reduced from this month and recommended to customers. Domestic factories have stable production.

In addition, the store is considering subcontracting sewing to factories in Southeast Asia and elsewhere.

"It's risky to continue sewing only in one country, so it's important to look for a new factory. In the meantime, we may not be able to sew in China. Is going to be a worrying time. "