GDP historic drop Corona uncertain move to launch new business

GDP historic fall Amid the fear of corona, there is also a move to launch a new business at 16:39 on August 17th.

From April to June, GDP (Gross Domestic Product) fell by 27.8% in terms of annual growth rate, which was the biggest drop after the Lehman shock, which was below minus 17.8%. ..
While there are concerns that the spread of the new coronavirus will have a longer-lasting effect, there is a move to find a way to new business.

Anxiety about long-term impact

For men in their 40s who work as full-time employees at a machine maintenance maker in Aichi Prefecture, the summer bonus decreased to nearly half of last year's due to decreased sales, etc., and it was about 36,000 yen.
Also, due to the spread of infection, monthly income has decreased since April. In particular, the monthly income in June was about 130,000 yen in May, as many days were closed in May.
The monthly income for men is usually around 240,000 yen, not including overtime pay, which is about 110,000 yen less than this.
Men received a national special flat-rate benefit of 100,000 yen, but they have kept food costs as low as possible by purchasing cheap cup ramen in bulk at a supermarket.
Earnings have returned to their normal levels since last month, and more jobs will be available later this month. However, as the new coronavirus infection spreads, he is worried that he will be forced to take a leave of absence again and the effects of a decrease in income, etc., will be prolonged.
“I have been told by the company that the amount of work will increase, but I am more worried about how much I will return to the original level than I expected. Since I am worried about my future life, I will save as much as possible and save as much as possible. I want to turn it around."

Aircraft parts manufacturers...

Some parts manufacturers of aircraft, whose movements are restricted and demand is drastically decreasing all over the world, are moving to a completely different business in order to make even more sales.
Aoki, a metal parts manufacturer with 20 employees, located in Higashi-Osaka City, Osaka, a manufacturing town where approximately 6000 factories are gathered. This is the company that devised the plan for the satellite "Maido No. 1".
We have fine metal processing technology on the order of a thousandth of a millimetre, and aircraft parts account for over 60% of sales.
Through major Japanese manufacturers, we are delivering to Boeing in the USA the metal fittings that connect the structure inside the main wing of the 787 aircraft. The number of parts to be delivered will be 100 to 200 per aircraft, but the demand for aircraft is drastically reduced due to the new coronavirus.
Boeing has a policy of drastically reducing the production of passenger aircraft, and the effects are directly hitting parts manufacturers. In April and May, sales were about the same as the previous year because there was production for the orders received before the influence of the new Corona, but sales were down 30% last month.
Furthermore, this month and next month there are no orders for aircraft related parts.
The company uses a national employment adjustment subsidy to leave a large number of employees on leave, and on the 17th day of the Obon holiday, only two managers worked.
The company decided to undertake the business of a distributor of an air purifier made by another manufacturer, in order to make even more sales.
President Aoki says, "It is said that unless corona converges, the business will not start up, and it will take 3 years at the earliest, and 5 years at the normal time. Since SMEs do not have enough funds, it is a different approach from now. I want to believe that hard work will pay off even if it is unwilling," he said.

Sheet metal processing manufacturers...

Gunma Prefecture is a company that aims to grow by moving to new businesses while being hit by the spread of the new coronavirus.
The sheet metal processing manufacturer in Isesaki City, Gunma Prefecture, manufactures the outer frame of the ATM (automatic teller machine), and accounts for more than 50% of the company's annual sales.
However, in March this year, the number of orders received declined due to the delay in the production of ATMs by a major electronics manufacturer of our business partner due to the spread of infection, and the sales of ATMs were halved in May compared to the same month of the previous year. Also, it decreased by 30% in June.
Under such circumstances, the company focused on air purifiers for medical institutions. A high-performance filter can be installed in a thin body with a thickness of about 10 cm to significantly remove viruses, and it is used as a partition for the examination room.
Originally, we started as a new business, partly because demand for ATMs was sluggish, but the annual production was 300 units, which accounted for less than 10% of the company's sales.
However, due to the spread of the new coronavirus infection, orders from hospitals and nursing homes to manufacturers of business partners have been increasing, and the monthly production volume has increased tenfold, from 300 to 500 units.
Since all parts are manufactured domestically and may not be affected overseas, the company has decided to grow it into one of its new core businesses.
We plan to invest 1 billion yen to build a new plant next year and increase the production capacity to more than 2000 units per month.
Hiroaki Okabe, president of “Okabe Industry” said, “The ATM is down, but because of the increase in other jobs due to the influence of the coronavirus, I am able to cancel it. I am working hard and making a preparation plan. I want to go there."

Can restaurants find a way to meet new needs?

In response to the movement to refrain from drinking parties, some restaurants are finding a way to meet the needs of one person or a small number of people to enjoy eating out at a short time after work.
At the end of last month, Pronto, a major food chain, opened a new style of restaurant where you can eat and drink while standing in Minato-ku, Tokyo.
The target is a woman who wants to finish eating in a short time after work.
I also have a desk and a chair, but I have raised the desk so that I can stand and drink. We have reduced the number of seats to about 20, which is half the number of stores we have been operating.
The menu was also drastically revised, and the dishes on the platter that were supposed to be used at "Girls' Association" were eliminated, and small dishes were served to serve one serving.
At the moment, the number of customers visiting the new store is only about 50% of the target, but the average stay time of the customers is about 30 minutes and the customer spends a lot of time in a short time. Says.
Proton's Seito Taniguchi said, “The demand for food and drink has decreased due to the influence of corona, but I still think there is a need to eat outside. I feel frustrated, but I would like to shape the store in the corona era. ”

Increased employee burden at long-established inns

One of Japan's leading tourist destinations, the ryokan in Miyajima, Hiroshima Prefecture, is facing an ever-decreasing number of guests, but the burden on employees is increasing due to office work to prevent infection and receive administrative assistance.

At Miyajima Grand Hotel Arimoto, a 400-year-old inn in Miyajima, Hatsukaichi, Hiroshima Prefecture, last month's sales were down about 70% from the same month last year.

In addition to the “Go To Travel” tourism demand stimulus measures, the prefecture and city subsidies have been receiving a certain amount of priming, but this month, sales are expected to fall by approximately 60% from last year.

This inn takes stricter infection control measures than industry guidelines. In the guest rooms, hangers and information booklets are also disinfected, and common areas such as the lobby are disinfected every two hours.

In addition to these infection prevention measures, the work burden of receiving administrative assistance overlaps, which is said to increase the burden on employees.

One employee is trying to overcome multiple barriers, such as the front desk staff serving meals.

Takaya Arimoto, Senior Managing Director of "Miyajima Grand Hotel Arimoto," said, "I would like to continue working hard to improve the accommodations of our guests every day so as not to give them anxiety and still have fun." It was

Tsukuba Sightseeing Railway "In the autumn leaves season..."

Against the background of the largest drop in GDP growth this time, “personal consumption” has fallen sharply due to the spread of new coronavirus infections and the tendency to refrain from traveling and eating out.
The Tsukuba Kanko Railway, which operates cable cars and ropeways on Mt. Tsukuba in Ibaraki Prefecture, which attracts 2.5 million tourists every year, was forced to be suspended for 23 days including the long holiday period due to the new coronavirus.
It means that the number of passengers decreased by 134,000, or 75% in the three months until June, compared to the same period last year.
The company is currently operating by reducing the number of passengers to less than half in order to avoid crowding, but from 11th to 15th of this month during the Bon holiday, the number of passengers will recover to 85% of the usual year. did.
However, few people use the restaurant on the observatory near the summit, and it is believed that some people are worried about becoming crowded. Starting this month (August), the company has set up a site where you can buy items sold at souvenir shops online, and is trying to secure sales as much as possible.
Atsushi Sudo, Deputy Director of the Tsukuba Kanko Railway Co., Ltd., said, "I was greatly affected by the fact that I was unable to do business during the large holidays. In the fall foliage season, many people were welcomed. I want it."

Also affects traditional crafts

The sluggish economic activity caused by the new coronavirus has seriously affected local traditional crafts.
Unlike the traditional Kokeshi that is often produced in Tohoku and other regions, the "Kokeshi Kokeshi" that is actively produced in Gunma Prefecture is characterized by its free shape and design. It is especially popular as a Japanese souvenir in Asakusa, Tokyo, and Kyoto. Popular with tourists.
At the factory in Haruto-mura, which manufactures 120,000 pieces a year, "Uzasaburo Kokeshi" is also popular for girls like Kappappa, and until last year, production could not catch up with inbound demand.
However, due to the impact of the new coronavirus, the number of foreign tourists has drastically decreased, and since March this year, orders from souvenir shops have almost disappeared, and sales have fallen to about one-fifth of last year.
For this reason, the studio has begun to create new creative kokeshi dolls that will attract the attention of Japanese people to cultivate new demand.
While the end of the new coronavirus could not be seen, the kokeshi doll that designed the "Ambie", a youkai who is supposed to protect people from epidemics, was sold and is well received.
In addition to this, we are also focusing on our wisdom by making a kokeshi doll with Gunma-chan, a Yuru character from the prefecture, on top of Gunma's famous kamameshi, and promoting it on SNS.
This studio has been using the employment adjustment subsidy from April to rest all 25 employees, but the deadline for special measures to raise the maximum amount of the subsidy is the end of next month. Maintaining future employment is an issue.
Yuji Okamoto, president of "Uzasaburo Kokeshi," said, "I knew that things would be the busiest in the Tokyo Olympics, but I'm at a loss. When craftsmen raised their arms, this situation happened. It's very disappointing, and we want to do everything we can, such as strengthening Internet-based advertising and sales to maintain employment."