Record 10 per cent Japanese manufacturers to cut production abroad
06 Apr 2023 11:26pm
Electric equipment makers were the most likely to say they were planning cuts, at 21 per cent, followed by textiles at 15 per cent and glass and ceramics at 14 per cent. - 123RF pic
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According to the Japanese Cabinet Office's annual survey for fiscal 2022, around 10 per cent of companies expect to scale back their production handled outside Japan, marking an increase of 7 percentage points from a decade earlier and the highest reading since the survey began in fiscal 1987.
Meanwhile, the percentage looking to expand dropped 23 points to 37 per cent, amid a growing focus on supply chain risks and readiness for a global economic slowdown.
Electric equipment makers were the most likely to say they were planning cuts, at 21 per cent, followed by textiles at 15 per cent and glass and ceramics at 14 per cent.
Offshoring had gained steam as manufacturers sought to lower costs or move production closer to customers until recently. But as the pandemic and the Ukraine crisis have driven home the risks of supply chain disruption, more companies are focusing on building more resilient networks, Nikkei Asia said. -Bernama/Xinhua
