• Survey period: June 14 to July 1, 2011
• Subject to the survey: 123 companies
  (65 in the manufacturing industry and 58 in the retailing and service industry)
• Survey items

  (Manufacturing industry)

  - Current status of supply chain

  (All industries)

  - Capital investment

  - Reconstruction demand

  (Retailing and service industry)

  - Impact of voluntary self-restraint (or jishuku) in economic activities

• Survey results

  (1) Current status of supply chain (manufacturing industry)

  (<1> Production level at the earthquake-affected production bases)

  - 80% of the affected production bases have recovered to or exceeded the production level before the earthquake.

  - More than 70% of manufacturers who answered that the production level was lower than before the earthquake answered that production would recover to pre-earthquake levels by the end of 2011.

  (<2> Production level at production bases not directly affected by the earthquake)

  - 83% of the production bases that had not been affected by the earthquake have recovered to or exceeded pre-earthquake production levels

  - About 90% of manufacturers who answered that the production level was lower than before the earthquake answered that production would recover to pre-earthquake levels by the end of 2011.

  (<3>Factors of the production levels at the non-affected production bases)

  - Main factors that had caused a decrease of production were a decline of domestic demand in the materials industry, and insufficient parts and components in the processing industry.

  - On the other hand, main factors that had contributed to recovery or an increase of the production levels were reconstruction from the earthquake-disaster and alternative production to the affected production bases in the materials industry, and a recovery of the supply chain and an increase of overseas demand in the processing industry.

  (<4> Parts and components procurement status)

  - 97% of the manufacturers answered that they have already started to procure parts and components from alternative suppliers.

  - Compared with the last survey in April, the ratio of the companies who answered that they have not found any alternative suppliers decreased from 12% to 0% in the materials industry and from 48% to 18% in the processing industry.

  (<5> Alternative suppliers)

  - Many of the manufacturers answered that they have secured domestic alternative suppliers in Chugoku, Kinki and other districts in western Japan. While many of them answered that they have secured overseas alternative suppliers in China or other Asian regions.

  (<6> Suppliers after the restoration)

  - 83% of the manufacturers answered that they would procure supplies from the original domestic suppliers after restoration of the suppliers.

  - On the other hand, 42% of all the manufacturers answered that they would procure from the current overseas alternative suppliers even after the reconstruction of the original suppliers.

  (<7> Impact on overseas trade)

  - About 30% of the manufacturers answered that they have experienced negative impacts on overseas trade caused by the earthquake, such as a decrease of dealings with overseas customers and requests for termination of contracts.

  - As for the reasons given for these impacts, they answered that they could not secure sufficient supplies as well as over-reaction to the nuclear power accident.

  (2) Capital Investment

  - Most companies have not changed their FY 2011 capital investment plan since April 2011.

  - Many manufacturers planned to increase the amount of capital investment in FY 2011 compared with that in FY 2010. There are many investments in “rationalization and labor saving”, “new products or advanced product development” and “maintenance and repair” domestically, while there are many in “capacity enhancement” overseas.

  (3) Reconstruction demand

  - About 50% of all industries and more than 60% of the manufacturing industry answered that they expect sales to increase resulting from the demand for reconstruction.

  (4) Impact of voluntary self-restraint, or jishuku in economic activities

  (Impact of jishuku in economic activities)

  - Nearly 60% of the retail and service industry answered that current sales have decreased compared with pre- earthquake levels.

  (Change in sales from pre-earthquake levels)

  - More than 80% of the retail and service industry answered that they are still experiencing an impact of “jishuku” while 90% of them answered that the impact of “jishuku” has been lessening.
  

  - Compared with the last survey in April, (1) Impact of insufficient supply has decreased from 12% to 0% and means the insufficiency has already been settled; (2) Impact of decreased foreign customers has increased from 24% to 46%.

The results of the surveys announced today are as shown in the following materials:

• 1: Emergency Survey on the Actual Status of Industries after the Great East Japan Earthquake (2) (PDF:418KB)
• 2:Collection of Real Opinions (PDF:71KB)

• Results of the first survey (released on  April 26,2011)

August 1, 2011

Macro Economic Affairs Division, Economic and Industrial Policy Bureau