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Preliminary Report of 2020 Basic Survey of Japanese Business Structure and Activities Compiled Based on actual FY2019 results

Japanese

March 31, 2021

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The Ministry of Economy, Trade and Industry (METI) has been conducting a survey titled the "METI Basic Survey of Japanese Business Structure and Activities" with the aim of clarifying how the management strategies of Japanese enterprises and industrial structures actually evolve, and obtaining basic data to support administrative measures. The following is a summarized preliminary report of the 2020 survey based on actual results from FY2019.　Key points revealed from 27,921 total enterprises categorized by target sectors for the survey are as follows:
 

  • Sales per company decreased by 2.3% on a year-on-year basis, a decrease for the first time in three years, and operating profit per company showed a decrease by 12.1% on a year-on-year basis, a decrease for two consecutive years.

  • The ratio of ordinary profit to sales per company decreased by 0.5 percentage points (%pt) on a year-on-year basis for two consecutive years.

  • Value added decreased for the first time in three years due to a decrease in operating profits and other factors.

  • Labor share ratio increased due to a significant decrease in gross value added while the total payroll showed a decrease.

Summary of the results

(1) Sales and profit conditions (see overview figures and tables 1-3 and 2-2)

1. Sales per company in FY2019 were 24.61 billion yen, down by 2.3% on a year-on-year basis, showing a decrease for the first time in three years.
Looking at the major sectors on a year-on-year basis, sales were 21.68 billion yen in the manufacturing sector, down by 4.8%, 40.25 billion yen in the wholesale sector, down by 4.3%, and 25.96 billion yen in the retail sector, up by 4.1%.

2. Ordinary profit per company was 1.17 billion yen, down by 12.1% on a year-on-year basis, showing a decrease for two consecutive years.
Looking at the major sectors on a year-on-year basis, profit was 1.31 billion yen in the manufacturing sector, down by 21.0%, 1.27 billion yen in the wholesale sector, down by 4.9%, and 740 million yen in the retail sector, down by 3.6%.

3. The ratio of ordinary profit to sales per company was 4.8%, down by 0.5%pt on a year-on-year basis.
Looking at the major sectors on year-on-year basis, the ratio was 6.0% in the manufacturing sector, down by 1.3%pt, 3.2% in the wholesale sector, remaining flat, i.e., 0.0%pt, and 2.8% in the retail sector, down by 0.3%pt.

(2) Conditions regarding gross value added, the labor share ratio and the labor productivity (see overview figures and tables 4-1, 5-1 and 5-2)

1. Value added was 123.4746 trillion yen, down by 4.5% on a year-on-year basis, due to a decrease in the operating profits and other factors.
Looking at the major sectors on a year-on-year basis, value added was 57.9198 trillion yen in the manufacturing sector, down by 7.1%, 16.3444 trillion yen in the wholesale sector, down by 1.9%, and 16.7353 trillion yen in the retail sector, down by 2.3%. All of them showed a decrease.

Note: Value added = operating profits + total payroll + depreciation costs + welfare expenses + rental fees of movables and real property + taxes and duties

2. The labor share ratio was 50.1%, up by 1.5%pt on a year-on-year basis, owing to a decrease in value added exceeding a decrease in the total payroll.
Looking at the major sectors on year-on-year basis, the ratio was 50.8% in the manufacturing sector, up by 3.0%pt, 49.5% in the wholesale sector, up by 0.9%pt, and 50.0% in the retail sector, up by 0.7%pt. All of them showed an increase.

Note: The term "labor share ratio" refers to an indicator showing the ratio of personnel expenses to value added, which explains how much of the value that a company has newly created has been allocated to the personnel expenses. The ratios herein were the results derived from the following formula:　　
Labor share ratio = total payroll ÷ value added x 100

3. The labor productivity was 8.623 million yen, down by 2.3% on a year-on-year basis, due to a decrease in both the value added and the number of regular employees.
Looking at the major sectors on a year-on-year basis, labor productivity was 11.014 million yen in the manufacturing sector, down by 5.9%, 10.694 million yen in the wholesale sector, down by 2.0%, and 4.964 million yen in the retail sector, down by 0.5%. All of them showed a decrease.

Note: The term "labor productivity" refers to an indicator used in productivity analysis, representing the value added per employee. The productivities herein were the results derived from the following formula:　 　　　　　
Labor productivity = value added ÷ the number of regular employees

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Division in Charge

Enterprise Statistics Office, Research and Statistics Department, Minister's Secretariat