Reuters Poll Indicates Up To 60% Of Japanese Companies Impacted By Production, Supply Chain Disruptions

Tyler Durden's picture

Even though US companies have yet to step up and indicate just how badly they have been affected by the Japanese quake (which could take a while: one of the benefits of massive inventory stockpiling), Japan is not that lucky. According to a Reuters poll the March 11 catastrophe has negatively affected nearly 60 percent of Japanese companies, disrupting production and supply chains."The special survey of 400 large firms was taken between March 25 and April 11 in tandem with the monthly Reuters Tankan, a poll of corporate sentiment... While Japanese companies are likely to be squeezed by production disruptions in northern Japan, as well as power shortages and supply woes, they may not feel the same pain as after the collapse of Lehman Brothers, when lending markets froze. "The impact of this earthquake will not be on the same scale as the Lehman crisis," said Soichiro Monji, chief strategist at Daiwa SB Investments, a Japanese asset management firm." Considering money markets froze up, stock plunged 40% and the world virtually ended in the months following Lehman, that's probably good news. As for the bad news: "Nearly 70 percent of respondents said difficulty in acquiring materials or parts was the single biggest problem in righting their businesses, a sign that supply chains remained hampered." And considering the bulk of Japanese production is export oriented, it is only a matter of time before these disruptions spread globally.

From Reuters:

Global companies from semiconductor makers to shipbuilders are moving to minimise supply disruptions caused by the disasters. The earthquake and tsunami destroyed infrastructure and knocked out factories supplying products from steel to high-tech components.

Firms such as Toyota Motor Corp and Sony Corp have been forced to suspend production. Plant closures and production outages among Japanese technology firms are major threats to the global supply chain, analysts have said.

Yet the problems do not appear severe enough to spur a large number of companies to move factories, change suppliers or shift their target markets, with 79 percent of respondents saying they were not considering moving offices or factories, or shifting suppliers.

Full poll here.

The following is a table of the results of a
special Reuters poll, taken between March 25 and April 11. A total of
400 Japanese firms were surveyed with an average response from about 210
companies.
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1. Did the March 11 earthquake impact your production
facilities or services?
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YES NO

Overall...........................58%.....................42%

Manufacturers.....................62%.....................38%

Non-manufacturers.................54%.....................46%

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2. To what extent has your production or ability to supply services
been restored to prequake levels?
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FULLY RESTORED 80+ PCT 50-80
PCT UNDER 50 PCT

Overall.................26%.................54%...................14%........................7%

Manufacturers...........29%.................48%...................13%.......................10%

Non-manufacturers.......21%.................62%...................15%........................2%

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3. Have the disasters negatively impacted your order volumes or sale
prices?
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YES NO
Overall...........................59%.....................41%

Manufacturers.....................56%.....................44%

Non-manufacturers.................62%.....................38%
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4.

To what extent have your orders volumes and sale prices returned to
prequake levels?
--------------------------------------------------------------------------------------

FULLY RESTORED 90+ PCT 50-90
PCT UNDER 50 PCT

Overall..................2%.................41%...................50%.........................8%

Manufacturers............0%.................30%...................56%........................15%

Non-manufacturers........3%.................53%...................44%.........................0%

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5. What has been the biggest obstacle to resuming your business?

POWER FACILITIES ACQUIRING KEEPING REACHING CUSTOMERS, REPUTATIONAL

MATERIALS STAFF SUPPLIERS DAMAGE

Overall...........64%..........24%........69%......24%...................28%.................17%

Manufacturers.....67%..........29%........80%......19%...................21%.................16%

Non-manufacturers.59%..........18%........55%......30%...................36%.................19%

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6. Will you move factories or offices or change your customers or
suppliers?

HAVE ALREADY DONE SO ARE
CONSIDERING NOW ARE NOT CONSIDERING

Overall..........................4%..........................17%.............................79%

Manufacturers....................4%..........................18%.............................79%

Non-manufacturers................5%..........................15%.............................79%

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