ID :
201211
Sun, 08/14/2011 - 16:52
Auther :
Shortlink :
http://m.oananews.org//node/201211
The shortlink copeid
Over 50% of firms eye greater overseas expansion to fight adversity+
TOKYO, Aug. 14 Kyodo -
More than half of 105 leading Japanese companies surveyed are looking to locate more factories and offices overseas to counteract the strong yen, falling share prices and power supply shortages, according to a Kyodo News poll.
The survey found 55 of the 105 said they would consider stepping up overseas expansion when asked what actions they may take to cope with these increasingly harsh economic conditions.
The findings corroborate widespread concern that if these harsh conditions lead Japanese companies to relocate factories and offices to emerging economies and elsewhere abroad, the hollowing-out of Japan's domestic industries will only accelerate.
The survey was conducted from late July to early August, and the 105 respondents include Toyota Motor Corp., Honda Motor Co., Nissan Motor Co., Sony Corp. and Nippon Steel Corp. Their top managers were asked to respond.
Asked how they view the current state of the economy, 51 companies said economic activity is expanding either slowly or steadily, while 13 said the economy is receding either slowly or substantially. Forty-one companies said the economy is at a standstill.
As for the outlook for the economy for the next six months, 70 companies -- or about 70 percent -- said they believe it will improve. Only four said it is grim, with the remaining 27 said economic conditions will stay the same.
Asked what factors would make them pessimistic and asked to pick one or more answers from eight options, 54 cited the yen's appreciation, while 34 specified a U.S. economic slowdown.
Another 34 picked a prolongation of current electricity supply shortages caused by the March disaster at the Fukushima Daiichi nuclear plant and subsequent freeze on restarting nuclear power plants shut down for maintenance and safety checks.
Another 27 picked anemic domestic personal consumption.
Asked about the impact on sales and profitability if the dollar remains below 80 yen, 50 companies -- about half -- said it would depress sales and profitability either sharply or mildly.
But 37 said their business would remain almost unscathed.
Asked the range the yen-dollar rate needs to stay for their company to maintain its domestic business bases and current domestic workforce size, 27 said the 90-100 yen range, while 21 said 85-90 yen.
Only four said they would be able to stand the dollar depreciating below 75 yen.
Asked what Japan should do to alleviate the worsening power shortage, 31 said utilities ought to restart nuclear reactors once they clear the government's safety checkup.
Asked what measures they are following to cope with the shortages, 90 said they are cutting back on power consumption by curbing the use of air conditioning and lighting.
More than half of 105 leading Japanese companies surveyed are looking to locate more factories and offices overseas to counteract the strong yen, falling share prices and power supply shortages, according to a Kyodo News poll.
The survey found 55 of the 105 said they would consider stepping up overseas expansion when asked what actions they may take to cope with these increasingly harsh economic conditions.
The findings corroborate widespread concern that if these harsh conditions lead Japanese companies to relocate factories and offices to emerging economies and elsewhere abroad, the hollowing-out of Japan's domestic industries will only accelerate.
The survey was conducted from late July to early August, and the 105 respondents include Toyota Motor Corp., Honda Motor Co., Nissan Motor Co., Sony Corp. and Nippon Steel Corp. Their top managers were asked to respond.
Asked how they view the current state of the economy, 51 companies said economic activity is expanding either slowly or steadily, while 13 said the economy is receding either slowly or substantially. Forty-one companies said the economy is at a standstill.
As for the outlook for the economy for the next six months, 70 companies -- or about 70 percent -- said they believe it will improve. Only four said it is grim, with the remaining 27 said economic conditions will stay the same.
Asked what factors would make them pessimistic and asked to pick one or more answers from eight options, 54 cited the yen's appreciation, while 34 specified a U.S. economic slowdown.
Another 34 picked a prolongation of current electricity supply shortages caused by the March disaster at the Fukushima Daiichi nuclear plant and subsequent freeze on restarting nuclear power plants shut down for maintenance and safety checks.
Another 27 picked anemic domestic personal consumption.
Asked about the impact on sales and profitability if the dollar remains below 80 yen, 50 companies -- about half -- said it would depress sales and profitability either sharply or mildly.
But 37 said their business would remain almost unscathed.
Asked the range the yen-dollar rate needs to stay for their company to maintain its domestic business bases and current domestic workforce size, 27 said the 90-100 yen range, while 21 said 85-90 yen.
Only four said they would be able to stand the dollar depreciating below 75 yen.
Asked what Japan should do to alleviate the worsening power shortage, 31 said utilities ought to restart nuclear reactors once they clear the government's safety checkup.
Asked what measures they are following to cope with the shortages, 90 said they are cutting back on power consumption by curbing the use of air conditioning and lighting.
