Production Returning to Japan on Moves to Review Supply Chains
Tokyo, Oct. 22 (Jiji Press)--More and more manufacturers are shifting their production back to Japan as part of moves to review their supply chains after disruptions due to the COVID-19 pandemic and the U.S.-China trade war.
Some have relocated their manufacturing back to Japan to take advantage of stronger export competitiveness following the yen's fall to 32-year lows versus the dollar.
The historic depreciation of the Japanese currency may become a major turning point for manufacturers that have moved their production operations from Japan to overseas for a long time.
Iris Ohyama Inc., a household goods and appliances maker based in the northeastern city of Sendai, started to shift manufacturing of around 50 plastic products from China to plants in Japan in September.
Soaring crude oil prices have raised the costs of transporting products to Japan. "We can reduce costs by 20 pct on average by switching to domestic production," an Iris Ohyama official has said.
[Copyright The Jiji Press, Ltd.]