Japanese Manufacturers Slowly Shifting to Domestic Production
Tokyo, Nov. 18 (Jiji Press)--Moves to transfer overseas production hubs to Japan are spreading gradually among Japanese manufacturers, amid rising geopolitical risks over China, growing labor costs abroad and the yen's weakening.
But cautiousness about such moves persists, as various challenges are expected in bringing manufacturing back to Japan.
"We went (overseas) for cheap wages, but that appeal is waning," Canon Inc. <7751> Chairman and CEO Fujio Mitarai said at a press conference in October. He indicated that the company plans to review its overseas production, including in China and Southeast Asia.
Mitarai noted that the yen's depreciation is a "major reason" for the review. "We'll bring back our main plant to Japan," he stressed.
Canon has already moved production of digital cameras back to Japan, and is planning to do the same for office equipment.
[Copyright The Jiji Press, Ltd.]