FY2013 Annual Survey of Corporate Behavior

Table of contents

Survey methodology

01

Summary of the results

03

1

Business outlook and demand forecast

03

2

Exchange rates

13

3

Prices19

4

Growth rate of capital investment

24

5Change in the number of employees

296Overseas production ratio and reverse imports ratio

36Survey methodology

1

Objective of the survey

The objective of this survey is to clarify the actual state of theJapanese economy from the aspect of corporate activities, bycontinuously conducting surveys on how companies forecast
future business outlook and industrial demand trends.

2

Period of the survey

January 2014

3

Survey items

Business outlook and demand forecast, exchange rates, prices,
growth rate of capital investment, rate of change in the number of
employees, ratios of overseas production and reverse imports

4

Coverage

All companies listed in the First Section and Second Section of
the Tokyo and Nagoya Stock Exchange(2,395 companies as ofNovember 1, 2013)
5

Survey method

Self-reporting mailing method using prescribed questionnaire

6

Number of responding

867 (439 in manufacturing industries, 428 in non-manufacturing

companies

industries)

Response rate

36.2%

7

(Note1) The sectors used in this survey are based on the classifications for securities codes.
The breakdown for manufacturing industries is as follows.
Material-type manufacturing industries:
Processing-type manufacturing industries:
Other manufacturing industries:

Textiles & Apparels, Pulp & Paper, Chemicals, Iron & Steel,
Nonferrous Metals
Machinery, Electric Appliances, Transportation Equipment,
Precision Instruments
Foods, Pharmaceutical, Oil & Coal Products, Rubber Products,
Glass & Ceramics Products, Metal Products, Other Products(Note2) The Tokyo and Osaka Stock Exchanges merged their spot markets on July 16, 2013.

-1-

-2-

Summary of the results

1

Business outlook and demand forecast(1) Forecast of Japan’s economic growth rate
○ The real economic growth rate for the “next fiscal year” (FY2014) on an all industries basis(average of actual values) was forecast to rise by 1.3%, which was higher than the resultsof the previous year (FY2012, 1.2%), a rise for the fifth consecutive year.
○ The forecasts for the “next 3 years” (1.4%) and the “next 5 years” (1.5%) were both higher
than the previous year’s survey (1.1% and 1.2% respectively).
○

The forecasts of the nominal economic growth rate for the “next fiscal year,” “next 3
years,” and “next 5 years” were all higher than those of the real economic growth rate,
implying that price increases were expected. The gap between nominal and real growth rate
forecasts has turned to a plus for the first time since the nominal growth rate was includedin these annual surveys in FY2003.

Japan’s real economic growth rate for the “next fiscal year” (FY2014) on an all industries
basis (average of actual values1) ) by the companies surveyed (companies listed on the first andsecond sections of the Tokyo and Nagoya Stock Exchanges) was forecast to rise by 1.3%,
which was higher than the results of the previous year (FY2012, 1.2%), marking a rise for thefifth consecutive year (Fig. 1-1, Table 1-1).
With regard to the medium-term outlook, the forecasts for the “next 3 years” (average of
FY2014‒2016) and the “next 5 years” (average of FY2014‒2018) were 1.4% and 1.5%,
respectively, both higher than the previous year’s results (1.1% and 1.2% respectively).
Looking at the forecast for the “next fiscal year” by capital size, the forecast by companies
with capital of “less than 1 billion yen” was 1.2%, those with “1 to 5 billion yen (not incl.)” was
1.4%, those with “5 to 10 billion yen (not incl.)” was 1.3% and those with “10 billion yen ormore” was 1.1%.
On the other hand, the forecast of nominal economic growth rates for the “next fiscal year”
on an all industries basis (average of actual values) was 1.7%, for the “next 3 years” was 1.7%,
and for the “next 5 years” was 1.8%, all of which were the highest since the FY2006 survey.
The nominal economic growth rate forecasts for the “next fiscal year,” “next 3 years,” and“next 5 years” were all higher than real economic growth rates (0.5% points for the “next fiscal
1)

The averages in this survey are simple averages, and rounded off the decimal third place and assumed the second
place effective numerical value. The numbers rounded to one decimal place are used in the text. For numbers up to
two decimal places, see statistical data at the back “Statistical Charts FY2013”. The same applies hereinafter.

-3-

year”, 0.3% points for the “next 3 years” and 0.3% point for the “next 5 years”), suggesting thatprice increases were expected. As a consequence of these results, the gap between nominal andreal economic growth rates (real economic growth rate subtracted from nominal economic
growth rate) has turned to a plus for the first time since the nominal growth rate was includedin these annual surveys in FY2003 (Fig. 1-2).

[Fig. 1-1] Trend of Japan’s real economic growth rate forecasts (all industries basis)(%)

5.0
Forecast for the next fiscal year

4.0

Next fiscal year
Next 3 years
Next 5 years

Forecast for the next 3 years
Forecast for the next 5 years

3.0

1.3
1.4
1.5

2.0
1.0
0.0
-1.0
-2.0

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

-3.0

Survey yea r (FY)

Note: With regard to the “forecast” for each fiscal year, for example, the “forecast for the next fiscalyear” in the FY2013 survey refers to the forecast for FY2014; the “forecast for the next 3 years”
refers to the forecast for FY2014 to FY2016; and the “forecast for the next 5 years” refers to theforecast for FY2014 to FY2018 (fiscal year average).

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<Reference>:Changes in the gap between nominal and real economic growth for all industries(nominal minus real)[Fig. 1-2] Changes in the gap rate (nominal minus real economic growth) for all industries(% points)

0.6
Forecast for the next fiscal year
Forecast for the next 3 years
Forecast for the next 5 years

0.4
0.2
0.0
△ 0.2
△ 0.4
△ 0.6
△ 0.8
△ 1.0

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Survey year (FY)Note:注)With
各年度の「見通し」は、例えば、平成
regard to the “forecast” for each fiscal 25year,
年度調査における「次年度の見通し」は平成
for example, the “forecast for the next fiscal year”
26 in
the
年度の見通し、
FY2013 survey「今後３年間の見通し」は平成
refers to the forecast for FY2014;26～28
the “forecast
年度の見通し（年度平均）
for the next 3 years”、「今後５
refers to theforecast
年間の見通し」は平成
for FY2014 to FY2016;26～30 年度の見通し（年度平均）を表す。
and the “forecast for the next 5 years” refers to the forecast for
FY2014 to FY2018 (fiscal year average).

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[Table 1-1] Trend of Japan’s economic growth rate forecasts (all industries basis)（％）

Nominal economic growth rate
Survey year

FY

Real economic growth rate

Forecast for the Forecast for the Forecast for the Forecast for the Forecast for the Forecast for the
next fiscal year
next 3 years
next 5 years
next fiscal year
next 3 years
next 5 years

1989

-

-

-

4.3

3.8

3.6

1990

-

-

-

3.6

3.5

3.6

1991

-

-

-

3.1

3.4

3.5

1992

-

-

-

2.4

2.9

3.1

1993

-

-

-

0.8

1.7

2.1

1994

-

-

-

1.8

2.2

2.3

1995

-

-

-

1.7

2.0

2.2

1996

-

-

-

1.5

1.8

1.9

1997

-

-

-

0.9

1.4

1.7

1998

-

-

-

-0.2

0.8

1.2

1999

-

-

-

0.9

1.3

1.5

2000

-

-

-

1.3

1.5

1.7

2001

-

-

-

-0.4

0.6

1.2

2002

-

-

-

0.3

0.7

1.0

2003

0.7

0.9

1.2

1.4

1.5

1.6

2004

0.9

1.2

1.4

1.4

1.5

1.6

2005

1.4

1.6

1.6

1.9

1.9

1.9

2006

1.7

1.7

1.7

2.2

2.1

2.1

2007

1.6

1.6

1.6

1.9

1.8

1.9

2008

-1.5

0.0

0.8

-1.5

0.2

1.0

2009

-0.1

0.6

1.0

0.4

1.0

1.3

2010

0.3

0.7

1.0

0.9

1.2

1.3

2011

1.1

1.1

1.1

1.6

1.5

1.5

2012

0.8

1.0

1.1

1.2

1.1

1.2

2013

1.7

1.7

1.8

1.3

1.4

1.5

Note 1: With regard to the “forecast” for each fiscal year, for example, the “forecast for the next fiscal year” in the FY2013
survey refers to the forecast for FY2014; the “forecast for the next 3 years” refers to the forecast for FY2014 toFY2016; and the “forecast for the next 5 years” refers to the forecast for FY2014 to FY2018 (fiscal year average).
Note 2: The survey of nominal economic growth rates started in FY2003.

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(2) Forecast of growth rate of industry demand○ The forecast of the real growth rate for the “next fiscal year” (all industries basis, averageof actual values) was 1.0%, a positive growth forecast for the fourth consecutive year.
○ Compared to the previous year’s result, the forecast for manufacturing industries rose 0.3%
points, while that for non-manufacturing industries dropped by 0.3% points.
○ Both manufacturing and non-manufacturing industries forecast positive growth for the“next fiscal year,” “next 3 years,” and “next 5 years.”○ Looking at the forecasts for the “next fiscal year” by sector, the growth rate forecasts werehigh in sectors such as “Electric Appliances” (2.2%) and “Pharmaceutical” (2.0%) in
manufacturing industries, and “Other Financial Services” (2.4%) and “Real Estate” (1.4%)
in non-manufacturing industries.
○ Compared to Japan’s real economic growth rate forecast (all industries basis), the real
growth rate forecasts of industry demand were lower for the “next fiscal year,” “next 3
years,” and “next 5 years.”

The forecast of the real growth rate of industry demand for the “next fiscal year” (allindustries basis, average of actual values) was 1.0%. This is the same as the results of theprevious year (FY2012, 1.0%), but still a rise for the fourth consecutive year (Fig. 1-3, Table
1-2).
Compared to the previous year’s result, the forecast for manufacturing industries rose to1.2% from the previous year’s 1.0%, while that for non-manufacturing industries dropped fromthe previous 1.0% to 0.8%. Within the manufacturing industries, the “Electric Appliances”
sector saw a significant rise (1.2% point rise). In the non-manufacturing industries, there was a
noticeable drop in the “Construction” (2.3% point drop) (Fig. 1-6 and 1-7).
With regard to the medium-term outlook, the forecast for the “next 3 years” was 1.2% andthe “next 5 years” 1.3%, both higher than the previous year’s results (1.0% each).
By industry, the forecasts by manufacturing industries were 1.2% for the “next fiscal year,”
1.3% for the “next 3 years,” and 1.3% for the “next 5 years.” Those by non-manufacturingindustries were 0.8% for the “next fiscal year,” 1.1% for the “next 3 years,” and 1.2% for the“next 5 years,” resulting in manufacturing industries expecting higher growth rates for all of thethree forecast types than non-manufacturing industries (Fig. 1-4).

-7-

[Fig. 1-3] Trend of real growth rate forecasts of industry demand (all industries basis)

Note: With regard to the “forecast” for each fiscal year, for example, the “forecast for the next fiscalyear” in the FY2013 survey refers to the forecast for FY2014; the “forecast for the next 3 years”
refers to the forecast for FY2014 to FY2016; and the “forecast for the next 5 years” refers to theforecast for FY2014 to FY2018 (fiscal year average).

By manufacturing industry segment, the forecasts for material-type manufacturing industries
were 1.2% for the “next fiscal year,” 1.3% for the “next 3 years,” and 1.4% for the “next 5
years.” The same figures for processing-type manufacturing industries were 1.8%, 1.7%, and1.7% respectively. For other manufacturing industries, they were 0.5%, 0.7%, and 0.8%
respectively, indicating that processing-type manufacturing industries expect higher growth.
By sector (sectors with 5 or more responding companies), 25 out of 27 sectors expect
positive growth for the “next fiscal year,” while all the 27 sectors expect positive growth for“next 3 years” and “next5 years.” Growth rate forecasts were high for the “next fiscal year” insectors such as “Electric Appliances” (2.2%) and “Pharmaceutical” (2.0%) in manufacturingindustries, and in “Other Financial Services” (2.4%) and “Real Estate” (1.4%) in
non-manufacturing industries (Fig. 1-5).
Looking at the forecasts for the “next fiscal year” by capital size, the forecast by companies
with a capital of “less than 1 billion yen” was 0.7%, those with “1 to 5 billion yen (not incl.)”was 1.0%, companies with “5 to 10 billion yen (not incl.)” was 1.5%, and those with “10 billion
yen or more” was 0.9% (Fig. 1-4).
On the other hand, the forecast of nominal growth rates (all industries basis, average of actual
values) was 1.3% for the “next fiscal year,” 1.4% for the “next 3 years” and also for the “next 5
years,” all higher than the previous year’s results. The forecast for nominal growth rates for the“next fiscal year,” “next 3 years,” and “next 5 years” were all higher than real growth rates(0.2% points for the “next fiscal year,” “next 3 years,” and “next 5 years”), suggesting that priceincreases were expected. The gap between nominal and real economic growth rates has turned-8-into a plus for the first time since nominal growth rate was added to these annual surveys in
FY2003.
Furthermore, in comparison to the forecasts of Japan’s real economic growth rates (allindustries basis), the forecasts of real industrial demand growth rates were lower for “next fiscal
year,” “next 3 years,” and “next 5 years.”[Fig. 1-4] Real growth rate forecasts of industry demand by industry and capital size
By industry

By capital size

10 billion yen or more

All industries

Non-manufacturing

0.0

Other

0.0

Processing-type

1.0

Material-type

1.0

Manufacturing

2.0

All industries

2.0

5 to 10 billion yen(not incl.)

3.0

1 to 5 billion yen(not incl.)

3.0

Forecast for the next fiscal year
Forecast for the next 3 years
Forecast for the next 5 years(%)

Less than 1 billion yen

Forecast for the next fiscal year
Forecast for the next 3 years
Forecast for the next 5 years(%)

Note: The “forecast for the next fiscal year” in the FY2013 survey refers to the forecast for FY2014;
the “forecast for the next 3 years” refers to the forecast for FY2014 to FY2016; and the “forecast
for the next 5 years” refers to the forecast for FY2014 to FY2018 (fiscal year average).

-9-

[Fig. 1-5] Real growth rate forecasts of industry demand by sector
Forecast for the next fiscal year(%)

Forecast for the next 3 years

Forecast for the next 5 years

3.0

2.0

1.0

Note 1: The “forecast for the next fiscal year” in the FY2013 survey refers to the forecast for FY2014;
the “forecast for the next 3 years” refers to the forecast for FY2014 to FY2016; and the“forecast for the next 5 years” refers to the forecast for FY2014 to FY2018 (fiscal year
average).
Note 2: Only sectors with 5 or more responding companies are included for all of the “forecast for the
next fiscal year,” “forecast for the next 3 years” and “forecast for the next 5 years.”- 10 -

Construction

Metal Products

Retail Trade

Pulp & Paper

Land Transportation

Foods

Other Products

Banks

Glass & Ceramics Products

Rubber Products

Warehousing & Harbor Transportation Services

Textiles & Apparels

Iron & Steel

Precision Instruments

Wholesale Trade

Information & Communication

Securities & Commodity Futures

Services

Electric Power & Gas

Chemicals

Real EstateTransportation Equipment

Machinery

Nonferrous Metals

Pharmaceutical

Electric Appliances

Other Financing Business-1.0

All industries

0.0<Reference>: Real growth rate forecasts of industrial demand compared to the previous year’s results(next fiscal year)[Fig. 1-6] Real growth rate forecasts of industry demand by industry compared to the previous
year’s results (next fiscal year)
FY2012 survey
FY2013 survey

(%)
3.0

2.0

1.0

Non‐manufacturing

Other

Processing‐type

Material‐type

Manufacturing

All industries

0.0[Fig. 1-7] Real growth rate forecasts of industry demand by sector compared to the previous
year’s results (next fiscal year)(%)

FY2012 survey

FY2013 survey

3.0

2.0

1.0

0.0

Construction

Pulp & Paper

Metal Products

Retail Trade

Land Transportation

Foods

Other Products

Glass & Ceramics Products

Banks

Warehousing & Harbor Transportation Services

Rubber Products

Textiles & Apparels

Iron & Steel

Precision Instruments

Wholesale Trade

Electric Power & Gas

Information & Communication

Services

Real Estate

Chemicals

Transportation Equipment

Machinery

Nonferrous Metals

Pharmaceutical

Electric Appliances

All industries-1.0

Note: Sectors only include those with 5 or more responding companies in the FY2012 and FY2013 survey.

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[Table 1-2] Trend of growth rate forecasts of industry demand (all industries basis)（％）

Nominal growth rate of industry demand
Survey year

Real growth rate of industry demand

Forecast for the Forecast for the Forecast for the Forecast for the Forecast for the Forecast for the
next fiscal year
next 3 years
next 5 years
next fiscal year
next 3 years
next 5 years

FY 1989

-

-

-

4.5

4.2

4.0

1990

-

-

-

4.2

4.2

4.2

1991

-

-

-

2.7

3.6

3.8

1992

-

-

-

2.0

3.0

3.2

1993

-

-

-

0.4

1.7

2.2

1994

-

-

-

1.7

2.2

2.3

1995

-

-

-

1.8

2.0

2.2

1996

-

-

-

1.4

1.8

2.0

1997

-

-

-

0.5

1.3

1.7

1998

-

-

-

-0.2

0.9

1.4

1999

-

-

-

0.7

1.2

1.4

2000

-

-

-

1.0

1.3

1.5

2001

-

-

-

-1.1

0.3

1.0

2002

-

-

-

-0.0

0.5

0.8

2003

0.7

0.7

0.9

1.0

1.1

1.2

2004

0.9

1.1

1.1

1.1

1.3

1.3

2005

1.2

1.2

1.1

1.5

1.5

1.4

2006

1.6

1.5

1.4

1.8

1.7

1.7

2007

1.4

1.4

1.4

1.5

1.5

1.5

2008

-2.9

-0.5

0.4

-2.7

-0.2

0.6

2009

-0.9

0.3

0.6

-0.5

0.5

0.8

2010

0.4

0.6

0.7

0.8

0.9

0.9

2011

1.0

1.1

1.0

1.4

1.4

1.3

2012

0.8

0.8

0.8

1.0

1.0

1.0

2013

1.3

1.4

1.4

1.0

1.2

1.3

Note 1: With regard to the “forecast” for each fiscal year, for example, the “forecast for the next fiscal year” in the FY2013 survey
refers to the forecast for FY2014; the “forecast for the next 3 years” refers to the forecast for FY2014 to FY2016; and the“forecast for the next 5 years” refers to the forecast for FY2014 to FY2018 (fiscal year average).
Note 2: The survey of nominal growth rates started in FY2003.

- 12 -

2

Exchange rates(1) Forecast yen-dollar rate after 1 year
○ The forecast yen-dollar rate after 1 year (around January 2015) (all industries basis, classvalue average) was 105.7 yen/dollar. This is lower by 17.4 yen from the previous year‘s
results (88.4 yen/dollar), marking a weaker yen forecast for the second consecutive year.
○ The above forecast is also 2.3 yen lower than the yen-dollar rate in the month immediately
before the survey (103.5 yen/dollar in December 2013).

The forecast yen-dollar rate after 1 year (around January 2015) (all industries basis, classvalue average 2）) was 105.7 yen/dollar. The forecast by manufacturing industries was 105.3
yen/dollar and 106.1 yen/dollar by non-manufacturing industries, marking a weaker yen
forecast for the second consecutive year (Fig. 2-1, Table 2-1).
The forecast yen-dollar rate after 1 year was 2.3 yen lower than the yen-dollar rate3) in themonth immediately before the survey (103.5 yen/dollar in December 2013).
[Fig. 2-1] Trend of the forecast yen-dollar rate after 1 year and the break-even yen-dollar rate(all industries basis)(yen/dollar)

160
105.7
92.2
Yen‐dollar rate in the month immediately before the survey 103.5
Forecast yen‐dollar rate after 1 year
Break‐even yen‐dollar rate

140

120

100

80

Forecast yen-dollar rate after 1 year
Break-even yen-dollar rate
Yen-dollar rate in the month immediately before the survey

1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013

60
Survey yea r (FY)

Note 1: “Forecast yen-dollar rate” refers to the class value average, and “break-even yen-dollar rate” refers to theaverage of actual values.
Note 2: “Break-even yen-dollar rate” represents the value of only companies that are conducting exports.

2）“The class value average” is an average value calculated using the median value of each class (for example, if theclass chosen is “10%-20% (not incl.),” the median would be 15%). Note that average values for classes that haveno upper limit are calculated using the lower limit (e.g. for the class “20% or more,” it will be 20%), and those forclasses without a lower limit will use the upper limit (e.g. in “-20% or less,” it will be -20%). The same applies
hereinafter.
3) Interbank Rate(US dollar/yen Central Rate, Average in the Month, Tokyo Market). The same applies hereinafter.

- 13 -

(2) Break-even yen-dollar rate
○ The break-even yen-dollar rate for exporting companies on an all industries basis (averageof actual values) was 92.2 yen/dollar. This was 8.4 yen lower than the previous year’s result(83.9 yen/dollar), the second consecutive year for a weaker yen rate.
○ By industry, the break-even yen-dollar rate was 92.1 yen/dollar in manufacturingindustries, and 93.0 yen/dollar in non-manufacturing industries. These represent an 11.3
yen appreciation for the manufacturing industries and a 10.5 yen appreciation for
non-manufacturing industries, from the yen-dollar rate in the month immediately before thesurvey (103.5 yen/dollar in December 2013).
○ By sector, the break-even yen-dollar rate in sectors such as “Other Products” (99.1
yen/dollar) and “Glass & Ceramic Products” (96.9 yen/dollar) were at weaker yen levels
than the average (the break-even yen-dollar rate for all industries), while sectors such as“Nonferrous Metal” (86.5 yen/dollar) and “Electric Appliances” (89.7 yen/dollar) were atstronger yen levels.
○ Sectors with a stronger yen level than the average have higher real industry demand growthrate forecasts and overseas production ratios than sectors with a weaker yen level.

The break-even yen-dollar rate for exporting companies on an all industries basis (average ofactual values) was 92.2 yen/dollar, which corresponds to a 8.4 yen depreciation compared to theprevious year’s result (83.9 yen/dollar, -10.0% year-on-year), marking the second consecutive
year of a weaker yen (Fig. 2-1, Table 2-1).
It was 11.2 yen weaker than the exchange rate in the month immediately before the survey
and 13.5 yen stronger than the forecast yen-dollar rate after 1 year.
By industry, the break-even yen-dollar rate was 92.1 yen/dollar in manufacturing industries
and 93.0 yen/dollar in non-manufacturing industries. These represent an 11.3 yen appreciation
for manufacturing industries and a 10.5 yen appreciation for non-manufacturing industries fromthe yen-dollar rate in the month immediately before the survey (Fig. 2-2).
Compared to the average (92.2 yen/dollar) in sector terms, the break-even yen-dollar rates in“Other Products” (99.1 yen/dollar) and “Glass & Ceramic Products” (96.9 yen/dollar) were at
weaker yen levels, while sectors such as “Nonferrous Metal” (86.5 yen/dollar) and “ElectricAppliances” (89.7 yen/dollar) were stronger (Fig. 2-3). Furthermore, sectors with a stronger yen
level than the average have higher real industry demand growth rate forecasts and overseas
production ratios than sectors with a weaker yen level (Fig. 2-4).
By capital size, the break-even yen-dollar rate was 94.0 yen/dollar at companies with acapital of “Less than 1 billion yen,” 95.0 yen/dollar at those with “1 to 5 billion yen (not incl.),”92.1 yen/dollar at companies with “5 to 10 billion yen (not incl.)” and 90.1 yen/dollar at thosewith “10 billion yen or more.” Compared to the yen-dollar rate in the month immediately before- 14 -

the survey, the break-even yen-dollar rates at companies with “less than 1 billion yen” and “1 to5 billion yen (not incl.)” were 9.5 yen and 8.5 yen stronger respectively, while the rates atcompanies with “5 to 10 billion yen (not incl.)” and “10 billion yen or more” were 11.4 yen and13.4 yen stronger respectively (Fig. 2-2).

[Fig. 2-2] Forecast yen-dollar rate after 1 year and the break-even yen-dollar rateby industry and capital size
By industry

By capital size

Forecast yen-dollar rate after 1 year
Break-even yen-dollar rate(yen/dollar)

110

Forecast yen-dollar rate after 1 year
Break-even yen-dollar rate(yen/dollar)

110

80

Yen‐dollar in the month immediately before thesurvey (Dec.2013) : 103.5 yen/dollar

Non-manufacturing

Other

Processing-type

60

Material-type

60

Manufacturing

70
All industries

70

Yen‐dollar in the month immediately before thesurvey (Dec.2013) : 103.5 yen/dollar

10 billion yen or more

80

5 to 10 billion yen(not incl.)

90

1 to 5 billion yen(not incl.)

90

Less than 1 billion yen

100

All industries

100

Note 1: “Forecast yen-dollar rate” refers to the class value average, and “break-even yen-dollar rate”
refers to the average of actual values.
Note 2: “Break-even yen-dollar rate” represents the value of only companies that are conducting
exports.

- 15 -

[Fig. 2-3] Break-even yen-dollar rate by sector(yen/dollar)

110
Avera ge: 92.2 yen/dollar(Brea k‐even yen‐dollar rate of a ll i ndustries)

100
90
80

Other Products

Glass & Ceramics Products

Foods

Iron & Steel

Textiles & Apparels

Wholesale Trade

Transportation Equipment

Rubber Products

Metal Products

MachineryPrecision Instruments

Chemicals

Pharmaceutical

Electric Appliances

60

Nonferrous Metals

70

Weaker yen than averageStronger yen than average

Note 1: “Break-even yen-dollar rate” represents the value of only companies that are conducting exports (average ofactual values).
Note 2: Sectors only include those with 5 or more responding companies.

- 16 -

<Reference>: Real growth rate forecast of industry demand and overseas production ratio bybreak-even yen-dollar rate level[Fig. 2-4] Real growth rate forecast of industry demand and overseas production ratio
by break-even yen-dollar rate level

Note 1: Sectors were divided into two groups according to whether the break-even yen-dollar rate was lower (stronger yen) or
higher (weaker yen) than the average. The real growth rate forecasts of industry demand of both groups, etc. werere-calculated (averages of actual values) and then compared.
Note 2: “Next fiscal year” refers to FY2014 and “next 3 years” refers to the average of FY2014-FY2016.
Note 3: Overseas production ratio = Volume of overseas production / (Volume of domestic production + Volume of overseas
production)
Simple average of responding companies including those that reported 0.0% for the overseas production ratio.

- 17 -

[Table 2-1] Trend of the forecast yen-dollar rate after 1 year and the break-even yen-dollar rate(all industries basis)(yen/dollar)

Survey year

Forecast yen-dollar
rate after 1 year

Break-even yendollar rate

Yen-dollar rate in themonth immediately
before the survey

FY 1989

139.2

133.3

143.6

1990

129.5

129.7

133.7

1991

124.2

126.2

128.1

1992

123.4

124.0

124.0

1993

112.2

117.5

109.7

1994

100.2

107.8

99.8

1995

105.3

104.0

101.9

1996

115.6

106.2

113.8

1997

126.2

110.4

129.5

1998

118.4

112.7

117.5

1999

107.6

106.5

102.7

2000

114.2

107.0

112.2

2001

132.8

115.3

127.4

2002

124.5

114.9

122.3

2003

109.3

105.9

107.9

2004

106.4

102.6

103.8

2005

113.2

104.5

118.6

2006

115.5

106.6

117.3

2007

111.0

104.7

112.3

2008

97.0

97.3

90.4

2009

95.9

92.9

89.6

2010

88.4

86.3

83.4

2011

80.3

82.0

77.9

2012

88.4

83.9

83.6

2013

105.7

92.2

103.5

Note 1: “Forecast yen-dollar rate” refers to the class value average, and “break-even yen-dollar rate” refers to
the average of actual values.
Note 2: “Break-even yen-dollar rate” represents the value of only companies that are conducting exports.
Note 3: “Yen-dollar rate in the month immediately before the survey” refers to figures in December except
for FY1994 and FY2008 (figures for FY1994 and 2008 are figures in January since the survey was
conducted in February).

- 18 -

3

Prices(1) Average purchase price○ The average purchase price after 1 year (all industries basis, class value average) was
forecast to rise by 3.0%, an accelerated increase as compared to the previous year’s result(up 1.4%).
○ By sector, the rate of increase was forecast to be high in sectors including “Pulp & Paper”(6.1%) and “Rubber Products” (5.0%) in manufacturing industries, and “Real Estate”(6.5%) and ”Construction” (6.5%) in non-manufacturing industries.

The average purchase price after 1 year was forecast to rise by 3.0% (1.4% in the previous
year’s survey) on an all industries basis (class value average). It was forecast to rise by 2.7% inmanufacturing industries (1.5% in the previous year’s survey) and by 3.4% in
non-manufacturing industries (1.2% previously) (Fig. 3-1, Table 3-1).
By manufacturing industry segment, the average purchase price after 1 year was forecast to
rise by 3.7% in material-type manufacturing industries (up 2.4% in the previous year’s survey),
1.6% in processing-type manufacturing industries (up 0.6% previously) and 3.2% in othermanufacturing industries (up 2.1% in the previous year’s survey), marking higher increase in all
three segments compared to the previous year’s results.
By sector (those with 5 or more responding companies), the rate of increase was forecast toaccelerate in all 25 sectors. The rate of increase is expected to be high in sectors such as “Pulp& Paper” (6.1%) and “Rubber Products” (5.0%) in manufacturing industries, and “Real Estate”(6.5%) and “Construction” (6.5%) in non-manufacturing industries (Fig. 3-2).
By capital size, the forecast average purchase price after 1 year by companies with a capitalof “less than 1 billion yen” was up 3.2% (1.8% in the previous year’s survey), those with “1 to5 billion yen (not incl.)” was up 3.6% (up 2.1% previously), those with “5 to 10 billion yen (notincl.)” was up 2.8% (0.6% previously), and those with “10 billion yen or more” was up 2.3%
(1.0% previously), which represents a rise in prices and also higher increase rates in all classes
compared to previous year’s survey (Fig. 3-1, Table 3-1).

- 19 -

(2) Average sales price○ The average sales price after 1 year (all industries basis, class value average) was forecast
to rise by 1.4%, marking a rebound from the previous year’s 0.1% fall, the first plus in six
years since FY2007 (1.8%).
○ By sector, the rate of increase was forecast to be high in sectors such as “Steel” (3.5%) and“Pulp & Paper” (3.3%) in manufacturing industries, and “Real Estate” (4.4%) and“Construction” (4.2%) in non-manufacturing industries.
○ For both the manufacturing and the non-manufacturing industries, the rise in purchaseprices will surpass that of sales prices. Terms of trade are likely to worsen.

The average sales price after 1 year was forecast to rise by 1.4% (-0.1% in the previous
year’s survey) on an all industries basis (class value average), marking the first rise in six years
since FY2007 (1.8%). It was forecast to rise by 0.8% in manufacturing industries (-0.5% in theprevious year’s survey), and by 2.1% in non-manufacturing industries (0.4% previously), thefourth consecutive year of increase for the latter industries (Fig. 3-1, Table 3-1).
By manufacturing industry segment, the forecast of average sales price after 1 year atmaterial-type manufacturing industries rose by 2.2% (0.4% in the previous year’s survey), andat other manufacturing industries rose by 0.3% (0.5% in the previous year‘s survey), continuous
rises since the previous year for these two segments. For the processing type manufacturing
there is a growth of 0.1% in contrast to the previous year’s -1.8% figure.
By sector (those with 5 or more responding companies), the average sales price after 1 year
was expected to rise in 22 out of 26 sectors, with high increase rates in “Steel” (3.5%) and“Pulp & Paper” (3.3%) in manufacturing industries, and “Real Estate” (4.4%) and“Construction” (4.2%) in non-manufacturing industries (Fig. 3-2).
By capital size, the forecast average sales price after 1 year by companies with a capital of“less than 1 billion yen” was up 0.8%, those with “1 to 5 billion yen (not incl.)” was up 1.5%,
those with “5 to 10 billion yen (not incl.)” was up 1.4%, and those with “10 billion yen ormore” was up 1.3%, all marking increases (Fig. 3-1, Table 3-1).
Companies’ terms of trade 4) were expected to be -1.6% points for all industries (-1.5%
points in the previous year’s survey), -1.9% points for manufacturing industries (-2.1% points
previously), and -1.3% points for non-manufacturing industries (-0.7% points previously),
which indicates that both manufacturing and non-manufacturing industries will see higher risein purchase price compared to sales price, and the terms of trade are likely to worsen (Table
3-1).
4) Terms of trade as mentioned here represent the value obtained upon subtracting the rate of change in the averagepurchase price from the rate of change in the average sales price.

- 20 -

‐6.0- 21 Machinery

Banks

Average purchase priceNonferrous Metals

10 billion yen or more

4.0

Electric Appliances

5 to 10 billion yen(not incl.)

1 to 5 billion yen(not incl.)

Less than 1 billion yen(%)

Precision Instruments

Pharmaceutical

Transportation Equipment(%)

Services

All industries

Non-manufacturing

Other

Processing-type

By industry

Electric Power & Gas‐2.0

Retail Trade‐2.0

Information & Communication

0.0

Warehousing & Harbor Transportation Services

0.0

Material-type
Average purchase price
Average sales price

Metal Products

Wholesale Trade

Glass & Ceramics Products

Foods

Other Products

Iron & Steel

Chemicals

Textiles & Apparels

2.0

Manufacturing

4.0

Land Transportation

2.0

All industries(%)

Rubber Products

Pulp & Paper

Construction

Real Estate

All industries[Fig. 3-1] Forecast rate of changes in average purchase and sales prices after 1 year
by industry and capital size
By capital size
Average purchase price
Average sales price[Fig. 3-2] Forecast rate of changes in average purchase and sales prices after 1 year by sector
Average sales price

8.0

6.0

4.0

2.0

0.0

‐2.0

‐4.0

Note: Sectors only include those with 5 or more responding companies for both “average purchase price”
and “average sales price.”

[Table 3-1] Forecast rate of changes in average purchase and sales prices and thechange in the terms of trade after 1 year by industry and capital size(%, % points)

Average purchase price
FY2013surveyAll industries

Industry

FY2013surveyTerms of trade

FY2012surveyFY2013surveyFY2012survey

3.0

1.4

1.4

-0.1

-1.6

-1.5

2.7

1.5

0.8

-0.5

-1.9

-2.1

Material-type

3.7

2.4

2.2

0.4

-1.5

-2.0

Processing-type

1.6

0.6

0.1

-1.8

-1.5

-2.4

Other

3.2

2.1

0.3

0.5

-2.9

-1.7

Non-manufacturing

3.4

1.2

2.1

0.4

-1.3

-0.7

Less than 1 billion yen

3.2

1.8

0.8

0.9

-2.4

-1.0

1 to 5 billion yen (not incl.)

3.6

2.1

1.5

0.2

-2.1

-1.9

5 to 10 billion yen (not incl.)

2.8

0.6

1.4

-0.6

-1.4

-1.1

10 billion yen or more

2.3

1.0

1.3

-0.4

-1.0

-1.4

Manufacturing

Capital size

FY2012surveyAverage sales priceNote 1: Terms of trade as mentioned here represent the value obtained upon subtracting the rate of change in the averagepurchase price from the rate of change in the average sales price.
Note 2: Terms of trade are derived from the rate of change of the average sales price and the rate of change of the averagepurchase price (refer to statistical tables 3-1 and 3-2) that include two decimal points. Therefore, they may notalways coincide with figures calculated from the rate of change in average sales prices and the rate of change inaverage purchase price in the table above due to rounding.

- 22 -

(3) Terms of trade by average purchase price class
In terms of rate of change of average sales prices by the class of average purchase price after
1 year, the rate of the decline of average purchase prices was higher than the rate of the declineof average sales prices in classes of “-10% (not incl.) to -5% ” and “-5% (not incl.) to 0% (notincl.),” indicating that the terms of trade for these classes were likely to improve (Table 3-2).
On the other hand, the terms of trade were expected to worsen in the class that expects thechange of average purchase prices to be “0%,” since the rate of decline in average purchaseprices was smaller than the rate of decline in average sales prices.
Furthermore, the terms of trade were likely to worsen in classes that expect average purchaseprices to rise, since the rate of increase in average sales prices was lower than the rate ofincrease in average purchase prices.

[Table 3-2] Forecast rate of changes in average sales price by average purchase priceclass and changes in the terms of trade after 1 year (all industries basis)(%, % points)

Average purchase price class

Number of responding
companies
FY2013surveyAverage sales price

FY2012surveyFY2013surveyTerms of trade

FY2012surveyFY2013surveyFY2012survey-20% or less

-

1

-

-20.0

-

0.0

-20% (not incl.) to -10%

-

2

-

-7.5

-

7.5

-10% (not incl.) to -5%

11

17

-6.6

-7.1

0.9

0.4

-5% (not incl.) to 0% (not incl.)

71

130

-2.0

-2.6

0.5

-0.1

0%

109

172

-0.7

-0.5

-0.7

-0.5

0% (not incl.) to 5% (not incl.)

372

272

1.3

0.7

-1.2

-1.8

5% to 10% (not incl.)

144

79

4.1

3.1

-3.4

-4.4

10% to 20% (not incl.)

25

10

8.1

3.5

-6.9

-11.5

20% or more

2

1

8.8

20.0

-11.3

0.0

Note 1: Terms of trade as mentioned here represent the value obtained upon subtracting the rate of change in the averagepurchase price from the rate of change in the average sales price.
Note 2: The rate of change in average purchase price is derived using the median value of each average purchase price class(for example, if the class chosen is “-20% (not incl.)–-10%,” the median would be -15%. However, the “-20% orless” class uses “-20%” and the “20% or more” class uses “20%.”- 23 -

4

Growth rate of capital investment(1) Growth rate of capital investment over the past 3 years○ The growth rate of capital investment over the “past 3 years” (all industries basis, classvalue average) was 7.1%, a larger growth than the previous year‘s survey (6.0%).

The growth rate of capital investment over the “past 3 years” (average of FY2011–2013) onan all industries basis (class value average) was 7.1%. The rate in manufacturing industries was
7.6% and non-manufacturing industries 6.6%, all higher than the previous year’s survey (Fig.
4-1, Table 4-1).

[Fig. 4-1] Trend of growth rate of capital investment over the past 3 years by industry
(%)

15.0
All industries
ManufacturingNon-manufacturing

10.0
7.6
7.1
6.6

5.0

0.0

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

‐5.0

Survey yea r (FY)

Note: With regard to the “past 3 years,” for example, “past 3 years” in the FY2013 survey represents
rate of change from FY2011 to FY2013 (fiscal year average).

- 24 -

(2) Growth rate of capital investment over the next 3 years○ Capital investment was forecast to grow by 4.2% over the “next 3 years” (all industries
basis, class value average). The growth rate is higher than the previous year’s survey(3.5%), representing an increase for the fifth consecutive year.
○ Both the manufacturing (4.4％) and non-manufacturing industries (3.9％) are expected to
grow at higher rates than the previous year’s survey results of 3.5% for each category.
○ By sector, the forecast growth rate was high in sectors such as “Rubber Products“ (9.2%)
and “Glass & Ceramics Products” (7.0%) in manufacturing industries, and “Securities &Commodity Futures” (9.0%) and “Retail Trade” (7.3%) in non-manufacturing industries.
○ The growth rate for the “next 3 years” was expected to be smaller than the growth rate forthe “past 3 years” (7.1% on an all industries basis).

Capital investment was forecast to grow by 4.2% over the “next 3 years” (average of
FY2014–2016) on an all industries basis (class value average). The forecast growth rates in the
manufacturing and non-manufacturing industries were 4.4% and 3.9% respectively.
The growth rate throughout industries was expected to accelerate as compared to that of theprevious year’s survey, with figures of 3.5% for all, for manufacturing, and fornon-manufacturing industry each (Fig. 4-2, Table 4-1).
By manufacturing industry segment, the forecast growth rates of capital investment inmaterial-type manufacturing industries was 3.0%, that in processing-type manufacturingindustries was 4.5% and other manufacturing industries was 5.6%, all representing an increasein capital investment (Fig. 4-3).
By sector (those with 5 or more responding companies), capital investment was expected toincrease in 25 out of 28 sectors, with high increase rates forecast in “Rubber Products” (9.2%)
and “Glass & Ceramics Products” (7.0%) in manufacturing industries, and “Securities &Commodity Futures” (9.0%) and “Retail Trade” (7.3%) in non-manufacturing industries (Fig.
4-4).
By capital size, the forecast capital investment growth by companies with a capital of “lessthan 1 billion yen” was 4.2%, those with “1 to 5 billion yen (not incl.)” was 5.8%, those with “5to 10 billion yen (not incl.)” was 4.4%, and those with “10 billion yen or more” was 2.6%, all ofwhich represent an increase in capital investment (Fig.4-3).
Furthermore, growth rates over the “next 3 years” were expected to decelerate in both the
manufacturing and non-manufacturing industries as compared to the growth rates over the “past3 years” (Fig. 4-3, Table 4-1).

- 25 -

[Fig. 4-2] Trend of growth rate forecasts of capital investment over the next 3 years by industry
(%)

15.0
All industries
ManufacturingNon-manufacturing

10.0

4.4
5.0

4.2
3.9

0.0

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

‐5.0
Survey yea r (FY)

Note: With regard to “next 3 years,” for example, “next 3 years” in the FY2013 survey represents rateof change forecasts from FY2014 to FY2016 (fiscal year average).

[Fig. 4-3] Growth rate of capital investment by industry and capital size
By industry

By capital size

1.0

‐1.0

‐1.0

10 billion yen or more

1.0

5 to 10 billion yen(not incl.)

3.0

1 to 5 billion yen(not incl.)

3.0

Less than 1 billion yen

5.0

Non-manufacturing

5.0

Other

7.0

Processing-type

7.0

Material-type

9.0

Manufacturing

9.0

All industries

Past 3 years
Next 3 years(%)

All industries

Past 3 years
Next 3 years(%)

Note: “Past 3 years” represents the growth rate from FY2011 to FY2013 (fiscal year average), and“next 3 years” represents growth rate forecasts from FY2014 to FY2016 (fiscal year average).

- 26 -

‐10.0- 27 -

Foods

Note 1: “Past 3 years” represents the growth rate from FY2011 to FY2013 (fiscal year average),and “next 3 years” represents growth rate forecasts from FY2014 to FY2016 (fiscal year

Note 2: Sectors only include those with 5 or more responding companies for both “past 3 years”
and “next 3 years.”
average).
Electric Power & Gas

Marine Transportation

Past 3 years

Nonferrous Metals

Banks

Transportation Equipment(%)

Chemicals

Land Transportation

Warehousing & Harbor Transportation Services

Precision Instruments

Information & Communication

Wholesale Trade

Real Estate

Iron & Steel

Pulp & Paper

Machinery

Services

Other Financing BusinessTextiles & Apparels

Construction

Pharmaceutical

Other Products

Metal ProductsElectric Appliances

Glass & Ceramics Products

Retail Trade

Securities & Commodity Futures

Rubber Products

All industries[Fig. 4-4] Growth rate of capital investment by sector

20.0

Next 3 years

15.0

10.0

5.0

0.0

‐5.0

[Table 4-1] Trend of growth rate of capital investment by industry(%)

Past 3 years
Survey year

FY

All industries M anufacturing

Next 3 years
NonNonAll industries M anufacturing
manufacturing
manufacturing

1989

12.3

12.7

11.7

9.7

10.2

8.7

1990

11.9

12.4

11.1

7.9

7.7

8.4

1991

10.9

11.1

10.5

4.6

4.1

5.5

1992

10.5

9.7

11.9

2.8

2.6

3.2

1993

4.1

2.1

7.7

2.0

1.7

2.6

1994

0.9

-0.8

4.3

4.1

4.1

4.1

1995

3.1

2.6

3.9

4.8

4.7

5.0

1996

5.8

5.9

5.6

5.0

5.1

4.9

1997

7.4

8.1

6.4

3.0

3.4

2.4

1998

4.9

5.3

4.2

0.3

0.1

0.6

1999

2.1

0.9

4.1

1.7

1.9

1.4

2000

3.2

2.4

4.5

3.6

3.9

3.0

2001

4.0

4.1

3.9

1.2

0.8

1.9

2002

2.7

2.0

3.7

2.4

2.1

2.8

2003

1.9

1.3

2.8

3.1

3.0

3.2

2004

3.6

4.1

3.0

4.7

5.2

4.1

2005

7.5

9.2

5.5

5.9

6.2

5.5

2006

9.6

11.0

7.8

5.3

5.2

5.5

2007

8.9

10.0

7.7

5.1

5.1

5.1

2008

7.7

7.7

7.7

-1.2

-3.0

0.9

2009

2.2

-1.0

5.7

1.4

0.9

1.9

2010

0.7

-1.4

3.3

3.4

3.9

2.8

2011

3.3

2.3

4.3

4.1

4.9

3.2

2012

6.0

6.4

5.6

3.5

3.5

3.5

2013

7.1

7.6

6.6

4.2

4.4

3.9

Note: With regard to “past 3 years” and “next 3 years,” for example, “past 3 years” in the FY2013 survey represents rate ofchange from FY2011 to FY2013 (fiscal year average), and “next 3 years” represents
FY2014 to FY2016 (fiscal year average).

- 28 -

rate of change forecasts from

5

Change in the number of employees(1) Rate of change in the number of employees over the past 3 years○ The rate of change in the number of employees over the “past 3 years” (all industries basis,class value average) was 0.7%, higher than the previous year’s results of 0.5%.

The rate of change in the number of employees over the “past 3 years” was 0.7% on an allindustries basis (class value average) with -0.0% in manufacturing industries and 1.5% in
non-manufacturing industries (Fig. 5-1, Table 5-1).
The figures for all industries and non-manufacturing industries were higher than the previous
year, while that for manufacturing industries slightly fell from the previous year’s survey.

[Fig. 5-1] Trend in rate of change in the number of employees over the past 3 years by industry(%)

6.0
All industries
Manufacturing4.0

Non-manufacturing

2.0

1.5
0.7

0.0

▲0.0

‐2.0

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

‐6.0

1992

‐4.0

Survey yea r (FY)

Note 1: With regard to “past 3 years,” for example, “past 3 years” in the FY2013 survey represents rateof changes from FY2011 to FY2013 (fiscal year average).
Note 2: The survey of the rate of change in the number of employees started in FY1992.
Note 3: Only the FY2003 survey represents figures for “regular employees.”(The FY2003 survey wasfor “regular employees” and “part-time and temporary employees.”)- 29 -

(2) Rate of change in the number of employees over the next 3 years○ The forecast rate of change in the number of employees (all industries basis, class value
average) over the “next 3 years” was 1.7%, which was higher than that of the previous
year’s survey (1.0%).
○ The number of employees was forecast to increase in both manufacturing (1.1%) andnon-manufacturing (2.3%) industries, compared to the previous year’s survey.
○ By sector, the forecast growth rate was high in sectors such as “Pulp & Paper” (2.1%) and“Pharmaceutical” (2.1%) in manufacturing industries, “Services” (4.6%), and “Retail
Trade” (3.7%) in non-manufacturing industries.
○ Compared to the increase rate over the “past 3 years” (0.7% on an all industries basis), theincrease rate is forecast to accelerate over the “next 3 years.”

The forecast rate of change in the number of employees over the “next 3 years” was 1.7% on
an all industries basis (class value average) with 1.1% in manufacturing industries and 2.3% in
non-manufacturing industries (Fig. 5-2, Table 5-1).
The figures for all, manufacturing, and non-manufacturing industries were higher than thosefrom the previous year’s survey.
By manufacturing industry segment, the forecast growth rate for material-type manufacturingindustries was 0.6%, that for processing-type manufacturing industries was 1.4%, and that forother manufacturing industries was 1.2% (Fig. 5-3).
By sector (those with 5 or more responding companies), the number of employees wasforecast to grow in 23 out of 28 sectors, with high forecast growth rates seen in sectors such as“Pulp & Paper” (2.1%) and “Pharmaceutical” (2.1%) in manufacturing industries, and“Services” (4.6%) and “Retail Trade” (3.7%) in non-manufacturing industries (Fig. 5-4).
By capital size, the forecast growth rate of the number of employees at companies with acapital of “less than 1 billion yen” was 3.3%, “1 to 5 billion yen (not incl.)” was 2.4%, “5 to 10
billion yen (not incl.)” was 1.7%, and “10 billion yen or more” was 0.9%, indicating that anincrease was forecast in all capital size classes (Fig. 5-3).
Furthermore, compared to the growth rate over the “past 3 years,” the growth rate was
expected to turn to a plus over the “next 3 years” in manufacturing industries, while the samerate was expected to grow further over the same period in non-manufacturing industries (Fig.
5-3, Table 5-1).

- 30 -

[Fig. 5-2] Trend in forecast rate of changes in the number of employees over the next 3 years
by industry(%)

6.0
All industries
ManufacturingNon-manufacturing

4.0

2.3
2.0

1.7
1.1

0.0
‐2.0

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

‐6.0

1992

‐4.0

Survey yea r (FY)

Note 1: With regard to “next 3 years,” for example, “next 3 years” in the FY2013 survey represents rateof change forecasts from FY2014 to FY2016 (fiscal year average).
Note 2: The survey of the rate of change in the number of employees started in FY1992.
Note 3: Only the FY2003 survey represents figures for “regular employees.”(The FY2003 survey wasfor “regular employees” and “part-time and temporary employees.”)[Fig. 5-3] The rate of change in the number of employees by industry and capital size
By industry

By capital size

Note: “Past 3 years” represents rate of changes from FY2011 to FY2013 (fiscal year average), and“next 3 years” represents rate of change forecasts from FY2014 to FY2016 (fiscal year average).

- 31 -

‐4.0- 32 -

Textiles & Apparels

Electric Power & Gas

Rubber Products

Past 3 years

Banks

Nonferrous Metals

Transportation Equipment

Marine Transportation(%)

Iron & SteelOther Products

Precision Instruments

Glass & Ceramics Products

Chemicals

Metal Products

Warehousing & Harbor Transportation Services

Land Transportation

Electric Appliances

Wholesale Trade

Foods

Machinery

Pharmaceutical

Real Estate

Pulp & Paper

Construction

Other Financing BusinessInformation & Communication

Securities & Commodity Futures

Retail Trade

Services

All industries[Fig. 5-4] Rate of change in the number of employees by sector
Next 3 years

6.0

4.0

2.0

0.0

‐2.0

Note 1: “Past 3 years” represents rate of changes from FY2011 to FY2013 (fiscal year average), and “nextNote 2: Sectors only include those with 5 or more responding companies for both “past 3 years” and “next3 years.”
3 years” represents rate of change forecasts from FY2014 to FY2016 (fiscal year average).

(3) Rate of change in the number of regular employees○ The forecast rate of change over the “next 3 years” for regular employees, from among thetotal number of employees on an all industries basis (class value average) was 1.5%, which
was higher than the increase rate for all industries over the “past 3 years” (0.6%).
○ Compared with the rate of change over the “past 3 years” by industry (-0.1% inmanufacturing and 1.2% in non-manufacturing industries), the rate of change was expected
to turn positive for manufacturing industries (0.9%) and accelerate in non-manufacturingindustries (2.1%).

The rate of change in the number of regular employees among the total number of employees
over the “past 3 years” was 0.6% on an all industries basis (class value average), -0.1% inmanufacturing industries, and 1.2% in non-manufacturing industries (Table 5-1).
The forecast rate of change over the “next 3 years” was 1.5% in all industries, 0.9% inmanufacturing industries, and 2.1% in non-manufacturing industries. Compared to the rate ofchange over the “past 3 years,” the increase rate was forecast to accelerate on an all industries
basis and for non-manufacturing industries, and turn positive in manufacturing industries.
By sector (those with 5 or more responding companies), the rate of change was forecast to
rise in 22 out of 28 sectors, with high increase rates in “Pulp & Paper” (2.1%) and“Pharmaceutical” (2.1%) in manufacturing industries, and “Services” (3.9%) and “Securities &Commodity Futures” (3.6%) in non-manufacturing industries (Fig. 5-6).
By capital size, the forecast growth rate at companies with a capital of “less than 1 billion
yen” was 2.8%, “1 to 5 billion yen (not incl.)” was 2.1%, “5 to 10 billion yen (not incl.)” was
1.6%, and “10 billion yen or more” was 0.7%. An increase was expected by all classes (Fig.
5-5).
Furthermore, when comparing the forecast rate of change in the number of regular employeeswith that in the total number of employees, the rate of change in the number of regular
employees was lower in both manufacturing and non-manufacturing industries (Fig. 5-5, Table
5-1).

- 33 -

[Fig. 5-5] Forecast rate of change in the number of regular employees among all employees
over the next 3 years by industry and capital size
By industry

By capital size

0.0

‐2.0

‐2.0

Non-manufacturing

Other

Material-type

10 billion yen or more

0.0

1 to 5 billion yen(not incl.)

2.0

Less than 1 billion yen

2.0

Processing-type

4.0

Manufacturing

4.0

All industries

Employees
Of which, regular employees(%)

All industries(%)

5 to 10 billion yen(not incl.)

Employees
Of which, regular employees

Note: “Next 3 years” represents rate of change forecasts from FY2014 to FY2016 (fiscal year average).

[Fig. 5-6] Forecast rate of change in the number of regular employees among all employees
over the next 3 years by sector
Employees
Of which, regular employees

(%)

6.0

4.0

2.0

Textiles & Apparels

Note 1: “Next 3 years” represents rate of change forecasts from FY2014 to FY2016 (fiscal year average)
Note 2: Sectors only include those with 5 or more responding companies for both “number of employees”
and “number of regular employees.”- 34 -

Electric Power & Gas

Rubber Products

Marine Transportation

Nonferrous Metals

Banks

Transportation Equipment

Iron & Steel

Precision Instruments

Glass & Ceramics Products

Other Products

MachineryLand Transportation

Foods

Chemicals

Wholesale Trade

Electric Appliances

Metal Products

Warehousing & Harbor Transportation Services

Other Financing Business

Pulp & Paper

Pharmaceutical

Retail Trade

Construction

Real Estate

Information & Communication

Services

Securities & Commodity Futures‐2.0

All industries

0.0[Table 5-1] Trend in rate of change in the number of employees by industry(%)

Past 3 years
Survey year

All industries

Manufacturing

Regularemployees

FY

Next 3 years
Non-manufacturing All industries

Regularemployees

Regularemployees

Manufacturing

Regularemployees

Non-manufacturing

Regularemployees

Regularemployees

1992

4.0

-

3.7

-

4.4

-

1.1

-

0.7

-

2.0

-

1993

2.6

-

1.9

-

3.8

-

-0.7

-

-1.5

-

0.9

-

1994

0.3

-

-0.5

-

1.7

-

-0.6

-

-1.2

-

0.6

-

1995

-0.8

-

-1.4

-

0.4

-

-0.6

-

-1.3

-

0.8

-

1996

-1.2

-

-2.1

-

0.4

-

-0.3

-

-1.0

-

0.9

-

1997

-1.3

-

-2.0

-

-0.1

-

-0.7

-

-1.1

-

-0.0

-

1998

-2.0

-

-2.9

-

-0.6

-

-2.3

-

-3.2

-

-1.0

-

1999

-2.5

-

-3.2

-

-1.4

-

-1.7

-

-2.4

-

-0.5

-

2000

-2.7

-

-4.0

-

-0.8

-

-0.6

-

-1.6

-

0.8

-

2001

-2.5

-

-3.6

-

-0.8

-

-1.9

-

-3.0

-

-0.3

-

2002

-3.0

-

-4.1

-

-1.4

-

-1.1

-

-1.7

-

-0.1

-

2003

-3.4

-

-4.2

-

-2.3

-

-0.8

-

-1.2

-

-0.3

-

2004

-1.8

-

-2.4

-

-1.1

-

0.8

-

0.4

-

1.4

-

2005

0.3

-0.8

0.2

-0.7

0.3

-0.9

1.9

1.3

1.4

0.8

2.5

1.8

2006

1.5

0.6

1.3

0.5

1.8

0.7

2.3

1.9

1.9

1.6

2.9

2.3

2007

2.5

1.8

2.2

1.3

2.8

2.3

2.6

2.4

2.1

1.9

3.1

2.9

2008

2.5

2.0

2.3

1.6

2.7

2.4

-0.2

0.1

-0.9

-0.3

0.7

0.6

2009

1.0

1.4

0.3

1.0

1.7

1.8

0.4

0.3

-0.3

-0.3

1.1

0.9

2010

0.0

0.2

-0.4

-0.1

0.5

0.5

1.0

0.8

0.7

0.5

1.4

1.1

2011

0.5

0.2

0.0

-0.2

1.0

0.5

1.0

0.9

0.4

0.3

1.7

1.6

2012

0.5

0.2

0.1

-0.3

1.1

0.8

1.0

0.8

0.3

0.2

1.8

1.5

2013

0.7

0.6

-0.0

-0.1

1.5

1.2

1.7

1.5

1.1

0.9

2.3

2.1

Note 1: With regard to “past 3 years” and “next 3 years,” for example, “past 3 years” in the FY2013 survey represents rate ofchanges from FY2011 to FY2013 (fiscal year average), and “next 3 years” represents rate of change forecasts from
FY2014 to FY2016 (fiscal year average).
Note 2: The survey of the rate of change in the number of employees started in FY1992. The survey of “regular employees”
started in FY2005.
Note3: Only the FY2003 survey represents figures for “regular employees.”(The FY2003 survey was for “regular employees”
and “part-time and temporary employees.”)- 35 -

6

Overseas production ratio and reverse imports ratio(1) The ratio of companies conducting overseas production (manufacturing industries only)○

The ratio of companies conducting overseas production (FY2012 actual figures) was
69.8%, up 2.1% points from the previous year’s survey (67.7%).

○ “FY2013 estimate” (70.7%) and “FY2018 forecast” (73.4%) were also on a rising trend.

The ratio of companies that conduct overseas production (manufacturing industries only) was
69.8% (FY2012 actual figures), which represents an increase of 2.1% points from the previous
year’s survey (67.7%). This is the highest figure since this annual survey was started in
FY1987.
Additionally, the “FY2013 estimate” was 70.7% and “FY2018 forecast” was 73.4%, whichwere both on a rising trend (Fig. 6-1, Table 6-1).
[Fig. 6-1] Ratio of companies that conduct overseas production (manufacturing industries)(%)

100
Manufacturing

Material-type

Processing-type

Other

80
73.4
69.8

60

70.7

40

20

1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2018

0

Note: FY2013 represents the actual figure estimate, FY2018 represents the forecast, and other years
represent the actual figure for the previous fiscal year in the survey for the following fiscal year.
(For example, the value for FY2012 is the ratio of companies that entered the value for “FY2012
actual figures” in the FY2013 survey.)- 36 -(FY)[Table 6-1] Ratio of companies that conduct overseas production (manufacturing industries)(%)

Fiscal year

Manufacturing

Material-type

Processing-type

Other

FY 1989

36.0

28.5

48.7

26.5

1990

40.3

32.0

53.9

29.3

1991

40.8

32.5

54.2

30.4

1992

43.3

37.9

55.5

30.2

1993

47.4

45.3

59.2

32.1

1994

48.3

43.7

60.2

36.1

1995

53.9

51.8

65.0

39.2

1996

55.9

53.4

66.0

42.6

1997

56.7

56.9

66.7

41.2

1998

58.3

59.7

67.9

42.6

1999

61.1

63.5

67.4

49.3

2000

60.4

62.1

67.3

48.9

2001

59.4

59.6

65.4

49.7

2002

62.1

62.3

69.1

51.4

2003

63.0

62.9

73.6

47.6

2004

59.6

58.4

69.8

45.2

2005

63.2

60.5

72.5

51.5

2006

65.9

63.6

73.2

56.2

2007

67.3

67.7

75.5

55.9

2008

67.1

66.7

74.9

55.5

2009

67.1

64.7

75.8

54.6

2010

67.6

67.8

76.6

51.8

2011

67.7

68.7

73.2

57.1

2012

69.8

76.0

76.4

54.3

2013

70.7

75.7

78.2

54.9

2018

73.4

78.3

78.9

61.0

Note: FY2013 represents the actual figure estimate, FY2018 represents the forecast, and other years represent the actual
figure for the previous fiscal year in the survey for the following fiscal year. (For example, the value for FY2012
is the ratio of companies that entered the value for “FY2012 actual figures” in the FY2013 survey.)- 37 -

(2) Overseas production ratio (manufacturing industries only)○ For overseas production ratio (actual value average), the “FY2012 actual figures” was
20.6%, representing a rise from the previous year’s actual figure (17.2%). The number isthe highest since the survey started in FY1987,○ The “FY2013 estimate” (21.6%) and the “FY2018 forecast” (25.5%) represent thecontinuously increasing trend of the overseas production. In the manufacturing industry
segment, the “FY2013 estimate” and “FY2018 forecast” of processing-type manufacturingindustries (29.0% and 33.0% respectively) were particularly high.
○ Looking at the “FY2018 forecast” by sector, the figures were high in sectors such as“Rubber Products” (46.4%) and “Electric Appliances” (39.6%), while they were low insectors such as “Pharmaceutical” (1.9%) and “Pulp & Paper” (12.2%).

For overseas production ratio5) (actual value average), the “FY2012 actual figures” was
20.6%, representing a rise from the previous year’s actual figure (17.2%). The number is thehighest since the survey started in FY1987 . Furthermore, the “FY2013 estimate” of 21.6% and“FY2018 forecast” of 25.5% both represent a further rise (Fig. 6-2, Table 6-2).
Looking at the “FY2018 forecast” by manufacturing industry segment, material-type
manufacturing industries, processing-type manufacturing industries and other manufacturingindustries all saw a rise from the “FY2013 estimate,” with processing-type manufacturingindustries showing a significant rise of 29.0% and 33.0% each (Fig. 6-3, Table 6-2).
The “FY2018 forecast” by sector (those with 5 or more responding companies) was higher
than the “FY2013 estimate” in all 15 sectors. The forecast level was high in sectors such as“Rubber Products” (46.4%) and “Electric Appliances” (39.6%), and low in “Pharmaceutical”(1.9%) (Fig. 6-4).
Looking at the “FY2018 forecast” by capital size, companies with a capital of “less than 1billion yen” expect 10.6% (“FY2013 estimate”: 8.0%), “1 to 5 billion yen (not incl.)” 19.1%(“FY2013 estimate”: 15.6%), “5 to 10 billion yen (not incl.)” 26.7% (“FY2013 estimate”:
22.0%), and “10 billion yen or more” 33.2% (“FY2013 estimate”: 28.2%), which indicates thatthe ratio was expected to rise as compared to “FY2013 estimate” in all classes (Fig. 6-3).

5) Overseas production ratio = Volume of overseas production / (Volume of domestic production + Volume ofoverseas production)
Simple average of responding companies including those that reported 0.0% for the overseas production ratio.

- 38 -

[Fig. 6-2] Trend of overseas production ratios (manufacturing industries)(%)

50
Manufacturing

Material-type

Processing-type

Other

40

30
25.5
20.6
20

21.6

10

1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2018

0
(FY)

Note 1: FY2013 represents the actual figure estimate, FY2018 represents the forecast, and other years
represent the actual figure for the previous fiscal year in the survey for the following fiscal year.
(For example, the value for FY2012 is the value for “FY2012 actual figures” in the FY2013
survey.)Note 2: Simple average of responding companies including those that reported 0.0% for the overseas
production ratio.

[Fig. 6-3] Overseas production ratio by manufacturing industry segment and capital size
By segment

By capital size

FY2012 actual figures
FY2013 estimate
FY2018 forecast

(%)

40

FY2012 actual figures
FY2013 estimate
FY2018 forecast(%)

10 billion yen or more

0

5 to 10 billion yen(not incl.)

0

1 to 5 billion yen(not incl.)

10

Less than 1 billion yen

10

Other

20

Processing-type

20

Material-type

30

Manufacturing

30

Manufacturing40

Note: Simple average of responding companies including those that reported 0.0% for the overseas
production ratio.

- 39 -

[Fig. 6-4] Overseas production ratio by sector (manufacturing industries)(%)

FY2012 actual figures

FY2013 estimate

FY2018 forecast

50
40
30
20

Note 1: Simple average of responding companies including those that reported 0.0% for the overseas
production ratio.
Note 2: Sectors only include those with 5 or more responding companies in all of “FY2012 actual
figures,” “FY2013 estimate” and “FY2018 forecast.”- 40 -

Pharmaceutical

Iron & Steel

Pulp & Paper

Foods

Glass & Ceramics Products

Metal Products

Nonferrous Metals

Other Products

Chemicals

MachineryPrecision Instruments

Textiles & Apparels

Transportation Equipment

Electric Appliances

Rubber Products0

Manufacturing

10

[Table 6-2] Trend of overseas production ratio (manufacturing industries)(%)

Fiscal year

FY

Manufacturing

Material-type

Processing-type

Other

1989

3.8

2.2

5.7

2.8

1990

4.6

2.8

6.5

3.4

1991

4.6

3.1

6.7

3.0

1992

5.4

4.2

7.7

3.1

1993

6.1

5.1

8.7

3.4

1994

6.6

4.8

9.8

3.9

1995

8.1

6.4

12.2

3.7

1996

9.1

7.9

12.4

5.2

1997

9.3

7.7

12.8

5.6

1998

10.2

8.5

14.8

5.3

1999

10.5

8.9

14.7

6.0

2000

11.1

9.2

15.9

6.0

2001

13.7

11.7

18.9

7.5

2002

13.2

11.2

17.9

8.2

2003

13.1

9.7

19.4

6.8

2004

14.0

9.5

20.7

8.2

2005

15.2

10.8

22.1

9.4

2006

17.3

14.8

23.9

8.9

2007

17.3

15.3

24.8

8.9

2008

17.4

14.4

24.7

9.0

2009

17.1

12.9

24.0

9.9

2010

17.9

14.9

24.8

9.2

2011

17.2

14.3

24.1

8.6

2012

20.6

17.3

27.8

12.4

2013

21.6

18.5

29.0

13.5

2018

25.5

23.4

33.0

16.3

Note 1: FY2013 represents the actual figure estimate, FY2018 represents the forecast, and other years represent theactual figure for the previous fiscal year in the survey for the following fiscal year. (For example, the value for
FY2012 is the value for “FY2012 actual figures” in the FY2013 survey.)
Note 2: Simple average of responding companies including those that reported 0.0% for the overseas production ratio.

- 41 -

(3) Reverse imports ratio (manufacturing industries only)○ The “FY2012 actual figures” for the reverse imports ratio (actual value average) was
18.8%, showing a decline for the fifth consecutive year and the lowest level since thebeginning of the survey in FY2001.
○ The “FY2013 actual figures” was estimated to rise (19.6%) while the “FY2018 forecast”
was estimated to decline (18.8%).
○ Looking at the “FY2018 forecast” by sector, the level was low in sectors such as“Transportation Equipment” (5.0%) and “Iron & Steel” (6.1%), while it was high in “Metal
Products” (35.4%) and “Precision Instruments” (31.9%).

The “FY2012 actual figures” of the reverse imports ratio6) (actual value average) was 18.8%,
a decline for the fifth consecutive year and the lowest level since the beginning of the survey in
FY2001. The “FY2013 estimate” was 19.6% and “FY2018 forecast” 18.8% (Fig.. 6-5, Table
6-3).
Looking at the “FY2018 forecast” by manufacturing industry segment, the ratio inmaterial-type manufacturing industries was 13.2%, processing-type manufacturing industries
was 17.6%, and other manufacturing industries 27.0% (Fig. 6-6, Table 6-3).
In terms of the “FY2018 forecast” by sector (those with 5 or more responding companies), 11
out of 13 sectors expect the reverse imports ratio to drop from the “FY2013 estimate,” with the
low level in sectors such as “Transportation Equipment” (5.0%) and “Iron & Steel” (6.1%),
while being high in sectors including “Metal Products” (35.4%) and “Precision Instruments”(31.9%) (Fig. 6-7).
Looking at the “FY2018 forecast” by capital size, companies with a capital of “less than 1billion yen” expect 25.1% (“FY2013 estimate”: 25.4%), “1 to 5 billion yen (not incl.)” 21.3%(“FY2013 estimate”: 25.0%), “5 to 10 billion yen (not incl.)” 14.3% (“FY2013 estimate”:
14.5%), and “10 billion yen or more” 18.7% (“FY2013 estimate”: 18.4%), which indicates thatthe ratio was expected to drop as compared to “FY2013 estimate” in all classes except for the“10 billion yen or more” class (Fig. 6-6).

6) Reverse imports ratio = Export volume to Japan / Volume of overseas local production

Excludes companies that reported 0.0% in overseas production ratio.
Simple average of responding companies including those that reported 0.0% in the ratio of reverse imports.

- 42 -

[Fig. 6-5] Trend of the ratio of reverse imports (manufacturing industries)(%)

50
Manufacturing

Material-type

Processing-type

Other

40

30
18.8

20

19.6
18.8

10

0
(FY)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2018

Note 1: FY2013 represents the actual figure estimate, FY2018 represents the forecast, and other years
represent the actual figure for the previous fiscal year in the survey for the following fiscal year.
(For example, the value for FY2012 is the value for “FY2012 actual figures” in the FY2013
survey.)Note 2: Excludes companies that reported 0.0% in overseas production ratio.
Note 3: Simple average of responding companies including those that reported 0.0% in the ratio of reverse
imports.
Note 4: The survey of the ratio of reverse imports started in FY2001.

[Fig. 6-6] Ratio of reverse imports by manufacturing industry segment and capital size
By segment

By capital size

FY2012 actual figures
FY2013 estimate
FY2018 forecast00

10 billion yen or more

10

5 to 10 billion yen(not incl.)

10

Other

20

Processing-type

20

Material-type

30

Manufacturing

30

1 to 5 billion yen(not incl.)

40

Less than 1 billion yen

40

FY2012 actual figures
FY2013 estimate
FY2018 forecast(%)

Manufacturing(%)

Note 1: Excludes companies that reported 0.0% in overseas production ratio.
Note 2: Simple average of responding companies including those that reported 0.0% in the ratio ofreverse imports.

- 43 -

FY2012 actual figures

FY2013 estimate

FY2018 forecast

Machinery(%)

Pulp & Paper[Fig. 6-7] Ratio of reverse imports by sector (manufacturing industries)

50
40
30
20

Transportation Equipment

Chemicals

Rubber Products

Iron & SteelGlass & Ceramics Products

Foods

Textiles & Apparels

Electric Appliances

Precision Instruments

Other Products

Metal Products0

Manufacturing

10

Note 1: Excludes companies that reported 0.0% in overseas production ratio.
Note 2: Simple average of responding companies including those that reported 0.0% in the ratio ofreverse imports.
Note 3: Sectors only include those with 5 or more responding companies in all of “FY2012 actual
figures,” “FY2013 estimate” and “FY2018 forecast.”- 44 -

[Table 6-3] Trend of the ratio of reverse imports (manufacturing industries)(%)

Fisical year

FY

Manufacturing

Material-type

Processing-type

Other

2000

22.9

21.7

22.5

25.1

2001

24.4

22.9

24.3

26.1

2002

24.4

27.3

21.8

26.4

2003

24.3

20.3

24.9

27.8

2004

22.6

19.6

23.4

24.8

2005

26.1

23.2

25.3

31.6

2006

23.9

19.2

25.4

26.7

2007

25.2

23.4

25.4

26.8

2008

24.5

20.3

22.1

35.1

2009

22.6

13.9

22.7

33.9

2010

21.3

16.4

20.4

30.5

2011

19.8

15.2

19.8

25.6

2012

18.8

12.6

17.2

29.1

2013

19.6

12.9

18.7

29.2

2018

18.8

13.2

17.6

27.0

Note 1: FY2013 represents the actual figure estimate, FY2018 represents the forecast, and other years represent theactual figure for the previous fiscal year in the survey for the following fiscal year. (For example, the value for
FY2012 is the value for “FY2012 actual figures” in the FY2013 survey.)
Note 2: Excludes companies that reported 0.0% in overseas production ratio.
Note 3: Simple average of responding companies including those that reported 0.0% in the ratio of reverse imports.
Note 4: The survey of the ratio of reverse imports started in FY2001.

- 45 -

(4) Reason for having an overseas production base (manufacturing industries only)○ The most popular reason for setting up production bases abroad was “Strong demand
exists, or demand is forecast to expand, for our products in the local market(s) and markets
in neighboring countries” (50.8%), a 5.0% point rise from the previous year’s survey(45.8%).
○ On the other hand, the second-most cited reason, “Labor costs are low,” fell by 4.0% points
from the previous year’s result of 23.1% to 19.1%.

Looking at the reason for having an overseas production base (choose one from the choices),“Strong demand exists, or demand is forecast to expand, for our products in the local market(s)and markets in neighboring countries” was the most commonly cited with 50.8% (previous
year’s result: 45.8%), followed by “Labor costs are low” with 19.1% (previous year’s result:
23.1%), “We can cater effectively to overseas users’ needs” with 14.4% (previous year’s result:
11.4%), “We can enjoy low costs of materials, overall production processes, distribution, andland/buildings” with 7.5% (previous year’s result: 9.1%), and “We have entered the overseas
market(s) following entry by our parent company or customer(s) and so on” with 5.0%
(previous year’s result: 5.5%) (Fig. 6-8, Table 6-4).
Compared to the previous year’s survey, while the composition ratio of reasons such as“Labor costs are low” was decreasing, the composition ratio of reasons such as “Strong demand
exists, or demand is forecast to expand, for our products in the local market(s) and markets inneighboring countries” was rising.

- 46 -

[Fig. 6-8] Reason for having an overseas production base (manufacturing industries)
0%

Manufacturing

20%

①

40%

60%

④

③

80%

100%

⑤

⑦

⑩

⑥

Material-type

Processing-type

Other① La bor cos ts a re l ow
② We ca n ea sily s ecure highly‐qualified personnel (technical and research staff)③ We ca n enjoy l ow costs of materials, overall producti on processes, distributions, a nd land/buildings④ Strong demand exists, or demand is forecast to expand, for our products i n the local ma rket(s) a nd ma rkets inneighboring countries⑤ We ca n ca ter effectively to overs eas users’ needs⑥ We ha ve contra cts with reliable s uppliers of parts a nd/or ra w materials to the local facilities in a s table ma nner
⑦ We ha ve entered the overseas market(s) following entry by our pa rent company or cus tomer(s) and s o on
⑧ We ta ke a dva ntage of industrial development programs including fa vorable ta xation and/or financing which a reoffered by the local government(s)⑨ Ina dequate infrastructure i n the local country in question had prevented us from s etting up opera tions there,
but thi s issue has now been a ddressed⑩ Other- 47 -

[Table 6-4] Reason for having an overseas production base (manufacturing industries)(%)

FY2012surveyFY2013 survey

Manufacturing

Manufacturing

Material-type

Processingtype

100.0

100.0

100.0

100.0

100.0

19.1

12.8

21.1

22.2

23.1

-

-

-

-

-

③ We can enjoy low costs of materials, overall production
processes, distributions, and land/buildings

7.5

5.8

9.2

6.2

9.1

④ Strong demand exists, or demand is forecast to expand,for our products in the local market(s) and markets inneighboring countries

50.8

62.8

42.1

54.3

45.8

⑤ We can cater effectively to overseas users’ needs

14.4

12.8

19.1

7.4

11.4

⑥ We have contracts with reliable suppliers of parts
and/or raw materials to the local facilities in a stablemanner

1.3

1.2

0.7

2.5

2.6

⑦ We have entered the overseas market(s) following entry
by our parent company or customer(s) and so on

5.0

4.7

5.3

4.9

5.5

⑧ We take advantage of industrial development programs
including favorable taxation and/or financing which areoffered by the local government(s)

-

-

-

-

-

⑨ Inadequate infrastructure in the local country inquestion had prevented us from setting up operations
there, but this issue has now been addressed

-

-

-

-

-

1.9

-

2.6

2.5

2.6

Reason for having an overseas production base

① Labor costs are low② We can easily secure highly-qualified personnel(technical and research staff)⑩ Other

Note: Highlighted sections represent the top 3 in each fiscal year.

- 48 -

Other