JEMIMA Estimates 4.4 Percent Growth in Sales Value in FY2011
Keywords: Electric Measuring Instruments, Manufacturing Operations, Recovery, Production Processes.
The Japan Electric Measuring Instruments Manufacturers' Association (JEMIMA), which is the only industrial association representing the manufacturing business of electric measuring instruments in Japan, recently announced their forecast in sales value of electric measuring instruments for the next five years. According to JEMIMA, the estimated sales value in FY2011 ending in March 2012 will increase 4.4 percent and reach 832.9 billion yen compared with 797.5 billion yen in FY2010. It also forecasts 2.5 percent growth in sales reaching 854.0 billion yen in FY2012, then projects continuing moderate growth until FY2015, with sales reaching 907.0 billion yen at that time.
According to JEMIMA, the catastrophic damage to several sectors of manufacturing industries and the shredding of supply chains caused by the Eastern Japan Earthquake which occurred on March 11 significantly affected their industry and forced some members to shut down or delay their development and manufacturing operations temporarily. But they are showing recovery at a faster pace than JEMIMA expected.
Reconstruction of factories and the recovery of production processes and the supply chain from the destruction, in addition to newly emerging initiatives, such as investment in risk management for sustainable management, environmental & renewable energy, are driving the recovery of demand for electric measuring instruments. Even though some uncertainty in the scope of the market forecast cannot be overlooked – caused by an unstable EU economy, the delay in the recovery of U.S. economy, slowdown of economic growth in developing countries, and an unchanged high-yen rate in the international exchange market causing further pressure on export-oriented companies, JEMIMA still estimates 4.4 percent growth in sales value in FY2011.
ARC Advisory Group