7 Apr 2015
Reshoring of Japanese manufacturing - Nomura
FXStreet (Bali) - Minoru Nogimori, Japanese Economist at Nomura, notes that Japanese companies are increasingly reshoring production back to Japan.
Key Quotes
"With Abenomics boosting their cost competiveness, Japanese companies are increasingly reshoring production back to Japan, especially the manufacture of high value-added goods."
"Consumer electronics manufacturers are ramping up production of premium products and advanced devices and we expect this trend to continue. The weak yen has sharply boosted margins on auto exports, which we expect to continue growing with knock-on benefits for the entire automotive supply chain."
"If recent reshoring by Japanese companies is rooted in efforts to increase value added, we would expect companies that are already competitive to become more competitive by adding the Made in Japan brand to their portfolio."
"Capex has been focused on offshoring, and we think that the potential for some of this capex to be shifted back to Japan is significant. We highlight the following sectors as likely beneficiaries of reshoring: machinery and manufacturing equipment, construction, staffing services, shipbuilding, heavy machinery & plant engineering, chemicals & textiles, and specialist retailers."
Key Quotes
"With Abenomics boosting their cost competiveness, Japanese companies are increasingly reshoring production back to Japan, especially the manufacture of high value-added goods."
"Consumer electronics manufacturers are ramping up production of premium products and advanced devices and we expect this trend to continue. The weak yen has sharply boosted margins on auto exports, which we expect to continue growing with knock-on benefits for the entire automotive supply chain."
"If recent reshoring by Japanese companies is rooted in efforts to increase value added, we would expect companies that are already competitive to become more competitive by adding the Made in Japan brand to their portfolio."
"Capex has been focused on offshoring, and we think that the potential for some of this capex to be shifted back to Japan is significant. We highlight the following sectors as likely beneficiaries of reshoring: machinery and manufacturing equipment, construction, staffing services, shipbuilding, heavy machinery & plant engineering, chemicals & textiles, and specialist retailers."