Japanese manufacturing or production cuts due to power shortage

The Japan Federation of Economic Organizations announced recently that the survey of electricity demand countermeasures for major member companies shows that about 60% of the manufacturing companies (30 companies) stated that if the supply of power demand such as this summer continues for two to three years, “will be Forced to reduce or stop domestic production." It can thus be seen that the unstable power supply will accelerate the hollowing out of domestic industries.

When asked about the most effective power-saving measures this summer, most manufacturing companies chose the option of “reduce the use of lighting and air conditioning”. "Bring your own generator, use the battery fully" followed.

As the increase in air-conditioning set temperature and the closure of some lighting and other initiatives can cut costs, most companies will continue to implement next year. However, since self-generation will lead to higher fuel costs and equipment rental costs, only six companies said that they will implement this measure next year. According to the delegation, "I am afraid that the next year will not achieve the energy saving plan as smoothly as this year."

The survey targeted 152 companies and was implemented from late September to early October. A total of 87 companies (including 53 manufacturing and 34 non-manufacturing) answered.

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