SIGN IN
Log In / Register
GOVERNMENTS/ASSOCIATIONS/FASTENER GROUPS
FIJ Releases Cost Pass-through Survey Result
Add to my favorite
2022-07-15
The Japanese fastener industry encountered great cost pressure in the peak years of COVID, but a bigger pressure burdens it with the first trigger pulled between Russia and Ukraine at the dawn of February 24, 2022. The Fastener Institute of Japan (FIJ) had members who wrote in saying "increased material price has had an impact on business. We are puzzled at our inability to put the cost on product price". It was then that the Institute launched a survey on cost pass-through within the Japanese fastener industry. The result was released in mid-June.
Up to the end of this April, the Institute received responses from a total of 126 member companies. The response rate is up to 70%. Among them, 95 member companies taking up 75% work in the production and sales of fasteners, reflecting a high level of the industry's attention to the issues regarding cost pass-through. Out of the 126 member companies, 52% are in the automotive industry, 12% in machinery, and 9% in construction.
Up to 87% member companies replied that increased price has brought a large impact on business. In sub-industries, 92% member companies of the automotive industry recognize a large price hike impact on business; the machinery industry has 82% and the construction industry has 78%. The hike is stronger on ferrous materials than on non-ferrous materials, regardless of the automotive, machinery or construction industry.
Up to 97% of the member companies have negotiated with clients for a higher product price; only 2% of them had considered but never embarked on the negotiation. Intriguingly, only 37% of them succeeded in the negotiation and went on to raise the product price. To this, an average of 45% out of all member companies do not think it is enough proportion. In the automotive industry, 51% member companies do not think it is enough. Over 60% of all member companies feel puzzled at this.
Judging from the above figures, over 80% Japanese fastener companies are taking the impact of increased material price. The automotive, machinery and construction industries — large consumers of fasteners — have all been impacted by the price hike which is most obvious in iron price. Although almost all the member companies (97%) have attempted the negotiation, the success rate is about only 30%.
The Institute proposes to form a "industry group" comprising multiple companies that work in tandem to solve the current problems instead of going alone.
Up to the end of this April, the Institute received responses from a total of 126 member companies. The response rate is up to 70%. Among them, 95 member companies taking up 75% work in the production and sales of fasteners, reflecting a high level of the industry's attention to the issues regarding cost pass-through. Out of the 126 member companies, 52% are in the automotive industry, 12% in machinery, and 9% in construction.
Up to 87% member companies replied that increased price has brought a large impact on business. In sub-industries, 92% member companies of the automotive industry recognize a large price hike impact on business; the machinery industry has 82% and the construction industry has 78%. The hike is stronger on ferrous materials than on non-ferrous materials, regardless of the automotive, machinery or construction industry.
Up to 97% of the member companies have negotiated with clients for a higher product price; only 2% of them had considered but never embarked on the negotiation. Intriguingly, only 37% of them succeeded in the negotiation and went on to raise the product price. To this, an average of 45% out of all member companies do not think it is enough proportion. In the automotive industry, 51% member companies do not think it is enough. Over 60% of all member companies feel puzzled at this.
Judging from the above figures, over 80% Japanese fastener companies are taking the impact of increased material price. The automotive, machinery and construction industries — large consumers of fasteners — have all been impacted by the price hike which is most obvious in iron price. Although almost all the member companies (97%) have attempted the negotiation, the success rate is about only 30%.
The Institute proposes to form a "industry group" comprising multiple companies that work in tandem to solve the current problems instead of going alone.
日本螺絲工業協會
扣件成本轉嫁調查報告
建築
汽車
機械
The Fastener Institute of Japan
Cost Pass-through Survey Result
construction
motor vehicles
machinery
GOVERNMENTS/ASSOCIATIONS/FASTENER GROUPS
2022-07-28
Subscribe
