Copyright (C) 2015 JETRO. All rights reserved. 1
Results of JETRO’s 2014 Survey on
Business Conditions of Japanese-Affiliated Firms
in the U.S.
January, 2015
Japan External Trade Organization (JETRO)
Overseas Research Department
North America Division
Copyright (C) 2015 JETRO. All rights reserved. 2
About the Survey
This survey has been conducted since 1981 by the JETRO offices in the U.S, with this
being the 33rd implementation (there was no survey conducted in 2004).
1. Purpose
To survey and analyze the state of Japanese-affiliated companies in the United States
(business confidence, performance, management challenges.,etc) with the aim of
facilitating business activities and management strategy planning for
Japanese-affiliated companies.
2. Survey Coverage
The definition of a “Japanese-affiliated company” is one for which “the investment
from the Japanese parent company is at least 10%,” including both direct and indirect
investments. For example, consider a Company A, which is an American subsidiary
with a Japanese parent company that holds a 20% share. If Company A itself holds a
50% share of a subsidiary, Company B, then the parent Japanese company for Company
A owns a 10% share of Company B (0.2 x 0.5 x 100), so that Company B would also be
regarded as a “Japanese-affiliated company.” (Company B is a sub-subsidiary of the
parent Japanese company.) The same type of calculation applies to sub-sub-subsidiaries
as well.
3. Method
The target companies were contacted by one of the six offices in the U.S. (New York,
San Francisco, Los Angeles, Chicago, Houston, and Atlanta) and informed of an
Internet address (URL) where the questionnaire was posted. Respondents entered their
answers directly onto the survey form on this website.
4. Period
September 3 to October 17, 2014
5. Response rates
The requests were made to 1,016 Japan-affiliated companies in the U.S., with responses
received from 669, for a response rate of 65.8%
Note: The number of companies responding is an aggregate based on the cooperation of
each company, using information sources regarded as reliable by the JETRO offices, but
the absolute accuracy and completeness of the information cannot be guaranteed.
Copyright (C) 2015 JETRO. All rights reserved. 3
1. Business Conditions
○ In 2014, Japanese manufacturers operating in the U.S. showed even higher
business confidence than the previous year, indicated by a rise of the diffusion
index (DI) from 31.7 points to 33.4 points. Business performance was strong
especially in transportation equipment and components, steel, and general
machinery. More than 80% of those responding expect to show a profit in 2014.
Although there was some concern voiced about the future of the economy with the
changes in U.S. monetary policy, most companies felt that the economy is
recovering because of increased orders.
- Regarding the forecast of operating profits for 2014 in comparison to 2013, 49.8% of
respondents expected improvement, 33.8% expected to remain the same, and 16.4%
expected a decrease (Fig. 2). The expectation of improvement was particularly
noticeable in the fields of transportation machines (cars and motorcycles) (64.7%),
parts for transportation machines (58.1%), steel (53.8%), and general machinery
(including molds and power tools) (53.3%). The recovery of the automotive market
and revival of manufacturing has had a large impact. By region, improvement was
expected by many of the Japanese-affiliated firms in the southern areas where
shale oil/Shale gas is being aggressively developed. The diffusion index (DI) that
indicates business confidence (proportion of businesses reporting increased
operating profits minus those reporting decreased operating profits compared to the
previous year) was 33.4 for 2014, an increase from 31.7 last year (Fig. 1).
- The most selected reasons given for improved operation profit compared to 2013, in
order of frequency (multiple answers permitted), were “Sales increase in local
markets” (81.5%), “Improvement of production efficiency” (30.6%), and “Reduction
of procurement costs” (26.4%) (Fig 3). In comparison, the reasons cited for decreases
were “Sales decrease in local markets” (45.0%), “Increases of labor costs” (34.9%),
and “Increase of procurement costs” (24.8%).
- With regard to operating profits in 2014, 82.3% reported being profitable, 9.9%
reported “break even,” and 7.8% expected a loss (Fig. 5). These are the best figures
obtained since the survey was started in 1991.
- The answers about forecasts for operating profit in 2015 compared to 2014 indicate
that 52.8% of companies expect an increase, 39.2% expect to remain the same, and
8.0% expect a decline (Fig. 2). The reasons for the improvement, in order of
frequency (multiple answers permitted) were “Sales increase in local markets”
(83.0%), “Improvement of production efficiency” (37.1%), and “Reduction of
procurement costs” (21.3%) (Fig. 6). Reasons for an expected decrease were “Sales
decrease in local markets” (58.5%), “Increase of labor costs” (30.2%), and
Copyright (C) 2015 JETRO. All rights reserved. 4
“Production costs insufficiently reflected in selling price of goods” (30.2%) (Fig. 7).
<Although there are still serious concerns about the future of the U.S. economy, the
increase in orders conveys a sense of economic recovery>
*The comments indicated by arrowhead bullet points in the main text (type of industry
indicated in parentheses) are quotes from interviews with the firms that responded to
the questionnaire, and, in part, comments on the survey questionnaire.
Orders from companies based in Silicon Valley have been steadily increasing, so we
feel that the economy is improving. [Chemical/Petroleum products]
Unit sales, including by competitors, have increased, creating delays in delivery of
domestically procured raw materials. [Electric or electronic parts]
Sales at retail outlets are improving. Wealthy Asians seem to be driving the
consumption. [Processed food, agricultural or fishery products]
We can sense the economic recovery from how smoothly business is going. On the
other hand, there is concern about what will happen next year after the easy
monetary policy measures end. [Metal goods (including plated products)]
The growth of industries in which we sell our products is probably related to the
state of the economy, but we have no particular feeling about it. [Steel (including
cast and wrought products)]
2. Future Business Plans
○ Approximately 60% of firms intend to expand their business in the next one or two
years, a slight increase from the previous year. The reason for expansion given by
about 90% of the companies was “increased sales.” By category, the rates of planned
expansion were high in medical devices; processed food, agricultural or fishery
products; chemical and petroleum products; and transportation equipment.
- The indicated trends for business development in the next one or two years were
60.3% planning to expand, 37.0% planning to remain the same, 2.1% plan
reductions, and 0.6% plan to transfer to a third region or withdraw from the market
(Fig. 8). Categories with notably high indications of expansion plans were medical
devices (87.5%), processed food, agricultural or fishery products (75.0%), chemical
and petroleum products (67.2%), and transportation equipment (cars and
motorcycles) (61.1%).
- Reasons for the expected expansion, in order of frequency (multiple answers
permitted) include “Sales increase” (87.5%), “High growth potential” (40.6%), and
“High receptivity for high-value added products” (21.7%) (Fig. 9). Specific functions
that respondents want to expand were “Sales functions” (53.8%), “Production
Copyright (C) 2015 JETRO. All rights reserved. 5
(high-value added products)” (52.5%), and “Production (ubiquitous products)”
(33.8%) (Fig. 10). The most selected reasons given for planning reduction, transfer
or withdrawal were “Sales decrease” (64.7%), and “Increase of costs (e.g.,
procurement/labor costs)” (29.4%).
-
<The population growth of 1% annually is greatly attractive>
(Regarding growth and potential in U.S. markets) There are good opportunities in
the rapidly-expanding eco-markets. [Steel (including cast and wrought products)]
We cannot overlook the fact that population is growing by 1% annually. The large
number of Asian immigrants who are likely to enjoy Japanese foods is also
attractive. [Processed food, agricultural or fishery products]
We hear that the U.S. economy is picking up, but Houston is exceptionally good
with the strong energy and chemical industries. [Chemical/Petroleum products]
○ As for the number of local employees in the past one year and the future,
approximately 50% of respondents reported increase, while reporting that the
number of expatriate Japanese employees remains unchanged. Regarding issues
(Headquarters/Japan side) related to the promotion of the localization of
management, many cited “Poor language skills of the Japanese employees (both
locally and in Japan)” and “Difficulty in reducing the number of Japanese
expatriate staff.” For local issues, the difficulty in hiring local personnel for
executive positions was often raised as a concern.
- Measures being implemented to encourage localization of management, in order of
frequency (multiple answers permitted) include “To strengthen system to
train/cultivate local human resources by focusing on localization of corporate
management” (58.1%), “To assign local staff to a general manager/manager position”
(57.6%), and “To encourage mid-level hiring activities to obtain competent local
staff by focusing on localization of corporate management” (49.6%) (Fig. 11).
- On the question of issues faced in promoting management localization, the
indicated issues with headquarters/Japan side were “Inadequate language skills of
Japanese expatriate staff (English and local languages)” (32.6%), and “Difficulty in
reducing the number of Japanese expatriate staff” (32.0%). There were many
comments indicating that the lack of language skills at the head office interferes
with smooth communication with the local offices, making it difficult to reduce the
number of expatriate Japanese employees. Issues on the local side include
“Difficulty in recruiting local candidates for executive positions” (43.8%) and
“Insufficient performance/awareness among local staff” (41.5%) (Fig. 12).
Copyright (C) 2015 JETRO. All rights reserved. 6
<Improving employee skills through training>
We are working hard on localization. We send local hires to the Japan head office to
help them gain a better sense of the corporate culture, and improve understanding.
[Chemical/Petroleum products]
Our policy is to promote people hired locally and trained within the company to
management positions. The managers used to all be Japanese expatriates, but
moving forward, we want to reduce the number of expatriates, except for the young
trainees. [Rubber goods]
Like the head office, we aim to improve employee skills through training, and to
promote the trained local employees to the positions that always used to go to
Japanese expatriates. [Parts for transportation machines (cars and motorcycles)]
<Considering sales activities and communication with the head office, it is difficult to
reduce the number of expatriate Japanese employees>
There aren’t enough people in top management in Japan who can communicate in
English. [Parts for transportation machines (cars and motorcycles)]
The language skills of people at the Japanese parent company have not reached the
level of being able to communicate smoothly with the local staff. (Strong tendency
for communication to be through the expatriate staff.) [Machines (including molds
and power tools)]
Although it has become harder to obtain visas, it is still hard to reduce the
Japanese expatriate staff. Product and technology development are done in Japan
by the Japanese employees. Since customers want to hear from the engineers
handling the development, we have to bring in expatriate staff who has
development experience. [Chemical/Petroleum products]
Some of the issues with the management skills of the expatriate Japanese
employees are that some of them try to impose the Japanese way of doing things
over here, or we get people who have never managed subordinates in Japan
suddenly put in charge of people here, so they cannot manage local staff properly
due to the lack of experiences. [Chemical/Petroleum products]
<There are differences in the business cultures between the U.S. and Japan, which has
an impact on the hiring of local people as executive level candidates>
It is hard to find local talent with college-level understanding of food processing,
and also have both the communication skills and leadership ability. [Processed food,
agricultural or fishery products]
The difficulty in hiring executive candidates is not about the ability or
compensation, it is the difference between Japanese and U.S. cultures. Since this is
Copyright (C) 2015 JETRO. All rights reserved. 7
a Japanese-based company, the Japanese approach is expected, but it is hard to
find local talent that can do that. Japanese people reach decisions through stages of
discussions with others, but Americans are generally quite independent, so there
are a lot of people who make their own decisions. Company loyalty is also different.
[Paper and Pulp]
In the U.S., people generally continue to do one kind of work, but as a company, we
would like to develop some all-around players with experience from manufacturing
to management, as in Japan. There are also some issues (language, culture,
economic situation) with communication with the parent company. [Plastic
products]
Group-wide there are policies being made to reduce the number of employees sent
from Japan to minimum. Nevertheless, it is difficult to move forward with
localization. For important posts, those locally hired are either Japanese, or people
who can speak Japanese. [Chemical/Petroleum products]
- Over the past year, 47.6% of the respondents indicated that the number of local
employees had increased. Categories with high rates for this response include
transportation machines (cars and motorcycles) (70.6%), transportation machinery
parts (cars and motorcycles) (55.7%), ceramic, earth or stone products (58.3%), and
steel (including cast and wrought products) (53.8%). There were 42.6% of
respondents indicating no change in this number, and 9.8% indicating a reduction.
With regard to plans for the future for number of local employees, 47.7% said they
planned to increase the number, 44.4% had no changes planned, and 7.9% expect to
decrease (Fig. 13). Categories with notably high rates indicating plans to increase
employees include medical devices, metal products, and general machinery.
- For the Japanese expatriate staff, 67.7% of the companies indicated that there was
no change since last year. For the future as well, 77.0% indicated that no changes
were planned (Fig. 14).
3. Sales and Procurement
○ Approximately 80% of products manufactured in the U.S. were for domestic sales.
More than half of firms intend to continue increasing sales in the U.S. On the other
hand, approximately 60% of respondents expect to expand their sales in Mexico,
although the current sales rate is only 4.9%.
- The percentage of products sold within the U.S. was 79.1%. This was followed by
4.9% in Mexico, 4.8% in Canada, 4.1% in Japan, 1.9% to Central and South America
Copyright (C) 2015 JETRO. All rights reserved. 8
(excluding Mexico), and 5.3% to other regions (Fig. 15).
- For future sales policy, many respondents indicate expansion in the U.S. (53.6%)
and Mexico (62.2%) (Fig. 16). Many of the firms indicating plans to expand sales in
Mexico were in specific industries, such as rubber products (75%), steel (70.0%),
transportation equipment (cars and motorcycles) (66.7%) and electric/electronic
parts (65.2%). There were also nearly 100 companies (47.3%) planning to expand
sales in Central/South America (excluding Mexico).
○ As the source of raw materials and components, the U.S. came in first with a
procurement rate of 56.5% (Japanese-affiliated companies in the U.S.: 15.5%; U.S.
companies: 38.8%; other foreign affiliated companies in the U.S.: 2.2%), followed by
Japan at 28.2%. The greatest number of respondents, 170 firms, reported that they
expect to further increase procurement from local U.S. industries. There were also
a number of respondents, 42, who indicated an intention to expand procurement
from Mexico.
- For the breakdown of procurement sources for raw materials and components,
56.5% is procured within the U.S. (15.5% from Japanese-affiliated local companies,
38.8% local companies, and 2.2% other foreign-affiliated companies). Other sources
in order of percentage are Japan (28.2%), China (5.1%) and ASEAN (3.8%) (Fig. 17).
- For future procurement policy, the most selected answer was a plan to expand
procurement from local U.S. companies (170 companies, 39.2%), indicating that
there is a higher priority for local U.S. companies than for Japanese-affiliated or
other foreign-affiliated companies in the U.S.. The current rate of procurement
from Mexico is low (1.3%), but 42 companies indicated plans to expand in this area,
particularly parts for transportation machinery (Fig. 18).
4. Management Challenges
○ Regarding general managerial issues, “Recruiting engineers,” “Retention of
workers” and “Recruiting workers for management positions” continue to be the
most selected answers. The main factors cited for increased costs were increases in
employee-related expenses such as “Increasing labor costs including salaries and
bonuses” and “Greater burden of medical insurance costs.” The main reasons given
for slow sales were the same as the previous year, including “Intensified price
competition” and “Excellent competing products.”
- General management issues indicated, in order of frequency (multiple answers
permitted) were “Recruiting engineers” (60.2%), “Retention of workers” (39.0%),
Copyright (C) 2015 JETRO. All rights reserved. 9
and “Recruiting workers for management positions” (37.8%) (Fig.19). Especially,
Japanese-affiliated companies in southern areas seem to have a difficult time
hiring employees with the needed special skills.
- The factors contributing to rising costs in order of frequency (multiple answers
permitted) were “Increase in labor costs (including salaries and bonuses)”
(74.9%), “Increase in healthcare costs” (57.0%), and “Increase in raw material,
natural resource and commodity prices” (52.5%) (Fig. 20). Particularly in the
Midwest, where unions are strong, many Japanese-affiliated companies
indicated that the rising burden of costs related to employees was an issue.
- Factors attributed to contributing to weaker sales, like the previous year were
“Severity in price competition” (80.8%), “Popular products from competitors”
(57.2%), and “Difficulties in distinguishing our products or ourselves from
competitors” (37.2%) (Fig. 21).
<The inflation rate is rising, so pay raises cannot be avoided>
There are no measures to deal with rising labor costs. It doesn’t cause serious
management problems. However, since there is no mandatory retirement age,
having to continue to raise wages to match the inflation rate can be painful.
[Plastic products]
Since our social and health insurance package has always been very good,
Obamacare (healthcare) has not increased the burden by much. However, as wages
rise along with the continuing inflation, it will be a big burden if the social
insurance fees continue to increase. [Paper and Pulp]
With Obamacare, we plan to address the erosion of what used to be a very good
benefits package by increasing the percentage of the employee burden for
insurance. [Electric or electronic parts]
(Measures to deal with Obamacare) We got estimates from several insurance
companies, and made a contract based on a balance among insurance coverage
rates, employee contributions, and company payment. [Processed food, agricultural
or fishery products]
It has become hard to find workers. For the hiring of full-time employees for a
factory expansion we hired a professional recruiter. There has also been an
increase in existing employees switching jobs to places with better working
conditions. [Chemical/Petroleum products]
<Intensifying competition from Asia. Differentiation from competition through better
performance and service is needed>
The intensification of price rivalry is caused by competition with Asian products.
Copyright (C) 2015 JETRO. All rights reserved. 10
Chinese and Southeast Asian companies are expanding. Many of these competitors
don’t have large-scale facilities in the U.S., and sell directly to customers over the
phone or on-line. Even with the cost of shipping from Asia, since they have no
overhead costs, they can be very competitive on price. [Electric or electronic parts]
Price competition from Korean products has become particularly intense. We are
working to differentiate ourselves with technology that is superior to that found in
the cheap competitor products, and by offering service that considers customer
needs. [Petroleum/chemical products]
The import system is expected to change next year for a portion of the competing
products from China. So we fear there will be an inflow of lower price products.
[Ceramic, earth or stone products]
There are some competing products from Asia, and there are Asian companies that
have taken some of our market share, but our sales haven’t declined. It’s clear that
the market is segmented by price and performance. [Machines (including molds
and power tools)]
Since the design is done in Japan, the point for achieving differentiation is how to
improve production efficiency in the U.S. Reasons it is hard to raise production
efficiency to the same levels as in Japan are 1) Difficulty hiring engineering talent
for geographical reasons, 2) Facilities are outdated. [Parts for transportation
machines (cars and motorcycles)]
5. Capital Investment
○ Increases in capital investment were most notable among medical device and
transportation equipment makers.
- For the comparison of capital investment between 2013 and 2014, about half
(47.3%) responded that it remained the same, while 40.4% reported an increase,
significantly exceeding the number reporting a decrease (12.3%) (Fig. 22). The
reports of increases over the previous year were particularly high among companies
involved in medical equipment (62.5%) and transportation machines (cars and
motorcycles) (58.8%). The main uses of the capital investments in order of
frequency (multiple answers permitted) were “Modernization and efficiency
improvement of plants (include expanding or renewing of machines and
facilities)” (70.8%), “Expansion of current production facilities” (28.4%), and
“Enhancement of technology and R&D” (20.1%) (Fig. 23).
Copyright (C) 2015 JETRO. All rights reserved. 11
6. Changing Business Environment
○ Looking at the production rate of goods for the U.S. market by country, U.S.
production was the highest, at about 70%. For future production, many firms
indicated even further expansion of production in the U.S. (187 firms, 36.7%). The
percentage of those planning expansion in Mexico was also high (64.1%). In
comparison, among companies currently using Japan as a production site, about
30% (76 companies) indicated that production would be decreased. The reasons
given for the decisions to change the production system, in descending order of
number of responses, include “Expansion of the U.S. market (supply from new
bases),” “Requests from clients” and “Improvement towards the stable supply of
products (Dispersion of risks).”
○ Utilization rates of FTAs for import/export have risen, compared to those of the
previous year. The FTA utilization rates are particularly high with NAFTA
members like Canada and Mexico. The use of FTA for imports from Korea has also
increased significantly from the previous year.
○ Regarding the influence of the shale revolution, 20.2% of respondents reported that
it was positive, significantly exceeding the 2.6% who stated that it was negative.
Responses that constituted the majority were “We have felt no influence” (32.7%)
and “We do not know” (44.5%). Concrete effects listed in descending order of
number of responses: “Increase of product demands,” “Decrease of fuel costs” and
“Decrease in raw material prices.”
○ The industrial fields for which market expansion is most expected in the next few
years were “Medical,” “Environment,” “Shale gas and Shale oil,” “Health,” and
“Cloud and mobile.” Many respondents listed two states at the top as promising
areas: Texas, where the population growth has been significant, and California,
where Asian and Hispanic residents form nearly half of the entire population.
○ Optimization of production system for sales in the U.S.
- Regarding production rate for sales in the U.S. by country, U.S. marked first at
72.6% (Japan: 14.7%; Mexico: 3.5%; Asia (excluding Japan, China): 3.5%; China:
2.9% and Canada: 1.0% (Fig. 24).
- Future production system
・ The most selected response was that production in the U.S. would be further
expanded (36.7%, 187 companies). Of this group, 123 companies indicated only
expansion in the U.S. (Did not select “decrease” for any other country.) There
were only 30 companies responding that production in the U.S. would be
Copyright (C) 2015 JETRO. All rights reserved. 12
reduced.
・ Among firms with production bases in Mexico (including those planning such
bases) most indicated that they planned to expand in the future (64.1%, 75
companies).
・ In contrast, among firms with production bases in Japan (including those
planning such bases), more than 30% (76 companies) responded that reductions
were planned (Fig. 25).
・ Among firms with production bases in China and Asia (other than Japan and
China) (including those planning such bases), there were 12.8% planning
reductions in China, and 10.5% planning reductions elsewhere in Asia.
- Combinations of regions with production base expansion (up) and offsetting
reduction (down).
<Regions of “reduction” for the 187 companies indicating “expansion” in the U.S.>
・[U.S. (up)/Japan (down)]: 57 companies(Parts for transportation machines: 15,
Chemical/Petroleum products: 7, General machinery: 5, Electric or electronic
parts: 5, Transportation machines: 3, Rubber goods: 3, etc.)
・[U.S. (up)/Asia (down)]: 5 companies
<Region of “expansion” for the 30 companies indicating “reduction” for the U.S.>
・[Mexico (up)/U.S. (down)]: 13 companies(Parts for transportation machines: 8,
Transportation machines: 2, etc.)
・[Asia (up)/U.S. (down)]: 5 companies(Parts for transportation machines: 2, etc.)
<Other country pair combinations>
・[Mexico (up)/Japan (down)]: 16 companies(Parts for transportation machines: 6,
Transportation machines: 2, Electric or electronic parts: 2, etc.)
・[Asia (up)/Japan (down)]: 15 companies(Parts for transportation machines: 3,
Electric or electronic parts: 2, General machinery: 2, etc.)
・ [China (up)/Japan (down)]: 8 companies (Electric or electronic parts: 3,
Chemical/Petroleum products: 2, etc.)
・[Mexico (up)/China (down)]: 5 companies(Parts for transportation machines: 3,
Electric or electronic parts: 2)
- Reasons for changes to the policy in the future, in order of frequency include,
“Expansion of the U.S. market (with supply of products from new bases)” (61.9%),
“Requests from clients” (39.1%), and “Improvement towards the stable supply of
products (Dispersion of risks)” (29.9%) (Fig. 26).
<One advantage of production in Mexico is the low wages>
The advantage of Mexico is that the wages for employees below the management
level are low. Wages are expected to continue to increase as European and U.S.
Copyright (C) 2015 JETRO. All rights reserved. 13
companies enter the market. Since there still isn’t mass production (in Mexico), we
don’t have a complete understanding of logistics costs, and we are conscious that
costly distribution may be an issue. [Parts for transportation machines (cars and
motorcycles)]
Some of the U.S. companies that we have as customers have a strong consciousness
to “Buy American” (Not a legal requirement, just an attitude.) For that reason,
there is some advantage to production in the U.S. [Rubber goods]
From the cost perspective, we’d like to move production from the U.S. to another
region, but there are many issues, including how to deal with the current
employees. [Chemical/Petroleum products]
○ Utilization of bilateral or multilateral FTAs
- Since both Canada and Mexico are NAFTA member states, high rates of FTA usage
were reported. For Canada, usage is 46.6% for exports and 48.1% for imports. With
Mexico, the utilization rates are 49.3% for exports and 61.9% for imports. For the
imports from Korea there has been a significant increase in the use of FTAs
compared to the previous year (22.2% in 2013 and 51.0% in 2014) (Fig. 27).
○ Effects of the shale revolution in the U.S.
- With regard to the effects of the shale revolution, 20.2% indicated that the effects
were positive, far exceeding the number indicating a negative effect (2.6%) (Fig. 28).
However, more than half of those responding indicated that there was no effect or
“effect unknown.” Specific effects cited, in order of frequency, included “Increase of
product demands” (49.3%), “Decrease in fuel costs” (39.0%), and “Decrease in raw
material prices” (29.5%) (Fig. 29).
<Increase in demand for products related to shale development. Many voiced the
opinion that they felt no direct benefit in terms of fuel costs>
Since our products are used in products that use petroleum, demand expands as
the petroleum industry grows. [Electric or electronic equipment]
We have heard that benefit from the drop in price of raw materials has been big.
Since most of the ethylene we use as a raw material is derived from natural gas, an
increase in shale gas production is linked to dropping prices.
[Chemical/Petroleum products]
Since transportation costs are not only affected by fuel prices, and a large portion is
due to insurance and labor costs, we haven’t really felt much of a benefit. We are
Copyright (C) 2015 JETRO. All rights reserved. 14
also not very happy about the fact that gasoline prices have remained higher here
than in surrounding states. [Processed food, agricultural or fishery products]
The demand for our products is increasing. Out pipe is used for pipeline transport.
We can also expect to see a steady maintenance demand. [Machines (including
molds and power tools)]
The benefit of the shale revolution is a drop in gasoline prices. When gas prices
drop, there is a problem with a decline in the sales of hybrid cars, but overall, the
big vehicles like the SUVs are selling, so that may be a factor. [Parts for
transportation machines (cars and motorcycles)]
Since there are large supplies of raw materials in Texas, you would think you could
get them cheaply, but the prices haven’t been decreasing. I think the electricity
prices are competitive compared to neighboring states. One disadvantage is the
high insurance premiums because of the hurricane risk, and labor costs have been
increasing recently. [Chemical/Petroleum products]
○ Areas in which the markets are expected to grow in the next two or three years
<Industry field>
- The U.S. markets expected to experience growth in the next few years selected by
the respondents (up to a maximum of three fields), in order of frequency, were
Medical (48.9%), Environment (46.9%), Shale gas and Shale oil (40.4%), Health
(27.8%), and Cloud and mobile (storage, Big Data, mobile devices, SNS, etc.)
(27.8%) (Fig. 30).
< Growing populations and increasing awareness of health has a positive effect on
industries such as medicine, health, and food>
Interest in the environment is spreading to government-related areas. Shale gas
will not just be for domestic consumption, I think the exports to places like Japan
and Europe will also increase. Recently, the leak of credit card information from
large retail chains has become a big problem, so the need for data security is
growing. [Electric or electronic parts]
The population continues to grow, which supports all industries. I think there will
be wide expansion in fields related to foods and security. [Chemical/Petroleum
products]
With increasing health-awareness, there are large changes in consumer demands.
There are opportunities for products with high functionality and products that use
natural ingredients. [Processed food, agricultural or fishery products]
Copyright (C) 2015 JETRO. All rights reserved. 15
<Region>
- The regions selected as most likely to grow in the next two to three years were
distributed, with the South (73.8%), West (47.3%), Midwest (41.4%) and Northeast
(32.0%) (Fig. 31). The main types of industry selecting the South were general
machinery and plastic products. The main industries selecting the West include
medical devices, electric or electronic parts, and processed food, agricultural or
fishery products.
- Looking at the selection by state, the respondents indicated Texas (58.5%),
California (36.7%), Ohio (22.7%), New York (19.4%), and Georgia (15.5%) (Fig. 32).
The top two were Texas, where population growth is notable, and California, where
the Asian and Hispanic residents account for nearly half of the total population.
<The most promising states are Texas and California>
Our customers, the high-tech companies (biotech, semiconductors, etc.) are
concentrated in California. The proportion of this kind of company being
established here is higher than on the East Coast. The head office functions cannot
be easily moved, but engineers, etc. are being concentrated on the West Coast.
[Electric or electronic parts]
The semiconductor market is showing signs of growth both in Texas and California.
I frequently make business trips to Texas and can feel the energy of the economy.
Phoenix, Arizona has the same kind of vitality. [Chemical/Petroleum products]
Regions where market growth is expected are 1) The tri-state area including New
York, New Jersey, Connecticut (population growth), 2) California
(environment-related business customers), and 3.) North Dakota (energy-related
customers). [Electric or electronic parts]
With the transfer of major auto makers, we are studying a transfer of our sales
functions, but not production, to Texas. [Parts for transportation machines (cars
and motorcycles)]
From a wage management perspective, in Texas you only have to pay federal taxes;
there is no state or local taxes. It’s also easy to operate factories because the labor
regulations aren’t so restrictive. [Chemical/Petroleum products]
Copyright (C) 2015 JETRO. All rights reserved. 16
Fig. 1: Changes in year-to-year operating profit as indicated by DI and real U.S. GDP
growth rate
20.0
42.6 42.9
53.0
36.9
42.1
34.4
20.8
21.4 18.2
-10.3
31.4
14.1
27.0
32.9
23.9
-16.6
-41.8
55.7
6.6
29.9
31.7
33.4
44.8
-5
-4
-3
-2
-1
0
1
2
3
4
5
6
-50
-40
-30
-20
-10
0
10
20
30
40
50
60
91 92 93 94 95 96 97 98 99 00 01 02 03 04
*
05 06 07 08 09 10 11 12 13 14 15
U.S. DI Real GDP growth rate
(%)
Note: DI is an abbreviation for diffusion index calculated as the proportion of businesses reporting increased operating profits minus
those reporting decreased operating profits compared to the previous year. It is an indicator of the direction of changes, such as business
confidence. 2014 and 2015 are IMF estimates (announced Oct. 2014.) *There was no survey in 2004.
(DI Value) Real GDP growth rate (over previous year)
•
Respondents: 665 companies
Copyright (C) 2015 JETRO. All rights reserved. 17
Fig. 2: Year-to-year operating profit changes
49.4
60.3 62.2
68.1
58.2
60.3
56.1
46.5
46.6
42.9
33.8
53.6
44.9 49.3
52.5
47.0
28.1
20.0
67.9
39.2
51.0 50.2 49.8
52.8
21.2
22.0
18.5 16.7
20.5 21.5 22.2
27.8 28.2
32.4
22.1
24.2
28.4 27.9
30.0
27.2
18.2
19.9
28.3
27.9
31.3
33.8
39.2
29.4
17.7 19.3
15.1
21.3
18.2
21.7
25.7 25.2 24.7
44.1
22.2
30.8
22.3 19.6
23.1
44.7
61.8
12.2
32.6
21.1
18.5 16.4
8.0
0
10
20
30
40
50
60
70
91 92 93 94 95 96 97 98 99 00 01 02 03 04
*
05 06 07 08 09 10 11 12 13 14 15
(Estimate)
Increase
Remain the same
Decrease
•
(%)
* There was no survey in 2004. Respondents: 665 companies
Copyright (C) 2015 JETRO. All rights reserved. 18
Fig. 3: Reasons for increased operating profits forecast for 2014 (Multiple answers)
15.5
81.5
21.2
26.4
14.2
17.9
30.6
8.5
4.2
0% 20% 40% 60% 80% 100%
Sales increase due to export expansion
Sales increase in local markets
Exchange rate fluctuation
Reduction of procurement costs
Reduction of labor costs
Reduction of other expenditures (e.g.,
administrative/utility costs)
Improvement of production efficiency
(manufacturing industry only)
Improvement of sales efficiency
Other Respondents: 330 companies
Copyright (C) 2015 JETRO. All rights reserved. 19
Fig. 4: Reasons for decreased operating profits forecast for 2014 (Multiple answers)
9.2
45.0
0.9
24.8
34.9
21.1
0.9
21.1
26.6
0% 20% 40% 60%
Sales decrease due to export slowdown
Sales decrease in local markets
Exchange rate fluctuation
Increase of procurement costs
Increase of labor costs
Increase of other expenditures (e.g.,
administrative/utility/fuel costs)
Rising interest rates
Production costs insufficiently reflected in selling
price of goods
Other
Respondents: 109 companies
Copyright (C) 2015 JETRO. All rights reserved. 20
Fig. 5: Changes in operating profit and real U.S. GDP growth rate
38.9
51.2
56.8
66.6 67.9 65.5
67.1 66.6
69.7
63.7
59.7
66.2 66.0
75.7
80.9 78.3
61.7
35.5
74.2
67.5
73.3
79.782.3
7.9 7.8 8.6 10.2
7.3
10.2 9.2 8.8
5.8 7.6
11.2 12.4
15.0
14.6 10.5
13.6
21.6
22.214.5
17.315.1
11.89.9
53.2
41.0
34.7
23.2 24.9 24.3 23.6 24.7 24.4
28.8 29.1
21.3 19.0
9.6 8.6 8.0
16.6
42.4
13.715.2
11.6
8.5 7.8
-0.2
3.6
2.7
4.0
2.7
3.8
4.5 4.4 4.7
4.1
1.0
1.8
2.8
3.8
3.3
2.7
1.8
-0.3
-2.8
2.5
1.6
2.3 2.2 2.2
-5
-4
-3
-2
-1
0
1
2
3
4
5
0
10
20
30
40
50
60
70
80
90
100
91 92 93 94 95 96 97 98 99 00 01 02 03 04
*
05 06 07 08 09 10 11 12 13 14
Profit Break-even Loss Real GDP growth rate (left axis)
Profit
Real GDP growth rate (over previous year) (right axis)
Loss
Break-even
(%)(%)
Note: The GDP growth rate for 2014 is the IMF estimate (announced Oct. 2014.) *No survey conducted in 2004.
Respondents: 665 companies
Copyright (C) 2015 JETRO. All rights reserved. 21
Fig. 6: Reasons for increased operating profits forecast for 2015 (Multiple answers)
17.8
83.0
11.2
21.3
10.6
15.8
37.1
14.7
6.9
0% 20% 40% 60% 80% 100%
Sales increase due to export expansion
Sales increase in local markets
Exchange rate fluctuation
Reduction of procurement costs
Reduction of labor costs
Reduction of other expenditures (e.g.,
administrative/utility/fuel costs)
Improvement of production efficiency
(manufacturing industry only)
Improvement of sales efficiency
Other Respondents: 348 companies
Copyright (C) 2015 JETRO. All rights reserved. 22
Fig. 7: Reasons for decreased operating profits forecast for 2015 (Multiple answers)
11.3
58.5
7.5
22.6
30.2
11.3
1.9
30.2
15.1
0% 20% 40% 60% 80%
Sales decrease due to export slowdown
Sales decrease in local markets
Exchange rate fluctuation
Increase of procurement costs
Increase of labor costs
Increase of other expenditures (e.g.,
administrative/utility costs)
Rising interest rates
Production costs insufficiently reflected in selling
price of goods
Other Respondents: 53 companies
Copyright (C) 2015 JETRO. All rights reserved. 23
Fig. 8: Business development in the next one or two years
Expansion
60.3%
Remain the same
37.0%
Reduction
2.1%
Withdrawal or transfer
to a 3rd country
(region)
0.6%
Respondents :668 companies
Copyright (C) 2015 JETRO. All rights reserved. 24
Fig. 9: Reasons for the future business expansion in the next one or two years (Multiple
answers)
87.5
40.6
21.7
12.0
0.0
0.0
14.2
14.2
4.5
0% 20% 40% 60% 80% 100%
Sales increase
High growth and potential
High receptivity for high-value added products
Reduction of costs (e.g., procurement/labor costs)
Deregulation
Ease in securing labor force
Reviewing production and distribution networks
Relationship with clients
Other Respondents: 401 companies
Copyright (C) 2015 JETRO. All rights reserved. 25
Fig. 10: Expanding functions in case of business expansion in the next one or two years
(Multiple answers)
53.8
33.8
52.5
22.3
7.5
9.8
3.5
3.5
0% 20% 40% 60%
Sales function
Production (generic products)
Production (high-value added products)
R&D
Function of regional headquarters
Logistics functions
Administrative functions in providing services
(e.g., shared services, call center)
Other Respondents: 400 companies
Copyright (C) 2015 JETRO. All rights reserved. 26
Fig. 11: Measures to encourage localization of corporate management (Multiple
answers)
58.1
49.6
25.2
35.3
57.6
32.7
20.4
17.9
6.6
7.5
2.7
0% 20% 40% 60% 80%
Strengthen training of local employees with focus on
localization
Encourage mid-career hiring to obtain competent
local staff with focus on localization
Reform of personnel systems (merit-based
promotion, etc.) with focus on localization
Assign local staff to executive positions
Assign local staff to general manager/manager
positions
Strengthen R&D capacity to develop quality of
products/services for local markets
Strengthen authority in local office to allow
decision-making for sales strategies
Delegate authority to local office from headquarters
Obtain human resources/management resources
through M&A
No particular actions
Other Respondents: 663 companies
Copyright (C) 2015 JETRO. All rights reserved. 27
Fig 12: Issues faced in promoting management localization (Multiple answers)
10.0
32.0
7.4
24.0
27.3
32.6
6.9
43.8
16.5
8.7
41.5
14.5
16.1
5.5
15.2
0% 10% 20% 30% 40% 50%
Disagreement over recruitment policy between local office
and headquarters
Difficulty in reducing the number of Japanese expatriate
staff
Shortage of positions available to local staff
Little progress in delegating authority from the headquarters
to local office
Insufficient management capabilities of Japanese expatriate
staff
Inadequate language skills of Japanese expatriate staff
(English and local languages)
Other
Difficulty recruiting local candidates for executive positions
High turnover rate of local candidates for executive
positions
Inadequate language skills of local staff (Japanese and
English)
Insufficient performance/awareness among local staff
Insufficient capabilities for local planning and marketing
Insufficient capabilities to develop local products and
services
Other
No particular issues
Issu
e w
ith t
he
hea
dquar
ters
/Jap
an s
ide
Issu
e w
ith t
he
loca
l si
de
Respondents: 653 companies
Copyright (C) 2015 JETRO. All rights reserved. 28
Fig. 13: Changes in the past 1 year and future plans for number of local employees
Fig. 14: Changes in the past 1 year and future plans for number of Japanese expatriate
staff
47.7
47.6
44.4
42.6
7.9
9.8
0% 20% 40% 60% 80% 100%
Local hires
(future plan)
(n=648)
Local hires
(change in past 1 year)
(n=664)
Increase No change Decrease
10.2
18.3
77.0
67.7
12.8
14.0
0% 20% 40% 60% 80% 100%
Japanese expatriates
(future plan)
(n=647)
Japanese expatriates
(change in past 1 year)
(n=662)
Increase No change Decrease
Copyright (C) 2015 JETRO. All rights reserved. 29
Fig. 15: Breakdown of product sale destinations (By country/region and industry)
77.7
72.3
59.6
68.8
84.1
87.4
68.6
82.2
80.5
83.5
78.3
89.9
84.7
81.8
81.3
81.8
72.0
56.7
96.3
50.0
70.7
75.6
79.1
4.3
6.5
2.6
3.0
7.4
6.7
5.6
3.1
6.0
3.8
1.0
4.0
3.5
5.6
1.3
4.4
3.3
2.0
2.7
4.0
1.6
3.5
4.8
3.7
0.3
1.3
2.5
6.1
2.7
6.4
2.3
5.8
10.2
4.6
2.6
1.1
6.2
0.5
9.9
3.5
0.7
0.7
8.0
2.0
4.9
3.2 1.7
2.5
1.9
0.6
1.3
1.9
3.0
3.1
1.2
0.4
1.1
2.3
3.4
0.8
1.3
2.9
14.3
4.3
1.4
1.9
4.6
0.8
19.0
13.8
0.9 0.1
7.3
4.0
1.8
0.4
5.1
1.0
0.5
1.0
8.0
0.9
5.5
1.3
0.3
1.1
13.5
4.1
6.5
18.3
15.0
9.9
0.9
1.8
10.3
5.4
2.8
0.9
10.6
1.5
7.9
2.1
8.0
1.7
12.8
25.0
46.0
14.3
4.1
5.3
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Other manufacturing (n=49)
Print and publication (n=6)
Medical devices (n=8)
Precision machines (n=23)
Parts for transportation machines (cars and
motorcycles) (n=147)
Transportation machines (cars and motorcycles)
(n=16)
Electric or electronic parts (n=44)
Electric machines or electronics (n=38)
Machines (including molds and power tools) (n=44)
Metal goods (including plated products) (n=34)
Non-ferrous metals (n=14)
Steel (including cast and wrought products) (n=26)
Ceramic, earth or stone (n=12)
Rubber goods (n=14)
Pharmaceuticals (n=6)
Plastic products (n=37)
Chemical/Petroleum products (n=64)
Paper and pulp (n=3)
Furniture and interior goods (n=3)
Timber and wood products (excluding furniture and
interior goods) (n=1)
Clothes and textiles (n=0)
Textiles (yarn, woven and chemical fiber products)
(n=7)
Process food, agricultural or fishery products (n=52)
All (n=648)
U.S. Canada Mexico Central/South America (except Mexico) Japan Other
Copyright (C) 2015 JETRO. All rights reserved. 30
Fig. 16: Future plans for changes in product procurement destinations (by
country/region)
35.4
12.4
47.3
62.2
26.7
53.6
58.3
78.4
48.8
33.9
70.8
42.5
6.3
9.3
3.9
3.8
2.5
3.9
0% 20% 40% 60% 80% 100%
Other (n=206)
Japan (n=194)
Central/South America (ex. Mexico)
(n=203)
Mexico (n=339)
Canada (n=360)
U.S. (n=593)
Expand No change Decrease
Copyright (C) 2015 JETRO. All rights reserved. 31
Fig. 17: Breakdown of material/parts procurement sources (By country/region and
industry)
8.7
7.5
6.3
7.6
28.8
19.8
12.7
7.3
9.4
14.7
15.9
15.0
3.2
11.5
3.2
29.8
9.1
5.0
0.3
13.3
8.0
15.5
47.6
31.8
53.8
17.1
32.7
42.7
24.0
19.1
30.6
40.7
53.3
58.3
52.9
35.6
43.7
41.6
45.8
66.7
35.0
15.0
19.6
63.0
38.8
0.8
1.0
1.6
1.3
1.2
1.7
1.7
4.7
3.6
2.7
6.1
3.1
3.5
3.0
18.6
0.7
2.2
1.2
2.0
0.2
1.5
0.6
0.3
0.7
0.2
2.3
0.7
2.4
2.9
85.0
2.0
1.4
0.4
2.9
0.6
0.3
0.5
0.9
0.6
0.8 0.8
0.9
2.9
10.0
1.7
0.5
0.9 1.3
0.2
0.1
0.8 0.7
0.1
0.03
0.4
1.4
0.2
1.7
0.8
0.3
2.4
5.6
4.7
0.7
0.4
2.9
1.4
3.0
2.4
0.2
0.2
2.3 0.7
6.7
0.1
1.2 1.5
3.7
4.4
3.4
2.5
3.4
9.0
10.5
1.1 2.4
6.3
0.7 0.9
16.8
2.5
1.0
1.7
3.3
0.4
5.7
3.8
5.8
0.8
1.3
3.7
3.1
1.0
11.7
15.5
7.1
1.9
1.0
1.6
0.9
2.5
6.2
3.1
5.7
3.3
5.0
8.6
5.5
5.1
1.4
3.8
4.3
1.8
0.2
0.4
0.6
1.7
0.7
1.1
2.9
4.4
1.0
1.5
1.5
3.3
1.7
6.7
0.7
0.5
1.3
27.7
37.3
24.5
60.3
25.6
29.7
36.9
41.4
43.6
31.1
19.5
12.6
37.5
22.6
31.7
12.1
25.5
13.3
46.7
38.7
10.9
28.2
0.4
16.7
0.3
0.1
0.2
0.03
1.3
0.3
0.3
0.04
3.7
1.8
0.7
0.6
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Other manufacturing (n=48)
Print and publication (n=6)
Medical devices (n=8)
Precision machines (n=23)
Parts for transportation machines (cars and
motorcycles) (n=142)
Transportation machines (cars and motorcycles)
(n=16)
Electric or electronic parts (n=40)
Electric machines and electronics (n=37)
Machines (including molds and power tools) (n=43)
Metal goods (including plated products) (n=34)
Non-ferrous metals (n=13)
Steel (including cast and wrought products) (n=25)
Ceramic, earth or stone (n=11)
Rubber goods (n=14)
Pharmaceuticals (n=6)
Plastic products (n=35)
Chemical/Petroleum products (n=62)
Paper and pulp (n=3)
Furniture and interior goods (n=3)
Timber and wood products (excluding furniture and
interior goods) (n=1)
Clothes and textiles (n=0)
Textiles (yarn, woven and chemical fiber products)
(n=7)
Process food, agricultural or fishery products (n=48)
All (n=625)
U.S. (local Japan-affiliated company) U.S. (local business) U.S. (other foreign-affiliated company) Canada
Mexico Central/South America (except Mexico) Taiwan, Korea, Hong Kong ASEAN
China EU Japan Other
Copyright (C) 2015 JETRO. All rights reserved. 32
Fig. 18: Future plans for material/parts procurement sources (by country/region)
7.1
14.8
7.0
28.3
28.9
22.8
17.3
46.7
11.0
13.8
39.2
27.6
90.5
56.4
87.2
62.3
63.2
75.0
80.8
52.2
86.3
83.0
58.8
66.4
2.4
28.8
5.8
9.4
7.9
2.2
1.9
1.1
2.7
3.2
2.1
6.0
0% 20% 40% 60% 80% 100%
Other (n=42)
Japan (n=385)
EU (n=86)
China (n=159)
ASEAN (n=114)
Taiwan, Korea, Hong Kong (n=92)
Central/South America (ex. Mexico)
(n=52)
Mexico (n=90)
Canada (n=73)
U.S. (other foreign-affiliated
company) (n=94)
U.S. (local business) (n=434)
U.S. (local Japan-affiliated
company) (n=283)
Expand No change Decrease
Copyright (C) 2015 JETRO. All rights reserved. 33
Fig. 19: Management Challenges: Management problems in general (Multiple answers)
Fig. 20: Management Challenges: Factors of cost increases (Multiple answers)
Fig. 21: Management Challenges: Factors of weak sales (Multiple answers)
Rank Item Respondents (625) Rate (%)
1 Recruiting engineers 376 60.2
2 Retention of workers 244 39.0
3 Recruiting workers for management positions 236 37.8
4 Recruiting regular workers 219 35.0
5 Safety measures (for automobiles, food, medicines, etc.) 46 7.4
6Assisting Japanese expats (e.g. acquiring driver’s licenses, social
security number, etc.)35 5.6
7 Acquiring work visas for Japanese expats 32 5.1
8 Employment Procedures 23 3.7
9 Labor union related disputes including strikes 17 2.7
10 Antitrust measures 15 2.4
Other 63 10.1
Rank Item Respondents (653) Rate (%)
1 Increase in labor costs (including salaries and bonuses) 489 74.9
2 Increase in health insurance (healthcare) costs 372 57.0
3 Increase in raw material, natural resource and commodity prices 343 52.5
4 Increase in transportation costs (including gasoline) 172 26.3
5 Yen/ dollar exchange risk 149 22.8
6 Increase in fuding costs 61 9.3
7Increase in costs due to tightened regulations on
distribution/logistics56 8.6
8 Legal costs (compliance-related matters) 49 7.5
9 Increase in tax 32 4.9
10 Labor management costs (labor disputes/lawsuits) 24 3.7
11 Visa application costs 4 0.6
Other 17 2.6
Rank Item Respondents (647) Rate (%)
1 Severe price competition 523 80.8
2 Popular products from competitors 370 57.2
3 Difficulty in differentiation from competitors 241 37.2
4 Difficulty expanding sales channels 153 23.6
5 Low awareness of company’s products and technologies 84 13.0
6 Pirated or counterfeit products 39 6.0
7
Strict regulations for government permits and licenses regarding
sales 35 5.4
8
"Buy American"" rules (priority for U.S.-made products for
government procurement) 20 3.1
9
Decrease in sales and disruption of distribution channels due to
natural disasters 10 1.5
Other 15 2.3
Copyright (C) 2015 JETRO. All rights reserved. 34
Fig. 22: Changes in capital investment in 2014, compared to 2013
Increase from
previous year
40.4%
Remained the same
47.3%
Decrease from
previous year
12.3%
Respondents : 656 companies
Copyright (C) 2015 JETRO. All rights reserved. 35
Fig. 23: Usage of capital investment in 2014 (Multiple answers)
28.4
70.8
7.4
20.1
7.5
18.3
8.2
0% 20% 40% 60% 80%
Expansion of corrent production facilities
Factory modernization and efficiency
improvement
(includes expanding or renewing of machines
and facilities)
New plant construction
Enhancement of technology and R&D
Environmental measures
(reduction of greenhouse gases, conservation
etc.)
Investment in IT for more efficiency
OtherRespondents: 623 companies
Copyright (C) 2015 JETRO. All rights reserved. 36
Fig. 24: Production distribution for sales in the U.S. market (By country/region and
industry)
74.2
52.5
65.4
55.6
80.9
81.4
43.7
39.1
57.2
81.6
85.6
86.0
57.6
70.3
80.8
79.5
80.4
66.7
70.0
100.0
80.7
86.8
72.6
2.3
0.3
0.3
1.6
1.5
0.3
0.1
0.8
0.9
0.4
1.1
0.8
1.1
0.7
0.7
1.0
3.1
6.9
[値]
3.7
3.8
1.3
0.9
1.4
4.2
4.1
3.2
12.7
4.8
0.9
7.1
1.8
3.5
0.4
0.5
0.5
0.5
0.8
0.5
0.9
2.1
0.5 0.7
0.6
3.3
0.4
0.5
3.9
0.8
0.7 0.5
1.1
12.1
11.4
3.4
0.03
6.4
2.8
1.5
0.4
2.2
5.0
2.7
2.9
3.2
7.9
2.0
0.6
13.4
16.8
3.0
0.7
5.7
0.9
1.4
4.4
0.2
1.8
0.7
10.0
1.4
0.9
3.5
0.8
1.3
1.9 0.1
0.2
0.4
1.2
0.4
0.2
0.5 0.5
0.3
1.8
2.2
3.3
0.1
0.7
12.0
30.0
24.4
37.6
6.8
14.8
24.7
26.5
33.5
12.9
7.1
6.9
30.1
16.1
3.2
9.9
11.9
15.0
25.0
10.7
6.7
14.7
0.1
16.7
3.7
0.1
1.2
0.3
0.1
2.9
0.4
0.6
1.7
0.7
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Other manufacturing (n=48)
Print and publication (n=6)
Medical devices (n=7)
Precision machines (n=22)
Parts for transportation machines (cars and
motorcycles) (n=144)
Transportation machines (cars and motorcycles)
(n=17)
Electric or electronic parts (n=40)
Electric machines and electronics (n=38)
Machines (including molds and power tools) (n=43)
Metal goods (including plated products) (n=34)
Non-ferrous metals (n=14)
Steel (including cast and wrought products) (n=26)
Ceramic, earth or stone (n=11)
Rubber goods (n=14)
Pharmaceuticals (n=6)
Plastic products (n=36)
Chemical/Petroleum products (n=64)
Paper and pulp (n=3)
Furniture and interior goods (n=3)
Timber and wood products (excluding furniture and
interior goods) (n=1)
Clothes and textiles (n=0)
Textiles (yarn, woven and chemical fiber products)
(n=7)
Process food, agricultural or fishery products (n=51)
All (n=635)
U.S. Canada Mexico Central/South America (except Mexico) China Asia (except Japan, China) EU Japan Other
Copyright (C) 2015 JETRO. All rights reserved. 37
Fig. 25: Future plans for production for sales in the U.S. market (by country/region)
54.5
10.2
20.0
32.4
21.3
29.4
64.1
19.0
36.7
45.5
56.2
67.3
57.1
66.0
68.6
34.2
73.8
57.5
0.0
33.6
12.7
10.5
12.8
2.0
1.7
7.1
5.9
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Other (n=11)
Japan (n=226)
EU (n=55)
Asia (ex. Japan and China) (n=105)
China (n=94)
Central/South America (ex. Mexico) (n=51)
Mexico (n=117)
Canada (n=84)
U.S. (n=510)
Expand No change Decrease
Copyright (C) 2015 JETRO. All rights reserved. 38
Fig. 26: Optimization of production: Reasons for changes in future plans (Multiple
answers)
17.8
18.1
14.6
7.1
21.7
23.1
6.4
61.9
28.8
39.1
4.6
19.2
4.6
3.2
7.8
9.3
29.9
6.0
0% 20% 40% 60% 80%
A1) Decrease of production costs in the U.S.
A2) Increase of labor costs in current location
A3) Increase of material procurement costs in
current location
A4) Increase of quality control costs at current
location
A5) Incraese of production costs
A6) Increase of logistics costs
A7) Other
B1) Expansion of the U.S. market (with supply of
products from new bases)
B2) Necesity to shorten delivery times
B3) Requests from clients
B4) Other
C1) Changes in business environment with FTA,
EPA etc.
C2) Legal system changes
C3) Protection of intellectual property rights
C4) Other
D1) Increase of country risks at current location
D2) Improvement in supply stability (risk
distribution)
D3) Other
Co
st f
acto
rsM
arket
fac
tors
Reg
ula
tio
n f
acto
rsO
ther
Respondents: 281 companies
Copyright (C) 2015 JETRO. All rights reserved. 39
Fig. 27: Bilateral/Multilateral FTA utilization
*Central/South America = Chile, El Salvador, Nicaragua, Guatemala, Dominican
Republic, Costa Rica, Panama, Peru, Colombia
*Middle East and North Africa = Israel, Jordan, Morocco, Bahrain, Oman
No. of
valid
responses
Using Studying
use
Not using
(not
planned)
No. of
valid
responses
Using Studying
use
Not using
(not
planned)
Canada 313146
46.6%
41
13.1%
126
40.3%79
38
48.1%
10
12.7%
31
39.2%
Mexico 290143
49.3%
48
16.6%
99
34.1%97
60
61.9%
13
13.4%
24
24.7%
Singapore 417
17.1%
8
19.5%
26
63.4%26
9
34.6%
4
15.4%
13
50.0%
Australia 485
10.4%
9
18.8%
34
70.8%10
1
10.0%
3
30.0%
6
60.0%
Korea 5113
25.5%
9
17.6%
29
56.9%49
25
51.0%
8
16.3%
16
32.7%
Central/South America 14334
23.8%
33
23.1%
76
53.1%28
7
25.0%
6
21.4%
15
53.6%
Middle East and North
Africa34
4
11.8%
5
14.7%
25
73.5%7
1
14.3%
3
42.9%
3
42.9%
For Exports, do you make use of /are you
investigating the use of FTA preferential
tariffs?
For Imports, do you make use of /are you
investigating the use of FTA preferential
tariffs?
Copyright (C) 2015 JETRO. All rights reserved. 40
Fig. 28: Effect of the U.S. shale revolution on business
Positive
20.2%
Negative
2.6%
No effect
32.7%
Don't know
44.5%
Respondents : 660 companies
Copyright (C) 2015 JETRO. All rights reserved. 41
Fig. 29: Specific effect of the U.S. shale revolution on business (Multiple answers)
29.5
6.2
39.0
1.4
15.8
4.8
49.3
4.8
2.7
6.2
6.2
4.8
0% 20% 40% 60%
Decrease in raw material prices
Increase of raw material (including crude
oil-related) prices
Decrease of fuel costs
Increase of fuel costs
Decrease of transportation costs
Increase of transportation costs
Increase of product demand
Decrease of product demand
Intensifying sales competition
Competition in recruiting skilled workers
Increase of labor costs
Other Respondents:146 companies
Copyright (C) 2015 JETRO. All rights reserved. 42
Fig. 30: Industries for which the market is most likely to grow in the next few years
(Max. 3 answers)
48.9
46.9
40.4
27.8
27.8
12.2
10.6
9.6
8.5
5.9
4.7
3.7
3.7
2.4
2.3
2.3
1.3
0.2
0% 20% 40% 60%
Medical
Environment
Shale gas and oil
Health
Cloud and mobile
Biotech
Information security
Transportation/distribution
Robotics/mechatronics
Nanotech
Real estate
Rail, roads, bridges
Agriculture and food processing
Professional business services
Electricity, Water, Gas
Other
Educational services
Accommodation, food, and
entertainment servicesRespondents: 622 companies
Copyright (C) 2015 JETRO. All rights reserved. 43
Fig. 31: Regions where the market is most likely to grow in the next few years (Multiple
answers)
32.0
41.4
73.8
47.3
0% 20% 40% 60% 80%
Northeast
Midwest
South
WestRespondents: 469 companies
Copyright (C) 2015 JETRO. All rights reserved. 44
Fig. 32: Regions where the market is most likely to grow in the next few years (Multiple
answers)
Rank State State Responses
1 Texas 196
Parts for transportation machines (cars and motorcycles) 44
Electric machines and electronics 20
Process food, agricultural or fishery products 18
Chemical/Petroleum products 18
2 California 123
Electric or electronic parts 21
Parts for transportation machines (cars and motorcycles) 16
Chemical/Petroleum products 13
3 Ohio 76
Parts for transportation machines (cars and motorcycles) 22
Chemical/Petroleum products 10
Machines (including molds and power tools) 10
4 New York 65
Parts for transportation machines (cars and motorcycles) 10
Process food, agricultural or fishery products 9
Electric or electronic parts 7
Other manufacturing 7
5 Georgia 52
Parts for transportation machines (cars and motorcycles) 13
Plastic products 7
Machines (including molds and power tools) 6
6 Tennessee 51
Parts for transportation machines (cars and motorcycles) 16
Steel (including cast and wrought products) 5
Metal goods (including plated products) 5
7 Michigan 50
Parts for transportation machines (cars and motorcycles) 12
Machines (including molds and power tools) 8
Chemical/Petroleum products 7
Metal goods (including plated products) 7
8 Massachusetts 45
Electric or electronic parts 10
Chemical/Petroleum products 6
Precision machines 5
Other manufacturing 5
9 Indiana 39
Parts for transportation machines (cars and motorcycles) 10
Machines (including molds and power tools) 8
Chemical/Petroleum products 4
Metal goods (including plated products) 4
9 North Carolina 39
Parts for transportation machines (cars and motorcycles) 6
Process food, agricultural or fishery products 4
Machines (including molds and power tools) 4
Electric or electronic parts 4
Note: Top 10 states and Top 3 industries shown