Hormuz Survey: 60% of Japanese Manufacturers Hit, Only 4.5% Can Pass On CostsA · FULL TRANSLATION
- Over 60% of surveyed manufacturing executives report business impact from the Hormuz crisis
- Just 4.5% say they can sufficiently pass increased costs to customers
- Most manufacturers are absorbing energy and logistics cost increases
The Strait of Hormuz has moved from headline to line item on Japanese manufacturers' income statements. A Resilire survey of executives at manufacturers with 500-plus employees found over 60% reporting impact on earnings or business continuity - while a mere 4.5% can sufficiently pass costs through. The gap between those numbers means most mid-stream manufacturers are silently swallowing energy and logistics inflation, squeezed between rising producer prices (now 6.3%) and downstream customers equally under pressure. For investors, this survey is a screening tool: earnings season is about finding the 4.5% with genuine pricing power - typically firms with technical monopolies or irreplaceable supply chain positions. For Taiwanese suppliers woven into Japanese supply chains, expect the cost pressure to arrive as procurement price-downs. Risk itself is becoming an industry.
Resilire, a Tokyo-based supply chain risk management company, surveyed executives and managers at manufacturers with 500 or more employees on the impact of the Strait of Hormuz situation. Over 60% of respondents said the crisis is affecting their earnings or business continuity, while only 4.5% said they can sufficiently pass rising costs through to customers, indicating that most manufacturers are absorbing higher energy and logistics costs themselves. The survey also found sharply increased demand for real-time supply chain risk visibility and diversified sourcing.