Manila (Philippine Daily Inquirer/ANN) - With Japan still recovering from a massive earthquake and trying to prevent a nuclear meltdown, Japanese companies operating in the Philippines are starting to feel the ill effects of the crisis, mostly in terms of delayed export and supply deliveries.
A recent survey conducted by the Japan External Trade Organisation's Manila office showed that 46.6 per cent of the 163 respondents recognised the impact of the crisis on their operations. The biggest current impact, the survey showed, had to do with delays in the deliveries of both exported and imported products and components.
Exports from the Philippines to Japan were not getting to their destination on time due to delays at the Narita International Airport. Having been damaged by the quake, Narita airport's cargo centre had been unable to receive cargo deliveries, thus resulting in delivery delays.
Companies surveyed also said they were having some difficulty in getting goods and materials from Japan.
Even non-manufacturing companies, which did not have deliveries to worry about, also complained of the crisis' adverse impact on their business. Firms in the hotel, tourism and transportation industries, in particular, said they were experiencing travel reductions and trip cancellations.
Only 11.5 per cent of the surveyed firms said the crisis had no impact at all on their operations. However, 14.1 per cent of those polled said they have yet to determine the effect of the crisis on their future prospects.
"The fact that a lot of companies felt uncertain about their future prospects indicates the severity of this disaster," the Jetro study stated.
"For the future impact, most answers were related to the difficulty in procurement of goods and materials. An overwhelming number of manufacturing companies commented that due to the delay in production in Japan, the supply of goods and materials will be sluggish. Difficulty in procurement of goods and materials are directly related to reduction in orders and production as shown in many of the survey answers," the study noted.
As a countermeasure, the manufacturing companies polled said they were considering the procurement of alternative products, expansion in local procurement and purchases from overseas manufacturers.
In an interview with reporters Wednesday (March 30), Philippine trade undersecretary Cristino Panlilio said the government was keeping a close watch on the electronics and automotive industries, two key sectors that were expected to be the most badly hit by supply disruptions stemming from the Japan disaster.
He said one option that these companies, particularly those in auto assembly, could consider was the sourcing of local components and parts.
"We're giving them the option to make their spare parts here, to see if local parts manufacturers can be stop-gap producers," he said.
Toyota Motor Philippines Corp., the country's biggest auto assembler, said it has yet to assess the impact of the crisis on its operations.
The company assembles the popular Vios and Innova models in its Laguna plant. It also manufactures auto parts through Toyota Auto Parts Inc.
