Tsunami Aftermath: Sony, Toshiba and Technology Firms Suffer

Posted on Mar 19 2011 - 9:42pm by Robert

Technology and automotive manufacturers in Japan have and will continue to face extreme difficulties in the aftermath of last weeks Tsunami. Rolling power outages, reduced workforce and demolished infrastructure has resulted in factory closures or diminished production capacity.

Analysts and industry experts have predicted that this will have a knock on affect to supplies of products bound for Europe and the US. Understandably the companies are worried and have begun putting together contingency plans in anticipation of product shortfall.

Factory closures

Some of the largest companies facing problems include Sony, Panasonic, Toshiba, Toyota, Honda, Fujitsu and Nikon – basically any company in Japan is facing problems at the moment. A spokesperson for Nikon has recently commented “We are struggling intensely to resume our operations.” Factory closures are widespread with Nissan closing six of their plants, Toyota 21, Sony are struggling with flooding and limited production due to power rationing whilst Panasonic has closed two of their plants.

It’s not just Japanese plants that will feel the pinch either as factories all over the world halt production due to lack of components coming out of Japan. General motors have revealed that they will shut down factories in Italy, Spain and Germany next week because they will have run out of parts.

Indirect ramifications

Many Japanese Factories are on the coast

It’s not just large parts than can affect production either, if a car, computer, mobile phone is missing just one part the whole production line comes to a halt – the proverb that pops into our heads is ‘for want of a nail…’

It’s not all doom and gloom though as for the most part many retailers, dealers and overall imports are ordered way in advance. We would expect that the real affects will be felt long term, with the largest shortfall as far ahead as the holiday season.

Obviously none of these problems could have been predicted or indeed avoided; an act of nature such as this has destroyed people’s lives, a countries infrastructure and plainly will have ongoing ramifications worldwide. Although a shortfall in products and components pails in importance to the loss of human life it’s hard to ignore the long term troubles that Japan and indeed the rest of the world will face.

Note from the Author:

Our thoughts are with Japan and everyone directly or indirectly affected by the Tsunami and aftermath.

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