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The Japan News/Yomiuri
The Japan News/Yomiuri
Business
The Yomiuri Shimbun

Houses, cars and gaming affected by China delivery delays

Toilets are on display at TOTO's Tokyo Center showroom in Shibuya Ward, Tokyo. It has become difficult to predict delivery dates for toilets installed in homes (Credit: The Yomiuri Shimbun)

The spread of the new coronavirus has caused delays in the procurement of parts from China, resulting in constant delivery delays and supply shortages across a wide range of fields, including home construction and manufacturing.

Some companies have changed their suppliers in anticipation of a protracted crisis.

Since mid-February, builder eKurasu Home in Matsudo, Chiba Prefecture, has been receiving "delivery delayed" notices from business contacts almost every day. The number of items delayed increases day by day, from toilets and built-in kitchens to lighting fixtures and water heaters.

"I've never been in this situation. We can't start construction," said the President of the company.

The company has no choice but to proceed with the construction of new builds on the basis of "completion date unknown" and has not been able to start renovation jobs it has already signed contracts for.

Sumitomo Forestry Co. President Akira Ichikawa told reporters Monday that the delay "will have some impact on the delivery of homes scheduled for the end of March."

There are also delays in kitchen and bathroom equipment, which will greatly impact people's lives. Sekisui House Ltd. will offer alternative products for kitchens and other items that are out of stock to customers who want to move into a new house at the end of this fiscal year.

Three major toilet suppliers, TOTO Ltd., LIXIL Group Corp. and Panasonic Corp., have stopped accepting new orders since mid-February or have been unable to give delivery dates due to disruptions in the supply of some parts that they depend on from China.

A woman in Tokyo in her 30s who is getting her house renovated said, "I now have no idea when I can move, because there is no toilet."

At the end of February, the Land, Infrastructure, Transportation and Tourism Ministry issued an unusual notice allowing flexibility over "completion inspections" required under the Building Standards Law. The inspection is usually carried out after a house is completed, but it can now be done before some facilities are installed, such as the kitchen and toilet. This move is designed to minimize the impact on both customers and builders by avoiding delays in payment of construction costs and delivery of builds.

Nintendo Co.'s popular Nintendo Switch home video game console is in short supply at domestic electronics retail stores. Since early February, when China's holiday period ended, factories contracted to Nintendo have been cutting production due to labor shortages. As a result, Nintendo Switch consoles have been traded online at prices more than 30% higher than their listed price.

Automakers such as Honda Motor Co., Nissan Motor Co. and Suzuki Motor Corp. have been forced to review their production plans.

Some machine manufacturers say they "can't foresee how long production cuts in China will last," and this view is growing stronger by the day, with some companies taking steps to address the problem.

Komatsu Ltd., a major manufacturer of construction machinery, has switched from its China suppliers of sheet metal, wire harnesses and other parts to suppliers in Japan, Vietnam and Thailand. Auto parts maker Yorozu Corp. will start European production of some parts that are no longer available at its plant in Hubei Province, China. Daikin Industries Ltd. is also considering switching production of commercial air conditioners from China to Malaysia.

Read more from The Japan News at https://japannews.yomiuri.co.jp/

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