Many Japanese firms unable to boost supply chain resilience

Nearly half of Japanese companies have not implemented measures to protect their supply chains amid natural disasters and global tensions, according to a recent survey by the Japanese Cabinet Office.

This increases the risk of factory closures or logistics disruptions, which could halt production and impact the wider economy.

In a survey of 1,759 companies between November and December 2025, only 25.9% reported having taken steps to strengthen their supply chains.

Recent supply chain disruptions have forced some food companies to alter product packaging due to concerns over naphtha supplies following heightened tensions in the Middle East.

Japan is prone to natural disasters, with major earthquakes previously disrupting production activities.

The Japanese government plans to encourage companies to adopt measures such as diversifying suppliers and spreading production locations.

A Cabinet Office official stated further efforts are needed to “prevent economic activity from halting” in the country.

The survey showed that 26.8% of large companies (with capital of 1 billion yen, approximately Rp110.5 billion or more), 49.6% of medium-sized firms, and 56.3% of small businesses had taken no action on the issue.

Larger companies are more likely to implement supply chain resilience measures, with around 45% having done so compared to 23.2% of medium-sized and 21.8% of small firms.

Among companies that have taken or are considering such measures, 57.9% cited “supplier diversification” as the most common step, followed by risk communication with suppliers and cross-company collaboration with mutual support.