A piece as extremely small as a microchip has managed to stop car production lines around the world. However, this has not been the only sector affected. The global semiconductor crisis and disruptions in supply chains – linked to China’s strict Covid zero policy – have also affected other sectors such as home appliances. And one of the countries that is noticing it the most is Japan.
Changing a washing machine or installing a new air conditioner can become an odyssey for the Japanese. And it is that, although the companies are gradually resuming production in factories in neighboring China, the forecasts are clear: it will take time to reach the previous production and, therefore, the normal supply of household appliances.
These delays began to emerge in early May. In Japan, stores have already begun to notify their customers: there are models that could take up to one or two months to be delivered. The problem extends to practically all appliances, including smaller ones. There are stores that have even put up signs where they warn that, for example, the arrival of new units of electric cookers or microwaves are temporarily suspended due to the interruption of shipments.
A solution to such a shortage could be to opt for repair instead of replacing the appliance itself. But even the parts to carry out these hacks are hard to find.
Hitachi, Mitsubishi Electric or Panasonic paralyze production
Washing machines in particular are one of the most affected products. In fact, there are Japanese store websites where 70% of the 40 existing models are sold out. Brands like Sharp or Hitachi have had to delay the programming of shipments, at the earliest, in August. It is also not easy to find air conditioners. If before the supply was already unstable due to the shortage of chips, the arrival of the summer season and the increase in demand, it could put the sector in check. Some retailers have scheduled shipments for September, so thousands of citizens will not be able to have a new air conditioner at home during the summer months.
Joshin Denki, a Japanese home appliance retailer with several stores in the Osaka region, has decided to opt for giving greater visibility to products from manufacturers that are capable of delivering the products – whether or not they are preferred by buyers. – since there is no other. “The impact of the lockdown in Shanghai has been significant and the supply network is still in deep disarray,” the retailer said.
The giant Hitachi, for example, has suspended sales of some washing machine models since the end of April. Delays in parts deliveries from China hamper production at Japanese plants. While Mitsubishi Electric postponed just a few weeks ago, on May 21, the launch of its new rice cooker modela small household appliance common in Japanese kitchens.
The affected brands continue. Panasonic has temporarily suspended the production of some washing machines at its plant in eastern Japan’s Shizuoka prefecture since mid-April due to the closure of a Chinese customer factory and parts manufacturer. Its plant in Shanghai was closed, causing delays in the delivery of some microwave models to retailers. This impact has already spread to a wide range of products, including rice cookers and even to massage chairs, for which new orders for some models have been halted.
Shanghai ends the confinement today…until when?
Starting today, Wednesday, Shanghai, with fireworks included – which, according to Chinese tradition, drive away evil spirits – and with an atmosphere typical of New Year’s celebrations, celebrates the end of a strict two-month confinement that has affected 26 million of people. Situation that could alleviate the problems of production and supply of household appliances but that, however, will depend on how China manages its zero Covid policy. Which could affect more outages again.
According to a survey conducted by the Teikoku Databank company, 48% of Japanese companies say that the Chinese blockade will have a “negative impact” on their accounts. “As long as the Chinese government continues its zero coronavirus policy, there is no prospect of a normalization of the supply chain,” said Yuji Miura, a senior fellow at the Japan Research Institute.
Many companies have decided to secure alternative sources of procurement and production in case of emergency should China’s strict policy continue.
