Toyama Prefecture is facing growing financial strain, with nearly one in ten companies at high risk of bankruptcy, according to a new survey by credit research firm Teikoku Databank.
As of June, 1,568 firms in Toyama—about 9.7 percent of all companies in the prefecture—were classified as high risk. That marks an increase of 75 from December and is higher than the national average of 8.7 percent. Among the three Hokuriku prefectures, Toyama recorded the highest rate.
Manufacturers were the hardest hit, with 516 firms flagged—an increase of 83 in just six months. Construction followed with 268. By contrast, transport, communications, and retail saw a decline in risky firms, reflecting what analysts describe as market “weeding out.”
Smaller businesses remain the most vulnerable: nearly 97 percent of at-risk firms reported annual sales under ¥1 billion.
The report urges local companies to overhaul cost structures, pass higher costs on to customers, and adopt IT solutions to improve productivity in order to survive worsening conditions.
by MagazineKey4532
2 comments
Probably in other prefectures too. Government policies are hurting the small businesses.
Toyama is big for pharmaceutical manufacturing. Is that closing too?
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