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Over 70 pct of Japan firms in U.S. see sales fall: survey

  • May 2, 2020
  • , Jiji Press , 5:14 p.m.
  • English Press

New York, May 1 (Jiji Press)–Over 70 pct of Japanese-affiliated companies in the United States have suffered a drop in their sales amid the coronavirus pandemic, a survey by the Japan External Trade Organization has shown.

According to the survey conducted by JETRO’s six U.S. offices on new coronavirus measures, 73.9 pct of Japanese-affiliated firms operating in the country said that their sales had fallen over the past month.

The figure was greater than the 54.5 pct recorded in the previous survey in early April.

The latest survey, conducted in late April, collected responses from 954 companies.

Of the firms that experienced sales slumps, 33.4 pct saw their sales fall by 50 pct or more, while 21.2 pct said that their sales went down by between 20 pct and less than 50 pct.

The survey also showed that 63.1 pct of the respondent companies plan to maintain their current U.S. businesses until the end of the year, while 19.2 pct said that they will scale down their operations.

Firms that said the outbreak has not affected their employment situation accounted for 68.7 pct.

On the handling employees without work to do due to the spread of the virus, 48.8 pct of the firms said they put such workers on unpaid temporary leave, allowing them to keep their employment contract and health insurance, and 24.1 pct said such people were either dismissed or laid off.

Companies that expect to reopen their businesses by the end of May made up 34.8 pct, while 31.1 pct said that they were still unsure about the reopening.

As issues they need to tackle in order to restart their operations, many respondents listed wiping out employees’ worries, preparing for when someone gets infected with the virus and securing sanitary goods and protective gear, including face masks.

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