Earnings Decline Among Listed Companies and Economic Conditions
- The projected net profit for the fiscal year ending March 2026 is expected to decline by 7% year-on-year, marking the first downturn in six years. Industries such as automotive, steel, and shipping are particularly affected by U.S. tariffs and a stronger yen.
- While overall profitability remains high, companies must focus on investment, business restructuring, and wage increases to drive future growth.
New IT Certification and Digital Talent Development
- Japan’s Ministry of Economy, Trade, and Industry plans to introduce a new category in the Information Technology Engineer Examination, focusing on data management, to address the shortage of digital professionals.
- As AI adoption accelerates, experts in data structuring and evaluation are increasingly critical for corporate digital transformation strategies.
Japan’s Defense Equipment Export Strategy
- The Japanese government is promoting exports of defense assets such as frigates and fighter jets. With global diversification of procurement sources—partially influenced by U.S. policies—Japan aims to enhance its defense industry’s competitiveness.
- Leveraging domestic technological expertise is key to strengthening its presence in international markets. Price competition and supply chain security will be crucial factors for success.
U.S.-Japan Finance Ministers’ Meeting and Trade Tariffs
- Discussions at the U.S.-Japan finance ministers’ meeting did not address exchange rate levels. Japan urged a review of tariff measures, highlighting concerns over the broader economic impact of U.S. trade policies.
- Companies must reassess supply chain strategies and market positioning to mitigate tariff-related risks.
Expansion of the GX League Framework and Corporate Environmental Strategies
- Japan’s GX League is broadening its scope to include companies working on emission reductions across entire supply chains, allowing participation from sectors such as retail and real estate.
- Businesses must integrate CO2 reduction strategies throughout their supply chains to align with environmental regulations while maintaining competitive strength.
