Message from the President Jan.2014

a monthly magazine for our employee Jan.2014

Strength to Survive the Times

Happy New Year!

Due to the policy change according to the Abenomics, economic environment of Japan has significantly changed in 2013. Sift to the depreciation of the yen has greatly contributed to the profits of our customers with high dependence on exports ratio. Corporate profits’ going up is a good thing. But if the profits from foreign exchange gains were to be excluded, it is true that there are some customers with both sales and profit declines actually. In general, when the home currency falls, commodity prices of foreign currency base is lowered, and by price competitiveness of abroad increases, the export volume will increase. For now, there is no noticeable increase in the volume of exports from Japan. This means that, even if the yen based revenues and profits has improved due to the profit from foreign exchange gains, customers who are also improving in number of products is limited.

It might be the impact of rapidly advanced globalization since the Lehman Shock. Because the localization of the developments and productions had increased for the products which are to be sold abroad, the exports might not have increased, even under the weak yen. Therefore, reason for current improvements in corporate performances could be the gradual recovery of U.S. economy, not by the Abenomics.

Also, the Abenomics is activity within Japanese economy, not for a world wide economy. Therefore, if a Lehman Shock like event occurs somewhere in the world, there is a possibility that situation could significantly be changed.

What I want to say in the New Year is that, we should not just watch the recent short-term changes, but should always have mid-to-long term perspective. Having mid-to long-term perspective does not mean that we must predict future movement. Since society and economy are becoming more and more complex systems*. It is hard to predict. Then, what should we watch? It is your own mid-to-long term matters. It is whether you are going to grow more than last year. And, it is whether you are putting efforts you should now in order to grow further in 5 years time to 10 years time.

Lifetime Engineers had taught us that, no matter how the world changes, we can survive as long as we continue to grow. I believe that the strength to grow your self is the strength for surviving the harsh environment.

Together, I hope to build the growing Meitec along with growth of each employee.

Best regards for the New Year.

* Complex systems
A system, such as life phenomena, weather phenomena or human society itself, which its individual elements mutually affect each other in complex ways, and greatly affects the system as a whole.

January, 2014