Canon Sees Benefits under Japan’s Weaker Yen Policy

According to Reuters, Canon is moving its manufacturing capacity back to Japan, encouraged by the government’s weaker Yen policy. Reporters said the policies help reduce the manufacturing cost and boost the value of overseas revenue for those Japanese manufacturers who plan to move back home.

As was reported by Reuters, Canon had experienced a hard time in domestic production by a yen on the increase in the post-Great Recession period. Canon cut domestic production from more than 60% before the 2008 crisis to 40% in 2009. Now the shift back to Japan will raise the proportion of products made in Japan from 42% to 50% within the next three years, Chief Executive Officer Fujio Mitarai told Reuters in an interview.

Research group Photizo opines that the move is designed to make manufacturing more flexible, and Canon will “leave the option open to push production back overseas should the yen strengthen again”. Having been one of the most profitable companies in the imaging industry, Canon has always focused on manufacturing efficiency. Eyeing an increase revenue and profit of more than 5% in 2014, Canon will see the impact of its strategy in the company’s balance sheet.