OSAKA - A century-old manufacturer of pressure gauges in Taisho Ward, Osaka, is struggling under what it describes as a historic surge in raw material costs, highlighting the growing strain on small and midsize enterprises that underpin Japan’s economy.
Kobata Keiki Seisakusho, which uses metals such as silver and copper in its products, has been hit especially hard by sharp price increases over the past year, with the procurement cost of silver alone rising roughly fivefold amid global instability, according to the company’s president, Iwao Kobata, who said a single component costs about 2,000 yen and is used in large quantities, adding that even he was shocked by how quickly prices escalated.
Although the company has held repeated negotiations with clients, passing on higher costs has proven difficult, forcing the firm to shoulder the burden for months at a time, with Kobata explaining that even when customers agree to price increases several months later, material costs often continue climbing, leaving the revised prices insufficient by the time they take effect.
The pressure is compounded by labor shortages that are driving up wages and by rising interest rates that are increasing borrowing costs, creating what Kobata described as a multilayered strain on management, while stressing that Japan’s broader economy cannot recover unless small and midsize enterprises regain vitality and urging policymakers to pay greater attention to small-scale operators like his company.
Economic and fiscal policy are among the key issues in the current election campaign, raising questions over whether the voices of small businesses, which form the backbone of the Japanese economy, will translate into concrete change, as small and midsize enterprises are said to account for 99.7% of all companies in Japan.
Corporate bankruptcies nationwide totaled 10,300 in 2025, up 2.9% from the previous year, with labor shortages and rising prices cited as major factors, while real wages have remained negative for 11 consecutive months, underscoring the gap between living costs and income growth.
As calls grow ahead of this year’s spring labor negotiations for wage hikes that extend beyond large corporations to include smaller firms, the challenge remains whether pay increases can outpace inflation and spread throughout the broader economy.
Commentators note that a pervasive sense of unfairness is fueling public dissatisfaction, pointing to imbalances in contractual relationships where smaller companies struggle to pass on costs to larger partners despite government efforts to strengthen oversight and publicize corporate misconduct, while broader concerns about widening wealth disparities persist as income is taxed but assets remain largely beyond the reach of taxation.
With voters weighing a range of issues that affect daily life, the election is seen as an opportunity to demand not just stopgap measures but structural solutions, as citizens are encouraged to focus on what matters most to them and make their voices heard at the ballot box.
Source: YOMIURI
