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JETRO'S ANNUAL SURVEY OF JAPANESE-AFFILIATED MANUFACTURERS IN THE U.S.; 50 PERCENT IN THE RED WITH 40 PERCENT IN THE BLACK IN 1991

 NEW YORK, Feb. 25 /PRNewswire/ -- In 1991, more than 50 percent of the Japanese-affiliated manufacturers in the United States reported losses, while about 40 percent reported making some profits. By region, the greatest proportions of companies that earned a profit were based in the Midwest/Northwest, the Pacific Coast, and the Mid-Atlantic. By industry, larger proportions of profitable companies were in the categories of food and precision machines than transportation equipment including automobiles. These are some of the findings of JETRO's latest annual survey of Japanese-affiliated manufacturing plants in the United States.
 In the 1992 survey, a total of 1,724 manufacturing plants were identified as affiliated with Japanese firms, spread throughout the 50 states, except North Dakota, but including Puerto Rico. It was an increase of 161 plants from the previous survey, but these include plants that had started operations in or before 1991 but were not previously identified.
 At least among the respondents, the number of plants that started operations showed a steady yearly decline in the 1990s -- 145 in 1990, 58 in 1991, and 17 in 1992.
 The survey was conducted in the fall of 1992. The response rate was 58.9 percent.
 Among the other highlights are:
 -- A relatively high percentage of plants that started operations during the period from the 70s to the early 80s reported profits. In contrast, seven out of ten plants that started operations since the beginning of this decade reported losses.
 -- More than 60 percent of the manufacturers surveyed expected improvement for 1992, while only one out of ten expected deterioration.
 -- By industry, those in metal products, chemicals, and transportation equipment tended to see improvement, while precision machines and foodstuff expected things to worsen.
 -- The percentage of plants that actually exported their products was 66.4 percent in 1992, up from 61.8 percent in 1991 and 57.8 percent in 1990.
 -- The most important reason for exports was market expansion, followed by establishment of international division-of-labor, revenue maintenance, and avoiding trade friction.
 -- In 1991, a tally of the figures provided by Japanese-affiliated manufacturing plants as exports to Japan totaled $1,882 million, or an average of $6,450,000 per plant. More than four out of ten respondents said they exported their products to Japan.
 -- The total of employees at the responding plants was tallied at 290,455, or an average of 294 per plant. If the number of employees at the non-responding companies is included, the total of employees at Japanese-affiliated manufacturing plants can be estimated to exceed 400,000.
 -- The average number of Japanese employees per plant was 6.2 and was decreasing. At the same time, the number of plants with no Japanese employees was on the increase.
 -- Nearly two out of three plants reported a local procurement share of 70 percent or more. The percentage of plants buying 90 percent or more of their supplies from 100 percent-U.S.-owned firms was 27.7 percent, up from 25.5 percent in 1991. In contrast, only 3.9 percent of the plants said 90 percent or more of their materials derived from Japanese imports, while a mere 0.9 percent of the plants said they bought 90 percent or more of their supplies from Japanese-affiliated firms in the United States.
 -- The percentage of Japanese-affiliated plants planning to move to Mexico or set up subsidiaries in that country in response to NAFTA nearly doubled to 13.1 percent, up 6.0 percentage points from the previous survey. More notably, the number of companies that had already built a factory in Mexico jumped to 8.8 percent, up 7.1 percentage points from the previous survey.
 -- Nearly nine out of ten plants reported philanthropic or community-service activities. The greatest number of them said such activities took the form of "donations of cash and products," followed by "participation in local chambers of commerce" and "volunteer service by employees."
 -- Nearly nine out of ten plants said they kept up some form of contributions to local communities regardless of ups and downs in profitability.
 -0- 2/25/93
 /CONTACT: Robert Chiappetta, 212-997-0459, or Hiro Sato, 212-997-0418, both of JETRO New York/


CO: JETRO New York ST: New York IN: SU: ECO

GK-KW -- NY002 -- 0252 02/25/93 09:01 EST
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Date:Feb 25, 1993
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