[Survey on the Impact of Hormuz Strait Situation on Manufacturing Procurement] Hormuz Strait Situation Leads to Price Increase Requests for 90% of Manufacturing Procurement

A1A Inc., provider of the cost design platform "UPCYCLE" for the manufacturing industry, conducted a survey on the "Impact of the Hormuz Strait Situation on Manufacturing Procurement" targeting 177 professionals engaged in procurement and purchasing in the manufacturing sector. The survey revealed that the situation in the Strait of Hormuz is causing complex operational burdens for procurement departments, including not only "price increases" but also "securing quantities" and "delivery concerns." Key findings show that 84.2% of price increase requests were attributed to the Hormuz Strait situation, and 87.3% of respondents reported some impact on delivery quantities. Meanwhile, only 8.9% of respondents stated they "fully understand" the scope of the impact, and 65.2% reported they are unable to grasp the impact on secondary and tertiary suppliers. Regarding the scale of price increases, 73.8% of requests were for 10% or more, indicating a significant impact on procurement costs. In summary, the survey highlights that price impacts are widespread, the adjustment burden to avoid quantity shortages is significant, and the understanding of the impact scope is insufficient. A1A aims to promote DX in manufacturing procurement and contribute to strengthening the competitiveness of Japan's manufacturing industry.