TOYOTA Motor Philippines Corp. (TMPC) said the crisis in Japan will not have a significant impact on its financial performance even as the company implemented a two-week holiday to monitor its supply.
“We estimate that there will be a short-term supply disruption, but in the long-term it will not be an issue,” said Arthur Ty, Metropolitan Bank & Trust Co. president during the company’s annual stockholders’ meeting.
TMPC is a joint venture between Mitsui Corp. of Japan and the Metrobank Group.
Antonio S. Abacan Jr., Metrobank chairman, said TMPC will stop operations for at least two weeks “to check on the supply of the spare parts.”
“While there may be a delay in the delivery of some spare parts from Japan, the Philippines can source its spare parts from Thailand and China. We’re not solely dependent on Japan,” Abacan said.
Lester B. Hernandez, president of the Philippine Institute of Supply Management (PISM), said it is important for local firms to adopt risk management plans to avoid supply problems after manufacturing activity slightly fell in March.
“In cases of disruption in supply chain, you don’t rely on a single source and it’s important to have alternative sources for your materials and services,” Hernandez said in an interview.
The purchasing managers index (PMI), an indicator of economic activity in the manufacturing industry, fell two percentage points to 54 percent in March from 56 percent in February.
A PMI of more than 50 represents growth in the manufacturing sector, while a reading under 50 signifies a contraction. A reading at 50 indicates no change.
Hernandez said the Japan and Middle East crises may have played a role in the drop of the index, which measures five variables such as production, new orders, supplier deliveries, inventory and employment.
“This should be the time that it’s going up but there are external factors that affected the economic activity in the manufacturing economy,” said Hernandez.
Rising fuel and energy costs coupled with lingering effects of Japan’s crisis may have a “telling” effect on manufacturing activity in April, said Romeo Recto, president of the Foundation of the Society of Fellows in Supply Management Inc.
“There may be a reduction, but we do not know how severe the effect will be,” he said.
PISM conducts the PMI survey in the last week of the month and releases its findings on the first week of the succeeding month. –KRISTA ANGELA M. MONTEALEGRE, Manila Times
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