A powerful earthquake that struck southern Japan this week has exposed the vulnerability of the country’s manufacturing supply chains, a decade after a devastating quake in the same region triggered widespread industry disruption.
Tuesday’s 7.1-magnitude quake claimed at least 34 lives, ruptured roads and cut off utilities to thousands of households.
It also brought factories to a halt in an area critical to Japan’s auto industry and known as well as the country’s “Silicon Valley” due to its concentration of semiconductor firms.
While economists do not expect disruption on the scale seen after the 2016 quake, problems could persist for the likes of carmakers, where parts shortages can snarl production far and wide.
Toyota, for example, has suspended production at three plants in Fukuoka, north of Kumamoto, through to August 5, while even one of its plants in Aichi – more than 600km (400 miles) from the disaster site – will be idled next week.
The carmaker said the decision for the suspensions was made in consideration of safety and the situation at distribution companies and suppliers.
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