According to the Kinki Bureau of Economy, Trade and Industry's May 2025 regional economic and industrial survey, business sentiment among regional companies continues to show an overall recovery trend. In the manufacturing sector, while demand for semiconductors and data centers remains robust, some industries are affected by China's economic slowdown and intensifying price competition. In the non-manufacturing sector, the recovery of inbound demand and construction demand related to the Osaka-Kansai Expo serve as tailwinds, but rising labor costs and raw material prices are squeezing profits. Capital investment is becoming more active in decarbonization and DX-related areas, in addition to addressing aging facilities. Labor shortages are becoming severe across all industries, with securing technical personnel and field workers being particularly challenging. Competition for talent acquisition through wage increases and work-style reforms is intensifying.
Business Sentiment and Future Outlook Captured Through Regional Corporate Voices - May 2025 Regional Economic and Industrial Survey Results for Kinki Region
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