One year has passed since the Great East Japan Earthquake off March 11, 2011. The economy, chiefly in the area of the earthquake, has been steadily returning to normal since September of last year. A demand has been expanding linked to restoration, especially for the main earthquake areas of Fukushima, Miyagi, Iwate, and Aomori Prefectures. Although right now this does seem to have quieted down somewhat, budgets for the new-year compiled by the central and local governments are now all out. This has led to greater anticipation regarding business related to the restoration.

In the coastal regions of Fukushima, Miyagi, and Aomori Prefectures a demand linked to thermal power facilities has become very strong. Some companies hit by the earthquake which are even seeing earnings restored. In the part of coastal region, restoration has begun chiefly regarding the removal of rubble, the replacement of port facilities, as well as of facilities related to the processing of maritime products. The demand for industrial gas, chiefly for manufacturing equipment, as well as for welding machines has become much more actively than it was even shortly just after the earthquake. In the inland areas such as Iwate as well as in Yamagata and Akita Prefectures, as one person involved in the welding materials business put it, “Just as happens every year, the usual, regular work is the main thing, although the economy has cooled off somewhat.” Circumstances are such right now that restoration does seem to be rather far off.

There are some companies producing iron framework which have had to take orders, which would produce no profit, from some general construction companies. However, there is increased anticipation that a demand related to restoration should be fully underway as of this spring. Nevertheless it has been pointed out that there is concern the appreciation of the yen has been aiding in the withdrawal of major plants, which have recovered, out of the Tohoku area. Regarding the 19 plants which TDK has in the Tohoku area, restructuring, including the closing of 7 plants has greatly shocked the industrial gas industry.