We found that there were 58 domestic gas distributors out of those who headed toward closing for FY2017 and marked sales over JPY5 billion, with an overall amount of more than JPY891.202 billion. The total sales of the 58 distributors in the previous year (FY2016) was JPY875.988 billion. It means that in FY2017 there was an increase by 1.7% compared with the previous year.
　Since FY2008, Gas Review has summed up the sales of the domestic gas distributors who handle medical gases, welding gas and LPG as well as industrial gases. As for the companies handling over JPY1 billion, we have made out a ranking chart by our own way with the cooperation of private searching organization.
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In 2016, for reference, there were 56 domestic gas distributors out of all those closing the FY2016 account who marked sales of over JPY5 billion, with an overall amount exceeding JPY871.035 billion. According to the ranking chart of FY2017, it shows that there was an increase of about JPY20 billion. In terms of sales scale, like last year, 34 distributors ranked in out of the companies which sold JPY10 billion. Total sales amounted to JPY719.637 billion up 1.1% from last year. Top 24 distributors ranked in out of those sold over JPY5 but less than JPY10 billion, an increase of 2 distributors, and total sales amounted to JPY171.565 billion up 4.2% from last year.
　
Reviewing the market environment for the domestic gas distributors in 2017, we see the start of an uprising trend of LPG price, giving a good effect to the selling price of each company, just at the turning point after the declining trend of the LPG price. Among the distributors who engage mainly in the energy business there was a remarkable improvement of business particularly in the companies which close account nearly at the end of the year. The phenomenon is seen in the companies who depend highly on the LPG business such as Saisan which has recovered the top position in the comprehensive ranking chart with the sales of JPY66.552 billion up 18.4% over last year.

The introduction of laser processing machines and welding robots still remains at a steady pace taking advantage of the subsidy for equipment-related introduction following FY16. However, the growth rate got sluggish comparing with the high level in the previous year. Ranked at the upper position of the chart are the regional companies of the Air Water Group and manufacturers’ direct affiliates at a distributor position who have an increased presence.

Remarkable Advance of Distributors related to Gas Manufacturers

Top 16 companies of the 58 distributors are affiliated by gas manufacturers, with total sales of JPY261.984 billion accounting for 29.4% of the whole.

The ranking chart of 2017 shows influences of the inter-group business transfer and reorganization of manufacturers. In case of the Air Water group, Because of the transfer of the business of Daio in the Kinki district to Kinki Air Water, Daio’s sales decreased by 50%, causing the increase of Kinki AW’s sales by 18.2%.

In April 2017, Iwatani Corporation reorganized Iwatani Gas Network of direct affiliate in the cylinder business into Nishi Nihon Iwatani Gas. The combined sales added by that of Higashi Iwatani Gas amounts to JPY21.239 billion, which brought an increase of the sales of the former company.by 5.1% contributing to the expansion of business scale.

Short Staffing Issue in Plant Operation and Delivery

　We may well be able to say that even in the beginning of 2018 the management environment for the major distributors still stayed at a comparatively good condition thanks to the recovered condition of the energy market and the steady-going machinery/equipment business. On the other hand, however, the delivery of cylinder gases still seems to remain sluggish.

Although the sales of inert gas gases like argon or nitrogen remain steady, the metal processing gases like oxygen or acetylene have not got out of the stagnant situation. In the medical field, there was no growth in the consumption of oxygen for medical use and the business is being shifted to a non-gas business area like home healthcare. 　 　

In general, the market structure can be expressed as “Equipment-high and Gas-low”. Since the last year end, there has been noticeable price hike in various elemental substances and raw materials. It is now followed by the staffing shortage which has turned out to be an issue over all industries.

In the regional gas market it affects such labor consuming workplaces as delivery or in-plant works particularly. The delivery work plays the role of key factor for the cylinder business. Considering the recent difficulty to expand a market scale, it is the most important subject for the local gas distributors to manage things effectively and minimize costs.