PC party leader attends the protest in support of fishermen | SaltWire #newsupdate #newfoundlandTOKYO - In the coming years, Satoaki Kanoh needs to replace almost a dozen ageing machines at his Tokyo-based maker of acrylic panels, a major undertaking that he worries will become even more expensive.
How they cope will have vast implications in an economy where small and medium-sized companies employ some 70% of the workforce and private consumption accounts for more than half of the gross domestic product. For him, that could take bigger projects off the table, as those require loans to cover materials and other costs up front, he said. Having to pay interest ultimately means lower profit margins.
The 76-year-old set up his company, EN-TEC, two decades ago and employs around 20 people. One key to success is being prudent, and ensuring prices are kept low to preserve business ties. But word of the loan soon got out and associates and competitors assumed the company was in trouble. Hagiwara then decided to pay it back in full, which he did within half a year of borrowing the money.Some business owners, especially those reliant on imports, hope interest rates could finally put a floor under the weak yen. The currency's chronic sell-off has driven up the cost of food and fuel.