CADDi Manufacturing Survey: Management Senses Cost Crisis, But Frontline Trails by 30 Points—Middle East Tensions Expose 'Information Gaps' in Japanese Manufacturing

CADDi Inc. (Headquarters: Taito-ku, Tokyo; CEO: Yushiro Kato), which provides an AI data platform for the manufacturing industry, conducted a "Fact-finding Survey on Global Collaboration" targeting 188 individuals from 170 companies, primarily expatriates and returnees working in the Japanese manufacturing sector. As geopolitical risks rise due to US tariffs and the situation in the Middle East, the perspective from the frontline revealed that the "internal structural problems of the organization" are what hinder the ability to respond to geopolitical risks. ■ Survey Summary - Only 21.8% reported being "not particularly affected" by the situation in the Middle East. 78.2% experienced some form of impact, with "increased costs (transportation, procurement, inventory)" being the most common at 55.3%. Combined with procurement delays (26.1%) and difficulties in supply and demand adjustment (27.7%), many companies suffered complex blows. - Among companies that experienced cost increases, 14.4% (and 19.1% regarding overall global collaboration challenges) stated they were "not implementing any particular countermeasures." The reality emerged that companies are unable to act despite being affected. - The top reason for being unable to take countermeasures was "complex/slow decision-making processes" at 44.7%. This indicates that the ability to respond to geopolitical risks depends not on the external environment but on the company's own organizational structure. - There is a gap of over 30 points in the awareness of cost increases between the management/administrative level (74.5%) and frontline staff (44.3%). This highlighted the reality of an "information gap," where the crisis felt by management fails to reach the frontline. ■ Survey Result 1 | A 30-Point Disconnect Between Management and the Frontline—The Reality of the "Information Gap" The most notable data in this survey is not the magnitude of the numbers, but the "gap" between them. The percentage of those who reported "experiencing" cost increases due to the situation in the Middle East was 74.5% among the management/administrative level (directors, department heads, executive officers). On the other hand, it remained at 44.3% among frontline staff (leaders/supervisors, general employees), showing a gap of over 30 points. This is not a difference in information-gathering ability. It indicates that the mechanism to transmit risk information throughout the organization and connect it to action is not functioning. The ability to respond to geopolitical risks is not merely the ability to catch external information quickly, but also the ability to share it organization-wide and utilize it in decision-making. This survey revealed that the latter is severely lacking in the Japanese manufacturing industry. ■ Survey Result 2 | The "Triple Agony" Suffered by 80%—A Chain Reaction of Costs, Procurement, and Supply/Demand Regarding the impact of the Middle East situation on global collaboration, "increased costs (transportation, procurement, inventory)" was the highest at 55.3%. This was followed by "difficulties in supply and demand adjustment (inventory/production planning)" (27.7%) and "increased delays in procurement/logistics" (26.1%). Only 21.8% reported "no particular impact." What should be noted is that these are not independent issues. If costs rise, inventory decisions become difficult; if procurement is delayed, production plans are derailed. These three risks are chained together, striking the frontline with a compound effect. ■ Survey Result 3 | The True Identity of Inactive Companies—The Enemy Was Their Own Decision-Making Structure Why can't they act despite being affected? Here lies the most important finding of this survey. Among the companies that experienced cost increases (104 companies), 14.4% responded that they were "not implementing any particular countermeasures" (19.1% for overall global collaboration challenges). The most frequently cited reason for this was "complex/slow decision-making processes" (44.7%). This overwhelmingly surpassed "differences in communication (language/culture)" (38.8%) and "lack of human resources/skills" (35.1%). The biggest factor hindering response to geopolitical risks is neither the Middle East situation nor the weak yen, but the slowness of the company's own decision-making. This trend was shown to be a structural issue common throughout the entire survey. ■ Survey Result 4 | What Companies Taking Countermeasures Are Doing On the other hand, there are companies that have already implemented countermeasures. The main initiatives cited were "establishing information-sharing rules" (39.9%) and "enhancing personnel exchange/expatriation" (30.3%). However, merely establishing rules is insufficient. The speed of organizational decision-making only increases when a data infrastructure is in place that allows the frontline to instantly utilize information and make judgments. In an era where geopolitical risks are normalized, it can be said that the source of competitiveness for the manufacturing industry lies in "organizational decision-making speed" and a "real-time information sharing infrastructure" established during peacetime.

What this survey revealed is the fact that the difference in the ability to respond to geopolitical risks does not stem from access to external information, but from a structural capability: "whether the organization can share information and make decisions quickly." The 30-point awareness gap between management and the frontline, the approximately 20% of companies unable to act despite being affected, and "slow decision-making" cited as the top challenge factor—these have once again exposed the structural issue of "information gaps" that the Japanese manufacturing industry has harbored for years, brought to light by emergency situations. In an era of normalized geopolitical risks, the competitiveness of the manufacturing industry depends not only on manufacturing technology but also on an infrastructure where the entire organization can share information in real-time and make quick judgments and actions. === Survey Overview === Survey Name: Fact-finding Survey on Global Collaboration in the Manufacturing Industry Survey Period: April 28, 30, and May 1, 2026 Survey Method: Online survey of participants in a seminar hosted by CADDi Survey Target: Expatriates, returnees, and domestic workers engaged in the Japanese manufacturing industry Valid Responses: 170 companies / 188 individuals Notation: Values are rounded to the nearest first decimal place. ==================== ■ About the Manufacturing AI Data Platform CADDi "Manufacturing AI Data Platform CADDi" is a product that sophisticated production activities and decision-making by analyzing and linking data on the engineering and supply chains of the manufacturing industry to extract insights. Leveraging manufacturing expertise and the power of AI and technology, it turns scattered experiences and data into assets, enhancing competitiveness. ■ About CADDi Inc. CADDi Inc. is a global startup with the mission of "Unleashing the potential of the manufacturing industry." It turns scattered data and experiences into assets and provides the "Manufacturing AI Data Platform CADDi," which serves as the foundation for management decision-making and execution. Through applications such as "CADDi Drawer" and "CADDi Quote," the company is transforming judgment and execution, generating management-level impacts. Expanding operations in four countries, including Japan, the US, Vietnam, and Thailand, CADDi aims to realize the global transformation of the manufacturing industry. Cumulative funding amounts to 25.73 billion yen. The component procurement support business has been integrated into the AI platform business, and the provision of components/assemblies has ended.