Impact of Middle East Situation: SMEs and Small Businesses Report Double and 40% Price Hikes for Procurement

The National Federation of Societies of Commerce and Industry (Headquarters: Chiyoda-ku, Tokyo; Chairman: Yoshihisa Mori) conducted an analysis of consultation contents from small and medium-sized enterprises and small businesses received at the "Special Consultation Desk on the Middle East/Ukraine Situation and Crude Oil Price Hikes, etc." established in Societies of Commerce and Industry nationwide from March 23, Reiwa 8 (2026). 1. Increasing consultations showing specific numerical impacts on business * ( ) indicates the industry of the consulting business. ・Thinner necessary for painting is difficult to obtain. Procurement price has doubled. (Construction industry) ・Insulation material price increase is over 40%. Concerned that the production of resin sashes may decrease. (Construction industry) ・Price of packaging bags increased by 30% from mid-April. Concerned that petrochemicals such as solvents and inks will run out, making it impossible to print on bags, and even seals will be unavailable (plain bags). (Manufacturing industry) ・Paint manufacturer proposed a 25% price increase. Inflow is also insufficient. It is becoming difficult to receive orders for painting, which is the main pillar of orders. (Manufacturing industry) ・Overall packaging material prices have increased by up to approximately 1.4 times. Cost burden is increasing. (Food service industry) ・Operating a nursing care taxi business, but fuel prices have soared, increasing selling, general and administrative expenses. (Transportation industry) 2. For fuel procurement, nearly 80% of consulting businesses are concerned about price hikes and supply shortages. *1 Excluding 42 unanswered cases out of 122 consultations. 3. For product procurement, over 90% of consulting businesses are concerned about price hikes and supply shortages. *2 Excluding 18 unanswered cases out of 122 consultations. The National Federation of Societies of Commerce and Industry will continue to carefully grasp and analyze the voices received from small and medium-sized enterprises and small businesses through the special consultation desks established in Societies of Commerce and Industry nationwide, and disseminate information on the current situation and future outlook. Analysis Target Consultation content aggregation period: March 25 (Wednesday) to April 10 (Friday), Reiwa 8 (2026) Number of consultations analyzed: 122 consultations received during the aggregation period Industry classification of consulting businesses: Manufacturing (36 cases), Wholesale/Retail (21 cases), Construction (20 cases), Accommodation/Food Service (8 cases), Transportation (4 cases), Others (33 cases) Overview of the National Federation of Societies of Commerce and Industry Company Name: National Federation of Societies of Commerce and Industry Headquarters Location: Yurakucho Denki Building North Wing 19F, 1-7-1 Yurakucho, Chiyoda-ku, Tokyo Chairman: Yoshihisa Mori Business Activities: Opinion activities, promotion of finance, tax, labor measures, etc. Established: February 21, Showa 37 (1962) HP: https://www.shokokai.or.jp/ Inquiries from media representatives National Federation of Societies of Commerce and Industry 19F, Yurakucho Denki Building North Wing, 1-7-1 Yurakucho, Chiyoda-ku, Tokyo 100-0006 TEL: 03-6268-0085 FAX: 03-6268-0087 MAIL: sangyo@shokokai.or.jp Industrial Policy Department, Industrial Policy Division, Shuki