Key Facts
• Daiki Seiko, a 52-year-old small factory in Komaki, Aichi, employs 7 workers.
• The company produces molds for auto parts and power plant equipment for 3 domestic firms.
• Amid rising costs, the factory implemented a 2% wage increase, which strained finances.
• Raw material costs, such as aluminum, and electricity prices have surged due to inflation.
• Employees expressed concerns about insufficient wage increases amid rising living costs.
• To diversify, Daiki Seiko launched a bear-repellent bell, selling 700 units.
• A new multifunctional bear bell, doubling as a whistle, was developed for outdoor and safety use.
• The company borrowed ¥50 million during the pandemic and continues to repay it.
• Owners advocate for policies reducing social insurance burdens to increase net wages.
• Political parties differ on raising minimum wages and reducing social insurance costs.
Summary
Daiki Seiko, a small factory in Aichi, faces financial challenges despite a 2% wage increase for its 7 employees. Rising costs of raw materials and electricity, coupled with inflation, have strained the business. Employees hope for higher wages, while the owners emphasize the need for policies reducing social insurance burdens. To innovate, the company launched a bear-repellent bell, selling 700 units, and developed a multifunctional version for safety purposes. The factory’s survival depends on leveraging its technical expertise and supportive government policies.
