Total sales exceed 1 trillion yen, and 4,075 companies have their headquarters in the Noto region. Impact on economic activities nationwide[2020 Noto Peninsula Earthquake]

The Reiwa 6 Noto Peninsula Earthquake occurred on New Year’s Day 2024. An earthquake with a maximum seismic intensity of 7 struck the Hokuriku region, centered on the Noto region of Ishikawa Prefecture. The full extent of the damage has not yet been ascertained, and the economic activities of businesses have been affected even after they closed for the year-end and New Year holidays.

On January 5, Teikoku Databank announced a survey related to economic activities in 13 cities and towns in the Noto region, which were particularly hard hit.

More than 4,000 companies have established their headquarters

According to the survey, as of the end of November 2023, the total number of companies headquartered in the Noto region was4075 companies.The total sales amount is1,301.8 billion yen(Latest version as of November 2023). The municipality with the largest number of companies was Nanao City, Ishikawa Prefecture, which experienced a seismic intensity of 6 or higher, with 705 companies (composition ratio: 17.3%).

The city with the highest total sales was 249.6 billion yen (19.2%) in Kahoku City, Ishikawa Prefecture, which experienced a seismic intensity of 5 or above. This was followed by Nanao City with 246.5 billion yen (18.9%) and Himi City in Toyama Prefecture with 130.9 billion yen (10.1%).

Major production bases

By industry, construction was the most common industry, at 35.7%. This was followed by services (18.8%) and manufacturing (15.5%).

In the service industry, there are a large number of companies in the medical and accommodation industries. Kagaya, a long-established inn in Nanao City, Ishikawa Prefecture, has announced the closure of four of its inns, including its group inn in the city. In addition to damage to buildings, there was also significant damage to surrounding infrastructure (water, gas, roads).

Teikoku Databank analyzes that “tourism demand in the lodging industry is likely to temporarily decline significantly, and the tourism industry, centered on the Noto Peninsula, may be widely affected.”

The manufacturing industry ranks third among all industries in terms of number of companies, but has the highest sales among all industries.

Major companies such as Murata Manufacturing and Ricoh also have affiliate companies and factories in the Noto region, raising concerns about the impact on the nationwide supply chain. Teikoku Databank said, “Not only will companies and factories be affected by the disaster, but stagnation and delays in the supply of parts from the Noto region and Hokuriku as a whole are expected to become increasingly apparent.” A report by Nomura Research Institute estimates the damage amount to be 816.3 billion yen, which is 4.9% of the estimated 16.9 trillion yen in damage caused by the Great East Japan Earthquake.

In response to the earthquake, 20 chambers of commerce in Ishikawa Prefecture, the Ishikawa Prefecture Federation of Chambers of Commerce and Industry, the Japan Finance Corporation, and the Japan Small and Medium Enterprise Agency have set up special disaster-related consultation desks.