Desperately short of labor, midsized firms plan to buy robots

Desperate to overcome the nation's growing shortage of labor, midsized companies are planning to buy robots and other equipment to automate a wide range of tasks, including manufacturing, earthmoving and hotel room service. According to a Bank of Japan survey, companies with share capital of ¥100 million to ¥1 billion plan to boost investment in the fiscal year that started in April by 17.5 percent, the highest level on record. It is unclear how much of that is being spent on automation but companies selling such equipment say their order books are growing and the government says it sees a larger proportion of investment being dedicated to increasing efficiency. Revenue at many robot-makers also rose in the January-March period for the first time in several quarters. "The share of capital expenditure devoted to becoming more efficient is increasing because of the shortage of workers," said Seiichiro Inoue, a director at the industrial policy bureau of the Ministry of Economy, Trade and Industry.