Delayed supply of water heaters accelerates response by public and private sectors

In response to the problem of delayed supply of home water heaters, the public and private sectors are accelerating their response. (Public interest incorporated foundation) The Tokyo Organizing Committee of the Olympic and Paralympic Games and the Tokyo metropolitan government have decided to transfer the water heaters installed in the Olympic village to industry groups free of charge. Hurry up to develop new procurement routes for parts and materials that are in short supply among water heater manufacturers.

If major house makers take longer to respond with alternatives, etc., it may affect the delivery of new homes

Due to factors such as the lockdown in Vietnam and the shortage of semiconductors, the number of household water heaters is increasing. The supply delay problem is getting worse. Rinnai's delivery date for new orders is two to three months away, Noritz's prospects for planned supply are uncertain, and Paloma's situation is unpredictable. Many housing suppliers are experiencing shortages and delays in delivery of gas water heaters and Eco Cute. (Mitsui Home).

At the moment, many house builders are responding with substitutes and temporary items (replacement after the arrival of adopted equipment) so as not to affect the handover of new construction, but the current situation is long-term. (Sekisui Chemical Housing Company), "There is concern about the impact on delivery" (Sekisui Chemical Housing Company), "There is a possibility that it will affect the delivery within the fiscal year" (Asahi Kasei Homes). It is a situation where

Temporary use of water heaters in the athletes village Water heater manufacturers are moving to alternative routes to secure parts

In response to this situation, the public and private sectors are accelerating their response.

On December 27th, the Tokyo Organizing Committee of the Olympic and Paralympic Games and the Tokyo Metropolitan Government decided to install 1,400 water heaters installed in the Olympic/Paralympic Village. ) decided to transfer the equipment free of charge to the Japan Gas and Oil Equipment Manufacturers Association. The Japan Gas Association says, "We will consider specific ways to use it in the future," but it is expected to be used for temporary installations.

The Athletes' Village is planned to be sold or rented as a new condominium after the Games, but the specifications of equipment such as water heaters differ between the time of the Games and the new condominium, and it is difficult to continue using it due to the deterioration of the equipment until the time of sale. For this reason, they considered diversion and reuse in other public facilities, etc., but due to the shortage of water heaters, the organizing committee and the Tokyo Metropolitan Government decided to transfer them free of charge. Regarding the timing of the free transfer, the organizing committee said, "We want to do it as soon as possible, around January 2022."

Water heater manufacturers are also rushing to take measures to eliminate supply delays.

One of them is the procurement of parts and materials from businesses that had no business relationship in the past. Rinnai says it is "considering alternative routes as much as possible", and Noritz is also "considering alternative routes including domestic ones". Paloma also said, "We will expand the frontage of parts procurement."

In addition, the number of water heater failures tends to increase in winter due to the blockage of the exhaust port due to freezing and snow accumulation, and it is difficult to replace it in the current supply delay state. In particular, a cold wave is expected to arrive nationwide over the year-end and New Year holidays, and as there is concern about an increase in breakdowns, water heater manufacturers are strengthening their alerts to prevent breakdowns. On its website, Noritz has strengthened its awareness of how to prevent and deal with water heater damage and breakdowns in winter. Efforts will be made to raise awareness on the website, such as draining water from Paloma.

Uncertain prospects for the lifting of the lockdown in Vietnam

The main reason for the delay in the supply of water heaters this time is that the supply of parts such as coils used for electronic boards has been delayed due to the lockdown in Vietnam. However, there are several other factors involved as well.

Currently, with the lockdown being lifted, the shortage of coils is on the way to being resolved. However, with regard to semiconductors and wire harnesses, the global supply shortage is becoming more serious due to the increase in demand for electronic devices due to the expansion of telework due to the corona crisis and the demand for staying at home. Procurement competition with other industries such as automobiles is intensifying, and the future prospects for stable supply of water heaters are unclear.

Supply chain review and impact on product development

In response to this situation, water heater manufacturers are working on medium- to long-term measures.

One of them is the review of the supply chain. Rinnai is one step ahead of securing alternative routes as a short-term countermeasure, saying, "We will take measures such as reviewing the production process that consider long-term supply chain risk countermeasures in a well-balanced manner."

Until now, Noritz has established a production system that adopted the just-in-time method of "making only the required quantity at the required time". We would like to review the system so that it can respond to such risks." He also wants to expand the sources of parts procurement not only overseas but also domestically.

Water heater manufacturers are also considering reviewing their product development policies. In order to deal with the supply shortage of parts, Noritz said, "We would like to consider product development with the aim of standardizing parts as much as possible." It is also necessary to consider product development that allows overseas parts to be allocated to domestic products when there is a shortage."

The supply delay problem of housing equipment is not limited to water heaters. The supply of stoves, dishwashers, bathroom heaters, clothes dryers and toilets is also delayed. Shortages of parts such as semiconductors from overseas are also a major factor, and in the future, housing equipment manufacturers are likely to reconsider their supply chains and product development policies.