A summary of the survey results is as follows.
[Manufacturing companies]
（1）Despite ongoing uncertainty in overseas markets, more companies are eager to strengthen and expand their businesses.
The overseas production ratio for FY2024 was 36.1% (+0.1% compared to the previous fiscal year), and the overseas sales ratio was 40.9% (+0.9% compared to the previous fiscal year), maintaining an upward trend. The overseas sales ratio has reached a record high for the second consecutive year (Attachment 1). Despite persistently high geopolitical risks and uncertainties in the business environment, including U.S. policies, companies are eager to strengthen their businesses and are increasingly targeting overseas markets in search of growth opportunities.
（2）India ranked first for the fourth year, while the U.S. gained votes and moved up to second place.
For the most promising business expansion destinations over the next three years, India ranked first, garnering support from over 60% of companies (Attachment 2). The U.S. rose to second place (last year, third) due to its robust economy and attractive domestic market. Meanwhile, major ASEAN countries, which had previously attracted votes as promising destinations, are seeing a medium-term decline in their vote shares, partly due to economic slowdowns and intensifying competition with other countries' companies. China rose one spot from last year to rank fifth but failed to recover its vote share. Japanese companies were seen facing intense competition domestically from local companies and foreign competitors.
（3）Some companies suffer from U.S. tariffs, while others aim to expand U.S. investment long term.
Many companies suffered direct or indirect negative impacts on profits due to the strengthening of U.S. tariffs. Conversely, some companies, particularly those with bases in the U.S., viewed the tariffs as an opportunity and sought to expand their businesses. Regarding Japanese company supply chains, there were also moves to pursue optimization, including promoting local production for local consumption, in response to heightened geopolitical risks and the spread of anti-globalism.
（4）AI adoption is growing, but labor savings are limited; firms excel in fields like semiconductors.
While differences exist by industry, approximately 60% of companies in the management division and 40% in the production division utilize AI. Although immediate labor-saving effects from AI remain below 20% for many companies, expectations of increased efficiency over the next 10 years confirm a stance of continuing AI-driven business optimization over the medium to long term. In AI-related businesses, Japanese companies demonstrated strengths across diverse fields, including semiconductor manufacturing and data center operations.
（5）While actively pursuing sustainability initiatives overseas, challenges are also highlighted.
Over 60% of companies implement sustainability initiatives (transition to a decarbonized society and circular economy, biodiversity preservation, etc.) overseas. While some Japanese companies actively pursue sustainability initiatives to create business opportunities, various challenges faced by Japanese companies in each country have also become apparent.
[Non-manufacturing companies]
（6）India ranks first and the U.S. second in the promising countries/regions ranking for non-manufacturing, mirroring the manufacturing sector.
In the promising countries/regions ranking for non-manufacturing, India, where manufacturing expansion is progressing, took 1st place, garnering votes from sectors like wholesale and construction. The U.S., where data center businesses are booming, secured 2nd place, receiving votes from sectors such as construction and electric power & gas. Meanwhile, the Philippines ranked 8th in manufacturing and 5th place in non-manufacturing, supported by votes from transportation, wholesale, construction, and other sectors. Australia ranked 13th in manufacturing and placed 6th in non-manufacturing, supported by votes from resources, electricity, finance, and other sectors, showing differences compared to its manufacturing ranking.
