Where are Canon's manufacturing plants in relation to the accidents?

[jeremymerriam]

I was thought to believe the actual plants were not damaged from the tsunami. The real issue is something they will not admit to the public: the radiation levels. I would like to know the distances in relation to the actual facilities. The US informed it's citizens in Japan to be at least 50 miles away to be safe. I am sure Canon employees are aware of the fallout dangers and are doing the same thing (at least the higher up people). You can expect any of these plants in close relation to the bad reactors to be put on hold for probably quite a long time.

You need to remember the government and electric company are going to downplay this for a very long time because it would affect their sales drastically for future products. Not that camera parts are going to be really affect but the general public wouldn't know that. Personally, I am curious if there could be contamination of the equipment?

 

[neuroanatomist]

I was thought to believe the actual plants were not damaged from the tsunami. The real issue is something they will not admit to the public: the radiation levels.

Sorry, but I don't think so. The location of Canon's manufacturing plants relative to the damage is not the only, or even the main, issue. Keep in mind that with any manufacturing process, manufacturers like Canon do not produce every part that goes into their products. The gaskets for the weather sealing are produced by one vendor at one plant. The metal barrels for some lenses are produced by a vendor, and the plastic barrels for other lenses are produced by a different vendor. The microchips that control AF in the lenses come from some other plant, located somewhere else.

Lenses and cameras have a lot of parts. If any part that goes into a given product on the assembly line is not available, the line can't run and the product can't be made. "Just get that little gasket from somewhere else," you say. Fine - but first, the new part has to be spec'd out to potential vendors, the production process at the selected new manufacturer of that part has to be established and then validated by Canon, and the part needs to be tested in isolation and as part of the final product. That's for every piece of the final product. Even though the Canon facilities are relatively unaffected by the damage (although they are impacted by the electrical power issues affecting the whole country), many of the parts that go into Canon's products were produced for them in factories that are in the damage zone.

Not to mention that there's enough devastation and tragedy that there's no need to add conspiracy theories about camera gear into the mix...

 

[jeremymerriam]

This isn't about conspiracy theory, it is just sound judgement. Look at this from a business side. What would be there incentive to inform us until the very lastest point when then are "washed over" about everything happening? If they made some sort of announcement that everything is halted, wouldn't their stock drop drastically and people would make other investments is different companies?

I am not trying to add conspiracy, I am just trying to look at it in the incentive-based perspective similar to what they said in the book Freakonomics.

I want nothing more than to be completely wrong because i really could use their next generation camera. Hopefully the japanese people and canon plants are out of the 50 mile radius because otherwise, i doubt there will be much going on for awhile.

 

[Admin US West]

This isn't about conspiracy theory, it is just sound judgement. Look at this from a business side. What would be there incentive to inform us until the very lastest point when then are "washed over" about everything happening? If they made some sort of announcement that everything is halted, wouldn't their stock drop drastically and people would make other investments is different companies?

I am not trying to add conspiracy, I am just trying to look at it in the incentive-based perspective similar to what they said in the book Freakonomics.

I want nothing more than to be completely wrong because i really could use their next generation camera. Hopefully the japanese people and canon plants are out of the 50 mile radius because otherwise, i doubt there will be much going on for awhile.

The production process is not that simple that you can just issue a snap judgement. First, the condition of the plant must be determined, and that could take weeks, since the building structure must be carefully examined. Then, tools must all be checked and re-calibrated. Electrical power is a big problem, if the power blinks for even a second, in chip manufacturing processes, it will take weeks to recover. And the rolling blackouts in Japan are uncoordinated and causing a big mess. All the chip plants are closed.


First, the Japanese culture is very different from that of the USA. They are deliberate, and tend to hold back on announcements until they have all the data. You see this happening with the nuclear plants, they delay information, or don't tell all, but let it trickle out when they feel the information is reliable.

Japanese manufacturers have been using just in time processes, so if a plant shuts down, it is only a week or so until they affect everyone. Then, its very difficult to start up again since they all depend on each other to some degree. Company A can't make products until they get something from B, who needs something from C, and so on.

If a company making chips damaged their chip lithography equipment, for example, they can't get it replaced by Canon, because Canon needs parts from affected companies, and likely it will be chips, since most equipment uses the high end chips manufactured by several companies in Sendai.

It is a vicious circle.

Don't expect much until June, if then. There is already a run on for popular photography products, prices are jumping, as buyers and ebay resellers clean out supplies.

 

[Fleetie]

RE: What Scales said about it not just being an issue of Canon's plants, but also those of Canon's MANY suppliers, and THEIR suppliers:

Common sense says he's right.

I feel pretty pessimistic about this whole thing. Not just about the effects on supply of Canon gear, but in terms of global economics. I don't think we've really begun to feel the effects of it all yet. I am expecting bad things to start in a few months, to global commerce, and the economy.


Martin