To our shareholders and investors:
Greetings
I trust all is well with you and wish to express my heartfelt gratitude for your support of our Group and its operations.
Although the impact of the global financial and economic crisis triggered by the Lehman Brothers collapse continued to be felt last year, 2010 was also time in which production levels of Japan's manufacturing industry began to rebound, driven by an economic recovery that was fueled primarily by emerging countries, and through corrections made to sharply reduced inventories.
At the same time, however, the Japanese production outsourcing industry has had to meet new demands form domestic manufacturers, ones that have evolved rapidly and dramatically, due to the increasing competitive parity of makers in emerging economies, especially from other countries in Asia, and changes to the nation's industrial structure.
Under our Group's previous business model, for example, the principal source of revenues was generated through manufacturing placement and outsourced servies. Today, our core earnings come from ORJ, a subsidiary that develops solutions for clients to improve production efficiency under a vastly different business model.
Rather than devoting considerable resources to sustain our older business model, we are now in the process of remaking our Group as a leader of the production outsourcing industry in developing timely and innovative solutions to upgrade production efficiency in this era of dramatic transformation. And in doing so, we are confident that we can remain a significant contributor to the manufacturing sector of Japan.
I therefore ask for your continued spport and counsel in this most challenging and exciting of times.
Haruhiko Doi
Chairman and CEO
OUTSOURCING Inc.