BCPs Help Factories and Businesses Recover Quickly After Earthquake

BCPs Help Factories and Businesses Recover Quickly After Earthquake

After the Jan. 1 earthquake on the Noto Peninsula, some factories faced prolonged shutdowns due to extensive damage. Others managed a swift recovery thanks to prepared business continuity plans (BCPs).

Murata Manufacturing Co. formulated BCPs at every domestic plant, strengthened action plans, and damage assumptions in 2022. Ten of its 13 factories in the Hokuriku region resumed operations, with one more expected to follow suit this month. However, some factories experienced delays.

NTN Corp. in Shika plans to partially resume operations in April, while NGK Insulators Ltd. has yet to announce a full restoration schedule for its group company's factory in the same town.

Takayama Reed Co. restarted production a week after the earthquake with a BCP developed in 2018. The company's factory in Nakanoto, which exports 70% of its production overseas, was hit by a tremor measuring a lower 6 in seismic intensity.

Production equipment collapsed, but most reeds remained intact due to securements with belts. Only three reeds suffered damage. A swift response was facilitated by the BCP. The company confirmed employees' safety and set up a recovery task force.

The government introduced an approval system for a simple version of the BCP in 2019 to encourage disaster preparedness among small and midsize companies. Certified companies receive support such as preferential tax treatment and priority access to subsidies.

Medaka Kotsu, a transportation company on the Noto Peninsula, received certification in March 2022. Its BCP covers safety checks, seismic reinforcement, securing alternative production sites, and cash flow management.

After the earthquake, the company confirmed the safety of employees and vehicles, utilized a portable power generator, and quickly resumed operations. It transported stranded people at Noto Airport and provided shuttle services for Chiba city officials assisting in disaster relief.