http://infoseek.go.com/Content?arn=a0744LBY356reulb-19990823&qt=%22year+2000%22+bug*+glitch*+y2k&sv=IS&lk=noframes&col=NX&kt=A&ak=news1486

-- Linkmeister (linl@librarian.edu), August 23, 1999

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Japanese firms fight Y2K with extra stockpiles

05:39 a.m. Aug 23, 1999 Eastern

By Michihiko Yashiro

TOKYO, Aug 23 (Reuters) - Some of Japan's biggest manufacturers said on Monday they are building up extra stockpiles of necessary components in anticipation of problems related to the Y2K millennium bug.

The move, analysts say, may explain recent rises in the nation's machinery orders data, but is unlikely to provide any dramatic boost to economic activity towards the end of the year given that there is only four months to go.

Some computers and software use only the last two digits to identify years and could mistake 2000 for 1900. This could cause them to produce incorrect data or crash when 1999 turns to 2000.

``If the firms are preparing for the Y2K problems by procuring parts in advance, that would have shown in earlier data,'' said Jun Inoue, an economist at Fuji Research Institute Corp.

``There are only four months left and it is too late to start ordering parts now. So I don't see a huge increase in machinery orders from now on.''

Japanese core private-sector machinery orders, excluding orders from utilities and shipbuilders, rose a seasonally adjusted 6.3 percent in June from the previous month.

The government has forecast the data will grow 4.0 percent in the July-September quarter from the previous month, the first growth forecast in six quarters.

Junichi Makino of Daiwa Institute of Research said Japan is still far behind the United States in solving the Y2K problem, adding that machinery orders data may continue to rise towards the end of the year as companies scramble to boost parts stocks.

Electronics giant NEC Corp said it is preparing for the Y2K emergency by procuring additional parts and materials, especially high-value items such as semiconductors.

NEC has ranked each of its factories by how ready they are to cope with the Y2K problem and ordered up to a week's worth of extra components to be ready at the less-prepared factories, an NEC spokesman told Reuters on Monday.

Sony Corp expects to complete steps to make its system Y2K bug-proof by October, and audio equipment maker Aiwa Co Ltd will finalise plans for a stockpile buildup by the end of September.

Toshiba Corp has nearly completed a four-year programme against the millennium bug and sees no need for extra parts.

``We have conducted enough preparation so that we don't need to do such things,'' a Toshiba spokesman said.

Consumer goods makers say they expect consumers to hoard some goods in anticipation of Y2K-related chaos after New Year's Day.

Shiseido Co Ltd, a leading cosmetics maker, said it expects to stock two months worth of materials before the year's end.

``We don't think more than two months worth of stockpile is necessary. If the problem isn't solved by then, people would be too frightened to buy cosmetics,'' a Shiseido spokesman said.

Asahi Breweries Ltd, Japan's leading beer brewer, said it may store extra materials such as barley.

((Tokyo Newsroom, +81-3-3432-8018

tokyo.newsroom+reuters.com))

Copyright 1999 Reuters Limited. All rights reserved.

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-- Linkmeister (link@librarian.edu), August 23, 1999.

``We don't think more than two months worth of stockpile is necessary. If the problem isn't solved by then, people would be too frightened to buy cosmetics,'' a Shiseido spokesman said.

Excellent point. Actually, given the lack of readiness by Japan and their reliance on imported energy, there may be a shortage of living potential customers after two months.

-- Dog Gone (layinglow@rollover.now), August 23, 1999.

Big Dog,

It appears that for several years Japan has maintained several months worth of petroleum stocks, just in case.

http://www.jnoc.go.jp/jnoc-e/stock/

There have been news reports (which I have not backtracked) that they intend to increase their pertoleum stocks to six months before the rollover.

Jerry

-- Jerry B (skeptic76@erols.com), August 23, 1999.