nhk world's daisuke azuma has more. >> reporter: these small businesses are the backbone of the japanese economy, and the people running them are concerned about the tax hike. these two plant employees and they produce custom made windows and fire prevention doors for commercial buildings and condominiums. the plant manager has 40 years of experience under his belt. he says price competition in this industry keeps heating up every year. he thinks that cutting prices as much as possible is vital to win orders. so when the consumption tax goes up, mizutani says he can't simply pass the additional cost on to the prices of his products. >> translator: the current 5% rate is already weighing on financing. so once the rate goes up further, it will be difficult to just increase prices. i guess it's a problem shared by many manufacturers like us. >> reporter: the higher tax also puts future business plans in doubt. the company has been considering replacing some old machines. but it now has no idea how to raise enough money. >> translator: if sales go up, we can't turn a profit and won't be able

nhk world's daisuke azuma has more. >> reporter: these small businesses are the backbone of the japanese economy, and the people running them are concerned about the tax hike. these -- this plant employs 20 workers and they produce custom made windows and and fire prevention doors for commercial buildings and condominiums. plant manager masao mizutani has 40 years of experience under his belt. he says price competition in this industry keeps heating up every year. he thinks that cutting prices as much as possible is vital to win orders. so even when the consumption tax goes up, mizutani says he can't simply pass the additional cost on to the prices of his products. >> translator: the current 5% rate is already weighing on financing. so once the rate goes up further, it will be difficult to just increase prices. i guess it's a problem shared by many manufacturers like us. >> reporter: the higher tax also puts future business plans in doubt. the company has been considering replacing some old machines. but it now has no idea how to raise enough money. >> translator: if sales go up, we can'