New Challenges for the Construction Business from Price Competition, Soaring Raw Material Costs and Semiconductor Shortages
First written in FY2022-Q3. 4 of 11 entries say "Worsened", first in FY2024-Q2. Latest entry: 2026-10-15.
Interlife Holdings moved to the "Worse" side of this theme in 2023, 2 years after the typical company in this theme (2021).
The whole theme swung hardest in 2022: 28 of 41 companies on the "Worse" side.
14 other companies' latest entry also says "Worsened".
- 2026-10-15WorsenedEarnings
「At the same time, costs continued to rise due to higher material prices and material shortages stemming from the situation in the Middle East and other factors, leaving conditions uncertain.」
In addition to the previously cited sharp increases in raw material prices and labor shortages, the disclosure specifically identifies higher material prices and material shortages arising from the situation in the Middle East and other factors as sources of higher costs. - FY2027-H1WorsenedAnnual report
「At the same time, costs continued to rise due to higher material prices and material shortages stemming from the situation in the Middle East and other factors, leaving conditions uncertain.」
Against the backdrop of the situation in the Middle East and other factors, higher material prices, material shortages and rising costs are identified as new external challenges facing the construction business. - FY2025-H1RestatedAnnual report
「In the construction industry, there was some impact from labor shortages and higher raw-material prices. However, construction-related demand is trending upward and is supported by strong capital investment, including large projects in the Tokyo metropolitan area, construction related to Expo 2025 Osaka, Kansai, and inbound demand resulting from yen depreciation.」
Although the effects of labor shortages and higher raw material prices remain to some extent, demand related to construction and strong capital investment were indicated, and there has been no material change in the existence of these risk factors themselves. - FY2025-Q1RestatedAnnual report
「While corporate capital investment remains solid and inbound demand is increasing, concerns remain about the impact of higher raw-material prices caused by yen depreciation and rising prices, as well as labor shortages.」
Higher raw material prices and labor shortages continue to pose challenges in the external environment for the construction business and other operations. - FY2024WorsenedAnnual report
「At ファシリティーマネジメント㈱, sales exceeded the year-earlier period as the cleaning division recovered and maintenance and inspection services, including air-conditioning overhauls and legally required inspections, performed steadily. However, operating profit fell below the year-earlier period because of higher costs, including outsourcing and raw material costs.」
In addition to higher raw material costs, rising outsourcing expenses have materialized as factors weighing on profit and are affecting the profitability of the facilities and maintenance business. - FY2024-Q2WorsenedAnnual report
「Meanwhile, the outlook remains uncertain, with higher raw material and energy prices resulting from increased geopolitical risks and other factors continuing to weigh on conditions.」
In addition to higher raw material costs, higher energy prices were explicitly identified, and uncertainty surrounding construction-related costs and the external environment due to geopolitical risks continues. - FY2024-Q1RestatedAnnual report
「Meanwhile, the outlook remains uncertain, with higher raw material costs resulting from increased geopolitical risks and other factors continuing to weigh on conditions.」
Challenges in the external environment, including higher raw material costs, and uncertainty over the outlook continue. This risk disclosure does not indicate any new quantitative deterioration or additional impact on the construction business's profit margin. - FY2023-Q3MaterialisedAnnual report
「In the third quarter of the current fiscal year, business conditions were firm, reflecting a recovery in the willingness to invest in facilities and other factors. However, affected by higher raw material costs and other factors, the gross profit margin remained approximately 2% below that of the same quarter of the previous year.」
Higher raw material costs materialized as an approximately 2% year-on-year decline in the gross profit margin, affecting the profitability of the construction business and other operations. - FY2023-Q1MitigatedAnnual report
「Performance exceeded the same quarter of the previous year, partly because projects delayed since the previous fiscal year due to semiconductor supply shortages and other factors were brought into the period, while large construction projects progressed smoothly.」
The sound and lighting equipment business exceeded the same period of the previous year as projects delayed by insufficient semiconductor distribution were brought into the business. Challenges other than the semiconductor shortage, including price competition and higher raw material costs, remain separately. - FY2022MaterialisedAnnual report
「New challenges, including price competition, higher raw material costs and the semiconductor shortage, have emerged, resulting in difficult conditions.」
Price competition, higher raw material costs and the semiconductor shortage, identified as new challenges in the previous quarter, were described as actual challenges affecting the construction business's full-year performance. - FY2022-Q3First statedAnnual report
「Although market conditions in our core construction business have been gradually recovering, the business remains challenging. In addition to an increase in the postponement or cancellation of clients' plans for new store openings and other projects, resulting in lower orders, new challenges have emerged, including price competition, higher raw material costs and the semiconductor shortage, due to the impact of the spread of COVID-19.」
In addition to the postponement or cancellation of previous plans for new store openings and the decline in orders, price competition, higher raw material costs and the semiconductor shortage were identified as new challenges for the construction business.