Risk of Rising Construction Material Prices and Labor Costs
First written in FY2016. 9 of 21 entries say "Worsened", first in FY2022-Q1. Latest entry: 2026-10-15.
First-corporation moved to the "Worse" side of this theme in 2021, 1 year before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 32 of 49 companies on the "Worse" side.
10 other companies' latest entry also says "Worsened".
- 2026-10-15WorsenedEarnings
「一方で、地政学リスクの長期化に伴うエネルギーや原材料価格の高止まりや金利の上昇など、景気の先行きにつきましては、依然として不透明な状況が続いております。」
エネルギー・原材料価格の高止まりに加え、金利上昇を事業環境の不透明要因として記載している。 - FY2026RestatedAnnual report
「Although strong construction investment is expected to continue in the construction industry in which the group operates, the business environment remains challenging due to continued increases in labor and material costs and increasingly severe labor shortages.」
The company continues to describe the challenging cost environment caused by rising labor and material costs and increasingly severe labor shortages. - FY2026-H1WorsenedAnnual report
「The construction industry in which the group operates continues to face a challenging business environment due to persistently high construction material prices, tight labor supply and demand, and the need to comply with regulations capping overtime hours.」
The company explicitly identifies persistently high construction material prices, tight labor supply and demand, and compliance with regulations capping overtime hours as factors contributing to the challenging business environment. - FY2025-H1RestatedAnnual report
「Although construction investment remains firm in the construction industry in which the group operates, the business environment remains challenging due to persistently high construction material and energy prices and rising unit labor costs.」
The company continues to describe the challenging environment caused by persistently high construction material and energy prices and rising unit labor costs. - FY2024MaterialisedAnnual report
「Ordinary profit exceeded the revised plan, despite the gross profit margin on completed construction contracts coming in slightly below the revised plan at 8.9% due to soaring construction material prices and higher labor costs, as a result of lower selling, general and administrative expenses and other factors.」
The company states that soaring construction material prices and higher labor costs affected the 8.9% gross profit margin on completed construction contracts, with the impact of cost inflation emerging in results. - FY2024-Q3WorsenedAnnual report
「Although public construction investment remains firm in the construction industry in which the company operates, the business environment remains challenging due to soaring construction material and energy prices and rising unit labor costs.」
The company explicitly identifies rising unit labor costs in addition to soaring construction material and energy prices, indicating that the challenging cost environment is continuing. - FY2024-Q1RestatedAnnual report
「In the construction industry, public investment remains firm, while soaring construction material and energy prices and emerging labor shortages continue to affect the operating environment, which the company continues to monitor.」
The company continues to describe the challenging business environment caused by continued soaring construction material and energy prices and labor shortages. - FY2023WorsenedAnnual report
「In the construction industry, public investment remains firm, while soaring construction material and energy prices and emerging labor shortages continue to affect the operating environment, which the company continues to monitor.」
The company states that labor shortages have become apparent in addition to soaring construction material and energy prices, updating the difficult cost and labor procurement environment. - FY2023-Q3WorsenedAnnual report
「In the construction industry, public investment remains firm due to measures for disaster prevention and mitigation and accelerated national resilience measures, while soaring construction material prices and labor shortages have become apparent. The company continues to monitor the impact on the operating environment.」
The company states that labor shortages and other issues have become apparent in addition to soaring construction material prices, updating the difficult cost and procurement environment. - FY2023-Q2RestatedAnnual report
「In the construction industry, public construction investment remains firm, including government investment under the National Resilience Plan, but the company continues to monitor the impact on the operating environment due in part to soaring construction material prices.」
The company continues to monitor the challenging business environment caused by continued soaring construction material prices. - FY2023-Q1RestatedAnnual report
「However, the industry environment remained challenging, with concerns about soaring material prices and insufficient labor supply and demand continuing.」
Concerns about soaring material prices and insufficient labor supply and demand have continued, and the company continues to describe the challenging environment surrounding the construction industry. - FY2022WorsenedAnnual report
「In the for-sale condominium market, the company's business area, demand for home purchases is expected to remain firm and stable, supported by government measures to support home purchases, expanded and extended tax incentives, and low mortgage rates, despite the impact of higher construction material prices resulting from yen depreciation and accelerating inflation.」
The company identifies soaring construction material prices due to yen depreciation and accelerating inflation as an ongoing source of cost increases in the business environment. - FY2022-Q2WorsenedAnnual report
「Uncertainty about the outlook persists, including due to soaring resource and raw material prices, particularly crude oil prices.」
The company states that soaring resource and raw material prices have continued, and that higher construction material prices and other factors are affecting conditions in the construction industry. - FY2022-Q1WorsenedAnnual report
「However, the spread of COVID-19 has made issues such as material procurement difficulties and concerns about insufficient labor supply major challenges.」
The company explicitly identifies material procurement difficulties and concerns about insufficient labor supply associated with the spread of COVID-19 as major challenges. - FY2016First statedAnnual report
「Some construction material prices and labor costs are trending upward or remain elevated due to reconstruction demand following the Great East Japan Earthquake, Olympic-related demand, increased public works and the weaker yen.」
The Company identifies the risk of lower profits if material prices and labor costs rise beyond expectations after a construction contract is signed.