Pressure on Corporate Earnings From Labor Shortages and Rising Personnel Costs
First written in FY2018-Q3. 2 of 4 entries say "Worsened", first in FY2020. Latest entry: FY2026.
Lib Work moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2026: 10 of 19 companies on the "Worse" side.
6 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The business environment remained challenging, with persistently high construction material prices and personnel expenses, as well as shortages of skilled construction workers.」
Regarding the previously identified risks of labor shortages and rising personnel expenses, the company explained that shortages of skilled construction workers and persistently high material prices and personnel expenses are continuing. - FY2023-Q3MaterialisedAnnual report
「In view of long-term and medium-term corporate growth, we are actively investing in human resources, and personnel expenses have therefore risen to 136% of the level in the same period of the previous year.」
Active investment in human resources drove personnel expenses to 136% of the level in the same period of the previous year. The increase in personnel expenses has been reflected in actual results. - FY2020WorsenedAnnual report
「The number of carpenters and partner construction contractors has been declining year after year and is expected to become insufficient in the future. We are therefore promoting the in-house production of work in each trade to improve our construction capacity.」
In addition to its previous recognition of labor shortages and rising personnel expenses, the company explicitly identifies the decline in carpenters and partner construction contractors and the expected future shortage. - FY2018-Q3First statedAnnual report
「At the same time, in addition to rising labor costs due to labor shortages, higher raw material prices put pressure on corporate earnings. Sentiment among large companies in the manufacturing sector deteriorated for the first time in 2 years, while uncertainty about the outlook for businesses remained.」
The company identifies as a new risk the economic environment in which labor shortages are increasing personnel expenses and, together with surging raw material costs, putting pressure on corporate earnings.