Risk of Construction Market Contraction Due to Economic Fluctuations and Volatility in Material and Labor Costs
First written in FY2019. 3 of 5 entries say "Restated". Latest entry: FY2024.
Kudo moved to the "Worse" side of this theme in 2024, 2 years after the typical company in this theme (2022).
The whole theme swung hardest in 2022: 17 of 27 companies on the "Worse" side.
17 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「Due to the effects of labour shortages and persistently high material prices, circumstances continue to require closer monitoring of future changes in construction demand and needs.」
The Company continues to closely monitor the effects of changes in construction demand and needs, as well as labour shortages and persistently high material prices, on its results and profitability. - FY2024-Q2WorsenedAnnual report
「In the construction industry, public investment has remained firm, but the recovery in construction investment has stalled. The industry also continues to face the impact of higher labor costs caused by labor shortages and soaring material prices, and the need to monitor changes in construction demand and needs even more closely remains.」
As the recovery of the construction market has stalled, rising labour costs due to labour shortages have become a specific factor contributing to deteriorating profitability, alongside surging material prices. - FY2022RestatedAnnual report
「A sharp increase in construction material prices and procurement difficulties, as well as higher labor costs and shortages of skilled construction workers, may adversely affect the Company's operating performance, including by worsening project profitability.」
The Company continues to identify the risk of declining revenue and profitability in its construction business due to economic conditions, construction demand, and fluctuations in material and labour costs. - FY2020RestatedAnnual report
「If domestic construction demand contracts sharply because of a recession or other factors, or if material and labor prices fluctuate sharply, this could affect our business performance through lower revenue and deteriorating project profitability.」
The Company continues to identify the risk of declining revenue and profitability in its construction business due to reduced construction demand during an economic downturn and fluctuations in material and labour costs. - FY2019First statedAnnual report
「If the domestic construction market contracts due to economic fluctuations or material and labour costs and other prices fluctuate sharply, the results of the Company's construction business may be affected.」
Separately from the medium- to long-term contraction of the construction market and persistently high material prices, the Company has for the first time explicitly identified a construction business risk combining economic fluctuations with sharp changes in material and labour costs.