Risk of deteriorating profitability due to rising material prices
First written in FY2016. 8 of 15 entries say "Restated". Latest entry: FY2025.
Kudo moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2022: 32 of 49 companies on the "Worse" side.
17 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「Higher construction material prices have led to higher construction costs, raising concerns about their impact on business profitability.」
It continues to identify the risk that higher construction material prices will increase construction costs and affect business profitability. - FY2024RestatedAnnual 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.」
It continues to disclose the risk of deteriorating project profitability due to higher material prices and procurement difficulties, higher labor costs, and labor shortages. - FY2024-Q3Explicit identification of higher labor unit costsAnnual report
「In the housing industry, new housing starts have recently been weak for owner-occupied and for-sale housing, while rental housing has remained flat. In addition, construction costs continue to increase due to higher material prices and labor unit costs.」
In addition to higher construction costs resulting from surging material prices, higher labor unit costs are explicitly identified as a factor driving cost increases. - FY2024-Q1WorsenedAnnual report
「In the housing industry, new housing starts have recently been weak for owner-occupied and for-sale housing, while rental housing has remained firm. However, construction costs continue to rise due to higher material prices and procurement difficulties.」
In addition to surging material prices, procurement difficulties are explicitly identified, and construction costs are described as continuing to rise. - FY2023-Q3RestatedAnnual report
「In the construction industry, public investment has remained firm, and private-sector construction investment also appears to be gradually recovering. However, construction material prices remain high, and conditions continue to require close monitoring.」
While indicating a recovery in public and private construction investment, it continues to recognize that construction material prices remain at high levels. - FY2023-Q2RestatedAnnual report
「In the construction industry, public investment has remained firm, and private-sector construction investment also appears to be gradually recovering. However, construction material prices remain high, and conditions continue to require close monitoring of future changes in construction demand and needs.」
While indicating a recovery in public and private construction investment, it continues to recognize that construction material prices remain high. - FY2022WorsenedAnnual 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 risk of higher material prices is described as a specific risk, including sharp price increases and procurement difficulties, rather than merely price volatility and persistently high prices. - FY2022-Q3WorsenedAnnual report
「We have been exposed to unprecedented cost-increase pressure because of soaring lumber prices since last spring, particularly the impact of the wood shock.」
In addition to the persistently high and volatile prices of materials, it specifically describes unprecedented cost pressures from surging lumber prices and the wood shock. - FY2022-Q2WorsenedAnnual report
「In addition, amid soaring prices for raw materials, including lumber, and resource prices stemming from the spread of COVID-19, the risk that the impact on future social and economic activity could cause domestic and overseas economic activity to weaken has increased, and the situation requires renewed and close attention.」
In connection with the existing risk of fluctuations in material and labor prices, the sharp increases in raw material prices, including lumber, and resource prices are newly presented in specific terms. - 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.」
Continues to disclose the risk of an impact on business performance from a contraction in construction demand or sharp fluctuations in material and labor prices. - FY2019RestatedAnnual report
「Shortages of skilled construction workers and persistently elevated construction material prices continue, and the operating environment remains far from optimistic.」
Continues to note persistently elevated construction material prices together with labor shortages. - FY2019-Q3RestatedAnnual report
「In the construction industry, public investment showed some signs of weakening, but private-sector capital investment increased moderately and the order environment remained strong. However, the business environment remains far from optimistic, as shortages of skilled construction workers and elevated construction material prices persist.」
Continues to note persistently elevated construction material prices together with shortages of skilled construction workers. - FY2019-Q2WorsenedAnnual report
「In the construction industry, the order environment remains strong against a backdrop of firm construction investment. However, the business environment remains far from optimistic, as shortages of skilled construction workers and elevated construction material prices persist, while some indicators have recently pointed to weakening public investment.」
The discussion has become more specific, moving from the general risk of sharp increases in material prices to the situation of persistently elevated construction material prices. - FY2017RestatedAnnual report
「As we are primarily engaged in the construction business, if raw materials, including steel, and key construction materials rise sharply and it is difficult to reflect those increases in contract prices, this could affect business performance.」
Continues to disclose the risk of an impact on business performance if material price increases cannot be reflected in contract prices. - FY2016First statedAnnual report
「If raw materials, including steel, and key construction materials rise sharply and it is difficult to reflect those increases in contract prices, this could affect business performance.」
Identifies the impact on business performance of being unable to pass material price increases through to contract prices as a risk.