Competition for Public Works Contracts and Declining Bidder Rankings
First written in FY2016. 13 of 34 entries say "Worsened", first in FY2017-Q1. Latest entry: 2026-05-13.
Santo moved to the "Worse" side of this theme in 2025, 6 years after the typical company in this theme (2019).
The whole theme swung hardest in 2020: 29 of 54 companies on the "Worse" side.
13 other companies' latest entry also says "Worsened".
- 2026-05-13WorsenedEarnings
「In the construction industry, the floor area of privately owned non-residential buildings started, an indicator of private-sector capital investment, increased sharply for the second consecutive month, and the number of new housing starts increased for the third consecutive month, while the value of contracts for public works decreased for the fourth consecutive month.」
Private-sector capital investment and housing starts increased, while the value of public works contracts declined for the fourth consecutive month. - FY2026-H1WorsenedAnnual report
「Meanwhile, in the construction industry, new housing starts declined for the eighth consecutive month, the floor area of privately owned non-residential buildings started, an indicator of private-sector capital investment, declined substantially for the first time in 2 months, and public works contract values also declined substantially for the first time in 5 months.」
Declines were shown across the indicators for housing, privately owned non-residential buildings and public works, indicating weakness in the business environment surrounding public works. - FY2025RestatedAnnual report
「For our group, which has a high public works ratio, intensifying competition and a decline in the overall evaluation score under the management matters examination could lower its designated-bidder rank, potentially becoming a concern for business performance.」
Continued the response strategy of shifting focus between the public and private sectors in response to the risks of intensifying competition, a lower overall evaluation score and a lower designated-bidder rank associated with the high public works ratio. - FY2025-H1WorsenedAnnual report
「Meanwhile, in the construction industry, although new housing starts increased for the second consecutive month, the floor area of privately owned non-residential buildings started, an indicator of private-sector capital investment, declined substantially for the first time in 5 months, and public works contract values declined substantially for the second consecutive month.」
The decline in the floor area of privately owned non-residential buildings started and public works contract values was noted, indicating weakness in the business environment surrounding public works. - FY2024RestatedAnnual report
「For our group, which has a high public works ratio, intensifying competition and a decline in the overall evaluation score under the management matters examination could lower its designated-bidder rank, potentially becoming a concern for business performance. Our group operates in both public and private-sector construction. When public works are scarce, we focus on private-sector construction, and when private-sector construction is scarce, we focus on public works.」
Continued the response strategy of shifting focus between the public and private sectors in response to the risks of intensified competition and a lower designated-bidder rank associated with the high public works ratio. - FY2024-Q3MitigatedAnnual report
「Meanwhile, in the construction industry, although public works contract values increased substantially for the third consecutive month, the floor area of privately owned non-residential buildings started, an indicator of private-sector capital investment, declined substantially for the second consecutive month due to a reaction to the previous year's large-scale starts, and new housing starts declined for the sixth consecutive month.」
Public works contract values increased substantially for the third consecutive month, and the environment surrounding public works was described as improving. Meanwhile, weakness remained in privately owned non-residential buildings and housing. - FY2024-Q2WorsenedAnnual report
「Meanwhile, in the construction industry, new housing starts declined substantially for the third consecutive month, and public works contract values declined substantially for the first time in 2 months. However, the floor area of privately owned non-residential buildings started, an indicator of private-sector capital investment, increased substantially for the first time in 2 months.」
Public works contract values declined substantially for the first time in 2 months, and housing starts also declined substantially for the third consecutive month. Although privately owned non-residential buildings showed improvement, weakness in the environment surrounding public works was noted. - FY2024-Q1WorsenedAnnual report
「Meanwhile, in the construction industry, although the floor area of privately owned non-residential buildings started, an indicator of private-sector capital investment, increased substantially for the first time in 4 months, new housing starts declined substantially for the first time in 2 months, and public works contract values declined substantially for the second consecutive month.」
Public works contract values declined substantially for the second consecutive month, indicating weakness in the business environment surrounding public works. - FY2023-Q3MitigatedAnnual report
「Meanwhile, in the construction industry, although the floor area of privately owned non-residential buildings started, an indicator of private-sector capital investment, declined, new housing starts increased substantially for the first time in 3 months, and public works contract values also increased substantially for the first time in 4 months.」
Public works contract values increased substantially for the first time in 4 months, and the business environment surrounding public works was described as improving. However, the decline in the floor area of privately owned non-residential buildings started remained. - FY2023-Q2WorsenedAnnual report
「Meanwhile, in the construction industry, the floor area of privately owned non-residential buildings started, an indicator of private-sector capital investment, declined substantially for the third consecutive month, new housing starts were broadly flat, and public works contract values declined substantially for the first time in 2 months.」
It was stated that the floor area of privately owned non-residential buildings started had declined substantially for the third consecutive month and that public works contract values had also declined substantially for the first time in 2 months. - FY2023-Q1MitigatedAnnual report
「Meanwhile, in the construction industry, the floor area of privately owned non-residential buildings started, an indicator of private-sector capital investment, increased substantially for the eighth consecutive month, while both new housing starts and public works contract values increased for the first time in 3 months.」
Indicators for privately owned non-residential buildings, housing and public works increased, and the business environment surrounding public works was described as improving. However, it did not state that risks such as intensifying competition had disappeared. - FY2022-Q3MitigatedAnnual report
「Meanwhile, in the construction industry, new housing starts declined substantially for the second consecutive month, while the floor area of privately owned non-residential buildings started, an indicator of private-sector capital investment, increased substantially for the second consecutive month, and public works contract values also increased substantially for the first time in 2 months.」
Public works contract values increased substantially for the first time in 2 months, indicating an improvement in the business environment surrounding public works. However, it did not state that the risks of intensifying competition or a lower designated-bidder rank had disappeared. - FY2022-Q1MitigatedAnnual report
「Meanwhile, in the construction industry, the floor area of privately owned non-residential buildings started, an indicator of private-sector capital investment, had declined substantially for 3 consecutive months, while new housing starts had increased substantially for 5 consecutive months and public works contract values had increased substantially for 4 consecutive months.」
Public works contract values increased substantially for the fourth consecutive month, and the business environment surrounding public works was described as improving. However, it did not state that the risks of intensifying competition or a lower designated-bidder rank had disappeared. - FY2021RestatedAnnual report
「For a company with a high public works ratio, intensifying competition and a decline in the overall evaluation score under the management matters examination could lower its designated-bidder rank, potentially becoming a concern for business performance.」
Continued to identify the high public works ratio, intensifying competition, and declines in the overall evaluation score and designated-bidder rank as risks. The strategy of shifting focus according to supply and demand in the public and private sectors also continued. - FY2021-Q3MitigatedAnnual report
「Capital investment declined as companies, particularly in non-manufacturing industries, sought to reduce expenses in response to a deteriorating earnings environment. Residential investment remained broadly flat, while public investment increased, mainly in construction of public facilities and expressway-related projects.」
Public investment increased, mainly in public facilities and expressway-related construction, indicating an improvement in the business environment from the previous quarter's description of declining public works contract values. However, it did not state that the risks of intensifying competition or a lower designated-bidder rank had disappeared. - FY2021-Q2WorsenedAnnual report
「Public works contract values also declined substantially for the second consecutive month.」
Public works contract values declined substantially for the second consecutive month, indicating deterioration in the business environment surrounding public works. - FY2021-Q1MitigatedAnnual report
「In terms of investment demand, public investment remained firm, while residential investment and private-sector capital investment also showed signs of bottoming out.」
Public investment remained firm, and the business environment surrounding public works was described as improving. However, it did not state that the risks of intensifying competition or a lower designated-bidder rank had disappeared. - FY2020Specified an order strategy aligned with supply and demand for public and private-sector construction.Annual report
「Our business covers both public and private-sector construction. When public works are scarce, we focus on private-sector construction, and when private-sector construction is scarce, we focus on public works.」
In response to the risks arising from the high public works ratio, intensifying competition and a lower designated-bidder rank, specified a policy of shifting focus according to supply and demand in the public and private sectors. - FY2020-Q3MitigatedAnnual report
「In addition, public works contract values increased substantially for the sixth consecutive month.」
Public works contract values increased substantially for the sixth consecutive month, and the environment surrounding public works was described as improving. However, it did not state that the risks of intensifying competition or a lower designated-bidder rank had disappeared. - FY2020-Q2MitigatedAnnual report
「In addition, public works contract values increased substantially for the third consecutive month.」
Public works contract values were described as having increased substantially for the third consecutive month, indicating that the environment surrounding public works was improving. However, it did not state that the risks of intensifying competition or a lower designated-bidder rank had disappeared. - FY2020-Q1WorsenedAnnual report
「Private-sector capital investment, residential investment and public investment have recently fallen to low levels or declined, and the economic recovery trend was described as showing signs of slowing.」
Public investment was described as remaining at a low level or declining, with signs of a slowdown in the economic recovery trend. The business environment related to dependence on public works was shown to be deteriorating. - FY2019MitigatedAnnual report
「Meanwhile, in the construction industry, private-sector capital investment and public construction investment remained firm. At the same time, as challenges such as a shortage of construction engineers and rising construction costs grew, initiatives aimed at developing the next generation of workers and improving productivity through work-style reforms were required.」
Public construction investment and private-sector capital investment were described as firm, indicating an improvement in the business environment from the previous descriptions of sluggishness and weakness. However, it did not state that risks such as intensifying competition had disappeared. - FY2019-Q3WorsenedAnnual report
「In addition, the number of public works contracts declined for the second consecutive month, while contract values recorded their first substantial decline in 4 months.」
The number of public works contracts declined for the second consecutive month, while contract values also recorded their first substantial decline in 4 months. - FY2019-Q2MitigatedAnnual report
「In addition, the number of public works contracts increased for the second consecutive month, while contract values increased substantially for the first time in 5 months.」
The number and value of public works contracts increased, and the environment surrounding public works was described as improving. However, it did not state that the risks of intensifying competition or a lower designated-bidder rank had disappeared. - FY2019-Q1WorsenedAnnual report
「Meanwhile, although the number of public works contracts increased for the first time in 2 months, contract values declined substantially for the second consecutive month.」
Although the number of public works contracts increased, contract values declined substantially for the second consecutive month, indicating weakness in the environment surrounding public works. - FY2018RestatedAnnual report
「For a company with a high public works ratio, intensifying competition and a decline in the overall evaluation score under the management matters examination could lower its designated-bidder rank, potentially becoming a concern for business performance.」
Continued to identify the public works ratio, intensifying competition, and declines in the overall evaluation score and designated-bidder rank as risks. - FY2018-Q3WorsenedAnnual report
「In addition, both the number and value of public works contracts declined for the third consecutive month. Accordingly, the gradual recovery trend is expected to remain weak.」
Both the number and value of public works contracts declined for the third consecutive month, and the recovery trend was described as weakening. The deterioration of the environment surrounding public works was noted. - FY2018-Q2MitigatedAnnual report
「Meanwhile, public investment recorded its first substantial increase in 3 months. Accordingly, although it remains on a gradual recovery path, conditions are developing toward a recovery from a weak, flat trend.」
Public investment contract values recorded their first substantial increase in 3 months, and the environment surrounding public works was described as moving toward recovery. However, it was also explained that conditions remained weak and flat. - FY2018-Q1Decline in the number of public works contracts alongside an increase in contract valuesAnnual report
「In public works, although the number of contracts again fell below the previous year, contract values increased substantially, mainly due to orders from municipalities, resulting in a substantial overall increase for the second consecutive month.」
While the number of public works contracts fell below the previous year, contract values increased substantially, mainly due to orders from municipalities, indicating divergent trends in contract numbers and values. - FY2017WorsenedAnnual report
「Meanwhile, in the construction industry, public investment remained sluggish, while private-sector capital investment showed signs of recovery but lacked strength, leaving conditions challenging.」
In contrast to the recovery trend described as of the third quarter, the full-year business environment was described as challenging, with public investment sluggish and private-sector capital investment also lacking strength. - FY2017-Q3MitigatedAnnual report
「Meanwhile, in the construction industry, the floor area of privately owned non-residential buildings started, an indicator of private-sector capital investment, increased for the first time in 2 months despite remaining at a low level. The number of public works contracts recorded a substantial increase for the second consecutive month, while contract values rose substantially for the third consecutive month, indicating that the industry remains on a gradual recovery path.」
Stated that the number and value of public works contracts had both recorded consecutive substantial increases and that the environment surrounding public works was on a recovery path. It did not state that the risks had disappeared. - FY2017-Q2RestatedAnnual report
「Meanwhile, public investment recorded its first substantial year-on-year decline in 3 months. Accordingly, although it remains on a gradual recovery path, conditions are developing toward a recovery from a weak, flat trend.」
Although public investment recorded its first substantial decline in 3 months, the situation was described as seeking a recovery from a weak, flat trend. - FY2017-Q1WorsenedAnnual report
「Meanwhile, in public works, contract values have fallen well below the previous year for 2 consecutive months. Accordingly, although the sector remains on a gradual recovery path, overall conditions are expected to remain weak.」
Stated that public works contract values had fallen well below the previous year for 2 consecutive months and that the construction industry overall remained weak. The external environment related to dependence on public works was shown to be deteriorating. - FY2016First statedAnnual report
「For a company with a high public works ratio, intensifying competition and a decline in the overall evaluation score under the management matters examination could lower its designated-bidder rank, potentially becoming a concern for business performance.」
Based on the high public works ratio, identified intensifying competition and declines in the overall evaluation score and designated-bidder rank as business risks.