Aging and Chronic Shortages of Skilled Construction Workers and Engineers

「Persistently high labor costs caused by the industry’s serious shortage of workers」

「The shortage of subcontractors and skilled workers is becoming even more serious, driving up construction costs.」

「The shortage of construction skilled workers is becoming increasingly severe.」

「Higher logistics and labor costs resulting from the promotion of work-style reforms and the labor shortage, among other factors」

「Higher transportation and labor costs due to the labor shortage」

「In addition to persistently high construction material prices, rising labor costs due to the entrenched labor shortage are increasingly weighing on earnings」

「Rising distribution and labor costs due to the worsening labor shortage are increasingly weighing on earnings」

「Construction costs have remained persistently high due to rising construction material prices and chronic shortages of workers in various skilled trades」

「The increase in construction costs resulting from higher construction material prices and labor costs is a factor behind the decline in inquiries for projects」

「The order environment in the construction industry, the Group’s core business, is expected to remain firm, supported by continued public investment under extensions of the national resilience policy. A certain level of private construction demand is also expected from large-scale urban redevelopment, renewal and renovation of aging facilities, and the solid housing market. However, the earnings environment is expected to become even more challenging as pressure for higher labor costs due to soaring material prices and chronic shortages of construction engineers and skilled workers is intensifying beyond previous levels.」

「There are concerns that the pressure for deterioration in the earnings environment will intensify as the future course of the COVID-19 pandemic and higher labor costs associated with shortages of technical and skilled workers overlap with other factors.」

「The increase in labor costs due to the chronic labor shortage is also a concern, leaving the outlook uncertain.」

「In the public works sector, the order environment in the construction industry, the core business of our Group, remains stable, with steady demand for infrastructure renewal and other projects related to national resilience policies. In the private-sector construction field, housing demand remains firm for both for-sale and rental housing despite the COVID-19 pandemic. However, the earnings environment is becoming increasingly difficult as signs of price competition have begun to re-emerge amid a trend toward fewer projects, while major general contractors are increasingly entering regional projects as large-scale projects decline, particularly in major metropolitan areas. This is compounded by higher labor costs resulting from chronic labor shortages and rising material prices.」

「The order environment in the construction industry, the Group’s core business, is expected to remain firm in public investment due to measures to strengthen national resilience and extend the service life of social infrastructure. However, private-sector construction investment is beginning to trend downward. The earnings environment is expected to deteriorate as price competition to secure projects reduces profitability, compounded by higher labor costs due to shortages of technical and skilled workers and increases in the prices of some materials. The outlook remains uncertain.」

「The operating environment is expected to remain challenging, with the shortage of construction technical and skilled workers becoming increasingly severe.」

「Looking ahead, although the increasing number of foreign visitors to Japan and the upward trend in public works are positive factors, the earnings environment is becoming more challenging due to lost ordering opportunities caused by labor shortages and persistently high labor and material costs. Economic sentiment is gradually deteriorating, particularly in regional areas.」

「The chronic labor shortage is not only hindering business activities and restraining new construction investment, but also raising concerns that declining sentiment toward stimulating the economy could lead to an economic slowdown, creating an environment in which even more cautious business management is increasingly required.」

「In addition, the aging of construction skilled workers and declining productivity due to the labor shortage are expected to become increasingly serious」

「At the same time, pressure for higher costs is beginning to emerge as construction demand remains elevated, labor shortages become more severe, and work-style reforms are enacted. Competition for orders to secure projects after the Olympics and Paralympics is also beginning to flare up, and the business environment is becoming increasingly difficult to view optimistically.」

「The worsening labor shortage and resulting difficulty in responding to orders are also contributing to an environment in which more cautious business management is increasingly required.」

「In regional areas, the business environment continues to contain risks of deteriorating operating performance, including broad restraints on public investment, sluggish demand associated with increasingly severe labor shortages and population declines, and rising prices of materials and equipment.」

「The chronic decline and aging of construction workers and the increasing departure of younger people from the industry」

「The company is concerned that the business environment may become significantly more difficult, as further cost-increasing factors arising from chronic labor shortages and work-style reforms are expected to emerge.」

「In the construction industry, the Group’s core business, the operating environment is shifting toward one in which more cautious business management than ever is required. Signs of intense price competition are beginning to emerge amid a chronic labor shortage, restraint on additional investment following the completion of major capital investment cycles, and an overall decline in public investment in regional areas.」

「While the chronic shortage of construction technical and skilled workers continues」

「The chronic shortage and aging of construction technical and skilled workers, together with the increasing departure of younger people from the industry, are becoming increasingly serious」

「Although the labor shortage in the construction industry is becoming increasingly severe」

「In addition to the continuing unresolved structural problems affecting the industry as a whole, including the chronic shortage and aging of construction technical and skilled workers」

「In addition to structural problems affecting the industry as a whole, including the chronic shortage and aging of construction technical and skilled workers」

「No solution is yet in sight for structural problems affecting the industry as a whole, including the aging and chronic shortage of construction skilled workers」