Declining Construction Capacity and Profit Margins Due to Workforce Shortages in the Construction Industry
First written in FY2020. 5 of 7 entries say "Advanced", first in FY2023. Latest entry: FY2026.
The whole theme swung hardest in 2024: 8 of 11 companies on the "Worse" side.
0 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Support for improving the treatment of skilled workers and strengthening the financial foundations of partner companies through the introduction of a points service for construction skilled workers that can be exchanged for electronic money and other benefits, and earlier payment of construction contract proceeds」
The Company introduced a points service for skilled workers, expedited payment of construction contract proceeds, and expanded allowances and incentive payments, thereby specifying measures to secure workers and strengthen the financial foundations of partner companies. - FY2024AdvancedAnnual report
「Regarding the shortage of workers in the construction industry, the Kajima Group plans to continue implementing various measures to maintain construction capacity in the future based on its medium-term management plan, including improving the treatment of construction skilled workers, reforming the multilayered subcontracting structure with the aim of establishing a construction structure generally limited to second-tier subcontractors, and enhancing support for partner companies through human resource development and stronger collaboration.」
The Company incorporated measures to address the labor shortage into its new medium-term management plan and stated that it would continue improving the treatment of skilled workers, maintaining a construction structure generally limited to second-tier subcontractors, and supporting partner companies. The plan also describes the response to the overtime work cap regulations introduced in April 2024. - FY2023AdvancedAnnual report
「To maintain construction capacity in the future, the Kajima Group is promoting further operational efficiency through higher productivity based on its medium-term management plan, working to improve working conditions while meeting construction schedules by pursuing “4 weeks of work and 8 days off” at construction sites, and implementing various measures to make construction work more attractive as a profession, including creating an operating environment based on a construction structure generally limited to second-tier subcontractors, improving the treatment of skilled workers, and stabilizing their income.」
To address the labor shortage, the Company continues to promote 4 weeks of work and 8 days off, a construction structure generally limited to second-tier subcontractors, improved treatment of skilled workers, and automation, labor-saving and robotics technologies. The response to the overtime work cap regulations introduced in April 2024 was also described specifically. - FY2021MitigatedAnnual report
「The Company is implementing various measures to make construction work more attractive as a profession, including creating an operating environment based on a construction structure generally limited to second-tier subcontractors, improving the treatment and income stability of skilled workers, and other initiatives. It is also providing support to partner companies that contributes to better treatment of skilled workers. In addition, to offset the shortage of workers, the Company is systematically developing automation, labor-saving and robotics technologies.」
The Company specified a construction structure generally limited to second-tier subcontractors, support for improving the treatment of skilled workers and partner companies, and the development of automation, labor-saving and robotics technologies as measures to address the risk of a labor shortage. - FY2020First statedAnnual report
「In the construction industry, the number of construction skilled workers is trending downward. Without adequate measures, it may become difficult to maintain construction capacity, potentially resulting in impacts such as lower revenue and lower construction profit margins due to higher labor procurement costs.」
The decline in skilled workers is explicitly identified as an independent risk that could lead to difficulty maintaining construction capacity, lower revenue, higher labor procurement costs, and lower construction profit margins.