Fluctuations in Construction Demand, Material Prices and the Real Estate Market
First written in FY2016. 15 of 32 entries say "Worsened", first in FY2018. Latest entry: 2026-08-05.
Kajima moved to the "Worse" side of this theme in 2019, 1 year before the typical company in this theme (2020).
The whole theme swung hardest in 2020: 17 of 32 companies on the "Worse" side.
18 other companies' latest entry also says "Restated".
- 2026-08-05RestatedEarnings
「In Japan's construction market, investment in growth areas, including digital-related fields, progressed and public investment remained stable. At the same time, in addition to tight labor supply and demand, some oil-derived products have shown price increases and supply restrictions, making appropriate cost management and securing an appropriate construction system ongoing challenges.」
Construction demand continued to be supported by investment in growth areas and public investment, while the company reaffirmed its awareness of risks involving labor supply and demand and the supply and pricing of materials. - FY2026RestatedAnnual report
「In the domestic construction market, capital investment by export-related companies, among others, stagnated due to the impact of U.S. tariff policy, but demand remained high as private companies retained strong investment appetite for growth and public investment remained stable. Meanwhile, supply-demand tightness had also become entrenched, making it a challenge to address rising construction costs and establish an appropriate construction execution structure.」
While capital investment by export-related companies showed signs of stagnating, construction demand remained high against a backdrop of private investment appetite and public investment. The previously identified risks of supply-demand tightness, rising construction costs and securing an appropriate construction execution structure were also reconfirmed. - FY2026-H1RestatedAnnual report
「In the domestic construction market, demand remained high, supported by construction investment related to supply-chain resilience and the renewal of infrastructure and urban functions, despite a wait-and-see stance toward capital investment among some export-related companies. Meanwhile, construction costs, including labor costs, continued to rise, and securing an appropriate construction execution structure, including measures to address shortages of skilled workers, remained a challenge.」
Although some companies adopted a wait-and-see stance toward capital investment, construction demand remained high. Addressing rising construction costs, including labor costs, and shortages of skilled workers continued to be viewed as challenges, reconfirming the previously identified risks. - FY2025-H1RestatedAnnual report
「In the domestic construction market, construction demand remained strong, supported by high capital investment appetite among private companies in both manufacturing and non-manufacturing and stable public investment. As for construction costs, prices for materials and equipment remained generally high, while labor costs showed an upward trend in some regions and occupations due to the busy operating environment.」
Construction demand remained strong against a backdrop of private capital investment and public investment, while elevated prices for construction materials and equipment and labor cost increases in some regions and occupations due to the busy operating environment continued. Awareness of demand and cost-related risks also persisted. - FY2024RestatedAnnual report
「In the domestic construction market, growth in construction investment continued as public investment remained stable and companies’ capital investment progressed steadily. As for construction costs, prices for materials and equipment remained generally high, while labor costs also trended upward as construction volumes increased.」
While construction demand continued to grow, elevated prices for construction materials and equipment and the upward trend in labor costs persisted. - FY2024-Q3RestatedAnnual report
「In the domestic construction market, construction demand remained solid in both the public and private sectors. As for construction costs, prices for materials and equipment remained generally high, while labor costs rose in some occupations as construction volumes increased.」
Public- and private-sector construction demand remained solid, while high prices for construction materials and equipment and rising labor costs in some occupations continued. The coexistence of recovering demand and rising input costs identified through the previous quarter was reconfirmed. - FY2024-Q2WorsenedAnnual report
「In the domestic construction market, private-sector capital investment progressed steadily in both manufacturing and non-manufacturing, in addition to stable public investment. As for construction costs, prices for materials and equipment remained generally high, while labor costs also showed signs of rising in some occupations, and developments will continue to be monitored.」
Construction demand progressed steadily against a backdrop of public investment and private capital investment, while, in addition to elevated prices for construction materials and equipment, labor costs rose in some occupations. Cost-related risks have become more pronounced. - FY2024-Q1Elevated construction materials and equipment prices coexisted with stabilization in steel prices.Annual report
「In the domestic construction market, construction demand remained solid, supported by stable public investment and continued strong capital investment appetite among companies in both manufacturing and non-manufacturing. As for construction costs, prices for materials and equipment generally remained high, although some prices, including steel prices, showed signs of stabilizing.」
Construction demand remained solid, supported by public investment and companies’ capital investment appetite. Although some prices, including steel prices, showed signs of stabilizing, prices for construction materials and equipment remained high overall. - FY2023WorsenedAnnual report
「Construction costs remained affected by generally high prices for construction materials and equipment, while labor costs also showed signs of rising.」
While construction demand was on an upward trend, the business environment for the fiscal year was characterized by elevated construction materials and equipment costs and a rising trend in labor costs. - FY2023-Q3WorsenedAnnual report
「In the domestic construction market, construction demand was on an upward trend, supported by strong investment appetite among companies in both manufacturing and non-manufacturing and continued strength in public investment. As for construction costs, prices for construction materials and equipment remained generally high, while labor costs also rose in some occupations.」
Construction demand was on an upward trend against a backdrop of companies’ investment appetite and public investment, while, in addition to elevated prices for construction materials and equipment, labor costs rose in some occupations. The recovery in demand coexisted with rising input costs. - FY2023-Q2Recovery in construction demand coexisted with elevated construction materials and equipment prices.Annual report
「In the domestic construction market, capital investment by both manufacturing and non-manufacturing companies tended to increase, and public investment remained firm, supporting a continued recovery in construction demand. Although some construction materials and equipment had begun to stabilize in price, prices remained high overall, creating a need for appropriate monitoring and measures.」
Construction demand recovered against a backdrop of capital investment by manufacturing and non-manufacturing companies and public investment, while prices for construction materials and equipment, although showing signs of stabilizing in some areas, remained high overall. The recovery in demand coexisted with cost-related risks. - FY2023-Q1WorsenedAnnual report
「In the domestic construction market, construction demand remained solid, driven by private capital investment, which was on an upward trend in both manufacturing and non-manufacturing, while public investment remained firm. Meanwhile, prices for a broad range of construction materials and equipment, including steel, concrete and lumber, rose, creating a need for measures covering order-taking and procurement.」
Construction demand was considered solid, while rising prices for a broad range of construction materials and equipment, including steel, concrete and lumber, indicated that the previously identified risk of higher material prices was materializing across a wider range. - FY2022-Q3WorsenedAnnual report
「In the domestic construction market, construction demand remained firm, supported by a recovery in private capital investment and continued strength in public investment, although the competitive environment remained challenging. Construction costs, particularly material costs, also continued to rise.」
Construction demand was considered firm, supported by a recovery in private capital investment and continued strength in public investment, while the challenging competitive environment and rising construction costs, particularly material costs, persisted. - FY2022-Q2WorsenedAnnual report
「In the domestic construction market, public investment remained firm and companies’ investment stance showed signs of improvement, particularly in manufacturing, but the competitive environment remained challenging. Construction costs were also affected by rising prices for some materials, including steel, steel products and lumber, despite stable labor costs, and developments will continue to be monitored.」
While companies’ investment stance, particularly in manufacturing, showed signs of improvement, the competitive environment remained challenging, and rising prices for some materials, including steel, steel products and lumber, have become more pronounced. - FY2022-Q1WorsenedAnnual report
「In the domestic construction market, public investment remained firm. Private-sector capital investment, particularly in some industries, began to show signs of recovery, but uncertainty about the outlook persisted. Labor costs remained stable, while prices for some materials, including steel and steel products and lumber, showed an upward trend, making it necessary to monitor developments.」
Public investment remained firm and private-sector capital investment showed signs of recovery, while uncertainty about the outlook persisted. New increases in the prices of some materials, including steel and steel products and lumber, were indicated, pointing to deterioration on the cost side of construction demand and material price risks. - FY2021WorsenedAnnual report
「Regarding construction demand, public investment remained firm, while private-sector capital investment continued to decline as companies adopted a cautious investment stance in light of economic conditions, and the competitive environment became increasingly challenging.」
Compared with the previous description of solid private-sector demand, the decline in private-sector capital investment and the challenging competitive environment are now explicitly stated, indicating a deterioration in the perceived risks to construction demand. - FY2021-Q3WorsenedAnnual report
「In the domestic construction market, procurement costs for labor, materials and equipment remained generally stable. Although private-sector capital investment continued to decline as companies maintained a cautious investment stance, construction demand remained firm, supported by solid public investment.」
While procurement costs for labor, materials and equipment remained stable, private-sector capital investment continued to decline because of companies’ cautious investment stance. Public investment provided support, but weakening private-sector demand continued. - FY2021-Q2WorsenedAnnual report
「In the domestic construction market, supply and demand for labor, materials and equipment remained stable and public investment remained firm. However, private-sector capital investment continued to decline as companies in both the manufacturing and non-manufacturing sectors adopted a more cautious investment stance.」
While supply and demand for labor, materials and equipment and public investment were stable or firm, private-sector capital investment continued to decline in both the manufacturing and non-manufacturing sectors. Weakening private-sector demand continues to be a risk to construction demand. - FY2021-Q1WorsenedAnnual report
「In the domestic construction market, public investment remained firm, while private-sector capital investment began to decline due to delays in ordering procedures. Although construction costs remained stable, it became necessary to monitor changes in construction demand and needs in Japan and overseas resulting from the impact of COVID-19.」
While public investment and construction costs remained stable, private-sector capital investment began to decline due to delays in ordering procedures, and the need to monitor changes in construction demand and needs caused by the infectious disease was identified. - FY2020WorsenedAnnual report
「COVID-19 spread worldwide, and a state of emergency was declared nationwide in Japan. For the earnings forecasts for the fiscal year ending March 2021, we assessed the periods likely to affect operating results and other matters based on each business region and business format, and expect a certain degree of decline in sales and a corresponding decline in profit.」
Regarding risks to construction demand and the operating environment, the spread of the infectious disease and the state of emergency occurred, leading to an expectation of lower sales and profit in Japan and overseas. - FY2020-Q3RestatedAnnual report
「In the domestic construction market, construction investment remained firm in both the public and private sectors. Construction costs, including labor and materials and equipment costs, showed no significant increases, resulting in generally stable conditions.」
Public- and private-sector construction investment remained firm, with no significant increases in construction costs, including labor and materials and equipment costs. The domestic market was generally stable. - FY2020-Q2RestatedAnnual report
「In the domestic construction market, public works orders were trending upward, while private-sector capital investment remained firm, particularly in the non-manufacturing sector. Supply and demand for labor, materials and equipment showed no serious tightness and remained generally stable.」
Public works and private-sector capital investment remained firm, while supply and demand for labor, materials and equipment remained stable without serious tightness. No significant changes in business and other risks are reported. - FY2020-Q1RestatedAnnual report
「In the domestic construction market, construction demand remained firm due to the recovery in public investment and capital investment aimed at upgrading and labor-saving improvements. Although construction costs remained generally stable, the need to monitor supply and demand trends for materials, equipment and labor continued.」
Construction demand remained firm and construction costs generally stable, while the need to monitor supply and demand trends for materials, equipment and labor continued. No significant changes in business and other risks are reported. - FY2019WorsenedAnnual report
「In the domestic construction market, we are concerned about surging construction costs due to tight supply and demand for materials, equipment and labor. However, construction investment is expected to remain firm for the time being, supported by solid private-sector construction demand driven by technological innovation and increased public investment related to national resilience.」
While construction investment is expected to remain firm, concerns about surging construction costs due to tight supply and demand for materials, equipment and labor are explicitly stated, indicating heightened awareness of risks relating to input resources. - FY2019-Q3WorsenedAnnual report
「In the domestic construction market, construction investment remained firm, supported by capital investment aimed at updating and upgrading facilities, particularly in the manufacturing sector. As the domestic economy recovered, tight supply and demand for materials and equipment and labor shortages began to emerge.」
While construction investment remained firm, tight supply and demand for materials and equipment and labor shortages began to emerge, indicating more specific operating-environment risks relating to the resources required for construction operations. - FY2019-Q2RestatedAnnual report
「In the domestic construction market, construction investment remained firm, centered on high levels of private-sector capital investment, and the overall environment remained stable despite increases in some construction costs.」
It is stated that construction investment was firm, led by private-sector capital investment, and that the market environment was generally stable despite increases in some construction costs. No significant changes in business and other risks are reported. - FY2019-Q1Domestic construction market currently stableAnnual report
「In the domestic construction market, construction investment remained firm, mainly in the private sector, while increases in construction costs remained limited, resulting in continued stable conditions.」
Separately from the concern about future surges in construction costs indicated in the previous fiscal year, it is stated that the domestic construction market remained stable during the current quarter, with firm private-sector investment and limited cost increases. No significant changes in business and other risks are reported. - FY2018WorsenedAnnual report
「In the domestic construction market, construction investment is expected to remain firm for the time being, centered on the Tokyo metropolitan area. However, construction costs may surge as many projects, including large-scale redevelopment buildings and facilities related to the Tokyo Olympic and Paralympic Games, enter their peak construction period. Over the longer term, the environment surrounding the domestic construction market is expected to change as a result of the declining birthrate and aging population and the decline in the working-age population.」
Compared with the previous explanation that increases in construction costs had been limited, concerns about a surge during the upcoming peak construction period and longer-term changes in the operating environment from the declining birthrate and aging population and the shrinking working-age population are now described more specifically. - FY2018-Q3RestatedAnnual report
「The domestic construction market was generally stable, as construction investment remained at a high level supported by solid private-sector demand, particularly in the non-residential sector, while increases in construction costs remained limited in some areas.」
It is stated that domestic construction demand remained at a high level and increases in construction costs were limited. No significant changes in business and other risks are reported. - FY2016First statedAnnual report
「If significant changes occur in the operating environment for the construction and development businesses, such as a decline in construction demand exceeding expectations, a sharp rise in prices of major construction materials and other materials, or substantial fluctuations in supply and demand or prices in the real estate market, they may affect operating results and other matters.」
Construction demand, prices of major construction materials, and supply, demand and prices in the real estate market are identified as operating-environment risks.