Risks from contraction of the domestic construction market, material prices and a decline in skilled workers
First written in FY2016. 18 of 33 entries say "Worsened", first in FY2017-Q1. Latest entry: FY2026.
Nakano moved to the "Worse" side of this theme in 2019, 2 years before the typical company in this theme (2021).
The whole theme swung hardest in 2022: 21 of 34 companies on the "Worse" side.
8 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Meanwhile, the business environment remains difficult, as persistently high equipment and material prices, rising labor costs, an increasingly unstable procurement environment for materials and worsening shortages of skilled workers have led to emerging effects such as longer construction periods and impacts on profitability.」
While stating that domestic construction demand is stable, the disclosure newly specifies the increasing instability of the material procurement environment, worsening shortages of skilled workers, longer construction periods and emerging impacts on profitability. - 2026-05-14MaterialisedResults
「一方で、資機材価格の高止まりや労務費の上昇に加え、資材調達環境の不安定化と技能労働者不足の深刻化により、工期の長期化や採算性への影響が顕在化するなど、事業環境は厳しい状況が続いております。」
従来の資材価格・労務不足リスクについて、工期長期化と採算性への影響が実際に顕在化したと記載している。 - FY2026-H1WorsenedAnnual report
「In the domestic construction market, government construction investment has remained solid against a backdrop of infrastructure measures aimed at strengthening national resilience, and private-sector construction investment has also remained solid, particularly in non-residential construction. However, soaring construction costs caused by labor shortages and rising material prices could slow construction investment, and the difficult business environment is expected to continue.」
While stating that government and private-sector construction investment remains solid, the disclosure specifically notes that soaring construction costs caused by labor shortages and rising material prices could slow investment, and expects the difficult business environment to continue. - FY2025-H1RestatedAnnual report
「In the domestic construction market, government construction investment has remained firm against a backdrop of infrastructure measures related to national resilience, while private-sector construction investment has also recovered, particularly in non-manufacturing industries. Overall, the solid order environment has been maintained.」
The disclosure reaffirms that the domestic order environment is generally solid, supported by firm government construction investment and a recovery in capital investment by private-sector non-manufacturing industries. - FY2024SoftenedAnnual report
「In the domestic construction market, housing construction investment has slowed because of rising material prices and personnel costs, but the overall order environment remained solid, supported by firm government construction investment and private-sector demand for non-residential construction.」
While noting a slowdown in housing investment because of rising material prices and personnel costs, the disclosure explains that the order environment remains generally solid, supported by government construction investment and private-sector non-residential demand. - FY2024-Q3WorsenedAnnual report
「In the domestic construction market, construction investment has generally remained solid amid the economic recovery, but the construction industry faces a difficult business environment in which further productivity improvements are required to address structural labor shortages and so-called overtime regulations.」
While stating that construction investment remains solid, the disclosure describes a difficult environment in which further productivity improvements are required because of structural labor shortages and the need to respond to overtime regulations. - FY2024-Q2RestatedAnnual report
「In the domestic construction market, capital investment in both the public and private sectors remained solid as socioeconomic activity returned to normal, but the difficult environment for securing construction profitability continues because construction material prices remain high and labor shortages persist.」
While stating that public- and private-sector capital investment remains solid, the disclosure notes that securing construction profitability remains difficult because construction material prices remain high and labor shortages persist. - FY2024-Q1WorsenedAnnual report
「In the domestic construction market, housing starts are expected to decline slightly in the fiscal year ending March 2024, but demand for capital investment in public works and private-sector manufacturing remains strong, and construction investment is expected to remain high for the time being. However, in addition to persistently high building costs and labor shortages, the industry faces the challenge of responding to working-hour regulations beginning in April 2024, making the business environment increasingly difficult in terms of both orders and profitability.」
While stating that demand for capital investment in public works and private-sector manufacturing remains strong, the disclosure cites persistently high building costs, labor shortages and the need to respond to working-hour regulations from April 2024, stating that the environment has become increasingly difficult in terms of orders and profitability. - FY2023WorsenedAnnual report
「In the domestic construction market, government construction investment and private-sector housing construction investment remained flat, while private-sector non-residential construction investment increased. However, building costs rose because of soaring material prices and a shortage of skilled workers, resulting in a difficult order environment amid an upward trend in construction demand.」
While acknowledging an increase in private-sector non-residential construction investment, the disclosure specifically notes that building costs have risen because of soaring material prices and a shortage of skilled workers. - FY2023-Q3WorsenedAnnual report
「In the domestic construction market, government construction investment has remained at the previous year's level, while private-sector construction investment has continued to increase, with plans for factories and logistics facilities trending higher and expected to remain solid into the next fiscal year. However, the effects of soaring material prices and labor shortages have become apparent, and the difficult business environment continues in terms of profitability.」
While stating that private-sector construction investment in factories and logistics facilities remains solid, the disclosure notes that the effects of soaring material prices and labor shortages have become apparent and that difficult conditions continue in terms of profitability. - FY2023-Q2WorsenedAnnual report
「In the domestic construction market, some companies' willingness to invest and private-sector non-residential investment have begun to recover, but the difficult business environment continues because soaring material prices and labor rates have worsened construction profitability and labor shortages have destabilized construction capacity.」
While acknowledging a recovery in some capital investment and private-sector non-residential investment, the disclosure cites soaring material prices and labor rates, deteriorating construction profitability, and destabilized construction capacity because of labor shortages, stating that difficult conditions continue in the domestic construction market. - FY2022Recovery in the domestic construction market remains gradualAnnual report
「In the domestic construction market, private-sector construction investment increased, particularly in detached housing, but total construction investment recovered only gradually because government construction investment declined.」
While indicating an increase in private-sector construction investment, the disclosure explains that the recovery in total construction investment has been gradual because government construction investment declined. - FY2022-Q3Construction investment and orders increasing, but concerns over economic slowdown and higher material costsAnnual report
「Construction investment in the domestic market during the current consolidated fiscal year is expected to exceed the previous year for both public-sector and private-sector projects, and architectural orders, particularly for private-sector work, have been trending higher year on year. However, uncertainty over the outlook has increased because of concerns about an economic slowdown and rising material prices.」
While stating that public- and private-sector construction investment and architectural orders are expected to exceed the previous year or remain on an upward trend, the disclosure notes that uncertainty over the outlook has increased because of concerns about an economic slowdown and rising material prices. - FY2022-Q2WorsenedAnnual report
「In the domestic construction market, warehouse and logistics facilities have continued to perform solidly, but there has been no notable increase in other uses, including accommodation facilities, factories and stores, and private-sector non-residential investment has not recovered. Government construction investment had expanded strongly in recent years, but is expected to decline going forward, and the difficult order environment continues. There are also concerns that profitability will deteriorate because material prices remain high and labor costs remain elevated, and difficult conditions continue in the domestic construction market.」
While stating that warehouse and logistics facilities remain solid, the disclosure notes that private-sector non-residential investment has not recovered, and cites an expected decline in government construction investment and persistently high material and labor costs, stating that difficult conditions continue in the domestic construction market. - FY2022-Q1Domestic impact limited, but concerns over capital investment plan reviews persistAnnual report
「In the domestic construction business, some companies have been taking longer to consider or reviewing their capital investment plans. However, construction investment in the current consolidated fiscal year is expected to remain at the previous year's level, supported by an increase in private-sector housing construction and other factors, and the impact of the pandemic on construction work in Japan has been limited.」
The disclosure explains that, while some companies in Japan have taken longer to consider or have reviewed their capital investment plans, construction investment is expected to remain at the previous year's level and the impact of the pandemic on construction work has been limited. - FY2021WorsenedAnnual report
「In the domestic construction market, government construction investment has remained solid, but private-sector capital investment plans have been reviewed or postponed because of the spread of COVID-19, causing non-residential construction investment to contract. In Southeast Asian countries, economic activity also declined significantly, and some countries restricted movement, limiting order solicitation activities. As a result, the order environment became difficult both in Japan and overseas.」
While stating that government construction investment remains solid, the disclosure notes that reviews and postponements of private-sector capital investment plans and the contraction of non-residential construction investment have made the order environment difficult in Japan and overseas. - FY2021-Q3RestatedAnnual report
「In the construction market, government construction investment has remained solid, but private-sector construction investment has seen cancellations and postponements of capital investment because of uncertainty over the economic outlook and weak corporate earnings, leaving the order environment uncertain.」
While stating that government construction investment remains solid, the disclosure notes that private-sector construction investment has seen cancellations and postponements of capital investment, and that the order environment remains uncertain. - FY2021-Q2WorsenedAnnual report
「In the domestic construction market, government construction investment has continued to increase, while private-sector construction investment has begun to decline because of changes to plans and prolonged consideration of projects. Although a recovery in private-sector capital investment is expected as personal consumption and exports recover, concerns remain about a review of government construction investment, and the order environment has rapidly become more difficult compared with the past few years.」
While indicating an increase in government construction investment, the disclosure cites a decline in private-sector construction investment and concerns about a review of government construction investment, stating that the order environment has rapidly become more difficult compared with the past few years. - FY2021-Q1WorsenedAnnual report
「In the construction industry, public investment remained solid, but private-sector capital investment remained under pressure because of the impact of the pandemic and other factors.」
While stating that public investment remained solid, the disclosure notes that private-sector capital investment was under pressure because of the impact of COVID-19. - FY2020WorsenedAnnual report
「In the domestic construction market, public investment remained solid, but private-sector capital investment slowed because of uncertainty over the outlook for the global economy. In addition, concerns about companies reviewing their capital investment plans because of the impact of COVID-19 created a difficult order environment.」
In addition to the slowdown in private-sector capital investment, the disclosure cites concerns that COVID-19 may lead companies to review their capital investment plans, describing the domestic order environment as difficult. - FY2020-Q3WorsenedAnnual report
「In the domestic construction market, government construction investment has remained solid, and private-sector capital investment has remained firm, supported by demand for labor-saving measures and other factors. However, difficult conditions continue, including a decline in companies' willingness to invest because of uncertainty over the outlook for the global economy and persistently high personnel and building material costs. In Southeast Asian countries, the economy has remained solid, but competition with other companies for orders has intensified. Accordingly, the order environment has become even more uncertain both in Japan and overseas.」
While indicating the resilience of government and private-sector investment, the disclosure cites weaker corporate willingness to invest, persistently high personnel and building material costs, and intensifying competition, stating that the order environment in Japan and overseas has become even more uncertain. - FY2020-Q2WorsenedAnnual report
「In the domestic construction market, redevelopment projects centered on major metropolitan areas and large logistics facilities being built in response to growth in online sales are expected to continue, but private-sector housing construction is declining and plans for commercial facilities and manufacturing projects are being reviewed. As a result, the future domestic order environment has become even more uncertain.」
While indicating expectations for redevelopment and logistics facilities, the disclosure cites declining private-sector housing construction and project plan revisions, stating that the future domestic order environment has become even more difficult. - FY2020-Q1WorsenedAnnual report
「In the domestic construction market, government construction investment has remained firm, and private-sector capital investment has also remained firm because of improving corporate earnings and efforts to address labor shortages. However, companies have begun to become more cautious about investment amid rising uncertainty from US-China trade friction, and the order environment remains uncertain both in Japan and overseas.」
While stating that government and private-sector capital investment remain firm, the disclosure notes that companies have begun to become more cautious about investment because of US-China trade friction, describing the order environment in Japan and overseas as uncertain. - FY2019-Q3WorsenedAnnual report
「In the construction market, public investment in Japan has remained firm and private-sector capital investment has also remained firm against a backdrop of strong corporate earnings. However, both in Japan and overseas, trade friction may weigh on companies' investment sentiment, leaving the order environment uncertain.」
While stating that public investment and private-sector capital investment remain firm, the disclosure newly specifies the possibility that trade friction may weigh on corporate investment sentiment, and states that the order environment in Japan and overseas remains uncertain. - FY2019-Q2RestatedAnnual report
「In the domestic construction market, government construction investment is expected to decline slightly, but construction investment this fiscal year is expected to remain high, at around ¥56 trillion, supported by strong private-sector construction demand for manufacturing production facilities, accommodation facilities and other projects.」
While indicating a slight expected decline in government construction investment, the disclosure states that construction investment this fiscal year is expected to remain high, at around ¥56 trillion, supported by private-sector construction demand. - FY2019-Q1RestatedAnnual report
「In the domestic construction market, public investment has remained firm and private-sector capital investment has also remained strong against a backdrop of improving corporate earnings, while competition for orders has continued to intensify.」
While stating that public investment and private-sector capital investment remain strong, the disclosure notes that competition for orders continues to intensify in the domestic construction market. - FY2018-Q3RestatedAnnual report
「In the domestic construction market, public investment has remained firm, but private-sector capital investment and new housing starts have continued to move unevenly, leaving the future domestic order environment uncertain.」
While stating that public investment remains firm, the disclosure cites uneven trends in private-sector capital investment and new housing starts, and states that the future domestic order environment remains uncertain. - FY2018-Q2WorsenedAnnual report
「In the domestic construction market, private-sector construction investment has declined slightly because of a decrease in housing starts, but total construction investment has remained high recently because of increased government construction investment. However, public works are highly likely to decline from the next fiscal year onward, and companies remain cautious about capital investment, leaving the future domestic order environment uncertain.」
While stating that total construction investment remains high recently, the disclosure cites the possibility of a decline in public works from the next fiscal year onward and companies' cautious stance toward capital investment, describing the future domestic order environment as uncertain. - FY2018-Q1RestatedAnnual report
「In the domestic construction market, public investment has remained firm and private-sector capital investment has recovered against a backdrop of improving corporate earnings, but the difficult business environment continues because labor and material costs remain elevated.」
While acknowledging some improvement in public investment and private-sector capital investment, the disclosure states that the difficult business environment in the domestic construction market continues because labor and material costs remain elevated. - FY2017-Q3RestatedAnnual report
「In the construction market, private-sector capital investment has tended to remain flat amid uncertainty over political developments in the United States and Europe, and the uncertain environment continues.」
The disclosure states that, against a backdrop of uncertainty over political developments in the United States and Europe, private-sector capital investment has tended to remain flat and the construction market remains uncertain. - FY2017-Q2RestatedAnnual report
「In the domestic construction market, orders for both public-sector and private-sector work have remained slightly higher, and the effects of the second supplementary budget for fiscal 2016 are also expected in the second half. However, as near-term earnings, particularly in manufacturing, have deteriorated because of yen appreciation, companies may become more cautious about new investment, and the uncertain order environment is expected to continue.」
While noting a slight increase in orders, the disclosure cites deteriorating corporate performance due to yen appreciation and a more cautious stance toward new investment, stating that the domestic order environment remains uncertain. - FY2017-Q1WorsenedAnnual report
「In the domestic construction market, the difficult order environment remains uncertain, as companies have postponed capital investment and maintenance and renewal investment plans because of weakening corporate earnings and the recent appreciation of the yen.」
The disclosure states that, in the domestic construction market, investment plans have been postponed against a backdrop of weakening corporate earnings and yen appreciation, and that the difficult order environment continues. - FY2016First statedAnnual report
「In the domestic construction business, which is a core business of the Group, changes in the business environment, such as a contraction of the construction market beyond expectations, a sharp increase in the prices of major materials or a significant decline in skilled workers, may affect future business performance.」
The contraction of the domestic construction market, rising material prices and a decline in skilled workers are listed as factors that may affect business performance.