Soaring Prices for Key Materials and Labor Costs
First written in FY2016. 16 of 30 entries say "Worsened", first in FY2017-Q3. Latest entry: 2026-08-06.
Asanuma moved to the "Worse" side of this theme in 2017, 5 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 32 of 49 companies on the "Worse" side.
10 other companies' latest entry also says "Worsened".
- 2026-08-06WorsenedEarnings
「However, the business environment still requires close attention, given risks including supply-chain disruptions caused by unstable international conditions and restraint on capital investment due to higher construction costs resulting from rising crude oil prices.」
The risks of higher material prices and labor costs are described through supply-chain disruptions, higher construction costs caused by rising crude oil prices, and restrained capital investment. - FY2026WorsenedAnnual report
「In addition to persistently high construction material prices and chronic tightness in labor supply and demand, heightened tensions in the Middle East have added to the situation, requiring closer monitoring of developments in the surrounding circumstances.」
As persistently high material prices and chronic tightness in labor supply and demand continue, heightened tensions in the Middle East have emerged as a new cost and supply concern. - 2026-05-13WorsenedEarnings
「However, in addition to persistently high construction-material prices and chronic tightness in labor supply and demand, heightened tensions in the Middle East have created a situation requiring even closer attention to developments in the broader environment.」
Construction-material prices remain high and labor supply and demand remain tight, with the situation in the Middle East now an additional factor affecting conditions. - FY2026-H1WorsenedAnnual report
「In recent years, construction-sector prices have continued to rise since the outbreak of COVID-19. The increases are believed to reflect not only persistently high material prices, but also higher labor, equipment construction and logistics costs. Labor costs in particular are expected to remain elevated, owing to measures to address restrictions on overtime work applicable to the construction industry, the continuing labor shortage resulting from the aging construction workforce, and the normalization of labor costs following the decision to establish and recommend labor-cost standards under amendments to the Construction Business Act.」
In addition to persistently high material prices, higher labor, equipment construction and logistics costs, restrictions on overtime work, labor shortages resulting from an aging workforce, and the establishment and recommendation of labor-cost standards are combining to expand the factors driving continued cost increases. - FY2025-H1WorsenedAnnual report
「Construction-sector prices have recently risen by at least as much as they did immediately after the outbreak of COVID-19, and the upward trend has continued. This may dampen willingness to invest in equipment and have a material impact on business performance. The price increases are believed to reflect not only persistently high material prices, but also higher equipment construction, labor and logistics costs. In addition, given the need to address restrictions on overtime work and other measures applied to the construction industry from April 2024, the labor shortage is expected to worsen. Labor costs are therefore expected to remain elevated, with a further risk of delays to construction schedules, and these factors may materially affect business performance.」
Construction-sector prices are reported to have risen by at least as much as immediately after the outbreak of COVID-19. The channels of impact have expanded and become more specific, encompassing higher material, equipment construction, labor and logistics costs, restrictions on overtime work, labor shortages and construction delays. - FY2024-Q3WorsenedAnnual report
「In the construction industry as well, construction costs have continued to rise since fiscal 2021 due to the worldwide surge in material prices and higher labor costs resulting from labor shortages. This may put downward pressure on capital investment sentiment and have a material impact on business performance. In addition, as the COVID-19 pandemic has subsided and the economy has begun to recover, some companies that have been able to pass higher prices and labor costs through to their prices are reporting record-high profits. However, as material prices rise with the steady expansion of the economy and economic activity, particularly as labor shortages in the construction business intensify, there are concerns that construction costs will rise and schedules will be delayed, potentially having a material impact on business performance.」
The impact pathway has become more concrete: higher material prices and labor costs continue, construction costs remain elevated, and worsening labor shortages could further increase construction costs and delay schedules. - FY2024-Q2RestatedAnnual report
「In the construction industry as well, construction costs have continued to rise since fiscal 2021 due to the worldwide surge in material prices and higher labor costs resulting from labor shortages. This may put downward pressure on capital investment sentiment and have a material impact on business performance.」
It reaffirms the previous risk recognition that higher material prices and labor costs resulting from labor shortages are pushing up construction costs and could affect capital investment sentiment and business performance. - FY2024-Q1WorsenedAnnual report
「In the construction industry as well, surging material and energy prices and higher labor costs associated with securing personnel are directly increasing construction costs and may put downward pressure on capital investment sentiment, which could have a material impact on business performance.」
It adds surging energy prices and higher labor costs associated with securing personnel to the previous risk of higher material prices and explicitly identifies the transmission path from higher construction costs to downward pressure on capital investment demand and a material impact on business performance. - FY2023-Q3WorsenedAnnual report
「In the construction industry as well, surging material and energy prices are directly increasing construction costs and may put downward pressure on capital investment demand, which could have a material impact on business performance.」
It adds surging energy prices to the previous risk of higher material prices and explicitly identifies the transmission path from higher construction costs to downward pressure on capital investment demand and a material impact on business performance. - FY2023-Q2WorsenedAnnual report
「In the construction industry as well, surging material and energy prices are directly increasing construction costs and may reduce capital investment demand, which could have a material impact on business performance.」
It adds surging energy prices to the previous risk of higher material prices and explicitly identifies the transmission path from higher construction costs to lower capital investment demand and a material impact on business performance. - FY2023-Q1WorsenedAnnual report
「In the construction industry as well, surging material prices are directly increasing construction costs, while supply chain disruptions may result in delays in the delivery of materials and equipment.」
It explicitly identifies the transmission path whereby surging material prices directly increase construction costs and supply chain disruptions lead to delays in the delivery of materials and equipment, making the concern more concrete than the previous concern about rising prices. It does not indicate the actual amount of losses affecting business performance. - FY2022-Q3WorsenedAnnual report
「The global spread of COVID-19 has caused serious supply chain disruptions, including supply disruptions and constraints for raw materials and various components as well as supply disruptions for electronic components such as semiconductors. Various price increases resulting from shortages, including crude oil prices, are becoming a factor that is putting the brakes on an economy on a recovery trend, and there are concerns that adverse effects on capital investment sentiment could have a material impact on business performance.」
It specifies concerns that supply disruptions for semiconductors and other items, shortages of raw materials and components, worsening supply chain disruptions and higher crude oil and other prices could have a material impact on business performance through capital investment sentiment. - FY2022-Q2WorsenedAnnual report
「The spread of COVID-19 overseas has caused supply disruptions for electronic components such as semiconductors, which have spread to production adjustments by automakers and significantly affected many related parts manufacturers. This is becoming a factor that is putting the brakes on an economy on a recovery trend. There are concerns that reduced economic activity and adverse effects on capital investment sentiment resulting from such supply chain disruptions could have a material impact on business performance.」
It has specified concerns that supply disruptions, production adjustments and supply chain disruptions resulting from the spread of infections could have a material impact on business performance through economic activity and capital investment sentiment. - FY2021-Q1WorsenedAnnual report
「There are concerns that delays in the delivery of construction materials and other items caused by supply chain disruptions, as well as schedule delays resulting from interruptions to business activities due to infections at construction sites and other locations, could have a material impact on business performance.」
In addition to the risk of higher material prices and labor costs, it specifies the transmission path of supply chain disruptions, delayed material deliveries and construction schedule delays resulting from the spread of COVID-19. - FY2020RestatedAnnual report
「Our Group's construction business depends to a certain extent on services provided by partner companies, including contractors and material suppliers. If key material prices and labor costs surge for our Group and its partner companies, this could affect the operation of our Group's business.」
It reaffirms the risk of surging key material prices and labor costs in connection with dependence on partner companies. - FY2020-Q3RestatedAnnual report
「The construction industry continues to have a high level of orders on hand. Addressing the chronic shortage of skilled workers requires industry-wide measures, including the use of new technologies and ICT that will improve workers' status and productivity. In addition, higher procurement prices for construction materials and other items may affect business performance.」
It reaffirms concerns that, with orders on hand at a high level, the chronic shortage of skilled workers and higher procurement prices for construction materials and other items may affect business performance. It cites the use of new technologies and ICT and productivity improvements as countermeasures, but does not indicate the specific amount of the cost increase or any losses incurred. - FY2020-Q2RestatedAnnual report
「In the construction industry, despite a high level of orders on hand, the chronic shortage of skilled workers and rising procurement prices for construction materials and other items may affect business performance.」
It reaffirms concerns that, with orders on hand at a high level, the chronic shortage of skilled workers and higher procurement prices for construction materials and other items may affect business performance. - FY2020-Q1RestatedAnnual report
「In the construction industry, despite a high level of orders on hand, the chronic shortage of skilled workers and rising procurement prices for construction materials and other items may affect business performance.」
It reaffirms concerns that, against a backdrop of a high level of orders on hand, the chronic shortage of skilled workers and higher procurement prices for construction materials and other items may affect business performance. It does not indicate the specific amount of the cost increase or any losses incurred. - FY2019RestatedAnnual report
「If prices of key materials and labor costs surge, the company may be unable to pass them through to contract prices, which could affect business performance and other results.」
It repeats the surge in material prices and labor costs and the risk that these increases cannot be passed through to contract prices. - FY2019-Q3RestatedAnnual report
「In addition, the chronic shortage of skilled workers and rising construction material prices require continued close monitoring.」
It reaffirms the chronic shortage of skilled workers and rising construction material prices as factors requiring continued close monitoring. - FY2019-Q2RestatedAnnual report
「However, the chronic shortage of skilled workers and rising construction material prices continue to require close monitoring.」
It reaffirms the shortage of skilled workers and rising construction material prices as factors requiring continued close monitoring. It does not indicate the specific amount of the cost increase or its impact on business performance. - FY2019-Q1WorsenedAnnual report
「However, the chronic shortage of skilled workers and the rising trend in construction material prices have emerged as issues.」
The chronic shortage of skilled workers and the rising trend in construction material prices are described as issues that have materialized from previously identified concerns. It does not indicate the actual amount of the cost increase or its specific impact on business performance. - FY2018RestatedAnnual report
「If prices of key materials and labor costs surge, the company may be unable to pass them through to contract prices, which could affect business performance and other results.」
It repeats, in the same form, the surge in key material prices and labor costs and the risk that these increases cannot be passed through to contract prices. - FY2018-Q3RestatedAnnual report
「However, concerns remain, including the shortage of skilled workers and the rising trend in prices for materials and equipment.」
It reaffirms the shortage of skilled workers and the rising trend in prices for materials and equipment as continuing concerns in the construction industry. It does not indicate specific increases or their impact on business performance. - FY2018-Q2RestatedAnnual report
「However, toward the end of the calendar and fiscal years, when construction work reaches its peak, concerns remain, including higher labor costs resulting from rising prices for materials and equipment and labor shortages.」
It continues to identify concerns about higher prices for materials and equipment and higher labor costs due to labor shortages as factors of concern toward the end of the calendar and fiscal years. - FY2018-Q1WorsenedAnnual report
「The current order environment requires close monitoring of the chronic shortage of skilled workers and future price trends for construction materials.」
In addition to material price trends, it explicitly identifies the chronic shortage of skilled workers as a concern for the order environment. It does not indicate the actual amount of the cost increase or its impact on business performance. - FY2017RestatedAnnual report
「If prices of key materials and labor costs surge, the company may be unable to pass them through to contract prices, which could affect business performance and other results.」
It repeats, in the same form as before, the risk that higher material prices and labor costs cannot be passed through to contract prices. - FY2017-Q3WorsenedAnnual report
「However, concerns are growing about signs of higher procurement prices for some materials and another rise in costs as labor supply and demand tightens.」
It states that concerns have grown about signs of higher procurement prices for some materials and another rise in costs as labor supply and demand tightens. It does not indicate the actual amount of the cost increase or its impact on business performance. - FY2017-Q2RestatedAnnual report
「Although labor supply and demand remained relatively stable during the first half, the possibility of costs rising again as demand increases due to the concentration of construction work toward the end of the calendar and fiscal years requires continued close monitoring.」
While labor supply and demand were relatively stable during the first half, concerns about another rise in labor costs due to the concentration of construction work at the end of the calendar and fiscal years continue. - FY2016First statedAnnual report
「If prices of key materials and labor costs surge, the company may be unable to pass them through to contract prices, which could affect business performance and other results.」
It explicitly identifies the inability to pass higher costs through to contract prices as a construction business-specific performance risk.