Risk of declining construction investment and soaring construction material prices
First written in FY2016. 15 of 35 entries say "Restated". Latest entry: 2026-08-07.
Toda moved to the "Worse" side of this theme in 2021, 1 year before the typical company in this theme (2022).
The whole theme swung hardest in 2025: 9 of 12 companies on the "Worse" side.
4 other companies' latest entry also says "Restated".
- 2026-08-07RestatedEarnings
「Construction material prices and labor costs also continue to rise, and the company needs to monitor future developments.」
Continues to identify the risk of higher construction material prices and labor costs, and also refers to soaring raw material prices and uncertainty surrounding logistics. - FY2026WorsenedAnnual report
「In addition to trends in labor supply and demand, continued close monitoring is required of surging prices for petroleum-derived construction materials and supply delays.」
In addition to the existing risks of material price increases and labor shortages, the company explicitly identified surging prices for petroleum-derived materials and supply delays, providing greater specificity to concerns about construction costs and supply. - 2026-05-15WorsenedEarnings
「In the construction industry, upward pressure on costs continues due to soaring material prices and tight labor supply and demand, in addition to changes in the labor environment since the 2024 problem. The company also needs to monitor price increases and supply delays for petroleum-derived construction materials in Japan resulting from the situation in the Middle East.」
In addition to the previously identified risks of higher material prices and tight labor supply and demand, the company newly described higher construction material prices and supply delays resulting from the situation in the Middle East. - FY2026-H1RestatedAnnual report
「In the construction industry, conditions requiring continued close monitoring persist, including elevated construction material prices and rising labor costs caused by a shortage of skilled workers.」
The risks associated with elevated construction material prices, shortages of skilled workers, and rising labor costs continue to be disclosed. - FY2025WorsenedAnnual report
「In the Group's businesses, the impact of a decline and aging of the workforce due to the further progression of the declining birthrate and aging population, the labor shortages expected from the application of the laws related to work-style reform, and surging material prices is intensifying.」
The company indicated that the impact of labor shortages and surging material prices is intensifying, and described the existing construction cost risk more strongly. - FY2024-Q3RestatedAnnual report
「Over the medium to long term, construction material prices are expected to continue rising and labor supply and demand are expected to remain tight, raising concerns about higher construction costs and other factors.」
While orders for both public-sector and private-sector construction increased, concerns about higher construction costs due to medium- to long-term increases in construction material prices and labor shortages continue to be disclosed. - FY2024-Q2WorsenedAnnual report
「In the construction industry, orders for both public-sector and private-sector construction increased, resulting in higher overall orders than in the same quarter of the previous year. Construction material prices, meanwhile, have been trending upward, and labor supply and demand remain tight, raising concerns about higher construction costs and other factors.」
Orders increased in both the public and private sectors, while construction material prices shifted from the flat trend seen in the previous quarter to an upward trend, and concerns about higher construction costs continued amid tight labor supply and demand. - FY2024-Q1Higher orders and labor shortages occurring simultaneouslyAnnual report
「In the construction industry, orders for both public-sector and private-sector construction increased and exceeded the level in the same quarter of the previous year. Construction material prices, meanwhile, have been broadly flat, but labor supply and demand remain tight, raising concerns about higher construction costs and other factors.」
Orders for public-sector and private-sector construction exceeded the level in the same period of the previous year, while material prices were flat and labor supply and demand remained tight, with concerns about higher construction costs continuing. - FY2023WorsenedAnnual report
「Higher purchase prices for construction materials 4 4 16」
The frequency of occurrence of the risk of surging construction material prices and labor shortages was assessed at 4, the impact at 4, and the overall risk at 16, a higher assessment than in the previous fiscal year. In fact, the provision for losses on construction contracts increased by ¥6.7 billion from the end of the previous fiscal year. - FY2023-Q3MaterialisedAnnual report
「In the building business, provisions for loss on construction contracts were recorded on multiple projects due to higher prices for materials such as structural steel resulting from changes in market conditions.」
The risk of soaring construction material prices continued to materialize in the form of provisions for loss on construction contracts on multiple projects and a segment loss of ¥3.5 billion in the building business. - FY2023-Q2MaterialisedAnnual report
「In the building business, provisions for loss on construction contracts were recorded on multiple projects due to higher prices for materials such as structural steel resulting from changes in market conditions.」
The previously identified risk of soaring construction material prices materialized in the form of provisions for loss on construction contracts on multiple projects. The provision increased by ¥6.6 billion from the end of the previous fiscal year to ¥9.2 billion at the end of the second quarter. - FY2023-Q1Changes in order composition and continued increases in material pricesAnnual report
「In the construction industry, orders for public-sector projects declined, but private-sector orders increased in both manufacturing and non-manufacturing, leaving total orders above the level of the same quarter of the previous year. At the same time, construction material prices continued to rise, and conditions are expected to remain uncertain.」
While orders for public-sector projects declined, private-sector orders increased in both manufacturing and non-manufacturing, leaving total orders above the level of the same quarter of the previous year. Construction material prices continued to rise, indicating a change in the composition of the order and cost environments. - FY2022WorsenedAnnual report
「Economic conditions are expected to recover going forward, but uncertainty is expected to persist due to the course of the COVID-19 pandemic and geopolitical risks arising from the situation in Ukraine. In the construction industry, it will be necessary to monitor the impact of soaring construction material prices and other factors.」
In addition to the risks of lower construction investment, higher material prices and tight labor supply, the Company explicitly identified geopolitical risks arising from the situation in Ukraine. In its risk matrix, it rated the frequency and severity of lower construction investment at 2 and 4, respectively, and those of higher material prices and tight labor supply at 3 and 3, respectively. - FY2022-Q3Changes by customer typeAnnual report
「In the construction industry, orders for public-sector projects declined, while private-sector orders increased in both manufacturing and non-manufacturing, leaving total orders above the level of the same quarter of the previous year.」
While public-sector projects declined, private-sector projects increased in both manufacturing and non-manufacturing, leaving total orders above the level of the same period of the previous year. The composition of the order environment changed. - FY2022-Q2RestatedAnnual report
「While orders for both public-sector and private-sector projects increased year on year, the Company stated that developments in elevated material prices and tight labor supply and demand needed to be monitored.」
While orders for public-sector and private-sector projects increased, the Company continued to cite concerns about elevated material prices and shortages in labor supply and demand. - FY2022-Q1Recovery in orders and concerns about rising costsAnnual report
「In the construction industry, orders for both public-sector and private-sector projects have been trending higher year on year. At the same time, construction material prices have been trending upward, and concerns about shortages in labor supply and demand remain, so conditions are expected to remain uncertain.」
Orders for public-sector and private-sector projects began to trend higher, while new concerns were identified regarding rising construction material prices and shortages in labor supply and demand, indicating divergent trends in the order and cost environments. - FY2021WorsenedAnnual report
「Private-sector capital investment is expected to contract due to uncertainty over the outlook. In addition to tight labor supply resulting from changes in employment conditions, delays in material supplies due to supply-chain disruptions and the implementation of infection-control measures are expected to affect progress and profitability.」
Amid the impact of COVID-19, the Company newly specified the effects on progress and profitability of lower private-sector capital investment, delays in material supplies, tight labor supply and infection-control costs. In its risk matrix, it rated the severity of the impact of lower construction investment at 4, and that of higher material prices and tight labor supply at 3. - FY2021-Q3WorsenedAnnual report
「In the construction industry, orders for public-sector projects remained solid, but orders for private-sector projects declined in both manufacturing and non-manufacturing, leaving total orders below the level of the same quarter of the previous year.」
While public-sector projects remained solid, the decline in private-sector projects spread from manufacturing to non-manufacturing, leaving total orders below the level of the same quarter of the previous year. The decline in private-sector orders broadened. - FY2021-Q2Continued decline in private-sector orders and perceived labor shortageAnnual report
「In the construction industry, orders for public-sector projects remained solid, while orders for private-sector projects declined, mainly in manufacturing, leaving total orders below the level of the same quarter of the previous year. The Company also reported a perceived shortage in labor supply and demand and stated that future developments needed to be monitored.」
While public-sector projects remained solid, orders for private-sector projects, mainly in manufacturing, continued to decline, leaving total orders below the level of the same quarter of the previous year. The Company reported a perceived shortage in labor supply and demand. Conditions were not uniformly deteriorating and varied by type of customer. - FY2021-Q1Continued decline in orders and tight labor supply are easingAnnual report
「In the construction industry, orders have declined, mainly for private-sector projects. Construction material prices have tended to remain flat, and labor supply and demand is gradually moving out of a shortage, but the Company needs to monitor future developments and the impact of COVID-19.」
While the decline in orders, mainly for private-sector projects, continued, the Company stated that the labor supply shortage was easing, indicating divergent changes in the construction cost environment. - FY2020Quantification of risk assessmentsAnnual report
「Decline in construction investment 2 4 • Formulation of a sales strategy from a long-term perspective • Securing stable earnings through long-term business expansion」
The Company quantitatively assessed the frequency and severity of lower construction investment, higher construction material prices, and tight labor supply and rising labor costs, and outlined measures including sales strategies, surveys of material prices and coordination with the procurement division. - FY2020-Q2RestatedAnnual report
「Meanwhile, orders in the construction industry declined from the previous fiscal year for both private-sector and public-sector projects. Labor supply remains tight, and concerns also remain about rising construction costs and other factors.」
The Company continued to cite declining orders for private-sector and public-sector projects and concerns about rising construction costs due to tight labor supply. It stated that there had been no material changes in business and other risks. - FY2020-Q1WorsenedAnnual report
「Meanwhile, orders in the construction industry declined for both private-sector and public-sector projects. Construction material prices have tended to remain flat, but labor supply remains tight and concerns also remain about rising construction costs and other factors.」
The Company reported declining orders for both private-sector and public-sector projects, while concerns about tight labor supply and rising construction costs continued, indicating a deterioration in the risk environment related to construction investment and costs. - FY2019RestatedAnnual report
「If construction investment declines substantially due to deteriorating economic conditions or the occurrence of an unforeseen event, this could affect business performance and other results. In addition, if the purchase prices of major construction materials rise sharply and it is difficult to reflect those increases in contract prices, this could affect business performance and other results.」
The Company continued to identify as a risk the possibility that lower construction investment and higher prices for major construction materials could affect business performance. - FY2019-Q3RestatedAnnual report
「Concerns also remain about rising construction costs due to tight labor supply and other factors.」
The Company stated that there had been no material changes in business and other risks, and continued to cite concerns about rising construction costs due to tight labor supply and other factors. - FY2019-Q2RestatedAnnual report
「Concerns also remain about rising construction costs due to tight labor supply and other factors.」
As construction orders in the industry declined overall year on year, the Company continued to cite concerns about rising construction costs due to tight labor supply and other factors. - FY2018RestatedAnnual report
「If construction investment declines substantially due to deteriorating economic conditions or the occurrence of an unforeseen event, this could affect business performance and other results. In addition, if the purchase prices of major construction materials rise sharply and it is difficult to reflect those increases in contract prices, this could affect business performance and other results.」
The Company continued to identify as a risk the possibility that lower construction investment and higher prices for major construction materials could affect business performance. - FY2018-Q3RestatedAnnual report
「If construction investment declines substantially due to deteriorating economic conditions or the occurrence of an unforeseen event, this could affect business performance and other results. In addition, if the purchase prices of major construction materials rise sharply and it is difficult to reflect those increases in contract prices, this could affect business performance and other results.」
The Company continued to identify as a risk the possibility that lower construction investment and higher prices for major construction materials could affect business performance. - FY2018-Q2RestatedAnnual report
「In the construction industry, the Company maintained a generally solid earnings environment, with orders for private-sector projects remaining at roughly the previous fiscal year's level. At the same time, concerns remain about rising construction costs due to tight supplies of materials and labor and other factors.」
While describing the order environment as solid, the Company continued to cite concerns about rising construction costs due to tight supplies of materials and labor. - FY2018-Q1RestatedAnnual report
「In the construction industry, the Company maintained a generally solid earnings environment, with orders remaining at roughly the previous fiscal year's level, particularly for public-sector projects. At the same time, concerns remain about rising construction costs due to tight supplies of materials and labor and other factors.」
While describing the order environment as solid, the Company continued to cite concerns about rising construction costs due to tight supplies of materials and labor. - FY2017WorsenedAnnual report
「The Company recognized the need to respond promptly to management challenges, including the expected decline in construction investment from 2020 onward and changes in the social structure resulting from the declining birthrate and aging population, in order to achieve sustainable growth.」
The Company explicitly identified the risk of lower construction investment as a management challenge with a time horizon extending from 2020 onward, and also cited changes in the social structure resulting from the declining birthrate and aging population. - FY2017-Q3RestatedAnnual report
「In the construction industry, construction orders have remained above the previous fiscal year's level, mainly owing to public-sector projects, but concerns remain about construction costs rising again due to tight labor supply and other factors.」
The order environment was above the previous fiscal year's level, mainly owing to public-sector projects, but the Company continued to cite concerns about construction costs rising again due to tight labor supply and other factors. It also stated that there had been no material changes in business and other risks. - FY2017-Q2RestatedAnnual report
「In the construction industry, construction orders have remained above the previous fiscal year's level, mainly owing to public-sector projects, but concerns remain about construction costs rising again due to tight labor supply and other factors.」
The order environment was above the previous fiscal year's level, but the Company continued to cite concerns about construction costs rising again due to tight labor supply. It stated that there had been no material changes in business and other risks. - FY2017-Q1RestatedAnnual report
「In the construction industry, construction orders have remained broadly at the previous fiscal year's level, but concerns remain about construction costs rising again due to tight labor supply and other factors.」
In connection with the existing external risks related to construction investment and material prices, the Company continued to cite concerns about construction costs rising again due to tight labor supply. - FY2016First statedAnnual report
「If construction investment declines substantially due to deteriorating economic conditions or the occurrence of an unforeseen event, this could affect business performance and other results. In addition, if the purchase prices of major construction materials rise sharply and it is difficult to reflect those increases in contract prices, this could affect business performance and other results.」
The Company identified lower construction investment and higher prices for major construction materials as external risks that could affect business performance.