Higher construction costs due to soaring material prices and deteriorating labor conditions
First written in FY2016. 10 of 25 entries say "Restated". Latest entry: 2026-08-06.
PS Construction moved to the "Worse" side of this theme in 2018, 4 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 28 of 41 companies on the "Worse" side.
19 other companies' latest entry also says "Restated".
- 2026-08-06RestatedEarnings
「建設資材価格の高止まりに加え、建設資材の供給制約や労務単価の上昇、建設技能労働者不足の継続など、事業を取り巻く環境には引き続き課題が見られました。」
資材価格、供給制約、労務単価上昇、技能労働者不足を引き続き事業環境上の課題として記載している。 - FY2026MaterialisedAnnual report
「Although efforts were made to reduce cost of sales through labor-saving measures and rationalization, the cost-of-sales ratio increased due to higher material prices and other factors. The gross profit margin fell 0.4 percentage points from 17.0% in the previous consolidated fiscal year to 16.6% due to the increase in the cost-of-sales ratio.」
Higher material prices actually pushed up the cost-of-sales ratio, causing the gross profit margin to decline from 17.0% to 16.6%. - FY2026-H1MaterialisedAnnual report
「In addition to soaring prices, material and labor costs continued to trend upward, and the impact of labor shortages became apparent.」
It states that, in addition to the upward trend in material and labor costs, the impact of labor shortages has become apparent. - FY2025WorsenedAnnual report
「The construction industry is experiencing a marked decline in its working population, and, in addition to higher labor and transportation costs caused by an imbalance between labor supply and demand, soaring equipment construction costs are raising concerns about profitability risks.」
In addition to the previous concerns about higher material prices and labor costs, it explicitly identifies soaring transportation and equipment construction costs as profitability risks. - FY2024RestatedAnnual report
「Although private-sector capital investment and public construction investment remained solid and the Group had a substantial backlog of construction projects, the construction industry as a whole saw a marked decline in its working population, raising concerns about the risk of deteriorating profitability due to higher labor and transportation costs and soaring equipment construction costs.」
It continues to identify the risk of deteriorating profitability from higher labor, transportation and equipment construction costs, alongside solid construction demand and a strong backlog of projects. - FY2024-Q3RestatedAnnual report
「On the other hand, soaring material and fuel prices against the backdrop of deteriorating overseas conditions remain an issue, while further increases in construction costs are a concern.」
It continues to describe soaring material and fuel prices against the backdrop of overseas developments and concerns about further increases in construction costs. Although price inflation is continuing, it states that there has been no material change in risk from the previous fiscal year. - FY2024-Q2RestatedAnnual report
「On the other hand, soaring construction material and fuel prices remain a concern, and measures are required to secure profitability, including prioritizing project profitability when pursuing orders and implementing appropriate cost management.」
It continues to indicate concern that soaring construction material and fuel prices will pressure profitability and cites prioritizing project profitability in bidding and cost management as countermeasures. - FY2024-Q1RestatedAnnual report
「However, further increases in fuel and material prices are also a concern depending on overseas developments, and securing profitability remains necessary.」
It continues to describe the risk that soaring fuel and material prices will pressure profitability, including the possibility of further increases. - FY2023MaterialisedAnnual report
「In the construction industry to which the Group belongs, fierce competition for orders is making it increasingly difficult to secure profits from private-sector building projects, which face profitability risks from soaring fuel, material and labor costs.」
It describes soaring fuel and labor costs, in addition to material prices, and competition for orders as conditions that are actually making it difficult to secure profits from private-sector building projects. - FY2023-Q3WorsenedAnnual report
「Higher material and resource prices have increased construction costs, causing signs of weakening demand and intensifying competition for orders, making highly selective bidding essential to securing profitability.」
It describes high material and resource prices as a factor that raises construction costs and, through weaker demand and more intense competition for orders, makes securing profitability more difficult. - FY2023-Q2WorsenedAnnual report
「Although orders for private-sector building projects in the building segment are on a recovery trend, fierce competition for orders and high material and resource prices have made securing profitability extremely difficult.」
It identifies soaring material prices, together with competition for orders, as a factor making it extremely difficult to secure profitability. - FY2023-Q1MaterialisedAnnual report
「However, construction materials have also become more expensive due to overseas developments, potentially weighing on construction investment, which is still recovering from the downturn caused by the COVID-19 pandemic, and becoming one of the concerns for the future construction market.」
It describes soaring construction material prices as an actual feature of the business environment, caused by overseas developments, rather than merely a previous concern or risk. - FY2022MaterialisedAnnual report
「In the second half of the consolidated fiscal year, soaring material prices became a serious concern as a factor driving up costs.」
It states that soaring material prices, previously only a concern, materialized as a factor driving up costs severely in the second half of the fiscal year. - FY2022-Q3MaterialisedAnnual report
「In addition to fierce competition for orders due to the prolonged infectious disease pandemic, the business environment surrounding the Group has seen the material price inflation risk become apparent, resulting in an extremely challenging phase not only for securing orders but also for executing construction work.」
Regarding the risk of soaring material prices, the description has changed from a previous concern about higher costs to stating that the risk has “become apparent,” indicating that it has materialized in the actual business environment. - FY2020WorsenedAnnual report
「The construction industry is facing apparent cost-increase factors, including shortages of construction engineers and skilled workers resulting from the declining birthrate and aging population, the review of long working hours under work-style reforms, and the realization and promotion of a five-day workweek.」
It states that, in addition to the risk of higher labor and material costs, cost-increase factors associated with work-style reforms and the promotion of a five-day workweek have become apparent. - FY2019WorsenedAnnual report
「If raw material prices rise so sharply that the increases cannot be reflected in contract prices, this could affect earnings.」
Regarding material price risk, it specifies that the impact would arise if raw material prices rose to a level that could not be reflected in contract prices. - FY2018RestatedAnnual report
「Risks are also expected from a renewed price war for orders accompanying the contraction of the domestic construction market, as well as higher material and labor costs.」
It continues to identify higher material and labor costs, together with a renewed price war for orders accompanying the contraction of the domestic market, as risks to earnings. - FY2018-Q3WorsenedAnnual report
「On the other hand, regarding trends in equipment and material prices and labor costs, price increases for some materials are expected, raising concerns about the impact on future earnings.」
In addition to the previous concerns about higher material prices and labor costs, it describes the risk more specifically, stating that price increases for some materials are expected and could affect future earnings. - FY2018-Q2RestatedAnnual report
「As a result of comprehensively considering factors including concerns about higher material costs and cost increases resulting from work-style reforms and other measures」
In revising the targets of the medium-term management plan, it continues to take into account concerns about higher material costs and cost increases resulting from work-style reforms and other measures. - FY2017RestatedAnnual report
「In the building construction business, construction costs rose due to persistently high material prices and deteriorating labor conditions, but costs were reduced through labor-saving measures and rationalization.」
It states that costs actually rose due to material prices and labor conditions, while cost of sales was reduced through labor-saving measures and rationalization. - FY2017-Q2WorsenedAnnual report
「On the other hand, concerns include extensions to construction schedules resulting from the impact of bridge collapses at other companies, as well as soaring labor and construction costs due to chronic labor shortages, and the business environment surrounding the Company is by no means considered favorable.」
It explicitly identifies “chronic labor shortages” as the background to higher labor and construction costs and cites schedule extensions as an additional concern. - FY2017-Q1RestatedAnnual report
「Concerns also remain about a renewed price war for orders, higher construction material and labor costs, and shortages of skilled workers, and the situation is expected to remain uncertain.」
It continues to indicate the risk of higher construction material and labor costs and explicitly identifies shortages of skilled workers as a concern. - FY2016First statedAnnual report
「In the building construction business, construction costs rose due to persistently high material prices and deteriorating labor conditions, but costs were reduced through labor-saving measures and rationalization.」
It reports higher costs resulting from material prices and deteriorating labor conditions during the fiscal year, and states that it responded through labor-saving measures and rationalization.