Decline in Building Construction Orders Due to Reduced and Modified Private-Sector Capital Investment
First written in FY2020. 5 of 14 entries say "Softened", first in FY2023-Q1. Latest entry: FY2024.
PS Construction moved to the "Worse" side of this theme in 2020, 1 year after the typical company in this theme (2019).
The whole theme swung hardest in 2020: 21 of 36 companies on the "Worse" side.
1 other company's latest entry also says "Softened".
- FY2024SoftenedAnnual report
「The construction market turned buoyant as private-sector capital investment that had been postponed due to COVID-19 and high prices resumed.」
Regarding private-sector capital investment, the company’s assessment has shifted from stagnation and caution through the previous fiscal year to a view that the construction market has turned buoyant as postponed projects resumed. - FY2024-Q2SoftenedAnnual report
「The construction market is expected to remain solid, supported by private-sector capital investment driven by the semiconductor industry cycle and inbound demand.」
Regarding private-sector capital investment, the company’s description has shifted from a focus on stagnation and caution through the previous fiscal year to an expectation that the construction market will remain solid, supported by the semiconductor industry and inbound demand. - FY2024-Q1SoftenedAnnual report
「Active private-sector capital investment by companies has prevented the overall market from contracting.」
Regarding private-sector capital investment, the company’s assessment has shifted from stagnation and caution through the previous fiscal year to a view that active investment is preventing the overall market from contracting. - FY2023SoftenedAnnual report
「Private-sector capital investment has steadily recovered from COVID-19, and order volumes in the construction market have increased.」
Regarding private-sector capital investment, the company’s assessment has shifted from the previous stagnation and caution to a steady recovery and increased order volumes in the construction market. Profitability risks from price competition and higher costs remain, however. - FY2023-Q1SoftenedAnnual report
「Private-sector capital investment in building construction is expected to recover gradually as companies’ investment stance changes.」
Regarding private-sector capital investment, the company’s description has shifted from a focus on stagnation and caution through the previous fiscal year to an expectation of a gradual recovery due to changes in companies’ investment stance. The recovery is presented as an expectation, however. - FY2022RestatedAnnual report
「There had been expectations that private-sector capital investment suspended during COVID-19 would resume, but intense competition for orders began at the same time as the resumption.」
The company continues to indicate that, while private-sector capital investment has begun to resume, intense competition for orders continues in the building construction business. - FY2022-Q3WorsenedAnnual report
「We face an extremely difficult overall order environment due to the impact of intense competition for construction orders resulting from stagnant private-sector capital investment caused by COVID-19.」
The company indicated that stagnant private-sector capital investment had continued and competition for construction orders had intensified, increasing concerns about the order environment for private-sector building construction. - FY2022-Q2Resumption of corporate capital investment and continued competition for construction ordersAnnual report
「Recently, some companies have begun resuming capital investment that had been postponed or suspended due to the impact of COVID-19, but intense competition for orders continues as the construction market contracts rapidly following the end of demand related to the Tokyo Olympic and Paralympic Games.」
The company stated that corporate capital investment that had been postponed or suspended was beginning to resume, while competition for orders continued amid the rapid contraction of the construction market. Concerns about the order environment for private-sector building construction remain. - FY2022-Q1RestatedAnnual report
「Although capital investment remains sluggish, it has bottomed out in response to improving corporate earnings, and the economy is moving within a flat range.」
The company continues to indicate that capital investment remains sluggish and that companies’ cautious stance toward capital investment is unchanged from the previous fiscal year. - FY2021WorsenedAnnual report
「Private-sector capital investment remains stagnant due to COVID-19」
In addition to stagnant private-sector capital investment, the company described the postponement and review of capital investment and deterioration in the order environment for its building construction business, making the risks of dependence on private-sector companies more concrete. - FY2021-Q3RestatedAnnual report
「In the construction industry in which our Group operates, the government has adopted economic support measures, including the Five-Year Acceleration Plan for Disaster Prevention, Disaster Mitigation and National Resilience. However, competition for private-sector construction orders has intensified due to companies' restraint of capital investment and other factors.」
The company continues to indicate that restrained capital investment by private-sector companies has intensified competition for private-sector construction orders related to its building construction business. - FY2021-Q2WorsenedAnnual report
「In the construction industry in which our Group operates, construction investment in disaster prevention and mitigation and aging-infrastructure improvements is expected, but we anticipate that the effects of COVID-19, including companies' restraint of capital investment, will become more pronounced going forward.」
The company indicated that the impact of COVID-19, including the restraint of private-sector capital investment, was expected to become more pronounced, increasing concerns about the order environment for its building construction business. - FY2021-Q1WorsenedAnnual report
「In the construction industry in which our Group operates, the direct impact of the novel coronavirus disease has been relatively limited compared with other industries. Nevertheless, companies are inevitably becoming more cautious about capital investment as their business performance deteriorates, and competition for orders in the building construction business, which is focused mainly on private-sector projects, is intensifying.」
The company described the growing caution among private-sector companies toward capital investment, indicating that the order environment for its building construction business is becoming more difficult. - FY2020First statedAnnual report
「Our group’s building construction business is highly dependent on private-sector companies, and any reduction or change in their capital investment plans could affect our group’s operating results.」
Separate from the risk of dependence on public works, the company disclosed dependence on private-sector companies in its building construction business and reductions or changes in capital investment plans as standalone risks.