Soaring construction material prices and labor costs
First written in FY2017. 8 of 21 entries say "Restated". Latest entry: 2026-11-09.
Penta-Ocean Construction moved to the "Worse" side of this theme in 2019, 3 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 40 of 60 companies on the "Worse" side.
12 other companies' latest entry also says "Mitigated".
- 2026-11-09MitigatedResults
「春先には、中東情勢に起因する原油由来の建設資材の供給制約が懸念されましたが、政府の目詰まり解消対策の推進により概ね解消されつつあります。しかしながら、今後も、価格高騰と供給制約には引き続き注視する必要があります。」
原油由来資材の供給制約は概ね解消方向とする一方、価格高騰と供給制約への警戒を継続している。 - FY2027-H1MitigatedAnnual report
「In early spring, concerns arose over supply constraints for petroleum-based construction materials resulting from the situation in the Middle East, but these constraints are generally being resolved as the government promotes measures to remove bottlenecks. Nevertheless, continued attention will be necessary regarding soaring prices and supply constraints.」
Supply constraints for petroleum-based construction materials are generally being resolved through government measures, while continued attention is being paid to surging material prices and supply constraints. - FY2026MitigatedAnnual report
「To address the above risks, the company conducts early procurement, centralized purchasing and surveys of price trends. It also seeks to apply price escalation clauses when entering into construction contracts with clients.」
The company explicitly discloses measures to address the risk of soaring material prices and labor costs, including early procurement, centralized purchasing, price surveys and price escalation clauses. - 2026-05-28RestatedGeneral Meeting of Shareholders
「建設業を取り巻く環境は、世界的な資源・エネルギー及び建設資材の高騰・高止まりにより工事費の上昇が続いています」
資源・エネルギーおよび建設資材価格の高騰・高止まりが継続しているとの認識を再確認している。 - FY2026-H1RestatedAnnual report
「Meanwhile, in addition to persistently high construction material prices, subcontractors in building equipment construction, where demand is strong, are experiencing tight labor supply. Overseas, construction investment in Singapore, Hong Kong and Southeast Asia, the company's major markets, remained firm, but as in Japan, construction material prices remained elevated and labor costs continued to rise.」
The company reconfirms its view that construction material prices remain elevated, subcontractors in building equipment construction face tight labor supply, and labor costs overseas continue to rise. - FY2025RestatedAnnual report
「Meanwhile, in addition to persistently high construction material prices, subcontractors in regions where construction demand is concentrated are experiencing tight labor supply. Overseas, construction investment in Singapore, Hong Kong and Southeast Asia, the company's major markets, remained firm, but as in Japan, construction material prices remained elevated and labor costs continued to rise.」
The company reconfirms its view that construction material prices remain elevated, subcontractors in Japan face tight labor supply, and labor costs overseas continue to rise. - FY2025-H1RestatedAnnual report
「Meanwhile, in addition to persistently high construction material prices, subcontractors in regions where construction demand is concentrated are experiencing tight labor supply. Overseas, construction investment in Singapore, Hong Kong and Southeast Asia, the company's major markets, remained firm, but as in Japan, construction material prices remained elevated and labor costs continued to rise.」
The company reconfirms its view that construction material prices remain elevated, subcontractors in Japan face tight labor supply, and labor costs overseas continue to rise. - FY2024-Q3RestatedAnnual report
「The operating environment surrounding the construction industry remained solid, as construction investment in both the public and private sectors benefited from continued firm public investment under the government's disaster prevention, disaster mitigation and accelerated national resilience measures, as well as increased private capital investment from the perspective of economic security. Meanwhile, construction material prices remained elevated, and labor shortages among partner companies occurred in regions where construction demand was concentrated.」
The company reconfirms its view that, while public- and private-sector construction investment remains firm, construction material prices remain elevated and subcontractors continue to face tight labor supply. - FY2024-Q2MaterialisedAnnual report
「Meanwhile, segment profit was ¥1.0 billion, almost unchanged from the same period of the previous year, down 0.7%, as persistently high construction material prices and labor costs reduced gross profit on completed construction contracts.」
Persistently high construction material prices and labor costs have emerged as lower gross profit on completed construction contracts in the domestic building business. - FY2024-Q1WorsenedAnnual report
「The operating environment surrounding the construction industry remained solid, as construction investment in both the public and private sectors benefited from continued firm public investment under the government's disaster prevention, disaster mitigation and accelerated national resilience measures, as well as increased private capital investment from the perspective of economic security. Meanwhile, construction material prices remained elevated, and labor shortages among partner companies occurred in regions where construction demand was concentrated.」
The company states that construction material prices remain elevated and that subcontractors in regions where construction demand is concentrated are experiencing tight labor supply. Tight labor supply has been additionally identified as a specific burden in the business environment. - FY2023WorsenedAnnual report
「Nevertheless, the company faced higher construction costs both in Japan and overseas due to soaring and persistently high fuel, energy and construction material prices.」
In addition to the risk of soaring construction material prices and labor costs, soaring and persistently high fuel and energy prices have emerged in actual performance as higher construction costs in Japan and overseas. - FY2023-Q3RestatedAnnual report
「However, it remains necessary to continue monitoring developments related to the sustained high level of construction material prices and global geopolitical risks.」
The company continues to highlight the need to monitor elevated construction material prices and geopolitical risks, reconfirming its awareness of the risk of soaring material and labor costs. - FY2023-Q2MaterialisedAnnual report
「In the overseas construction business, segment loss was ¥100 million, compared with segment profit of ¥2.0 billion in the same period of the previous year, due to higher construction costs resulting from the impact of foreign exchange movements and soaring fuel, material and labor costs, as well as lower vessel utilization.」
Soaring fuel, material and labor costs have emerged as higher construction costs and an actual shift from profit to loss in the overseas construction business. - FY2023-Q2WorsenedAnnual report
「The construction industry is also facing higher construction costs, including soaring fuel, energy and construction material prices.」
In addition to the previously identified increases in construction material prices and labor costs, construction cost inflation, including soaring fuel and energy prices, has continued. This is also related to lower profit in domestic civil engineering and overseas operations, as well as losses in the overseas business. - FY2022MaterialisedAnnual report
「Soaring construction equipment and material prices, supply constraints and higher labor costs have become pronounced both in Japan and overseas, and the business environment is becoming increasingly challenging.」
Soaring material prices, supply constraints and higher labor costs have materialized, affecting operating income and construction profitability. The company also describes measures including early procurement, centralized purchasing, surveys of price trends and price escalation clauses. - FY2022-Q3RestatedAnnual report
「The construction industry is also in a situation requiring close attention to supply and demand for construction materials and price trends.」
The company reconfirms that supply and demand for construction materials and price trends are key aspects of the business environment related to the risk of soaring material prices and labor costs. - FY2019MaterialisedAnnual report
「Revenue increased by ¥42.8 billion, or 30.5%, from the previous consolidated fiscal year to ¥182.9 billion, due to progress on large-scale projects. However, profit margins declined due to the impact of soaring material prices, including structural steel, and delivery delays, among other factors, and segment profit decreased by ¥400 million, or 5.3%, from the previous consolidated fiscal year to ¥7.7 billion.」
Soaring material prices and delivery delays have emerged as actual factors behind lower profit margins and lower profit in the domestic building business. - FY2019-Q3MaterialisedAnnual report
「Revenue was ¥123.5 billion, up 25.6% year on year, due to progress on projects in hand, but segment profit was ¥5.0 billion, down 23.1%, due in part to the impact of tight supply and demand for steel materials.」
In relation to the previously identified concerns over shortages of equipment and materials and higher construction costs, tight supply and demand for steel materials has emerged as an actual factor behind lower profit in the domestic building business. - FY2018RestatedAnnual report
「When construction material prices, labor costs and other expenses rise, the Group's performance may be affected if it is difficult to reflect the increases in contract prices.」
The company reiterates the risk of an impact on performance if soaring material prices and labor costs cannot be reflected in contract prices. - FY2018-Q2WorsenedAnnual report
「Meanwhile, construction costs are expected to rise due to shortages of equipment and materials and tight labor supply, among other factors.」
The previously identified risk of soaring material prices and labor costs has materialized as concerns over higher construction costs during the period due to shortages of equipment and materials and tight labor supply. - FY2017First statedAnnual report
「When construction material prices, labor costs and other expenses rise, the Group's performance may be affected if it is difficult to reflect the increases in contract prices.」
The company identifies the impact on performance as a risk if increases in material prices and labor costs cannot be passed on to contract prices.