Soaring Material and Subcontracting Costs
First written in FY2016. 27 of 35 entries say "Restated". Latest entry: 2026-10-30.
Chudenko moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2022: 36 of 56 companies on the "Worse" side.
25 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「6. Risk of higher construction costs If increases in material, labor and other costs cannot be reflected in order prices, or if material, labor and other costs surge during construction, increasing construction costs, and the increase cannot be reflected in changes to construction contract prices, profitability may deteriorate, making it impossible to secure profits and potentially affecting performance.」
The company continues to identify the risk of lower profitability when increases in material, labor and other costs cannot be reflected in construction contract prices. Measures described include price escalation clauses, front-loading, early procurement of materials, centralized purchasing and stable ordering from cooperating companies. - FY2026-H1RestatedAnnual report
「⑥ Risk of higher construction costs」
The company continues to identify as a major risk the risk of higher construction costs, including surging material and subcontracting costs, and states that there have been no material changes. In the business environment, energy and raw material prices continue to remain elevated. - FY2025-H1RestatedAnnual report
「⑤ Risk of higher construction costs」
The company continues to identify as a major risk the risk of higher construction costs, including surging material and subcontracting costs, and states that there have been no material changes. - FY2024-Q3WorsenedAnnual report
「During the first 3 quarters of the current fiscal year, public investment remained firm and private-sector capital investment showed signs of recovery as social and economic activity became more active following the reclassification of COVID-19 to Category 5. However, energy and raw material prices remained elevated due to the prolonged situation in Ukraine and the impact of exchange rates, while labor costs continued to surge amid labor shortages.」
In addition to persistently elevated raw material prices, the company explicitly identifies surging labor costs due to labor shortages, specifying factors contributing to higher construction costs. - FY2024-Q2RestatedAnnual report
「During the first half of the current fiscal year, public investment remained solid and private-sector capital investment was recovering. However, the business environment remained challenging, with energy and raw material prices staying elevated due to the prolonged situation in Ukraine and the impact of exchange rates.」
The company describes a business environment in which energy and raw material prices continue to remain elevated. It states that there have been no material changes in the risk of higher construction costs. - FY2024-Q1MaterialisedAnnual report
「Although the company worked to strengthen cost management, the increase in cost of sales, including material costs, reduced construction profitability. Operating profit fell below the level of the same period of the previous year, resulting in an operating loss.」
The increase in material costs and other expenses has appeared in performance as lower construction profitability and an operating loss, with the risk of surging material and subcontracting costs emerging as an actual earnings-related issue. - FY2023MaterialisedAnnual report
「In recent years, intensified competition for orders, higher subcontracting costs due to labor shortages and surging raw material prices have tended to result in higher sales not necessarily leading to higher profits. Improving profit margins by reviewing this high-cost structure has become an urgent issue.」
Higher subcontracting costs and surging raw material prices have emerged as actual management issues in the form of a high-cost structure and lower profit margins. - FY2023-Q3RestatedAnnual report
「⑧ Risk of higher construction costs」
The company continues to identify as a major risk the risk of higher construction costs, including surging material and subcontracting costs. - FY2023-Q2WorsenedAnnual report
「During the first half of the current fiscal year, public investment remained firm and private-sector capital investment showed signs of recovery. However, energy and raw material prices were surging due to the prolonged situation in Ukraine and exchange-rate fluctuations, creating concerns about their impact on the economy.」
The company describes a business environment in which energy and raw material prices continue to surge against a backdrop of the prolonged situation in Ukraine and exchange-rate fluctuations. - FY2023-Q1WorsenedAnnual report
「During the first quarter of the current fiscal year, public investment remained firm and private-sector capital investment showed signs of recovery. However, energy and raw material prices were surging due to the COVID-19 pandemic, the situation in Ukraine and exchange-rate fluctuations, creating concerns about their impact on the economy.」
The risk list continues to include the risk of higher construction costs, while the business environment explicitly identifies surging energy and raw material prices. - FY2022ReframedAnnual report
「The Group repeatedly reviews costs before receiving orders and during construction and works to reduce costs and secure profits. However, if construction costs increase due to a significant rise in material and subcontracting costs and this cannot be reflected in construction contract prices, causing profitability to deteriorate, this could affect the performance of the Group.」
The company organizes the previous risk of surging material and subcontracting costs as the risk of higher construction costs and deteriorating profitability, and describes measures including early procurement of materials, price negotiations, limiting fluctuations in subcontracting costs and accepting orders at appropriate prices. - FY2022-Q3WorsenedAnnual report
「During the first 3 quarters of the current fiscal year, the business environment was characterized by high levels of public investment, but also by severe competition for orders, labor shortages and surging raw material prices. In addition, the impact of the COVID-19 pandemic raised concerns about the contraction or postponement of private-sector capital investment.」
In addition to the previously identified risks of competition for orders, labor shortages and concerns about reduced capital investment due to the COVID-19 pandemic, the company explicitly identifies surging raw material prices as a feature of the business environment during the third quarter of the current fiscal year. - FY2022-Q2RestatedAnnual report
「“Risk of surging material and subcontracting costs”」
The company continues to identify the risk of surging material and subcontracting costs and states that there have been no material changes from the previous fiscal year. - FY2021RestatedAnnual report
「In addition to the risks identified here, there are also risks such as "the risk of rising material and subcontracting costs," "customer credit risk," and "the risk of declines in the fair value of securities held." The Company seeks to respond appropriately by closely monitoring economic conditions and market trends, collecting information at an early stage, and coordinating with the relevant departments.」
The company continues to recognize the risk of surging material and subcontracting costs and describes monitoring economic conditions and market trends, gathering information at an early stage and coordinating with the relevant departments. - FY2021-Q3RestatedAnnual report
「“Risk of surging material and subcontracting costs”」
The company continues to identify the risk of surging material and subcontracting costs and states that it will respond by monitoring economic conditions and market trends, gathering information at an early stage and coordinating with the relevant departments. - FY2021-Q2RestatedAnnual report
「In addition to the risks identified here, there are also risks such as "the risk of rising material and subcontracting costs," "customer credit risk," and "the risk of declines in the fair value of securities held." The Company seeks to respond appropriately by closely monitoring economic conditions and market trends, collecting information at an early stage, and coordinating with the relevant departments.」
The company continues to identify the risk of surging material and subcontracting costs and describes monitoring economic conditions and market trends, gathering information at an early stage and responding in coordination with the relevant departments. - FY2021-Q1RestatedAnnual report
「In addition to the risks identified here, there are also risks such as "the risk of rising material and subcontracting costs," "customer credit risk," and "the risk of declines in the fair value of securities held." The Company seeks to respond appropriately by closely monitoring economic conditions and market trends, collecting information at an early stage, and coordinating with the relevant departments.」
The company continues to identify the risk of surging material and subcontracting costs and describes monitoring economic conditions and market trends, gathering information at an early stage and responding in coordination with the relevant departments. - FY2020-Q3RestatedAnnual report
「③ Surging material and subcontracting costs」
The company continues to list surging material and subcontracting costs as a business risk. It states that there have been no new developments or material changes. - FY2020-Q2RestatedAnnual report
「③ Surging material and subcontracting costs」
The company continues to list surging material and subcontracting costs as a business risk. It states that there have been no new developments or material changes. - FY2020-Q1RestatedAnnual report
「③ Surging material and subcontracting costs」
The company continues to list surging material and subcontracting costs as a business risk and states that there have been no new developments or material changes. Although the increase in material and subcontracting costs due to design changes and other factors is described in relation to operating profit for the current quarter, it is not explicitly attributed to higher unit prices resulting from market conditions. - FY2019RestatedAnnual report
「If material prices and subcontracted labor costs rise significantly and it becomes difficult to reflect these increases in contract prices, this could affect the performance of the Group.」
The company continues to identify rising material prices and subcontracted labor costs and the difficulty of passing these increases on to contract prices as risks. - FY2019-Q3RestatedAnnual report
「③ Surging material and subcontracting costs」
The company continues to list surging material and subcontracting costs as a business risk and states that there have been no material changes. - FY2019-Q2RestatedAnnual report
「③ Surging material and subcontracting costs」
The company continues to list surging material and subcontracting costs as a risk and states that there have been no new developments or material changes. - FY2019-Q1RestatedAnnual report
「③ Surging material and subcontracting costs」
The company continues to list surging material and subcontracting costs as a business risk and states that there have been no new developments or material changes. - FY2018RestatedAnnual report
「If material prices and subcontracted labor costs rise significantly and it becomes difficult to reflect these increases in contract prices, this could affect the performance of the Group.」
The company continues to identify rising material prices and subcontracted labor costs and the difficulty of passing these increases on to contract prices as risks. - FY2018-Q3RestatedAnnual report
「③ Surging material and subcontracting costs」
The company continues to list surging material and subcontracting costs as business and financial risks and reports no material changes. - FY2018-Q2RestatedAnnual report
「③ Surging material and subcontracting costs」
The company continues to list surging material and subcontracting costs as business and financial risks and reports no material changes. - FY2018-Q1RestatedAnnual report
「③ Surging material and subcontracting costs」
The company continues to list surging material and subcontracting costs as a business risk and states that there have been no material changes. - FY2017RestatedAnnual report
「(3) Surging material and subcontracting costs If material prices and subcontracted labor costs rise significantly and it becomes difficult to reflect these increases in contract prices, this could affect the performance of the Group.」
The company continues to identify rising material prices and subcontracted labor costs and the difficulty of passing these increases on to contract prices as risks. - FY2017-Q3RestatedAnnual report
「③ Surging material and subcontracting costs」
The company continues to list surging material and subcontracting costs as a business risk and states that there have been no material changes. - FY2017-Q2RestatedAnnual report
「③ Surging material and subcontracting costs」
There are no new risks, and the company continues to list surging material and subcontracting costs as a business risk. - FY2017-Q1RestatedAnnual report
「③ Surging material and subcontracting costs」
The company continues to list surging material and subcontracting costs as a business risk. - FY2016First statedAnnual report
「If material unit prices and subcontracted labor costs rise significantly and it becomes difficult to reflect these increases in contract prices, this could affect the performance of the Group.」
The company identifies as risks rising material unit prices and subcontracted labor costs and the difficulty of passing these increases on to contract prices.