Decline in Construction and Sales Activities Due to Labor Shortages
First written in FY2022. 3 of 6 entries say "Worsened", first in FY2023. Latest entry: FY2026.
The Kodensha moved to the "Worse" side of this theme in 2023, 1 year before the typical company in this theme (2024).
The whole theme swung hardest in 2025: 15 of 60 companies on the "Worse" side.
21 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Although strengthening the workforce centered on on-site workers is positioned as the company’s most important management issue, the risks identified include chronic labor shortages in the construction industry, declining technical capabilities due to the retirement of skilled engineers, and compliance with the limits on overtime work.」
While continuing to identify labor shortages as an important issue, the company has explicitly identified declining technical capabilities due to the retirement of skilled engineers as a new risk. Recruitment, training by employee level and technical field, revisions to compensation systems, and development of an on-site support structure are cited as countermeasures. - 2026-05-13AdvancedEarnings
「The Company implemented measures including human capital investments in improving employee compensation systems.」
In connection with addressing labor shortages, the Company specifically stated that it had invested in human capital by improving employee compensation systems. - FY2025-H1RestatedAnnual report
「During the current interim consolidated accounting period, capital investment and construction investment, including by private-sector companies, remained at high levels, despite challenges such as the serious labor shortage across the construction industry and the start of regulations capping overtime work.」
The company continues to identify severe labor shortages across the construction industry and the introduction of limits on overtime work as issues. It states that there has been no material change in the business and other risks relating to the impact of labor shortages on construction and sales activity. - FY2024WorsenedAnnual report
「In addition, addressing structural issues across the construction industry, including severe labor shortages, and compliance with the limits on overtime work that will take effect from fiscal 2024 have become urgent and important issues.」
The company continues to characterize labor shortages as a “severe” and “structural” issue and explicitly identifies compliance with the limits on overtime work from fiscal 2024 as an urgent and important issue. - FY2023WorsenedAnnual report
「In addition, addressing structural issues across the construction industry, including severe labor shortages and compliance with the limits on overtime work, has become an urgent issue.」
The company characterizes labor shortages as a “severe” and “structural issue” and identifies them, together with compliance with the limits on overtime work, as an urgent issue. - FY2022First statedAnnual report
「The Group identifies strengthening its human resources and construction capabilities as key measures for reinforcing its management foundation. It hires new graduates each year and actively recruits mid-career employees to secure and expand its technical workforce, which is essential for expanding the scale of its business. However, if labor shortages arise due to a chronic shortage of new graduates caused by the declining birthrate and intensifying recruitment competition with other companies in the same industry, construction and sales activity may decline, affecting the Group’s performance.」
The company has identified for the first time, as an independent major risk, the risk that shortages of new graduates caused by the declining birthrate and intensified recruitment competition with other companies in the same industry could affect construction activity, sales activity and performance. Recruitment activities and workplace development are cited as countermeasures.