Risk of Lower Profitability Due to Rising Materials Prices and Labor Rates
First written in FY2017. 13 of 18 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2022: 32 of 49 companies on the "Worse" side.
2 other companies' latest entry also says "Other".
- FY2026Adds export restrictions, labor costs and foreign exchange to procurement risksAnnual report
「If a significant rise in raw material prices is accompanied by soaring energy prices and fuel costs, higher logistics costs, increases in labor and subcontracting costs caused by a tight labor market, and the impact of foreign exchange fluctuations, total procurement costs may increase and affect the Group's results. Measures include placing early orders for materials and other items, securing diverse sources of procurement, passing costs through to construction prices, and including contractual provisions covering significant fluctuations in material prices.」
In addition to the previous risks related to material prices and supply constraints, export controls, trade restrictions, logistics costs, labor and subcontracting costs, and foreign exchange fluctuations have been identified as factors driving procurement costs higher, with responses including multiple suppliers and passing costs through to prices. - FY2026-H1RestatedAnnual report
「In the construction sector, the impact of rising costs due to soaring energy prices, labor costs and other factors continues, but private-sector capital investment is showing signs of recovery, including increased investment in semiconductor-related industries and software aimed at further improving productivity」
The continuing impact of higher construction costs caused by soaring energy prices, labor costs and other factors is noted, reaffirming the risk of rising material and labor costs. - FY2025-H1RestatedAnnual report
「In the construction sector, the impact of rising costs due to soaring energy prices, labor costs and other factors continues, although」
The continuing impact of higher construction costs caused by soaring energy prices, labor costs and other factors is disclosed, reaffirming the risk of rising material and labor costs. - FY2024WorsenedAnnual report
「Soaring procurement prices for materials, raw materials and other items Impact: “High” Likelihood: “High” Year-on-year comparison ↗」
For the risk of soaring procurement prices for materials, raw materials and other items, the impact and likelihood were assessed as high, and the year-on-year comparison was shown with an upward arrow. The disclosure also covers rising fuel and logistics costs and construction delays caused by semiconductor shortages. - FY2024-Q3RestatedAnnual report
「In the construction sector, the impact of soaring energy prices continues, although」
The continuing impact of soaring energy prices on the construction sector is disclosed, reaffirming the risk of rising material and energy prices. - FY2024-Q2RestatedAnnual report
「In the construction sector, the impact of soaring material and energy prices continues, but private-sector capital investment is showing signs of recovery, including increased investment in semiconductor-related industries」
The continued impact of soaring material and energy prices is reaffirmed as a risk that could lead to margin deterioration. - FY2024-Q1RestatedAnnual report
「In the construction sector, the impact of soaring material and energy prices continues, but private-sector capital investment is showing signs of recovery, and public investment to renew and maintain infrastructure such as roads is expected to remain firm.」
The continued impact of soaring material and energy prices is noted, reaffirming the previous risk of price increases. - FY2023-Q3RestatedAnnual report
「Although material prices continue to rise in the construction sector, private-sector capital investment is beginning to recover」
The continued rise in material prices remains disclosed, while private-sector capital investment is described as beginning to recover. - FY2023-Q1MaterialisedAnnual report
「During the first quarter of the current consolidated cumulative period, the Japanese economy was gradually showing signs of recovery as the impact of the COVID-19 pandemic weakened. However, infections have recently been spreading again both in Japan and overseas, requiring continued caution. In addition, the outlook remains uncertain due to rising raw material prices and supply constraints resulting from the prolonged situation in Ukraine and restrictions on economic activity in China, as well as the rapid depreciation of the yen caused by the Japan-US interest rate differential.」
The previous risks related to rising material prices and procurement have been described in the context of actual increases in raw material prices and supply constraints. - FY2022ReframedAnnual report
「Regarding the procurement of raw materials, materials and other items, construction work may be halted and the contractual construction period may be affected if procurement becomes difficult due to damage caused by natural disasters at suppliers, social instability such as war, terrorism, infectious diseases and geopolitical risks, deterioration in business performance, or other factors. In addition, a significant rise in procurement prices caused by soaring prices for raw materials, materials and other items may affect the Group's results.」
The previous risk of rising material prices and labor rates has been reorganized and expanded as a “material procurement and price increase risk” covering procurement difficulties, supply disruptions caused by war, infectious diseases and other factors, and soaring prices. - FY2020-Q3RestatedAnnual report
「No material changes or new developments have occurred compared with the description in the Securities Report filed on 21 June 2019.」
No significant changes or new developments have been identified regarding the risk of margin deterioration due to rising material prices and labor rates. - FY2019-Q3RestatedAnnual report
「No material changes or new developments have occurred compared with the description in the Securities Report filed on 22 June 2018.」
No significant changes or new developments have been identified regarding the risk of margin deterioration due to rising material prices and labor rates. - FY2019-Q2RestatedAnnual report
「No material changes or new developments have occurred compared with the description in the Securities Report filed on 22 June 2018.」
No significant changes or new developments have been identified regarding the risk of margin deterioration due to rising material prices and labor rates. - FY2019-Q1RestatedAnnual report
「No material changes or new developments have occurred compared with the description in the Securities Report filed on 22 June 2018.」
No significant changes or new developments have been identified regarding the risk of margin deterioration due to rising material prices and labor rates. - FY2018RestatedAnnual report
「Although we monitor market prices and strengthen management to reduce costs, if materials prices or labor rates rise substantially after a construction contract has been signed and the increase cannot be reflected in the contract price, the Group's business results could be affected.」
The impact on results of being unable to reflect increases in material prices and labor rates in the contract price continues to be disclosed as a risk, as before. - FY2018-Q2RestatedAnnual report
「No material changes or new developments have occurred compared with the description in the Securities Report filed on 23 June 2017.」
No significant changes or new developments have been identified regarding the risk of margin deterioration due to rising material prices and labor rates. - FY2018-Q1RestatedAnnual report
「No material changes or new developments have occurred compared with the description in the Securities Report filed on 23 June 2017.」
No significant changes or new developments have been identified regarding the risk of margin deterioration due to rising material prices and labor rates. - FY2017First statedAnnual report
「Although we monitor market prices and strengthen management to reduce costs, if materials prices or labor rates rise substantially after a construction contract has been signed and the increase cannot be reflected in the contract price, the Group's business results could be affected.」
The risk that increases in materials prices and labor rates after contract execution cannot be passed through to contract prices, affecting margins and results, is newly identified.