Deterioration in project profitability due to shortages of construction workers and wage inflation
First written in FY2020. 2 of 3 entries say "Mitigated", first in FY2022. Latest entry: FY2024.
The whole theme swung hardest in 2022: 31 of 47 companies on the "Worse" side.
5 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「We seek to mitigate risk by monitoring and forecasting construction labor trends in major plant markets, minimizing on-site construction through the use of modular construction methods, collaborating with companies with extensive experience in local construction, and taking contractual measures to address rising labor costs.」
Mitigation measures for the risk of construction labor shortages and wage inflation became more specific, combining trend monitoring and forecasting, modular construction methods, collaboration and contractual measures. - FY2022MitigatedAnnual report
「In addition to minimizing on-site construction through the use of modular construction methods, the Company works to reduce risks by cooperating with companies that have extensive experience in local construction projects.」
Mitigation measures for the risk of construction labor shortages and wage inflation, including modular construction methods and collaboration with companies with local experience, were specified. - FY2020First statedAnnual report
「If construction workers are in short supply at a plant construction site or their wages rise sharply, project profitability may deteriorate due to construction delays and higher construction costs, potentially affecting the Group's businesses, operating results and other matters.」
The risk of construction delays and higher costs due to shortages of construction labor and wage inflation was newly documented as a standalone item.