Risk to construction profits from rising materials and labor costs and intensifying competition
First written in FY2016. 11 of 24 entries say "Restated". Latest entry: 2026-08-05.
Takasago Thermal Engineering moved to the "Worse" side of this theme in 2018, 4 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 28 of 41 companies on the "Worse" side.
14 other companies' latest entry also says "Worsened".
- 2026-08-05WorsenedEarnings
「In addition to persistently high prices for materials and equipment and labor costs, the business environment has required a cautious response, including continued monitoring of the impact on supply chains from instability in the Middle East.」
In addition to the risk of higher prices for materials and equipment and persistently high labor costs, the document identifies the impact of Middle East instability on supply chains as a concern in the business environment. - FY2026RestatedAnnual report
「Material and equipment prices may soar, or delivery times may be extended. If it is difficult to reflect these increases in contract prices, construction costs may increase beyond expectations,」
It continues to identify the risk of higher construction costs due to soaring material and equipment prices and extended delivery times as a risk with medium impact, medium likelihood, and a short- to medium-term timing of occurrence. Responses involving centralized purchasing across all branches, advance orders, and proposals to change equipment models or systems are also continuing. - FY2024Specific identification of material and equipment delivery-time risk and measures involving advance ordersAnnual report
「Because many materials and equipment are affected by commodity prices, there is always a possibility that this risk will materialize. In response, we will strengthen our purchasing structure and accelerate centralized purchasing across all branches to strengthen procurement functions by leveraging economies of scale, thereby helping to curb price increases. In response to extended delivery times, we are working to minimize the impact on construction schedules by consulting with customers and proposing advance orders and changes to equipment models or systems.」
In addition to the risk of rising material and equipment prices, it specifically identifies extended delivery times and details responses involving centralized purchasing, advance orders, and proposals to change equipment models or systems. - FY2023-Q3Specific identification of monetary tightening and foreign-exchange fluctuations as factorsAnnual report
「Close attention continues to be required regarding rising raw material prices and supply constraints resulting from monetary tightening policies in countries around the world and foreign-exchange fluctuations.」
It specifically identifies monetary tightening policies worldwide and foreign-exchange fluctuations as factors behind rising raw material prices and supply constraints. - FY2023-Q2Specific identification of yen depreciation as a factorAnnual report
「During the cumulative second quarter under review, Japan's economy showed signs of returning to normal as restrictions on economic activity related to the spread of COVID-19 were eased. However, uncertainty continued, including rising raw material prices and supply constraints caused by the rapid depreciation of the yen.」
In addition to the existing risks related to rising raw material prices and supply constraints, it specifically identifies the rapid depreciation of the yen as a factor. - FY2023-Q1WorsenedAnnual report
「Uncertainty continues, including rising raw material prices and supply constraints associated with changes in the international situation.」
Regarding the risk of rising material and labor costs, it specifically identifies rising raw material prices and supply constraints resulting from changes in the international situation as business-environment factors. It also states that there were no material changes in the business and other risks section. - FY2022WorsenedAnnual report
「Shortages of materials and equipment, soaring material and equipment prices due to foreign-exchange effects, delays in construction schedules, and further labor cost increases due to labor shortages are anticipated, creating a divergence from the assumptions made when the medium-term management plan was formulated.」
In addition to the existing risk of rising material and labor costs, it identifies material and equipment shortages, foreign-exchange effects, construction schedule delays, and additional labor cost increases caused by labor shortages, and describes a divergence from the assumptions underlying the plan. - FY2022-Q2MaterialisedAnnual report
「Profit declined at overseas subsidiaries due to soaring labor costs and material and equipment prices caused by the spread of COVID-19, as well as lower revenue resulting from delays in the progress of some domestic and overseas construction projects.」
At overseas subsidiaries, labor costs and material and equipment prices actually soared and, together with lower revenue due to delays in construction progress, became factors reducing profit. The risk from rising material and labor costs affected performance in the quarter. - FY2021Specific implementation of procurement through centralized purchasingAnnual report
「Because many materials and equipment are affected by commodity prices, there is always a possibility that this risk will materialize. In response, we will strengthen our purchasing structure and accelerate centralized purchasing across all branches to strengthen procurement functions by leveraging economies of scale, thereby helping to curb price increases.」
As a response to the risk of rising material and equipment prices, it specifically states that the company will strengthen its purchasing structure and accelerate centralized purchasing across all branches. - FY2021-Q3RestatedAnnual report
「During the cumulative third quarter of the current consolidated fiscal year, there were no material changes in the occurrence of major risks that management recognizes could materially affect the financial position, operating performance or cash flows of the consolidated companies, among the matters concerning the business and accounting conditions described in the quarterly report, or in the business and other risks described in the annual securities report for the previous fiscal year.」
It states that there were no newly emerging risks or material changes concerning construction profit risks from rising material and labor costs and intensifying competition. This is a confirmation based on general risk disclosures and does not indicate any numerical change. - FY2020WorsenedAnnual report
「The period was characterized by an environment requiring a cautious approach to business operations and productivity improvements, as labor costs rose markedly due to a shortage of construction workers, among other factors.」
It states that labor costs rose markedly due to a shortage of construction workers, indicating that the existing construction profit risk from rising material and labor costs has intensified. - FY2020-Q3RestatedAnnual report
「There were no newly emerging business or other risks during the cumulative third quarter under review. In addition, there were no material changes to the business and other risks described in the securities report for the previous fiscal year.」
It states that there were no newly emerging risks or material changes concerning construction profit risks from rising material and labor costs and intensifying competition. - FY2020-Q1RestatedAnnual report
「There were no newly emerging business or other risks during the cumulative first quarter under review. In addition, there were no material changes to the business and other risks described in the securities report for the previous fiscal year.」
It states that there were no newly emerging risks or material changes concerning construction profit risks from rising material and labor costs and intensifying competition. - FY2019-Q3MaterialisedAnnual report
「Regarding profit, efforts to expand revenue against the backdrop of favorable business conditions produced results, but operating profit was ¥10,547 million (-3.4% year on year), ordinary profit was ¥11,459 million (-2.3%), and quarterly net income attributable to owners of the parent was ¥7,315 million (-1.8%), mainly due to increases in construction costs, including labor costs.」
Construction costs, including labor costs, actually increased and became a factor reducing operating profit, ordinary profit, and net income attributable to owners of the parent. - FY2019-Q2MaterialisedAnnual report
「Regarding profit, efforts to expand revenue against the backdrop of favorable business conditions produced results, but operating profit was ¥5,899 million (-14.3% year on year), ordinary profit was ¥6,436 million (-12.3%), and quarterly net income attributable to owners of the parent was ¥4,023 million (-11.0%), mainly due to increases in construction costs, including labor costs.」
Construction costs, including labor costs, actually increased and were disclosed as a factor reducing profit. This indicates that the construction profit risk from rising material and labor costs affected performance in the quarter. - FY2019-Q1RestatedAnnual report
「There were no newly emerging business or other risks during the cumulative first quarter under review. In addition, there were no material changes to the business and other risks described in the securities report for the previous fiscal year.」
It states that there were no newly emerging risks or material changes concerning construction profit risks from rising material and labor costs and intensifying competition. - FY2018WorsenedAnnual report
「If material prices and labor costs related to construction and other work rise sharply due to the economic environment and it becomes difficult to reflect this in contract prices, this may affect business performance.」
In addition to the previous difficulty in securing profits due to tight labor supply and demand, it specifically identifies soaring material prices and labor costs and the difficulty of passing them through to contract prices as separate risks. - FY2018-Q3RestatedAnnual report
「There were no newly emerging business or other risks during the cumulative third quarter under review. In addition, there were no material changes to the business and other risks described in the securities report for the previous fiscal year.」
It states that there were no newly emerging risks or material changes concerning construction profit risks from rising material and labor costs and intensifying competition. - FY2018-Q2RestatedAnnual report
「There were no newly emerging business or other risks during the cumulative second quarter under review. In addition, there were no material changes to the business and other risks described in the securities report for the previous fiscal year.」
It states that there were no newly emerging risks or material changes concerning construction profit risks from rising material and labor costs and intensifying competition. - FY2018-Q1RestatedAnnual report
「There were no newly emerging business or other risks during the cumulative first quarter under review. In addition, there were no material changes to the business and other risks described in the securities report for the previous fiscal year.」
It states that there were no newly emerging risks or material changes concerning construction profit risks from rising material and labor costs and intensifying competition. - FY2017-Q3RestatedAnnual report
「In the construction industry and the air-conditioning industry related to our business, public investment is expected to decline moderately while remaining at a relatively high level, and private-sector capital investment is expected to continue improving. At the same time, the business environment is expected to remain one in which efforts are necessary to secure and improve construction profits, due to tight labor supply and demand, among other factors.」
It continues to recognize that an environment requiring efforts to secure and improve construction profits will persist due to tight labor supply and demand, among other factors. - FY2017-Q2RestatedAnnual report
「In the construction industry and the air-conditioning industry related to our business, public investment is expected to decline moderately while remaining at a relatively high level, and private-sector capital investment is expected to continue improving. At the same time, the business environment is expected to remain one in which efforts are necessary to secure and improve construction profits, due to tight labor supply and demand, among other factors.」
It continues to recognize that an environment requiring efforts to secure and improve construction profits will persist due to tight labor supply and demand, among other factors. - FY2017-Q1RestatedAnnual report
「In the construction industry and the air-conditioning industry related to our business, public investment is expected to decline moderately while remaining at a relatively high level, and private-sector capital investment is expected to continue improving. At the same time, the business environment is expected to remain one in which efforts are necessary to secure and improve construction profits, due to tight labor supply and demand, among other factors.」
It continues to recognize that an environment requiring efforts to secure and improve construction profits will persist due to tight labor supply and demand, among other factors. - FY2016First statedAnnual report
「In the construction industry and the air-conditioning industry related to our business, public investment is expected to decline moderately while remaining at a relatively high level, and private-sector capital investment is expected to continue improving. At the same time, the business environment is expected to remain one in which efforts are necessary to secure and improve construction profits, due to tight labor supply and demand, among other factors.」
It identifies tight labor supply and demand, rising material and labor costs, and intensifying competition as factors making it difficult to secure and improve construction profits.