Failure to pass soaring material and equipment costs through to contract prices
First written in FY2016. 7 of 11 entries say "Worsened", first in FY2018. Latest entry: 2026-06-04.
Kyowanissei 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: 45 of 66 companies on the "Worse" side.
15 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「The chronic shortage of engineers relative to demand has not improved, and, combined with higher construction costs resulting from soaring construction material prices, longer construction periods and higher costs have continued, with concerns about deteriorating project profitability and worsening sentiment toward home purchases also continuing」
Concerns about longer construction periods, higher costs and deteriorating project profitability due to the shortage of engineers and soaring material prices have continued. - FY2024WorsenedAnnual report
「The chronic shortage of engineers relative to demand has not improved, and, combined with higher construction costs resulting from soaring construction material prices, longer construction periods and higher costs have continued, with concerns about deteriorating project profitability also continuing.」
Concerns about longer construction periods, higher costs and deteriorating project profitability due to the shortage of engineers and soaring material prices have continued, compounded by higher labor and logistics costs resulting from the working-hours cap introduced in April 2024. - FY2024-Q2RestatedAnnual report
「Furthermore, after consumption of services associated with the end of the COVID-19 pandemic had run its course, there were also concerns that deteriorating consumer sentiment against a backdrop of inflation, soaring material and equipment prices, and worsening corporate earnings due to higher costs such as labor expenses could lead to lower appetite for capital investment」
The continued concern was indicated that soaring material and equipment prices could reduce appetite for capital investment through higher costs such as labor expenses and deteriorating corporate earnings. - FY2024-Q1RestatedAnnual report
「There are also concerns that deteriorating consumer sentiment against a backdrop of inflation and declining corporate earnings due to soaring material and equipment prices could lead to lower appetite for capital investment」
The continued external-environment concern was described that soaring material and equipment prices could worsen corporate earnings and reduce appetite for capital investment. - FY2023MitigatedAnnual report
「Although the impact of higher construction costs was contained in many projects through price negotiations with customers and other measures, some projects involved the completion of work with high cost ratios」
While the impact of soaring material, equipment and construction costs was contained in many projects through price negotiations with customers and other measures, the impact of high-cost-ratio projects remained in some projects. - FY2023-Q1WorsenedAnnual report
「Inflationary pressures have been building due to soaring resource and raw material prices amid heightened tensions in the Russia-Ukraine situation and the rapid depreciation of the yen」
Soaring resource and raw material prices have continued as an external environmental factor linked to the Russia-Ukraine situation and the rapid depreciation of the yen. The inability to pass these increases through to contract prices was not explicitly stated in this filing. - FY2022WorsenedAnnual report
「The chronic shortage of engineers relative to demand has not improved, and, combined with higher construction costs resulting from soaring construction material prices, longer construction periods and higher costs have become pronounced, with concerns about deteriorating project profitability continuing.」
The risk of soaring material prices has continued to be described in connection with the shortage of engineers and the possibility of longer construction periods, higher costs and deteriorating project profitability. - FY2018WorsenedAnnual report
「Combined with the chronic shortage of engineers relative to demand and factors driving up construction costs due to soaring construction material prices, there is concern that supply constraints may arise, particularly in the condominium segment.」
The risk of soaring material and equipment prices was explicitly linked to the possibility of higher construction costs and supply constraints arising from the shortage of engineers. - FY2016First statedAnnual report
「If material and equipment prices rise abnormally and the increases cannot be passed through to contract prices, the Company's financial results may be affected.」
Risk of higher costs due to the gap between material costs and contract prices.