Improving Engineer Utilization, Engineering Fees and Customer Matching

「Technical fees increased by 3.8% year on year as we continued initiatives to improve customer satisfaction and careful negotiations to secure appropriate rates reflecting engineers’ value. The number of engineers at the end of the period increased by 1.0% year on year due to higher hiring of new graduate and experienced engineers. Although the full-year utilization rate declined from the same period of the previous year to 93.2%, down 1.4 percentage points, due to caution among some customers stemming from the impact of U.S. tariffs and deployment focused on engineer development, we maintained a high utilization rate.」

「In this environment, we promoted deployment focused on engineer development in addition to increasing the number of engineers. Although the utilization rate declined year on year, it remained high, and deployed personnel exceeded those of the same period of the previous year. We exceeded the previous year’s technical fees through customer-satisfaction initiatives and careful explanations as part of efforts to secure appropriate rates reflecting engineers’ value. Working hours remained at the same level as in the same period of the previous year.」

「The number of engineers at the end of the period increased by 3.1% year on year. The full-year utilization rate was 94.6%, up 0.5 percentage points, as we conducted rapid sales activities while actively changing the projects in which engineers participated to broaden their technical expertise. Technical fees also increased by 3.1% year on year as customers came to understand our approach of investing in the value of engineers.」

「In this environment, in addition to an increase in the number of engineers, deployment progressed earlier than in the previous year, resulting in deployed personnel exceeding those of the same interim period of the previous year. Technical fees exceeded those of the same interim period of the previous year due to rate increase negotiations based on rising demand for engineers and careful explanations of their value. Working hours remained at the same level as in the same interim period of the previous year.」

「The number of engineers at the end of the period increased by 1.9% year on year due to higher hiring of new graduate and experienced engineers. Although the full-year utilization rate declined from the same period of the previous year to 94.1%, down 1.1 percentage points, partly due to the increase in new graduate hires, we maintained a high utilization rate. Technical fees increased by 2.2% year on year as unit-price negotiations progressed after we clearly explained the value of our engineers to customers and obtained their understanding.」

「We implemented measures including opening the Kanazawa Sales Office and introducing a new allowance for technical employees. We promoted the development of new customers and stronger negotiations to secure appropriate rates in order to improve engineers’ skills and bring them into operation promptly, while working to build a company centered on employees where engineers can work with confidence and strengthening recruitment of new graduate and experienced engineers. In this environment, the number of engineers increased, and the promotion of early deployment resulted in deployed personnel exceeding those of the same period of the previous year. Technical fees exceeded those of the same period of the previous year due to continued rate increase negotiations amid further growth in demand for engineers. Working hours remained at the same level as in the same period of the previous year.」

「We are implementing measures including opening the Kanazawa Sales Office and introducing a new allowance for technical employees. We are strengthening sales by developing new customers, increasing order volume, improving the utilization rate and securing appropriate rates, while strengthening recruitment of new graduate and experienced engineers and promoting the development of a company where engineers can work with confidence. In this environment, the number of engineers increased, and steady deployment driven by a solid order environment and early deployment resulted in deployed personnel exceeding those of the same period of the previous year. Technical fees exceeded those of the same period of the previous year due to continued rate increase negotiations. Working hours remained at the same level as in the same period of the previous year.」

「We continued strengthening sales, including developing new customers, and worked to increase order volume and the utilization rate and secure appropriate rates. In recruitment, we strengthened hiring of new graduate and experienced engineers and worked to secure highly capable engineers. In July this year, we newly opened the Kanazawa Sales Office in Kanazawa, Ishikawa, to develop customers and strengthen engineer recruitment in the Hokuriku region. We also introduced a new allowance for technical employees undergoing training. We will continue promoting the development of a company where engineers can work with confidence, thereby helping secure highly capable engineers. In this environment, the number of engineers increased, and steady deployment of engineers, including new graduates, resulted in deployed personnel exceeding those of the same period of the previous year. Technical fees exceeded those of the same period of the previous year due to continued rate increase negotiations. Working hours remained at the same level as in the same period of the previous year.」

「In this environment, the number of engineers increased, and the deployment of engineers, including new graduates, progressed earlier than expected, resulting in deployed personnel exceeding those of the same period of the previous year. Working hours remained at the same level as in the same period of the previous year. Technical fees exceeded those of the same period of the previous year due to continued efforts to negotiate rate increases.」

「In this environment, the number of engineers increased, and the deployment of engineers, including new graduates, progressed more quickly than expected, resulting in deployed personnel exceeding those of the same period of the previous year. Working hours were slightly below those of the same period of the previous year due to a decline in overtime. Technical fees exceeded those of the same period of the previous year as we continued rate increase negotiations and worked to secure appropriate rates.」

「We sought to bring engineers, including new graduates, into operation at an early stage by sharing information among business divisions, strengthening sales to new customers and working to increase order volume. Although we implemented rate increase negotiations for technical fees, technical fees declined year on year because the early deployment of new graduate engineers lowered the overall fee level. Deployed personnel exceeded those of the same period of the previous year, while working hours declined slightly.」

「The number of engineers at the end of the period declined by 3.5% year on year as we reduced new graduate hiring. However, by focusing on increasing order volume and bringing engineers into operation at an early stage, the utilization rate was 90.5%, up 6.8 percentage points, and deployed personnel exceeded that of the same period of the previous year. Working hours increased by 0.6% year on year due to higher overtime. Technical fees increased by 0.4% year on year following rate increase negotiations.」

「We conducted technical training combining telework and staggered working hours, with due consideration given to preventing the spread of infection, to bring engineers, including new graduates, into operation at an early stage. In sales activities, we focused on increasing order volume by developing new customers and expanding sales to existing customers, mainly online. In this environment, the number of engineers declined year on year as we reduced the number of new graduate hires for 2021, but steady deployment of engineers resulted in deployed personnel exceeding both the same period of the previous year and the initial plan. Working hours exceeded those of the same period of the previous year due to increased overtime in the previous quarter, and then remained flat. Technical fees exceeded those of the same period of the previous year.」

「We conducted technical training combining telework and staggered working hours, with due consideration given to preventing the spread of infection, to bring engineers, including new graduates, into operation at an early stage. In sales activities, we focused on increasing order volume by developing new customers and expanding sales to existing customers, mainly online. In this environment, the number of engineers declined year on year as we reduced the number of new graduate hires for 2021, but steady deployment of engineers resulted in second-quarter deployed personnel exceeding both the same period of the previous year and the initial plan. Working hours exceeded those of the same period of the previous year due to increased overtime. Technical fees also exceeded those of the same period of the previous year.」

「In this environment, the number of engineers declined year on year as we reduced the number of new graduate hires for 2021 in light of deployment conditions. Deployed personnel also declined from the same period of the previous year, before the impact of COVID-19 on deployment emerged, but deployment progressed steadily and remained broadly in line with the initial plan. Working hours exceeded those of the same period of the previous year due to an increase in overtime. Technical fees exceeded those of the same period of the previous year as we continued contract negotiations according to engineers’ skill levels.」

「The number of engineers at the end of the period increased by 1.5% year on year, partly due to an increase from new graduate hiring. However, some customer companies were cautious about increasing personnel, including by postponing staffing plans amid concerns about the outlook, and our sales activities were subject to certain restrictions as preventive measures against COVID-19 were implemented. As a result, the utilization rate was 83.7%, down 9.8 percentage points, and deployed personnel fell below the same period of the previous year. Working hours decreased by 1.3% year on year due to customer requests for work from home, staggered working hours and restrictions on overtime, but began to increase gradually in the second half of the fiscal year, improving to the same level as the previous fiscal year in the fourth quarter. Technical fees exceeded those of the same period of the previous year through continued contract negotiations according to skill levels.」

「As a result, the number of engineers exceeded that of the same period of the previous year, partly due to an increase in new graduate engineers, while deployed personnel declined year on year as sales activities were subject to certain restrictions amid preventive measures against COVID-19. Working hours remained below those of the same period of the previous year as work from home, staggered working hours and restrictions on overtime continued, but began to increase gradually as economic activity resumed. Technical fees exceeded those of the same period of the previous year as we continued negotiating technical fees according to skill levels.」

「As a result, the number of engineers exceeded that of the same period of the previous year, partly due to an increase in new graduate engineers, while deployed personnel declined. Working hours also decreased as work from home, staggered working hours and restrictions on overtime continued. However, with the resumption of economic activity, working hours began to increase gradually toward the end of the second quarter. We continued negotiating technical fees according to skill levels, and technical fees exceeded those of the same period of the previous year.」

「As a result, the number of engineers exceeded that of the same period of the previous year, partly due to an increase in new graduate engineers, while deployed personnel declined year on year. Working hours decreased due to customer-directed work from home and staggered working hours, restrictions on overtime and temporary closures. Regarding technical fees, we achieved rate increases in the annual fee contract negotiations conducted each April, in line with normal levels, and the contract unit fee exceeded that of the same period of the previous year. Consequently, despite the impact of fewer working hours, technical fees remained at the same level as in the same period of the previous year.」

「In this environment, we promoted sales initiatives to develop new customers and strengthen coordination among business divisions, while negotiating technical fee contracts according to skill levels and working to recruit highly capable engineers. As a result, new customer acquisition progressed and the number of engineers increased by 4.4% from the end of the same period of the previous year. Although the utilization rate was 92.7%, down 3.2 percentage points, and its improvement remained modest, deployed personnel also increased. The technical fee per hour increased by 0.2% and exceeded that of the same period of the previous year.」

「In this environment, we pursued sales initiatives with stronger coordination among business divisions and efforts to develop new customers, while negotiating technical fee contracts according to skill levels and working to recruit highly capable engineers. As a result, the number of engineers increased by 5.2% from the same period of the previous year, while the utilization rate was 91.4%, down 3.4 percentage points. The technical fee per hour increased by 1.5% and exceeded that of the same period of the previous year.」

「Through sales initiatives that strengthened close communication with customers and coordination among business divisions, we sought to bring engineers, including new graduates, into operation at an early stage. We also worked to recruit highly capable engineers and negotiate technical fee contracts according to engineers’ work levels and skills. As a result, the number of engineers increased by 4.6% from the end of the same period of the previous year, while the utilization rate was 89.6%, down 2.7 percentage points, partly due to the increase in new graduate hires. The technical fee per hour also increased by 2.3% from the same period of the previous year.」

「As a result, the number of engineers at the end of the period increased by 27, or 3.9%, from the same period of the previous year, while the full-year utilization rate was 96.3%, up 0.6 percentage points, exceeding that of the same period of the previous year. Deployed personnel therefore increased. In addition, we continued to promote efforts to secure appropriate rates, and the technical fee per hour was ¥3,835, up ¥80 and above the level of the same period of the previous year, resulting in higher revenue.」

「In this environment, we pursued proactive sales initiatives in response to strong customer demand and strengthened our structure by increasing recruitment personnel, while accelerating activities in sales and recruitment. As a result, the number of engineers increased by 18, or 2.6%, from the same period of the previous year. The utilization rate was also high at 95.9%, up 0.8 percentage points, as new graduates became operational earlier than expected, exceeding that of the same period of the previous year. We continued efforts to secure appropriate rates, resulting in a technical fee per hour of ¥3,889, up 3.2% and above the level of the same period of the previous year.」

「In this environment, we worked to accelerate response times in sales and recruitment, while strengthening our recruitment structure through proactive sales initiatives and an increase in recruitment personnel. As a result, the number of engineers increased by 24, or 3.4%, from the same period of the previous year. Despite an increase in new graduate hires, the utilization rate was high at 94.8%, up 0.5 percentage points, exceeding that of the same period of the previous year. We also continued efforts to secure appropriate rates, resulting in a technical fee per hour of ¥3,844, up 2.2% and above the level of the same period of the previous year.」

「As a result of promoting proactive and rapid sales activities in response to strong demand and strengthening recruitment to secure highly capable engineers, the number of engineers increased by 23, or 3.2%, from the end of the same period of the previous year. Although affected by the increase in new graduate hires, the utilization rate remained high at 92.3%, down 0.2 percentage points, at the same level as in the same period of the previous year. Continued efforts to secure appropriate rates also resulted in a technical fee per hour of ¥3,826, up 1.9%, exceeding that of the same period of the previous year.」

「The number of engineers at the end of the period increased by 22 from the same period of the previous year, and the full-year utilization rate was 95.7%, up 1.4 percentage points, exceeding that of the same period of the previous year. As a result, deployed personnel increased. In addition, we continued efforts to secure appropriate rates, and the technical fee per hour was ¥3,755, up ¥60, exceeding that of the same period of the previous year, resulting in higher revenue.」

「In response to this strong demand, we promoted proactive engineer recruitment and rapid sales initiatives. The number of engineers exceeded that of the same period of the previous year, while the early deployment of engineers, including new graduates, progressed and the utilization rate remained high, resulting in an increase in deployed personnel from the same period of the previous year. We also continued efforts to secure appropriate rates, and technical fees exceeded those of the same period of the previous year.」

「In response to this strong demand, we pursued rapid sales initiatives to bring engineers, including new graduates, into operation at an early stage. As a result, the utilization rate remained at a high level above that of the same period of the previous year, and the number of deployed personnel increased. In addition, we continued efforts to secure appropriate rates, and technical fees also exceeded the previous year’s level.」

「In response to this strong demand, we worked to accelerate sales activities and strengthen recruitment to bring engineers, including newly graduated engineers, into operation at an early stage, and continued efforts to secure appropriate rates. As a result, active personnel increased, technical fees rose, and the utilization rate remained high and above the previous year's level.」

「In the outsourcing business, our core business, we worked to secure highly skilled engineers through stronger recruitment, expand orders and bring personnel into operation at an early stage through stronger sales. As a result, active personnel exceeded the previous year's level, and the utilization rate remained high at 94.3%, broadly in line with the previous year (utilization rate (%) = number of active engineers / total number of technical employees × 100, calculated using cumulative month-end headcount figures for the period). As a result, net sales were ¥4,887.478 million, up 3.5% year on year, and operating income was ¥345.530 million, up 8.6%.」

「In the outsourcing business, our core business, we worked to secure highly skilled engineers by strengthening recruitment, expand orders and bring personnel into operation at an early stage by strengthening sales, and secure appropriate fees. As a result, active personnel exceeded the previous year's level, while technical fees were maintained at the same level as the previous year despite the downward pressure from the deployment of newly graduated engineers. The utilization rate was 93.4% (utilization rate (%) = number of active engineers / total number of technical employees × 100, calculated using cumulative month-end headcount figures for the period).」

「In the outsourcing business, our core business, we strengthened our recruitment structure, including the introduction of new recruitment tools, and focused on securing highly skilled engineers in response to strong demand for engineers. As a result of efforts to improve utilization, including bringing newly graduated engineers into operation at an early stage, active personnel exceeded the previous year's level, and the company maintained a high utilization rate of 92.3% (utilization rate (%) = number of active engineers / total number of technical employees × 100, calculated using cumulative month-end headcount figures for the period).」

「In the outsourcing business, our core business, we strengthened our recruitment structure and focused on securing highly skilled engineers in response to strong demand for engineers. We also worked to improve utilization, bring newly graduated engineers into operation at an early stage and improve technical fees. As a result, active personnel and technical fees exceeded the previous year's levels, while the company maintained a high utilization rate of 90.5% (utilization rate (%) = number of active engineers / total number of technical employees × 100, calculated using cumulative month-end headcount figures for the period).」

「In the outsourcing business, our core business, the number of active personnel and technical fees exceeded the previous year as a result of actively recruiting engineers, accurately matching customer needs nationwide and continuously improving technical fees. Although the increase in new graduate hires was a factor weighing on utilization, operations progressed smoothly, and we maintained a high utilization rate broadly in line with the previous year.」