Rising prices of wood and other raw materials and construction materials
First written in FY2022. 3 of 10 entries say "Worsened", first in FY2024-Q3. Latest entry: FY2026.
Yamaichi Real Estate moved to the "Worse" side of this theme in 2023, 2 years after the typical company in this theme (2021).
The whole theme swung hardest in 2018: 7 of 9 companies on the "Worse" side.
6 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「The Group uses construction materials such as wood, steel and cement, whose prices are affected by market conditions, supply and demand, exchange rates and other factors. If these cost increases cannot be sufficiently absorbed through specification reviews, securing substitute products, passing costs on to sales prices and other measures, sales margins may be compressed and operating plans may need to be revised, potentially affecting the Group’s operating results and financial condition.」
The risks from higher material and construction costs, and responses including specification reviews, substitute products and price pass-through, are reaffirmed. - FY2025WorsenedAnnual report
「In addition to higher material prices caused by the trend toward yen depreciation and higher labor costs resulting from severe labor shortages in construction, the effects of the so-called work-style reforms raise concerns about project delays and weaker profitability, particularly for large-scale construction projects.」
The Group specifies higher construction costs, including materials, labor and work-style reforms, together with delay and profitability risks for large projects. - FY2024-Q3WorsenedAnnual report
「However, in the housing industry, construction costs continue to rise due to higher material prices and labor costs, weighing on demand.」
The impact of higher material prices has spread to labor costs and construction costs and continues to weigh on housing demand. - FY2024-Q1MaterialisedAnnual report
「Higher prices caused by expensive resources and labor shortages in Japan, as well as monetary tightening overseas, pose risks of an economic downturn, and uncertainty about the outlook continues.」
The Company disclosed that higher domestic resource prices and inflation continue to affect the economic environment. - FY2023MaterialisedAnnual report
「Although material prices rose, the Company maintained a certain profit margin by absorbing the increase through reviews of product specifications and improvements in advertising, sales promotion and other activities.」
Material price inflation occurred, but the Company absorbed the increase through specification reviews and other measures and maintained a certain profit margin. - FY2022First statedAnnual report
「Lumber prices required for new-home construction are trending upward because of a sharp increase in overseas demand for new homes and changes in distribution channels. If cost increases cannot be absorbed through efforts such as reviewing specifications and securing substitute products, construction-sales margins may be compressed and sales plans may need to be changed.」
The Group recognizes the upward trend in lumber prices and cites specification reviews and securing substitute products as responses.