Rising Raw Material and Construction Material Prices, Labor Costs, and Outsourcing Costs
First written in FY2018. 8 of 20 entries say "Worsened", first in FY2019-Q1. Latest entry: FY2027-H1.
Iida Group Holdings moved to the "Worse" side of this theme in 2020, 2 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 14 of 18 companies on the "Worse" side.
8 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「The outlook remains difficult to predict, given potential changes in supply and demand conditions resulting from an increase in market inventory, higher construction costs due to surging raw material and energy prices, and the impact of rising mortgage interest rates on housing demand.」
In addition to the previously cited surge in construction costs, the company explicitly identifies surging raw material and energy prices as factors and continues to highlight concerns that higher construction costs could affect housing demand. - FY2026-H1RestatedAnnual report
「However, persistently high home selling prices resulting from surging construction costs and other factors, as well as rising mortgage rates, raise concerns about declining sentiment toward homeownership.」
The risk of higher material and construction costs continues, with construction costs elevated and home prices remaining high, raising concerns about the impact on consumer sentiment toward home purchases. - FY2025MaterialisedAnnual report
「From the fourth quarter onward, prices for construction materials, particularly lumber, and land costs increased, but the full increase in costs could not be reflected in property selling prices, resulting in a decline in the gross profit margin.」
The results reflect higher construction material prices and land costs, as well as a decline in the profit margin because the full increase could not be passed on to selling prices. - FY2025-H1RestatedAnnual report
「Although home prices remain elevated due to higher construction costs and other factors,」
The company reiterates its view that higher construction costs and elevated home prices are continuing. - FY2024MaterialisedAnnual report
「Housing demand remains weak as higher construction costs and other factors have pushed up home prices.」
Higher material and construction costs are being reflected in higher selling prices and weaker housing demand. - FY2024-Q3RestatedAnnual report
「Housing demand continues to be restrained by higher residential selling prices resulting from soaring construction costs and weaker consumer sentiment due to inflation, among other factors」
The company continues to recognize that soaring construction costs and higher residential selling prices, together with their impact on consumer sentiment, are restraining housing demand. - FY2024-Q2MaterialisedAnnual report
「Housing demand is being affected by higher residential selling prices due to soaring material prices and weaker consumer sentiment resulting from inflation, among other factors.」
The company states that soaring material prices have led to higher residential selling prices and are also affecting housing demand through consumer sentiment. - FY2023WorsenedAnnual report
「Construction costs are expected to continue rising due to soaring energy and construction material prices, and there are concerns that higher selling prices and mortgage interest rates will affect housing demand.」
The company identifies continued increases in construction costs due to soaring energy and construction material prices, and concerns that higher selling prices and mortgage interest rates will affect demand, as issues for the full fiscal year. - FY2023-Q3WorsenedAnnual report
「Soaring construction material prices are beginning to make homes appear expensive in areas with low average selling prices.」
The company states that soaring construction material prices have been reflected in selling prices and are beginning to make homes appear expensive in areas with low average selling prices. - FY2023-Q2RestatedAnnual report
「Selling prices have risen due to soaring building material prices, and changes have begun to appear in housing demand.」
The company reconfirms that construction material prices and selling prices continue to rise and that this is affecting demand. - FY2023-Q1WorsenedAnnual report
「The prolonged situation in Ukraine has driven up energy and various raw material prices, resulting in global inflation.」
In addition to the previously identified rise in material prices and instability in the procurement environment, the company cites soaring energy and raw material prices caused by the prolonged situation in Ukraine and global inflation. - FY2022WorsenedAnnual report
「Raw material and logistics costs continue to rise due to the global timber shortage and the situation in Ukraine, among other factors, and concerns are growing over price increases for a wide range of materials, including steel, timber and concrete.」
In addition to timber shortages and soaring prices, the company cites the situation in Ukraine as a factor and expresses concern over broad-based increases in the prices of materials such as steel, timber and concrete. - FY2022-Q3RestatedAnnual report
「In addition, the procurement environment for construction materials remains unstable due to the ongoing global shortage of timber, soaring distribution prices, semiconductor shortages and rising energy prices.」
The company continues to identify instability in construction-material procurement due to timber shortages and higher prices, semiconductor shortages and surging energy prices. - FY2022-Q2WorsenedAnnual report
「In addition, procurement of construction materials has become unstable due to the global timber shortage, soaring distribution prices, semiconductor shortages and surging crude oil prices, although」
In addition to the previously cited soaring timber prices and procurement difficulties, the company cites semiconductor shortages and surging crude oil prices, noting that instability in construction-material procurement is broadening. - FY2022-Q1MaterialisedAnnual report
「In addition, expanding global demand for timber has driven up timber market prices, and the shortage of available volumes continues.」
The company identifies soaring timber prices and difficulty securing volumes, driven by expanding demand for timber, as actual business-environment factors affecting material prices and procurement. - FY2020WorsenedAnnual report
「Although the company pursued cost reductions through the acquisition of ファーストプラス株式会社, a manufacturer of housing equipment, and the promotion of joint purchasing as part of its core strategy to strengthen the competitiveness of its core business, average construction costs per house increased from the previous fiscal year because procurement costs for construction materials and equipment, including logistics costs, were under upward pressure.」
Although the company implemented cost-reduction measures through in-house production and joint purchasing, procurement costs including construction materials, equipment and logistics costs rose year on year, making the previously identified risk of cost increases a concrete financial result. - FY2019RestatedAnnual report
「Rising raw material, construction material, labor and logistics costs, as well as higher subcontracting costs arising from the resulting impact on subcontractors' procurement of raw materials, could affect the Group's operating results and financial position if it is difficult to pass these increases on to selling prices」
The company again expressly identifies the risk of deteriorating profitability due to rising construction material, labor, logistics and subcontracting costs and difficulty passing these increases on to selling prices. - FY2019-Q2DroppedAnnual report
「In the residential property industry, housing demand is expected to remain supported by low-interest-rate mortgages and other factors. However, the environment surrounding the Group remains severe, due to intensifying competition with other companies, temporary stagnation in sentiment resulting from abnormal weather and a succession of natural disasters, and other factors.」
The rise in construction material prices and labor costs expressly cited in the previous quarter is not expressly mentioned in the current description of the business environment. - FY2019-Q1WorsenedAnnual report
「The Group's operating environment remains challenging, with rising construction material prices and labor costs, as well as intensifying price competition with other companies.」
The rise in construction material prices, labor costs and other costs previously identified as risks is expressly cited as part of the business environment for the current quarter. - FY2018First statedAnnual report
「Rising raw material, construction material and labor costs, as well as higher subcontracting costs arising from the resulting impact on subcontractors' procurement of raw materials, could affect the Group's operating results and financial position if it is difficult to pass these increases on to selling prices.」
The company identifies the risks of deteriorating profitability due to rising construction material, labor and subcontracting costs and difficulty passing these increases on to selling prices.