Higher construction labor rates and intensified competition for orders due to a shortage of skilled construction workers
First written in FY2017-Q1. 13 of 26 entries say "Worsened", first in FY2018-Q3. Latest entry: 2026-11-09.
S E moved to the "Worse" side of this theme in 2020, 3 years before the typical company in this theme (2023).
The whole theme swung hardest in 2024: 13 of 17 companies on the "Worse" side.
8 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In addition to higher energy and raw material prices and supply constraints for materials, shortages of construction workers and restrictions on working hours have resulted in higher costs and affected construction operations.」
In addition to the shortage of construction workers, restrictions on working hours have materialized as an impact on construction operations, leading to higher costs and revisions to construction schedules. - FY2026-H1WorsenedAnnual report
「During the current interim consolidated accounting period, demand in interior-related products in the architectural hardware field remained contracted and did not recover. In temporary construction materials, construction delays occurred due to work-style reforms, labor shortages, and shorter working hours resulting from extreme heat. In the structural steel construction field, construction delays also occurred amid declining demand.」
In addition to the previous impact of labor shortages through higher costs and constraints on business scale, the effects have materialized through work-style reforms, shorter working hours due to extreme heat, and construction delays. - FY2025WorsenedAnnual report
「At the same time, higher energy and raw material prices, supply constraints for materials, and shortages of construction workers have resulted in higher costs and affected construction operations.」
The company states that labor shortages at construction sites have had a significant impact as a source of higher costs across the market, not limited to labor costs. - FY2024WorsenedAnnual report
「In the architectural and civil engineering markets closely related to the Group, government construction projects have remained at the high levels seen in recent years, while private-sector capital investment has been recovering from the COVID-19 pandemic. At the same time, higher costs resulting from persistently elevated energy and raw material prices and labor shortages at construction sites have had a significant impact.」
The company states that labor shortages at construction sites have had a significant impact not only on labor costs but also as a source of higher costs across the market. - FY2023RestatedAnnual report
「Because the expansion of this business is constrained by the number of available personnel, there is a limit to achieving rapid scale expansion amid the labor shortage.」
The company continues to recognize that labor shortages constrain the expansion of the repair and reinforcement construction business. Strengthening recruitment capabilities and improving job satisfaction are cited as mitigating measures. - FY2023-Q3RestatedAnnual report
「On the profit side, the disappearance of high-margin projects related to the large spot projects mentioned above, the impact of higher raw material prices and increases in personnel and other costs resulted in operating profit of ¥700 million, down 57.9% year on year, ordinary profit of ¥732 million, down 56.5%, and quarterly net profit attributable to owners of the parent of ¥413 million, down 61.2%.」
Higher personnel and other costs are identified, together with the impact of soaring raw material prices and other factors, as a cause of lower earnings, indicating that personnel costs continue to affect performance. - FY2023-Q2MaterialisedAnnual report
「On the profit side, the disappearance of high-margin projects related to the large spot projects mentioned above, the impact of higher raw material prices and increases in personnel and other costs resulted in operating profit of ¥475 million, down 56.4% year on year, ordinary profit of ¥481 million, down 56.5%, and quarterly net profit attributable to owners of the parent of ¥265 million, down 62.1%.」
Higher personnel and other costs are explicitly identified, together with the impact of soaring raw material prices and other factors, as a cause of lower earnings, showing that personnel costs have affected performance. - FY2023-Q1MaterialisedAnnual report
「On the profit side, operating profit was ¥213 million, down 62.1% year on year, due to the loss of high-margin projects among the large spot projects mentioned above, the impact of soaring raw material prices, and higher personnel and other costs.」
Higher personnel and other costs are explicitly identified as a factor behind lower earnings, indicating that risks related to securing labor and personnel costs have materialized. - FY2022RestatedAnnual report
「Because the expansion of this business is constrained by the number of available personnel, there is a limit to achieving rapid scale expansion amid the labor shortage.」
The company continues to recognize that labor shortages constrain the expansion of the business. Strengthening recruitment capabilities and improving job satisfaction are cited as mitigating measures. - FY2021WorsenedAnnual report
「The sustainable growth of the Group is significantly affected by its ability to secure and develop personnel with highly specialized knowledge and technical expertise in civil engineering and construction. If the securing and development of such personnel do not progress as expected, this could adversely affect the Group's business performance and financial condition.」
The company explicitly identifies the shortage of personnel not only as a source of higher labor costs but also as a risk that securing and developing specialized personnel could determine sustainable growth. - FY2020WorsenedAnnual report
「Because the expansion of this business is constrained by the number of available personnel, there is a limit to achieving rapid scale expansion amid the labor shortage.」
The company states that the expansion of the business itself is constrained by the number of available personnel, explicitly highlighting the impact on growth potential. - FY2020-Q3MaterialisedAnnual report
「In this business, sales in the cable products field were strong, driven by Ground Anchor Cable sales for seismic reinforcement work at fishing ports. Sales of KIT Bearing Plates in the steel products field remained firm, mainly for heavy-rain disaster mitigation projects. Sales of external cables for overseas projects and other applications, as well as seismic reinforcement products for domestic bridges, also remained strong, resulting in higher revenue. However, profit declined due to higher personnel and logistics costs, among other factors.」
Higher personnel costs associated with securing staff, together with higher logistics costs, are identified as actual factors behind lower earnings, indicating that risks related to securing labor and personnel costs affected performance. - FY2019RestatedAnnual report
「The outlook remained uncertain amid concerns over higher production and logistics costs resulting from soaring raw material prices and the impact of labor shortages.」
The company continues to recognize labor shortages as a risk, including their impact on higher production and logistics costs. - FY2018WorsenedAnnual report
「During the consolidated fiscal year, the Japanese economy remained on a gradual recovery track, supported by improving corporate earnings and employment and income conditions. However, the outlook remained uncertain amid concerns over higher production and logistics costs resulting from soaring raw material prices and the impact of labor shortages.」
The company describes the impact of labor shortages not only on construction labor costs but also as a concern over higher production and logistics costs. - FY2018-Q3WorsenedAnnual report
「The outlook remains uncertain, with concerns about rising production and logistics costs due to soaring raw material prices and labor shortages.」
In addition to the previous shortage of skilled construction workers and higher construction labor costs, the company has indicated concern that labor shortages could raise production and logistics costs, broadening the scope of the risk's impact. - FY2018-Q2RestatedAnnual report
「The business continues to face challenging market conditions due to the impact of higher construction labor costs resulting from the shortage of construction workers, as well as a shift in budget allocation toward maintenance and repair.」
The company has reaffirmed the continuing impact of the shortage of construction workers and higher construction labor costs, identifying them as factors behind challenging market conditions. - FY2018-Q1ReiteratedAnnual report
「The business continues to face challenging market conditions due to the impact of higher construction labor costs resulting from the shortage of construction workers, as well as a shift in budget allocation toward maintenance and repair.」
The theme of a shortage of construction workers and higher construction labor costs, which was not explicitly disclosed in the previous year's securities report, has been mentioned again this quarter. - FY2017DroppedAnnual reportThe theme of a shortage of skilled construction workers and higher construction labor costs, which had been disclosed through the previous quarter, is not explicitly mentioned in the current year's business performance explanation or business and other risks.
- FY2017-Q2RestatedAnnual report
「The business continues to face challenging market conditions due to the impact of higher construction labor costs resulting from the ongoing shortage of skilled construction workers, as well as construction delays.」
In addition to the impact of the shortage of skilled construction workers and higher construction labor costs, the impact of construction delays has again been identified as a factor contributing to challenging market conditions. - FY2017-Q1First statedAnnual report
「The business continues to face challenging market conditions due to the impact of higher construction labor costs resulting from the ongoing shortage of skilled construction workers, as well as intensifying competition for orders.」
The continuing shortage of skilled construction workers and higher construction labor costs, together with intensifying competition for orders, are affecting market conditions in the construction materials business.