Decline in demand for system scaffolding

「Sales of wedge-lock scaffolding and installation services drove revenue growth, with segment revenue up 9.8% year on year.」

「Demand for temporary materials remained firm during the consolidated fiscal year under review.」

「Although demand for temporary materials remains firm, sales also remained resilient as the shift from sales to rentals continued against a backdrop of persistently high raw material prices and rising product prices.」

「Although demand for temporary materials remained firm, customers showed a tendency to choose rental over purchase as raw-material prices remained high and product prices continued to rise.」

「Scaffolding contractors, whose main customers are users of wedge-lock scaffolding, continued to refrain from purchasing materials and procure them through rental.」

「As overall costs, including material costs, increased, customers continued to refrain from purchasing materials and procure them through rental.」

「Although a certain level of demand for temporary materials remains, for the reasons described above, there have been cases in which customers, mainly those using wedge-lock scaffolding, postponed material procurement.」

「Although a certain level of demand for temporary materials remains, there have been cases in which customers, mainly those using wedge-lock scaffolding, postponed material procurement.」

「Wedge-lock scaffolding 3,883,619 2,465,675」

「The trend toward procuring temporary materials through rental has continued because material prices have remained high and product prices have risen since the third quarter of the previous fiscal year. As a result, although demand for safety equipment materials remains high, mainly among customers using wedge-lock scaffolding, there have been cases in which material procurement was postponed ahead of the full-scale deployment of temporary materials from the second quarter onward.」

「Revenue from the temporary materials segment was ¥10,391 million, down 16.4% from the previous fiscal year.」

「Demand from companies that own their temporary materials showed signs of stagnation.」

「Revenue centered on the mainstay products, wedge-lock scaffolding and next-generation scaffolding, remained firm.」

「In the temporary materials segment, demand for the mainstay products, wedge-lock scaffolding and next-generation scaffolding, remained firm against a backdrop of resilient construction activity.」

「Wedge-lock scaffolding 2,913,751 3,928,758」

「Wedge-lock scaffolding 1,180,886 1,794,255」

「As a result, revenue from the temporary materials segment was ¥10,818 million, down 25.6% from the previous fiscal year.」

「In the temporary materials segment, the segment was affected by the suspension and postponement of construction work and the postponement of new construction investment projects accompanying the spread of COVID-19. However, demand did not decline as rapidly as expected, and demand for the Group’s products, including safety equipment materials, remained firm. As a result, revenue from the temporary materials segment for the nine months ended 31 December was ¥8,587 million, down 26.8% year on year, exceeding expectations.」

「Wedge-lock scaffolding 5,015,510 2,913,751」

「We expected sales revenue in the temporary construction materials segment to decline by approximately 50% from the previous year. However, activity at construction sites did not fall as much as anticipated, and demand for our products remained above expectations. As a result, sales revenue in the temporary construction materials segment for the three-month period ended 30 June was ¥2,290 million, down 38.6% year on year.」

「For the full year, sales revenue from wedge-lock scaffolding was ¥8,748 million, up 6.5% from the previous period.」

「As a result, sales revenue from wedge-lock scaffolding was ¥7,386 million, up 17.2% year on year.」

「Demand for construction work remained solid in both the public and private sectors for wedge-lock scaffolding, supported by continuing restoration and reconstruction activity following the many natural disasters in the previous fiscal year, as well as active infrastructure development and redevelopment projects in regions outside the Tokyo metropolitan area while construction related to the Tokyo Olympics and Paralympics was winding down.」

「Sales revenue, centered on wedge-lock scaffolding, remained solid due to factors including increased demand for renovation projects.」

「Sales of wedge-lock scaffolding were expected to fall below the previous year because of factors including labor shortages. However, amid increased restoration and reconstruction activity following a succession of natural disasters, sales revenue reached ¥8,214 million, up 3.1% from the previous period and above the previous year.」

「Sales of wedge-lock scaffolding were expected to fall below the previous year because of factors including labor shortages. However, solid construction investment and increased restoration and reconstruction activity following a succession of natural disasters supported sales revenue of ¥6,300 million, up 4.0% year on year.」

「For wedge-coupler scaffolding, although construction investment in the Tokyo metropolitan area was active, labor shortages became more serious in regional areas, and sales remained sluggish due to factors including construction delays caused by a succession of natural disasters. As a result, revenue was ¥3,696 million, down 6.7% year on year.」

「The operating rates of inventories held by contractors and others showed signs of stagnation because of the adverse impact on construction progress from soaring material prices and labor costs and labor shortages in regional areas caused by the concentration of activity in urban areas. As a result, sales of wedge-lock scaffolding struggled.」

「We cannot rule out the possibility of customers delaying purchases due to a shortage of scaffolding installation workers, saturation in the volume of scaffolding components held, the spread of next-generation scaffolding and rising scaffolding material prices resulting from higher raw material and plating prices.」