Dependence on Economic Trends in the Domestic Construction Market

「Construction investment remained firm, supported by public investment and private capital investment. In the housing sector, however, new housing starts remained weak against a backdrop of persistently high construction-material prices, labor shortages and concerns about rising interest rates.」

「Construction investment remained firm against a backdrop of urban redevelopment and demand for infrastructure renewal, with a gradual recovery trend continuing overall. Meanwhile, the housing market remained weak because of persistently high material prices and labor shortages, leaving the outlook uncertain.」

「Total construction investment from April to August 2025 was approximately ¥22.8 trillion, up 3.8% year on year. In addition to higher unit material prices, measures to address aging domestic infrastructure and urban redevelopment projects drove an increase in construction investment, and construction demand remained firm. Meanwhile, according to the Ministry’s Statistics on Building Construction Starts, shortages and aging of skilled workers, together with surging construction-material prices, restrained new construction starts. The number of construction starts fell sharply to 299,191, down 18.6% year on year, while the floor area of new construction starts declined to 35,347 thousand square meters, down 14.3%, and demand remained weak.」

「Total construction investment from April 2024 to February 2025 was ¥54.2 trillion, up 2.4% year on year and at a stable level. However, according to the “Building Starts Statistics,” the number of residential and non-residential buildings started during the period was 778,950, down 1.4% year on year, while floor area started was 87,547 thousand square meters, down 6.2% year on year, indicating that the scale of construction starts was small despite the investment amount.」

「Total construction investment from April to August 2024 remained firm at ¥22.6 trillion, up 0.7% year on year. During the same period, the number of residential and non-residential buildings started was 367,628, down 1.1% year on year, while floor area started was 41,232 thousand square meters, down 6.4% year on year, indicating that the scale of construction starts was small despite the investment amount.」

「Total construction investment from April 2023 to February 2024 was ¥52.1 trillion, up 1.7% year on year and at a stable level. However, according to the “Building Starts Statistics,” the number of residential and non-residential buildings started during the period was 789,951, down 6.6% year on year, while floor area started was 93,295 thousand square meters, down 10.2% year on year, indicating that the scale of construction starts was small despite the investment amount.」

「Total construction investment from April to November 2023 was ¥37 trillion, up 2.4% year on year and at a stable level. However, according to the “Building Starts Statistics,” the number of residential and non-residential buildings started during the period was 594,496, down 6.6% year on year, while floor area started was 70,249 thousand square meters, down 10.2% year on year, indicating that the scale of construction starts was small despite the investment amount.」

「Total construction investment from April to August 2023 was ¥21.9 trillion, up 3.5% year on year and at a stable level. However, against a backdrop of continued high construction material prices and labor shortages, the number of residential and non-residential buildings started during the period was 371,876, down 6.2% year on year, while floor area started was 44,040 thousand square meters, down 13.5% year on year, indicating difficult conditions.」

「Although total construction investment was ¥8.4 trillion, up 5.8% year on year, the number of residential and non-residential construction starts during the period was 146,965, down 4.7% year on year, and the floor area of new construction starts was 17,989 thousand square meters, down 9.6%, against a backdrop of continuing high construction-material prices and labor shortages. The market environment remained challenging.」

「The temporary scaffolding industry in which the Group operates is significantly affected by economic trends in Japan’s domestic construction market.」

「Total construction investment from April to November 2022 was ¥34.2 trillion, up 1.6% year on year, indicating firm activity. However, construction starts were postponed or canceled against a backdrop of rising prices, including material and construction costs. According to the “Building Starts Statistics,” total floor area started for residential and non-residential buildings from April to November 2022 was 78,270 thousand square meters, down 0.7% year on year, indicating signs of stagnation.」

「According to the Ministry of Land, Infrastructure, Transport and Tourism’s “Construction Comprehensive Statistics,” total construction investment from April to August 2022 reached ¥20 trillion, up 1.2% year on year. Against this backdrop, demand was seen for the company’s main products, wedge-coupler scaffolding and next-generation scaffolding.」

「According to the Ministry of Land, Infrastructure, Transport and Tourism’s “Construction Comprehensive Statistics,” total construction investment from April to May 2022 was ¥7.5 trillion, down 0.3% year on year. Although activity showed signs of stagnation, demand centered on the private sector was seen.」

「Total construction investment from April 2021 to February 2022 was ¥48.0 trillion, down 1.0% year on year, showing signs of stagnation, although demand centered on the private sector was observed.」

「Total construction investment from April to December 2021 was ¥38.9 trillion, down 0.1% year on year, showing signs of stagnation, although demand centered on the private sector was observed.」

「According to the Ministry of Land, Infrastructure, Transport and Tourism’s “Construction Comprehensive Statistics,” total construction investment from April to August 2021 was ¥20.1 trillion, up 1.1% year on year, indicating a recovery centered on private-sector demand.」

「According to the Ministry of Land, Infrastructure, Transport and Tourism’s “Construction Comprehensive Statistics,” total construction investment from April to May 2021 was ¥7.9 trillion, up 0.3% year on year, indicating firm activity centered on public works.」

「Total construction investment from April 2020 to February 2021 was ¥47.6 trillion, down 1.6% year on year, remaining below the previous year.」

「After the state of emergency was lifted, construction demand, particularly for public works, proved more resilient than expected.」

「The construction industry, a customer for the Company’s manufactured products, was affected by work stoppages and postponements at construction sites following the government’s declaration of a state of emergency, as well as subdued new investment amid uncertainty about the outlook.」

「In the construction industry, a customer for the Company’s manufactured products, total construction investment from April to November 2019 remained firm at ¥35.9060 trillion, up ¥745.0 billion from the same period of the previous year, according to the Ministry of Land, Infrastructure, Transport and Tourism’s “Construction Comprehensive Statistics.”」

「According to the Ministry of Land, Infrastructure, Transport and Tourism’s Construction Statistics, total construction investment in the construction industry served by the Company’s manufactured products remained firm at ¥2.11756 trillion from April to August 2019, an increase of ¥486.0 billion year on year.」

「According to the Ministry of Land, Infrastructure, Transport and Tourism’s Construction Statistics, total construction investment in the construction industry served by the Company’s manufactured products remained firm at ¥826.6 billion from April to May 2019, an increase of ¥172.2 billion year on year.」

「Total construction investment remained firm at ¥26.4 trillion, up 2.3% year on year, but from July to December it was ¥28.1 trillion, down 0.7% year on year, with a decline in large-scale construction projects and other trends observed.」

「The temporary scaffolding industry is significantly affected by economic trends in Japan’s domestic construction market, particularly in the housing and low- to mid-rise building sectors.」