Risk of rising labor costs amid a perceived labor shortage
First written in FY2018-Q1. 15 of 22 entries say "Restated". Latest entry: FY2026.
Nippon Air Conditioning Services moved to the "Worse" side of this theme in 2022, 2 years after the typical company in this theme (2020).
The whole theme swung hardest in 2025: 36 of 59 companies on the "Worse" side.
16 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「In addition, following the fiscal years ending March 2024, March 2025 and March 2026, as announced in the Notice Regarding the Increase in Salary Levels dated 13 May 2026, the company implemented an average 5.2% increase in salary levels in April 2026 for all regular employees, including regular salary increases and revisions to position allowances. Raising salary levels will lead to higher personnel expenses, but we consider it an important investment in human capital for our employees, who are our greatest asset.」
Regarding the risks of labor shortages and higher personnel expenses, the company states that it implemented an average 5.2% increase in salary levels for all regular employees and that personnel expenses increased as a result. - FY2025MaterialisedAnnual report
「Raising salary levels will lead to higher personnel expenses, but we consider it an important investment in human capital for our employees, who are our greatest asset.」
Higher personnel expenses are described not merely as a future concern but as an actual increase in costs resulting from higher salary levels. - FY2024-Q2RestatedAnnual report
「Regarding the outlook, concerns remain about the impact of downward pressure caused by a slowdown in the recovery of overseas economies, higher costs and lower demand due to inflation, and higher labor costs resulting from labor shortages, and the situation remains uncertain.」
Higher personnel expenses due to labor shortages continue to be identified as a factor of concern for the outlook. - FY2024-Q1RestatedAnnual report
「Regarding the outlook, concerns remain about the impact of downward pressure caused by a slowdown in the recovery of overseas economies, higher costs and lower demand due to inflation, and higher labor costs resulting from labor shortages, and the situation remains uncertain.」
Higher personnel expenses due to labor shortages continue to be identified as a factor of concern for the outlook. - FY2023-Q3MaterialisedAnnual report
「While conducting business activities at its domestic and overseas locations, the Group has worked to reduce the risk of employee infection and ensure safety in response to the impact of COVID-19. However, it has been affected by customers postponing capital investment plans, surging raw material prices and personnel expenses, and delays in equipment and other delivery schedules due to semiconductor shortages.」
Higher personnel expenses continue to be described, together with surging raw material prices and other factors, as an actual impact on business activities rather than merely a matter of concern. - FY2023-Q2MaterialisedAnnual report
「While conducting business activities at its domestic and overseas locations, the Group has worked to reduce the risk of employee infection and ensure safety in response to the impact of COVID-19. However, it has been affected by customers postponing capital investment plans, surging raw material prices and personnel expenses, and delays in equipment and other delivery schedules due to semiconductor shortages.」
Higher personnel expenses continue to be described, together with surging raw material prices and other factors, as an actual impact on business activities rather than merely a matter of concern. - FY2023-Q1MaterialisedAnnual report
「While conducting business activities at its domestic and overseas locations, the Group has worked to reduce the risk of employee infection and ensure safety in response to the impact of COVID-19. However, it has been affected by customers postponing capital investment plans, surging raw material prices and personnel expenses, and delays in equipment and other delivery schedules due to semiconductor shortages.」
Higher personnel expenses are described not as a future concern but as an actual impact on business activities, together with surging raw material prices and other factors. - FY2021RestatedAnnual report
「● Intensifying competition for recruitment due to the decline in Japan's working-age population ● Loss of customer trust due to declines in technical capabilities and service delivery capabilities caused by personnel shortages ● Shortages and reduced diversity among technical employees due to worsening working conditions and an increase in resignations and other factors caused by personnel shortages」
The company continues to disclose difficulty securing personnel, declines in technical capabilities and service delivery capabilities, worsening working conditions, and increases in resignations as labor-related risks. - FY2021-Q3RestatedAnnual report
「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The company states that there have been no significant changes to existing risks, including difficulty securing personnel and declines in technical capabilities and service delivery capabilities due to personnel shortages. - FY2021-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The company states that there have been no significant changes to existing risks, including difficulty securing personnel and declines in technical capabilities and service delivery capabilities due to personnel shortages. - FY2020RestatedAnnual report
「● Intensifying competition for recruitment due to the decline in Japan's working-age population ● Loss of customer trust due to declines in technical capabilities and service delivery capabilities caused by personnel shortages ● Shortages and reduced diversity among technical employees due to worsening working conditions and an increase in resignations and other factors caused by personnel shortages」
The company continues to disclose difficulty securing personnel, declines in technical capabilities and service delivery capabilities, worsening working conditions, and increases in resignations as labor-related risks. - FY2020-Q3RestatedAnnual report
「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The company states that there have been no significant changes to existing business and other risks, including higher personnel expenses due to labor shortages and difficulty securing personnel. - FY2020-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The company states that there have been no significant changes to existing business and other risks, including higher personnel expenses due to labor shortages and difficulty securing personnel. - FY2020-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The company states that there have been no significant changes to existing business and other risks, including higher personnel expenses due to labor shortages and difficulty securing personnel. - FY2019ReframedAnnual report
「The intensifying competition for recruitment resulting from the decline in Japan's working-age population may make it difficult to secure sufficient human resources, leading to a decline in technical capabilities and service delivery capabilities and potentially damaging the trust of customers. In addition, a shortage of personnel may worsen the working environment, which could result in a shortage or imbalance of technical employees due to an increase in resignations and other factors, potentially affecting the performance of the Group.」
The risk disclosure has become more specific, evolving from the previous concern over higher personnel expenses due to labor shortages to a broader labor shortage risk that includes difficulty securing personnel, declines in technical capabilities and service delivery capabilities, and an increase in resignations. - FY2019-Q3RestatedAnnual report
「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The company states that there have been no new developments or significant changes regarding the risk of higher personnel expenses due to labor shortages. - FY2019-Q2RestatedAnnual report
「Japan's economy during the cumulative second quarter under review has remained on a recovery trend, supported by a recovery in exports against a backdrop of a gradual recovery in the global economy. At the same time, concern remains over the impact of higher prices for crude oil and other raw materials, as well as higher personnel expenses due to labor shortages, and the outlook remains uncertain.」
Higher raw material prices and higher personnel expenses due to labor shortages continue to be identified as factors of concern for the outlook. - FY2019-Q1RestatedAnnual report
「Japan's economy during the cumulative first quarter under review has remained on a recovery trend, supported by a recovery in exports against a backdrop of a gradual recovery in the global economy. At the same time, concern remains over the impact of higher prices for crude oil and other raw materials, as well as higher personnel expenses due to labor shortages, and the outlook remains uncertain.」
Higher personnel expenses due to labor shortages continue to be identified as a factor of concern. Higher raw material prices are explicitly identified as a separate risk for the first time. - FY2018RestatedAnnual report
「Japan's economy during the fiscal year under review has remained on a recovery trend, supported by a recovery in exports against a backdrop of a gradual recovery in the global economy. At the same time, concern remains over the impact of higher personnel expenses due to labor shortages, and the outlook remains uncertain.」
Higher personnel expenses due to labor shortages continue to be identified as a factor of concern for the outlook. - FY2018-Q3RestatedAnnual report
「Japan's economy during the cumulative third quarter under review has remained on a recovery trend, supported by a recovery in exports against a backdrop of a gradual recovery in the global economy. At the same time, concern remains over the impact of higher personnel expenses due to labor shortages, and the outlook remains uncertain.」
Higher personnel expenses due to labor shortages continue to be explicitly identified as a factor of concern for the outlook. The text describes this as a potential impact of concern, rather than an impact that has actually occurred. - FY2018-Q2RestatedAnnual report
「Japan's economy during the cumulative second quarter under review has remained on a recovery trend, supported by a recovery in exports against a backdrop of a gradual recovery in the global economy. At the same time, concern remains over the impact of higher personnel expenses due to labor shortages, and the outlook remains uncertain.」
Higher personnel expenses due to labor shortages continue to be explicitly identified as a factor of concern for the outlook. The text describes this as a potential impact of concern, rather than an impact that has actually occurred. - FY2018-Q1First statedAnnual report
「However, the outlook has become uncertain due to concerns about the impact of policy uncertainty under the U.S. administration and rising labor costs associated with labor shortages.」
Higher personnel expenses due to labor shortages are explicitly identified for the first time as a factor of concern for the outlook. The text describes this as a potential impact of concern, rather than an impact that has actually occurred.