Profit pressure from soaring labor costs
First written in FY2020-Q1. 3 of 6 entries say "Worsened", first in FY2024-Q3. Latest entry: FY2025.
Fujikura Composites moved to the "Worse" side of this theme in 2024, 4 years after the typical company in this theme (2020).
The whole theme swung hardest in 2022: 25 of 58 companies on the "Worse" side.
32 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「In Japan, inbound tourism remains strong and supply chains are normalizing, but the environment remains challenging, including due to higher prices, labor shortages, and the need to respond to wage increases.」
In addition to labor shortages, the need to respond to wage increases is described as an ongoing cost and business-environment burden. - FY2025-H1WorsenedAnnual report
「In Japan, inbound tourism is increasing beyond pre-pandemic levels and supply chains are normalizing, but the environment surrounding companies is becoming increasingly challenging due to the weaker yen, labor shortages, wage increases, and higher interest rates, among other factors.」
The company states that the environment surrounding companies is becoming increasingly challenging due to labor shortages and wage increases, as well as the weaker yen and higher interest rates. - FY2024Changes in the business environment, including labor shortages, wage increases, and higher interest ratesAnnual report
「In Japan, inbound demand is performing well and supply chains are returning to normal, but the environment surrounding companies is changing significantly because of labour shortages, wage increases, higher interest rates and other factors, testing their ability to respond.」
In addition to labor shortages and the need to respond to wage increases, higher interest rates are described as a change in the environment surrounding companies. - FY2024-Q3WorsenedAnnual report
「In Japan, inbound tourism remains strong and supply chains are normalizing, but the environment surrounding companies remains challenging, including labor shortages and the need to respond to wage increases.」
In addition to labor shortages, the need to respond to wage increases has been identified as a factor making the business environment more challenging. - FY2021-Q2RestatedAnnual report
「During the second quarter of the current consolidated cumulative period, there were no new business or other risks, and no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no significant new developments or changes concerning the pressure on profit from higher personnel costs. - FY2020-Q1First statedAnnual report
「The Industrial Products segment maintained relatively strong performance in automotive-related components and housing equipment-related components, but higher material and labor costs resulted in higher revenue and lower profit.」
Higher personnel costs are identified for the first time as a standalone factor behind higher revenue and lower profit in the Industrial Supplies segment.