Uncertainty in the Business Environment Due to Geopolitical Risks, Inflation, Higher Raw Material Costs and Other Factors
First written in FY2024-Q3. 4 of 7 entries say "Worsened", first in FY2024. Latest entry: 2026-08-06.
Migalo Holdings moved to the "Worse" side of this theme in 2025, 5 years after the typical company in this theme (2020).
The whole theme swung hardest in 2022: 106 of 135 companies on the "Worse" side.
76 other companies' latest entry also says "Worsened".
- 2026-08-06WorsenedEarnings
「In addition to upward pressure on material and energy prices following turmoil in the Middle East, worsening labor shortages and supply constraints in the construction industry, particularly in regional areas, are affecting construction costs and construction schedules. Although the government has introduced economic measures, the impact on construction investment must be closely monitored for the time being.」
In addition to previously cited Middle East conditions and higher material prices, labor shortages and supply constraints in construction were specified as factors affecting construction costs and schedules. - FY2026WorsenedAnnual report
「Uncertainty about the outlook has increased recently due to turmoil in the Middle East, and the situation is expected to remain difficult to view optimistically.」
In addition to U.S. tariff policies and concerns over a global slowdown, the Group cites increased uncertainty caused by turmoil in the Middle East. - FY2026-H1RestatedAnnual report
「During the interim period from 1 April 2025 to 30 September 2025, Japan’s economy remained uncertain, amid downward pressure on exports from U.S. government tariff policies, weak capital investment resulting from that pressure, and concerns over a slowdown in the global economy.」
The Group explains that uncertainty has continued due to U.S. tariff policies, weak capital investment, and concerns over a global economic slowdown. - FY2025WorsenedAnnual report
「Although there are expectations that the domestic economy will slow as concerns emerge that corporate earnings may decline following a decrease in exports resulting from U.S. government tariff policies, inbound demand remains solid and DX and software investment to save labor in response to labor shortages is expected to increase. The Group therefore needs to closely monitor this highly uncertain economic environment.」
In addition to the weak yen, higher raw material costs, and rising interest rates, the Group cites U.S. tariff policies and concerns over slowdowns in the global and Chinese economies as sources of uncertainty. - FY2025-H1RestatedAnnual report
「During the interim period, Japan’s economy was affected by various factors, including price increases for materials and services caused by higher raw material costs resulting from the historically weak yen, rising long-term interest rates following changes to the Bank of Japan’s monetary policy, and financial-market volatility stemming from concerns over a slowdown in the U.S. economy. Uncertainty continues, including the effects of changes to various policies following the change in prime minister and the House of Representatives election, and the impact of the U.S. presidential election on the global economy, making management decisions difficult.」
In addition to the weak yen, higher raw material costs, rising interest rates, and financial-market volatility, the Group cites policy changes and the effects of the U.S. presidential election as continuing sources of uncertainty. - FY2024WorsenedAnnual report
「Rising construction costs and material prices caused by inflation in other countries, domestic labor shortages, the emergence of geopolitical risks overseas, and the historically weak yen have become particularly pronounced. Controlling these risks in project profitability has become increasingly important.」
The Group states that increases in construction costs and material prices have become pronounced and provides greater detail on external-environment risks. - FY2024-Q3First statedAnnual report
「Various factors affecting the economic environment overlapped, including the emergence of geopolitical risks overseas, global supply-demand conditions, successive price increases for materials and services caused by higher raw material costs resulting from inflation, and upward pressure on long-term interest rates following changes to the Bank of Japan’s monetary policy, making management decisions difficult.」
The Group identifies geopolitical risks, inflation, higher raw material costs, and upward pressure on long-term interest rates as factors affecting the operating environment.