Cancellations and Postponements of Structural Steel Projects Due to COVID-19 and Slowing Demand
First written in FY2021-Q2. 9 of 16 entries say "Worsened", first in FY2021. Latest entry: FY2026.
TAKADAKIKO(Steel Construction) moved to the "Worse" side of this theme in 2024, 3 years after the typical company in this theme (2021).
The whole theme swung hardest in 2024: 6 of 14 companies on the "Worse" side.
1 other company's latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Demand in both the bridge and steel structures businesses has not recovered since the fiscal year before the previous fiscal year, when conditions were sluggish, and the difficult order environment continued during the fiscal year.」
Despite expectations for a recovery in demand through the previous fiscal year, demand for both bridges and steel structures remained without a recovery. There were also signs of suspension and postponement among large steel structures projects. - FY2026-H1WorsenedAnnual report
「In the industry, demand in both the bridge and steel structures businesses has not recovered since the fiscal year before the previous fiscal year, when conditions were sluggish, and competition for orders remained severe. In particular, the volume of orders for new steel bridges declined further from the previous fiscal year, making competition for orders even more intense. Although potential demand exists for large-scale redevelopment projects in the Tokyo metropolitan area and integrated resort-related projects in the Kansai region, some large projects were canceled or postponed due to soaring construction costs and labor shortages, leaving continued uncertainty over the outlook.」
Demand did not recover from the previous fiscal year, and the volume of orders for new steel bridges declined further. Large projects were also canceled or postponed in the steel structures business, and difficult conditions continued despite expectations for a recovery in demand after COVID-19. - FY2025WorsenedAnnual report
「In the industry, demand in both the bridge and steel structures businesses has not recovered from the low levels seen since the previous fiscal year, and difficult operating conditions continue.」
Contrary to the expectations for a recovery in demand expressed in the previous fiscal year, no recovery was seen in demand for bridges or steel structures, and demand for structural steel remained at a low level. - FY2025-H1WorsenedAnnual report
「In this industry, demand in both the bridge and steel structures businesses showed no recovery from the previous fiscal year, when it remained sluggish, and the difficult order environment continues. In particular, procurement volumes for new bridges were expected to decline further from the previous fiscal year, and intense competition for orders continued.」
No recovery in demand was seen from the previous fiscal year, and the order environment remained difficult for both the bridge and steel structures businesses. The volume of orders for new bridges is expected to decline further. - FY2024WorsenedAnnual report
「Although large-scale redevelopment projects in the Tokyo metropolitan area remained firm, steel demand was sluggish during the year due to project cancellations and downsizing caused by unprecedented construction-cost increases, difficulties arranging specialist contractors, and shortages of engineers and skilled workers.」
Contrary to expectations for a recovery in demand from the previous fiscal year, construction plans were canceled or scaled back due to sharply higher construction costs and shortages of personnel and specialist contractors, and demand for structural steel remained sluggish. - FY2024-Q3WorsenedAnnual report
「In the steel structures business, large-scale redevelopment projects in the Tokyo metropolitan area remained firm. However, higher construction prices, driven by rising labour and logistics costs as well as persistently high prices for other materials and energy, led to a cautious stance toward new construction investment, and demand for steel structures entered a declining phase.」
Although large-scale redevelopment in the Tokyo metropolitan area remains solid, higher construction prices due to rising costs have made new construction investment more cautious, and demand for structural steel has moved from the previously expected recovery and transitional period into a downturn. - FY2024-Q2RestatedAnnual report
「In the steel structures business, large-scale redevelopment projects in the Tokyo metropolitan area generally progressed smoothly. However, persistently high prices for other materials and energy, together with labour shortages, drove up construction prices, prompting a cautious stance toward new construction investment and prolonging the transitional period in demand for steel structures.」
Although large-scale redevelopment in the Tokyo metropolitan area remains solid, high costs and labor shortages have made new construction investment more cautious, and the transitional period in demand for structural steel continues. - FY2024-Q1WorsenedAnnual report
「In the steel structures business, large-scale redevelopment projects, mainly in the Tokyo metropolitan area, generally progressed smoothly, but the recovery in demand for structural steel was delayed and the number of projects launched in the first quarter was low.」
Although large-scale redevelopment projects generally progressed smoothly, the recovery in demand for structural steel was delayed and the number of projects launched in the first quarter was low. This explicitly indicated a delay in the recovery compared with the expectations for a recovery expressed in the previous fiscal year. - FY2023The transitional period in steel structures demand and expectations for a recoveryAnnual report
「In the steel structures business, demand for structural steel entered a transitional period in the fiscal year ending March 2023, partly due to soaring prices for steel and other materials and energy, and the number of large projects launched declined. However, numerous large-scale redevelopment projects are expected to begin construction from 2024 onward, and demand for structural steel is expected to remain solid from the fiscal year ending March 2024.」
Although the fiscal year ending March 2023 was a transitional period for demand for structural steel, partly due to soaring material and energy prices, the company expects demand to recover through large-scale redevelopment projects from 2024 onward. - FY2023-Q2RestatedAnnual report
「In the steel structures business, large-scale redevelopment projects, mainly in the Tokyo metropolitan area, were generally ordered smoothly. However, combined with issues involving schedule slippage and the impact of soaring steel and ancillary-material prices, the order environment for fabricators continued to lack clarity.」
Although orders for large-scale redevelopment projects are generally progressing, the order environment for the steel structures business after COVID-19 remains uncertain due to schedule delays and surging material prices. - FY2023-Q1WorsenedAnnual report
「In the steel structures business, large-scale redevelopment projects, mainly in the Tokyo metropolitan area, generally progressed smoothly. However, the prolonged impact of COVID-19 and soaring steel and ancillary-material prices remained significant, and the order environment for fabricators continued to lack clarity.」
Although large-scale redevelopment generally progressed, the impact of prolonged COVID-19 and surging steel and auxiliary material prices was substantial, leaving uncertainty in the order environment for the steel structures business. - FY2022MitigatedAnnual report
「In the steel structures business, large projects have come to market one after another, including not only large-scale redevelopment projects mainly in the Tokyo metropolitan area but also logistics warehouses, data centers and manufacturing plants, and demand for structural steel finally began to recover after emerging from its trough.」
The company stated that the prolonged transitional period in steel structures demand caused by COVID-19 had ended and that demand for structural steel had entered a recovery trend. - FY2022-Q2MitigatedAnnual report
「In the steel structures business, demand for structural steel has recovered to pre-COVID levels, supported not only by large-scale redevelopment projects, mainly in the Tokyo metropolitan area, but also by solid investment in logistics warehouses and other facilities and strong corporate capital investment, particularly among manufacturers.」
Demand for structural steel recovered to pre-COVID levels, supported by investment in logistics warehouses and other facilities and corporate capital investment. However, profitability remains under pressure due to higher steel and auxiliary material prices. - FY2021WorsenedAnnual report
「In the steel structures business, the prolonged impact of COVID-19 has caused the transitional period to last longer than expected. Although there is an optimistic view that demand will recover from the second half of the fiscal year ending March 2022, driven by large-scale redevelopment projects mainly in the Tokyo metropolitan area, a difficult business environment is expected, including tough price negotiations as general contractors have fewer projects on hand due to the prolonged transitional period, as well as increases not only in steel prices but also in labor and transportation costs.」
The transitional period in demand for steel structures has lasted longer than expected, resulting in a difficult business environment accompanied by price negotiations and rising labor and transportation costs. The company also cited expectations for a recovery in demand from the second half of the fiscal year ending March 2022. - FY2021-Q3RestatedAnnual report
「In the steel structures business, large redevelopment projects centred on the Tokyo metropolitan area have not undergone any major changes to their plans. However, some projects in regional areas and smaller projects have been postponed due in part to the impact of COVID-19, and strong uncertainty about the outlook persists.」
Although plans for large-scale redevelopment in the Tokyo metropolitan area remain in place, postponements of regional and small-scale projects due to COVID-19 have continued, leaving significant uncertainty over the demand outlook for the steel structures business. - FY2021-Q2First statedAnnual report
「Although large-scale redevelopment projects in the Tokyo metropolitan area are expected to proceed as scheduled in the steel structures business, some hotel and small-scale projects have been canceled or postponed, and signs of weakness have begun to emerge in previously solid demand for structural steel.」
Although large-scale redevelopment is expected to proceed as scheduled, cancellations and postponements have occurred in hotel and small-scale projects, providing the first concrete indication in actual project trends of a slowdown in demand for structural steel.