Insufficient response to changing market needs and demand restraint
First written in FY2023. 2 of 6 entries say "Restated". Latest entry: FY2027-H1.
Otani Kogyo moved to the "Worse" side of this theme in 2024, 5 years after the typical company in this theme (2019).
The whole theme swung hardest in 2022: 130 of 174 companies on the "Worse" side.
64 other companies' latest entry also says "Restated".
- FY2027-H1RestatedAnnual report
「Although demand for construction is strong, construction schedules continue to be postponed and process plans revised due to soaring construction costs and shortages of specialists, including those for facilities and equipment.」
Although construction demand remains strong, extended project schedules and reviews of construction plans caused by soaring construction costs and shortages of skilled workers continue, leaving factors that constrain demand recovery. - FY2026-H1Signs of recovery alongside demand constraintsAnnual report
「In the building materials segment, there are signs of recovery as large-scale redevelopment projects are getting fully underway. However, factors that delay construction, including soaring construction costs and labor shortages, remain, and the overall situation remains unchanged, with project schedules being extended and construction plans reviewed. Conditions therefore cannot be described as progressing smoothly.」
While signs of recovery were indicated as large-scale redevelopment projects got fully underway, soaring construction costs, labor shortages, extended project schedules and reviews of construction plans continued, with demand recovery coexisting with constraining factors. - FY2025WorsenedAnnual report
「In the building materials segment, demand for construction projects remained strong, but concerns including higher construction costs and labor shortages persisted. Although there were no orders for large projects from the second half onward, the Company continued to secure orders for small and medium-sized projects.」
Although construction demand remains strong, no large-scale projects have been won since the second half of the fiscal year, against a backdrop of soaring construction costs and labor shortages, and restraints on demand have emerged as a specific feature of the order environment. - FY2025-H1RestatedAnnual report
「The construction industry has considerable demand for building projects, but concerns remain regarding the 2024 logistics problem, the reassessment of construction costs and construction delays caused by labor shortages.」
Although demand for construction projects remains strong, logistics issues, reviews of construction costs and project delays caused by labor shortages continue to represent an environment that could constrain demand and operating results. - FY2024MaterialisedAnnual report
「Fiscal 2024 is widely viewed as a period of stagnation, and the number of large-scale projects remains low. This is because concerns have arisen over project delays resulting from reviews of construction costs and shortages of transport and construction workers associated with the 2024 problem.」
Despite strong construction demand, the company described the limited number of large-scale projects, reviews of construction costs, and restraints on demand and project delays resulting from shortages of transport and construction workers as specific aspects of the business environment. - FY2023First statedAnnual report
「However, if the company is unable to respond appropriately to economic trends and changes in needs in each market, this may pose a risk to its medium- to long-term operating results and financial condition. In addition, deterioration in the international situation and restraints on capital investment and construction demand resulting from an economic slowdown may pose risks to the company’s operating results and financial condition.」
For the first time, the company explicitly identified insufficient responses to economic trends and changing needs in each market, as well as restraints on capital investment and construction demand resulting from deterioration in the international situation and an economic slowdown, as major risks arising from changes in the business environment.