Shortages of Skilled Workers and Rising Labor and Material Costs

「Soaring construction materials prices and changes to construction schedules due to the declining working-age population」

「In Japan's construction market, the severe business environment is expected to continue, including persistently surging prices for various materials, reviews of construction plans due to shortages of building materials made from petrochemical products, and longer construction periods due to the declining working-age population.」

「In Japan's construction market, the severe business environment is expected to continue, including persistently surging prices for various materials, the resulting reviews of construction plans, and longer construction periods due to the declining working-age population.」

「The Group continues to face a challenging business environment, including persistently high construction materials prices, a shrinking working-age population and a sharp rise in ingot prices.」

「In Japan's construction market, a severe business environment is expected to continue, including surging prices for various materials and the resulting reviews of construction plans, a declining working-age population, and longer construction periods associated with the so-called "2024 problem."」

「During the cumulative third quarter, the Group's results, including those of the company and its consolidated subsidiaries, reflected an uncertain outlook amid the overall decline in new housing starts, soaring construction materials prices, increasingly persistent labor shortages and currency movements. Despite these conditions, the order backlog remained strong, particularly for large-scale projects.」

「During the cumulative second quarter, the Group's results, including those of the company and its consolidated subsidiaries, reflected a continued challenging business environment in the building materials business, centered on its core building sash products. The order environment remained strong, particularly for large-scale projects, but miscellaneous materials prices soared, labor shortages became more pronounced, and new housing starts overall continued to decline.」

「In each business area, raw material costs, prices for various materials and fuel costs, among other expenses, continue to surge, and the severe business environment is expected to continue.」

「In each business area, raw material costs, prices for various materials and fuel costs, among other expenses, continue to surge, and the severe business environment is expected to continue.」

「In addition, all business areas are being affected by surging raw material, various material, and fuel costs, resulting in a difficult business environment.」

「The extruded products sales business and the environmental business have been affected by surging raw material costs and prices for various materials.」

「In the building materials business, centered on the core building sash business, new housing starts are showing signs of recovery for condominiums and detached homes. However, the outlook is becoming more uncertain due to the impact of surging aluminum ingot market conditions and prices for various materials.」

「Operating profit declined to ¥596 million, down ¥556 million year on year, mainly due to deterioration in margins in the building materials business. Margins deteriorated due to intensifying competition in the extruded products sales business and higher prices for various materials, while fixed costs increased in connection with product development investment in the building materials business.」

「Although volumes increased in the extruded products sales business, the business environment was severe due to lower sales of aluminum-processed products and the impact of higher prices for various materials.」

「Although volumes were secured in the extruded products sales business, the business environment was severe due to lower sales of precision-processed aluminum products and the impact of higher prices for various materials.」

「In the extruded products sales business, revenue increased 3.1% year on year to ¥22.519 billion due to higher selling prices linked to aluminum ingot market prices. However, segment profit declined to ¥53 million, down ¥345 million year on year, due to intensifying competition and higher prices for various materials.」

「In the building materials business, despite severe and intensifying competition, efforts to win short-delivery projects in the building materials business for buildings and expand the product range in the residential building materials business increased net sales 0.2% year on year to ¥39.861 billion. However, higher aluminum ingot prices and fixed costs resulted in segment loss of ¥180 million, compared with segment profit of ¥895 million in the same period of the previous year, and lower profit.」

「In the extruded products sales business, revenue increased 1.4% year on year to ¥5.198 billion due to higher volumes. However, the impact on costs of higher prices for various materials and other items resulted in a decline in segment profit to ¥102 million, compared with ¥169 million in the previous corresponding quarter.」

「We expect the severe business environment, including persistently high construction costs and a decline in the number of buildings commencing construction, to continue.」

「The floor area of non-wooden building starts declined year on year for 2 consecutive years through fiscal 2015 and remained at a low level during the first 2 quarters of the current consolidated fiscal year. The outlook has become uncertain due in part to higher material prices and shortages of skilled workers.」

「There are also concerns that issues including the impact of exchange-rate fluctuations on raw material prices, shortages of skilled workers, and increases in labor and material costs may affect construction progress.」