Risk of deterioration in cost ratios and profit margins due to lower engineer utilization
First written in FY2016. 15 of 20 entries say "Mitigated", first in FY2017-Q1. Latest entry: 2026-08-25.
The whole theme swung hardest in 2024: 3 of 7 companies on the "Worse" side.
0 other companies' latest entry also says "Mitigated".
- 2026-08-25MitigatedEarnings presentation
「Engineers excluding new graduates and potential hires maintained high utilization rates」
Regarding the risk of declining utilization rates, the company states that engineers excluding new graduates and potential hires maintained high utilization rates. The statement is limited to that group. - FY2025Decline in annual average utilization rateAnnual report
「End of the 20th fiscal period 1,200 95.4% End of the 19th fiscal period 1,154 97.4%」
The annual average engineer utilization rate declined from 97.4% in the 19th fiscal period to 95.4% in the 20th fiscal period. Meanwhile, the number of engineers increased from 1,154 to 1,200. - FY2023MitigatedAnnual report
「This was mainly due to the annual average engineer utilization rate reaching 97.9% in the core design and development outsourcing business, although the number of technical employees fell to 1,143 at the end of the 18th fiscal period, down 14 from the end of the previous fiscal year.」
Although the number of technical employees declined, the annual average engineer utilization rate rose from 96.6% in the previous fiscal year to 97.9%. - FY2023-Q2MitigatedAnnual report
「The increase in orders, mainly for temporary staffing services, and the higher utilization rate of engineers, including younger engineers, contributed to sales and profit.」
The company stated that the higher utilization rate of engineers, including younger engineers, contributed to sales and profit, indicating that the risk of lower profit due to declining utilization was contained. - FY2022MitigatedAnnual report
「This was due to the annual average engineer utilization rate reaching 96.6%.」
The annual average engineer utilization rate rose from 94.1% in the previous fiscal year to 96.6%, indicating that the risk of lower profit due to declining utilization was contained. - FY2022-Q3RestatedAnnual report
「The increase in contract-work orders and the above-plan improvement in utilization rates among technical employees, including younger employees, contributed to higher sales and profit.」
The greater-than-planned improvement in the utilization rate of engineers, including younger engineers, continued, reaffirming that the risk of lower profit due to declining utilization was contained. - FY2022-Q2MitigatedAnnual report
「The increase in contract-work orders and the above-plan improvement in utilization rates among technical employees, including younger employees, contributed to higher sales and profit.」
The company stated that it achieved greater-than-planned improvement in the utilization rate of engineers, including younger engineers, indicating that the risk of lower profit due to declining utilization was contained. - FY2022-Q1MitigatedAnnual report
「The increase in orders, mainly for contract work, and the maintenance of a high utilization rate among engineers, including younger engineers, contributed to higher sales and profit.」
The company stated that maintaining a high utilization rate among engineers, including younger engineers, together with increased orders for contract work, contributed to higher sales and profit. - FY2021RestatedAnnual report
「We are enhancing engineer training to improve skills, meet the demand, needs and trust of customer companies, and maintain a high utilization rate.」
The company continues to secure a high utilization rate through engineer training. The full-year average utilization rate was 94.1%, down from 97.3% in the previous year. - FY2020-Q2RestatedAnnual report
「Although engineer utilization remained high, sales increased while profit declined due to higher personnel expenses resulting from a review of employee compensation, among other factors.」
Engineer utilization has remained high, and no worsening risk from lower utilization has been disclosed. However, higher personnel expenses resulting from a review of employee compensation have contributed to lower profit. - FY2019-Q3MitigatedAnnual report
「Although engineer utilization remained high, sales increased while profit declined due to higher personnel expenses resulting from fewer operating days during the extended holiday period and a review of employee compensation, among other factors.」
Engineer utilization has remained high, with no indication of worsening risk from lower utilization. However, fewer operating days during the extended holiday period and higher personnel expenses contributed to lower profit. - FY2019-Q2MitigatedAnnual report
「Although engineer utilization remained high, sales increased while profit declined due to higher personnel expenses resulting from a review of employee compensation, among other factors.」
Engineer utilization has remained high, with no indication of worsening risk from lower utilization. However, higher personnel expenses resulting from a review of employee compensation contributed to higher sales but lower profit. - FY2018MitigatedAnnual report
「The high level of engineer utilization and the expansion of high-value-added contract work, among other factors, contributed to higher sales and profit.」
The company stated that the high level of engineer utilization, together with the expansion of contract work, contributed to higher sales and profit. - FY2018-Q3MitigatedAnnual report
「The high level of engineer utilization and the expansion of contract and temporary staffing services, among other factors, contributed to higher sales and profit.」
The high level of engineer utilization, together with the expansion of contract and temporary staffing services, contributed to higher sales and profit in the design and development outsourcing business. - FY2018-Q2MitigatedAnnual report
「The high level of engineer utilization and the expansion of contract and temporary staffing services, among other factors, contributed to higher sales and profit.」
The high level of engineer utilization, together with the expansion of contract and temporary staffing services, contributed to higher sales and profit in the design and development outsourcing business. - FY2018-Q1MitigatedAnnual report
「The high level of engineer utilization and the expansion of contract and temporary staffing services, among other factors, contributed to higher sales and profit.」
The high level of engineer utilization, together with the expansion of contract and temporary staffing services, contributed to higher sales and profit in the design and development outsourcing business. - FY2017MitigatedAnnual report
「In this segment, sales were ¥7,940 million, up 13.0% year on year, while segment profit (operating profit) was ¥1,497 million, up 15.3%, with a segment profit (operating profit) margin of 18.9%. The high level of engineer utilization and the expansion of high-value-added contract work, among other factors, contributed to higher sales and profit.」
The high level of engineer utilization contributed to higher sales and profit in the design and development outsourcing business. - FY2017-Q3MitigatedAnnual report
「The expansion of high-value-added contract work and the high utilization rate of engineers contributed to higher sales and improved profitability.」
The company stated that the high engineer utilization rate continued to contribute to higher sales and improved profitability for the nine months ended the third quarter. - FY2017-Q1MitigatedAnnual report
「The expansion of high-value-added contract work and the high utilization rate of engineers contributed to higher sales and improved profitability.」
The company stated that the high engineer utilization rate contributed to improved profitability in the first quarter, with no indication of worsening risk from lower utilization. - FY2016First statedAnnual report
「However, if utilization declines due to changes in the economic environment, trends among customer companies, intensifying competition with other companies, major disasters or other factors, the Group's operating performance and financial condition may be affected.」
This utilization risk reflects the cost structure under which labor costs are incurred for permanently employed engineers even during periods when they are not assigned to temporary staffing or contract work.