Capturing Domestic Infrastructure and Steel Structure Demand

「建設業を取り巻く人手不足の影響や建設費用の増加から建設工期の長期化や遅延、建設計画の見直し又は中止が顕在化し、全体的な鉄骨需要量の低迷によって設備投資が抑制傾向にある中、コスト上昇や一部部品の長納期化も加わり、極めて厳しい状況にあります。」

「Although construction activity remained sluggish due to reviews and cancellations of construction plans and construction delays, revenue was supported by construction demand for steel structures, mainly in urban areas, as well as logistics warehouses and data centers. In addition, the number of projects aimed at reducing labor requirements increased and order prices rose, resulting in revenue of ¥3,471 million, up 14.4% year on year.」

「Although demand is expected for steel structures, particularly in urban areas, infrastructure reinforcement under the National Resilience Basic Plan, and construction of logistics warehouses, data centers and other facilities, the burden of rising construction costs has led to frequent reviews or cancellations of construction plans. Combined with the economic conditions described above, this has resulted in a tendency for companies to restrain capital investment, making the business environment extremely challenging.」

「Although construction demand for steel structures, mainly in urban areas, as well as logistics warehouses and data centers, is expected, construction activity remained sluggish due to reviews of construction plans and construction delays. As a result, revenue was ¥3,034 million, down 18.9% year on year.」

「In the business environment surrounding our Group, domestic demand is expected for steel structures, particularly in urban areas, infrastructure reinforcement under the National Resilience Basic Plan, logistics warehouses and data centers. However, construction demand has not increased due to rising steel and labor costs for buildings and steel structures, reviews of construction plans caused by labor shortages, and delays to construction schedules. Alongside uncertain economic conditions, there has been a tendency to curb capital investment, while persistently high procurement prices and various other cost increases associated with rising prices are also beginning to affect earnings and profitability.」

「Although construction demand overall was sluggish due to persistently high steel prices and labor shortages, construction of steel structures, mainly in urban areas, as well as logistics warehouses and data centers, remained solid. As a result, revenue was ¥3,739 million, up 15.5% year on year.」

「By product category, sales of structural steel processing machines were ¥2,761 million, up 46.7% year on year; circular-saw cutting machines, ¥182 million, up 46.8%; dies, ¥336 million, up 9.3%; contract business and other operations, ¥211 million, up 19.2%; parts, ¥444 million, up 13.6%; and services, ¥89 million, up 16.6%.」

「Structural steel processing machines: ¥1,728 million, up 20.3% year on year」

「As construction of steel structure projects, distribution warehouses, data centers, and other facilities, mainly in urban areas, remained firm, sales reached ¥3,239 million, up 10.6% year on year.」

「Against a backdrop of firm infrastructure demand, mainly in urban areas」

「Construction of steel structure projects, distribution warehouses, data centers, and other facilities, mainly in urban areas, remained firm, resulting in sales of ¥2,927 million, up 39.7% year on year.」

「The company was in a transition period from Tokyo Olympic-related demand to large-scale construction demand, with the latter expected in the second half of the following consolidated fiscal year. Although construction of distribution warehouses and data centers increased due to the impact of COVID-19, construction of hotels and offices declined because projects were postponed or cancelled, resulting in sales of ¥2,095 million, down 40.1% year on year.」

「Although construction demand remained firm, construction work in central Tokyo was scheduled to be postponed or suspended during preparations for the 2020 Tokyo Olympic and Paralympic Games, which were originally scheduled to be held, and corporate capital investment demand was weak. As a result, sales fell to ¥3,497 million, down 8.7% year on year.」

「Although construction demand for high-rise buildings, commercial facilities, and warehouses, mainly in the Tokyo metropolitan area, remained high, labor shortages among customers created tight labor conditions. As the company expanded proposal-based sales of automation systems addressing labor reduction and reduced setup requirements, sales reached ¥3,831 million, up 17.9% year on year.」

「Despite demand for construction of high-rise buildings, commercial facilities, and warehouses, mainly in the Tokyo metropolitan area, sales were affected by longer lead times for component procurement and fell to ¥3,248 million, down 5.1% year on year.」

「In addition to demand related to the Tokyo Olympics, construction of high-rise buildings, commercial facilities, and warehouses, mainly in the Tokyo metropolitan area, and efforts to address aging infrastructure such as expressways and public facilities progressed, resulting in sales of ¥3,425 million, up 7.8% year on year.」

「We will designate section steel processing machines as priority products, shorten production lead times, review appropriate inventory levels and establish a rapid supply system that allows us not to miss business opportunities.」