Risks from material and energy prices and fluctuations in subcontractors' delivery schedules and quality
First written in FY2016. 10 of 19 entries say "Restated". Latest entry: FY2026-H1.
Giken moved to the "Worse" side of this theme in 2022, 1 year before the typical company in this theme (2023).
The whole theme swung hardest in 2024: 10 of 32 companies on the "Worse" side.
34 other companies' latest entry also says "Restated".
- FY2026-H1RestatedAnnual report
「On the production side, purchase prices for raw materials, parts and other inputs continue to rise, and we are considering appropriate responses while closely monitoring developments.」
It is reiterated that purchase prices for raw materials, components and other items continue to rise and that responses are being considered while developments are closely monitored. - FY2025RestatedAnnual report
「In our business, users continued to face pressure on their management from factors including the reduced scale of public works projects due to rising prices and higher labor costs.」
The impact of rising prices, the reduced scale of public works projects and higher labor costs on users continues to be described. - FY2025-H1RestatedAnnual report
「In our business, users continued to face pressure on their management from factors including the reduced scale of public works projects due to rising prices and higher labor costs.」
The reduced scale of public works projects due to rising prices and higher labor costs continue to put pressure on users' management. - FY2024WorsenedAnnual report
「However, persistently high raw material and construction material prices, together with rising labor costs, put pressure on profits, and the construction industry continued to face a challenging operating environment. In our business, higher costs and the resulting reduction in the scale of public works projects had a material impact on users’ appetite for capital investment.」
In addition to persistently high material prices, it cites rising labor costs, with the reduced scale of public works projects and their impact on users’ appetite for capital investment continuing and becoming more pronounced. - FY2024-Q3RestatedAnnual report
「However, continued high construction material prices and other factors caused the scale of public works projects to remain reduced, affecting our sales of large special-purpose machines and components with high gross margins used to build permanent structures. We have also revised selling prices in response to soaring raw material and component prices, but it remains necessary to continue monitoring developments.」
It continues to describe the reduced scale of public works projects due to persistently high construction material prices, the impact on sales of large special-purpose machines and components, and the need to monitor developments even after revising selling prices. - FY2024-Q2RestatedAnnual report
「In manufacturing, we have revised prices in response to soaring raw material and component prices, but we will need to continue monitoring developments.」
It reiterates the impact of soaring raw material and component prices on manufacturing, the response through price revisions, and the need to continue monitoring developments. - FY2024-Q1RestatedAnnual report
「Raw material and component prices also remained high in manufacturing, requiring continued monitoring of developments.」
It states that persistently high raw material and component prices continued and that manufacturing cost risks require ongoing monitoring. - FY2023WorsenedAnnual report
「The manufacture of machinery and other products was also affected by the weaker yen and other factors, while raw material and other component prices remained high.」
It states that persistently high raw material and component prices continued to raise manufacturing costs and formed part of the full-year operating environment. - FY2023-Q3WorsenedAnnual report
「As the prices of steel and other materials soared, materials accounted for a larger share of public works budgets, resulting in a tendency toward lower construction volumes. This raised concerns about the impact on sales of products and components used to build permanent structures.」
It states that soaring prices for steel and other materials manifested themselves as a higher proportion of material costs in public works budgets and a tendency toward lower construction volumes, creating concerns about the impact on product and component sales. - FY2023-Q2WorsenedAnnual report
「However, soaring steel prices have led to a tendency toward smaller construction projects, and their impact on the business has begun to emerge. As this trend is expected to continue for the time being, we will continue to monitor developments.」
It states that soaring steel prices have resulted in smaller construction projects and that their impact on the business has begun to emerge. - FY2023-Q1RestatedAnnual report
「However, energy costs and component prices remained high, requiring continued monitoring and appropriate action.」
It reiterates that energy costs and component prices remain high, creating a risk of higher costs and a need for action. - FY2022WorsenedAnnual report
「The economic outlook remained uncertain due to soaring raw material and energy costs against the backdrop of the situation in Ukraine and other factors. In response, from orders received in June, we raised product prices by 5–10% to pass on the increases and absorb higher raw material and other costs.」
The risk from higher material and energy prices intensified as an actual business condition, and we responded by raising product prices by 5–10% in response to higher raw material and other costs. - FY2022-Q2MaterialisedAnnual report
「The effects of shortages of electronic components, logistics disruptions, and soaring raw material and construction material prices, although limited, have begun to emerge and require continued monitoring.」
It states that the previously identified risks relating to material prices, procurement, and delivery times have materialized as actual impacts in the form of electronic component shortages, logistics disruptions, and soaring raw material and construction material prices. - FY2019RestatedAnnual report
「However, fluctuations in material and energy costs, unexpected product defects, and changes in the terms of transactions with suppliers and subcontractors, including delivery times, costs, and quality, could affect our Group’s operating results.」
It continues to identify material and energy prices, product defects, and fluctuations in subcontractors’ delivery times, costs, and quality as risks. - FY2018RestatedAnnual report
「However, fluctuations in material and energy costs, unexpected product defects, and changes in the terms of transactions with suppliers and subcontractors, including delivery times, costs, and quality, could affect our Group’s operating results.」
It continues to identify material and energy prices, product defects, and fluctuations in subcontractors’ delivery times, costs, and quality as risks. - FY2017MitigatedAnnual report
「For machinery manufacturing, we design the machinery in-house and outsource production to external partner companies. We maintain our production system by enforcing standards for delivery-time and quality control, and by expanding our outsourcing partners in response to changes in production costs and demand.」
It indicates that stricter application of management standards and an expansion of the subcontractor base will address risks from fluctuations in subcontractors’ delivery times, quality, and costs. - FY2016First statedAnnual report
「However, fluctuations in material and energy costs, unexpected product defects, and changes in the terms of transactions with suppliers and subcontractors, including delivery times, costs, and quality, could affect our Group’s operating results.」
In relation to its outsourced manufacturing structure, it identifies material and energy costs, product defects, and fluctuations in the delivery times, costs, and quality of suppliers and subcontractors as risks.