Demand Decline Due to Economic Stagnation, Cuts in Public Investment, and Declining Construction Investment
First written in FY2016. 10 of 32 entries say "Restated". Latest entry: 2026-09-09.
Nikko moved to the "Worse" side of this theme in 2022, 2 years after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 17 of 32 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- 2026-09-09MitigatedEarnings presentation
「Domestic demand for equipment renewals using subsidies continues.」
Domestic demand for equipment renewals using subsidies continues, indicating that the impact of demand-decline risk in Japan is easing. - FY2026MitigatedAnnual report
「New orders for asphalt plants remained firm, supported not only by replacement demand using energy-saving support programs but also by solid demand for equipment that reduces environmental impact and improves energy efficiency, resulting in a significant increase in the order backlog.」
Capital investment demand from road paving companies is showing signs of recovery, and replacement demand using energy-saving support programs and equipment that reduces environmental impact remains firm, suggesting that the immediate impact of the risk of declining demand is easing. - FY2026-H1Firm replacement demand, but delays in civil engineering work constrain deliveriesAnnual report
「New orders also remained stable, centered on capturing strong replacement demand for asphalt plants using energy-saving support programs. However, civil engineering work and other work required before plant installation was tending to be delayed because of labor shortages and working-hour constraints. As the number of projects affected by these delays and consequently by delays in the delivery of the company’s products increased, net sales for the interim consolidated accounting period were ¥21.116 billion, down 6.7% year on year.」
While replacement demand and orders for asphalt plants using energy-saving support programs remain stable, the number of projects in which civil engineering delays caused by labor shortages and working-hour constraints are affecting product deliveries is increasing. - FY2025-H1Recovery in domestic capital investment demand and continuing slowdown in ChinaAnnual report
「Under these conditions, capital investment demand from road paving companies, the main customers of the company’s asphalt plant-related business, recovered. In the ready-mixed concrete industry, companies continued to perform steadily and capital investment demand remained high, partly because the pass-through of higher costs into prices was progressing relatively well. Consolidated net sales for the interim consolidated accounting period were ¥22.634 billion, up 33.3% year on year.」
In Japan, capital investment demand from road paving companies recovered, while capital investment demand in the ready-mixed concrete industry remained high. At the same time, China’s economy continued to slow, centered on a real estate downturn, with improving domestic demand conditions coexisting with adverse overseas factors. - FY2024-Q3Demand is diverging by business amid China’s slowdownAnnual report
「In China, meanwhile, the economic slowdown centered on the real estate business has continued since last spring, raising concerns about its impact on the global economy.」
While the economic slowdown centered on China’s real estate business continues, the concrete plant-related business and mobile plant projects remain firm, with demand conditions diverging by business. - FY2024-Q2Signs of recovery in domestic equipment upgrades coexist with a slowdown in ChinaAnnual report
「Under these conditions, in Japan, expanded sales of foamed asphalt plant equipment that reduces CO₂ emissions and the concrete plant maintenance business performed steadily, and signs of recovery emerged in capital investment for equipment upgrades by road companies, the main users of asphalt plants. However, China was affected by an economic slowdown and slower growth, and consolidated net sales for the cumulative second quarter were ¥16.982 billion, down 9.5% year on year.」
Although signs of recovery emerged in equipment upgrade investment by road companies in Japan, consolidated net sales declined 9.5% year on year because of China’s economic slowdown and slower growth, with factors improving and worsening the demand environment coexisting. - FY2024-Q1WorsenedAnnual report
「Under these conditions, road paving companies, the company’s major customers, were heavily affected by soaring asphalt prices, and their appetite for equipment upgrades had not yet fully recovered. Net sales for the cumulative first quarter were ¥8.446 billion, down 11.1% year on year.」
Against a backdrop of soaring asphalt prices, major customers’ appetite for equipment upgrades had not recovered, and net sales declined 11.1% year on year. The risk of declining demand continues to materialize. - FY2023WorsenedAnnual report
「In Japan, the company was affected by higher raw material prices and longer lead times for purchased products. Its major customers, road companies, were heavily affected by higher crude oil prices and consequently adopted a wait-and-see approach to equipment upgrades, resulting in a significant decline in sales from the asphalt plant-related business.」
Against a backdrop of higher crude oil prices, major customers became cautious about equipment upgrades, and sales from the asphalt plant-related business declined 5.4% year on year to ¥17.341 billion. - FY2023-Q3RestatedAnnual report
「The company’s group was also affected by higher prices for raw materials and other items and longer lead times for purchased products. As road companies, the main users of asphalt plants, continued to wait and see about equipment upgrades because of uncertainty over economic trends and higher crude oil prices, consolidated net sales for the cumulative third quarter were ¥27.129 billion, down 0.1% year on year.」
Against a backdrop of higher crude oil prices and economic uncertainty, road companies continued to assess the timing of equipment upgrades, and consolidated net sales declined 0.1% year on year. - FY2023-Q2WorsenedAnnual report
「On the revenue side, road companies, the main users of asphalt plants, appeared to be taking a wait-and-see approach to equipment upgrades because of the impact of higher crude oil prices and other factors. As a result, consolidated net sales for the cumulative second quarter were ¥18.760 billion, down 1.3% year on year.」
Against a backdrop of higher crude oil prices, road companies, the main users, became cautious about upgrading equipment, and consolidated net sales also declined 1.3% year on year. Concerns about declining demand were indicated alongside an actual decline in sales. - FY2021MitigatedAnnual report
「To date, the construction-related industry closely associated with the company’s group has not been significantly affected directly in Japan and has performed steadily. The company also expects the impact on Japan’s domestic construction-related industry to remain limited going forward.」
Even during the COVID-19 pandemic, Japan’s domestic construction-related industry remained firm and the company indicated that the impact was limited. However, the risk of declining demand from restrained public investment continues to be disclosed. - FY2021-Q3RestatedAnnual report
「The construction industry closely associated with the company was also affected by the suspension or postponement of construction work at building sites and restrained new investment due to uncertainty about the outlook.」
The suspension or postponement of construction work and restraint on new investment accompanying the spread of COVID-19 continue to be reported, reconfirming the impact on construction-related demand. - FY2021-Q2WorsenedAnnual report
「In the construction industry closely associated with the company, the government’s declaration of a state of emergency resulted in construction work at building sites being suspended or postponed, while new investment was restrained because of uncertainty about the outlook.」
As COVID-19 spread, construction work was actually suspended or postponed and new investment was restrained, giving concrete form to factors driving a decline in construction-related demand. - FY2021-Q1MitigatedAnnual report
「Despite these conditions, the domestic construction-related industry closely associated with the company’s group was relatively unaffected by COVID-19, domestic order-taking activity remained firm, and order value increased approximately 30% year on year.」
The impact of COVID-19 on Japan’s domestic construction-related industry was relatively limited, while domestic order-taking activity remained firm and order value increased approximately 30% year on year, partially mitigating the immediate impact of the risk of declining demand. - FY2020-Q3RestatedAnnual report
「The construction-related industry closely associated with the company’s group continues to perform steadily, but issues such as rising materials and logistics prices and concerns about construction delays caused by labor shortages remain unresolved, and the situation continues to require close monitoring.」
The company reconfirms its assessment that, although the construction-related industry is performing steadily, concerns about construction delays caused by rising materials and logistics prices and labor shortages remain unresolved. - FY2020-Q2RestatedAnnual report
「Under these conditions, the construction-related industry closely associated with the company’s group continues to perform steadily, but issues such as rising materials and logistics prices and concerns about construction delays caused by labor shortages remain unresolved, and the situation continues to require close monitoring.」
The company reconfirms its assessment that, although the construction-related industry is performing steadily, concerns about construction delays caused by rising materials and logistics prices and labor shortages remain unresolved. - FY2020-Q1RestatedAnnual report
「The construction-related industry closely associated with the company’s group continues to perform steadily, but issues such as rising materials and logistics prices and concerns about construction delays caused by labor shortages remain unresolved, and the situation continues to require close monitoring.」
The company reconfirms its assessment that, although the construction-related industry is performing steadily, concerns about construction delays caused by rising materials and logistics prices and labor shortages remain unresolved. - FY2019MitigatedAnnual report
「The construction-related industry closely associated with the company’s group remained generally firm during the fiscal year, including a significant increase in private construction investment. Various projects are scheduled from fiscal 2019 onward, and the company expects both public and private construction investment to remain firm for the time being.」
The company indicates that private investment has increased and that the outlook for both government and private investment remains firm, suggesting some improvement in the outlook for the risk of declining demand. However, asphalt mix shipments declined because orders for road-related public works remained sluggish. - FY2019-Q3WorsenedAnnual report
「In the construction-related industry closely associated with the company’s group, construction investment in the Tokyo metropolitan area remains firm, supported by Olympic-related construction and redevelopment projects, but regional disparities are evident, with construction declining significantly in some areas. Labor shortages in the construction-related industry are causing construction delays, while issues such as persistently high procurement prices for construction materials and rising labor costs remain unresolved, and uncertainty continues. In the first 9 months of fiscal 2018, the company’s asphalt mix production was down 2.4% year on year, while ready-mixed concrete shipments were up 1.7%.」
Although construction investment in the Tokyo metropolitan area remains firm, disparities in construction volumes by region, construction delays caused by labor shortages and higher materials prices and labor costs continue. Asphalt mix production fell 2.4% year on year, and concerns about the demand environment have materialized. - FY2019-Q2WorsenedAnnual report
「Production of asphalt mix and shipments of ready-mixed concrete, which directly affect the company’s business, are expected to be slightly below the previous fiscal year this year.」
Although construction investment in the Tokyo metropolitan area remains firm, regional disparities have emerged, with construction declining significantly in some areas. Production of asphalt mix and shipments of ready-mixed concrete are also expected to fall below the previous fiscal year, heightening concerns about the demand environment. - FY2019-Q1RestatedAnnual report
「The construction-related industry closely associated with the company’s group continues to perform steadily, but issues such as rising materials and logistics prices and concerns about construction delays caused by labor shortages remain unresolved, and the situation continues to require close monitoring.」
The company reconfirms its previous assessment that, although the construction-related industry is performing steadily, concerns about construction delays caused by rising materials and logistics prices and labor shortages remain unresolved. - FY2018-Q3Firm construction investment and continuing supply constraintsAnnual report
「The construction-related industry closely associated with the company’s group is currently performing steadily, with budgets for both public and private projects slightly exceeding those of the previous fiscal year, including carryovers from the prior year. In addition to firm public investment, private construction investment has also progressed, particularly in urban redevelopment projects in the Tokyo metropolitan area and Olympic-related construction. However, issues such as construction delays caused by labor shortages and rising procurement prices remain unresolved, and uncertainty continues.」
While budgets for both public and private projects and public and private construction investment remain firm, construction delays caused by labor shortages and rising procurement prices have not been resolved, with solid demand conditions coexisting with supply constraints. - FY2018-Q2Improving demand outlook and continuing supply constraintsAnnual report
「Private capital investment is expected to trend upward from the second half of the fiscal year. However, issues such as construction delays caused by labor shortages and persistently high procurement prices have not been resolved, and uncertainty continues.」
While expecting private capital investment to exceed expectations, the company states that construction delays caused by labor shortages and persistently high procurement prices remain unresolved, with improving demand conditions coexisting with supply constraints. - FY2018-Q1RestatedAnnual report
「The construction-related industry closely associated with the company’s group has seen an increase in construction work from the full-scale launch of Tokyo Olympics-related projects and redevelopment projects in central Tokyo. However, issues have arisen, including declines in public works in some regional areas and construction delays caused by labor shortages at worksites.」
The company reiterates its previous assessment of the demand environment: construction work is increasing because of major projects, while public works in regional areas are declining and labor shortages are causing construction delays. - FY2017RestatedAnnual report
「The construction-related industry closely associated with the company’s group was expected to see construction investment exceed the previous year on the back of the government’s proactive fiscal spending. However, activity remained more sluggish than expected because of delays in executing the previous fiscal year’s budget and construction delays caused by labor shortages.」
The company states that construction investment remains sluggish because of delays in budget execution and construction delays caused by labor shortages, while reiterating its previous assessment of the demand environment. - FY2017-Q3RestatedAnnual report
「The construction-related industry closely associated with the company’s group was expected to see construction investment exceed the previous year on the back of the government’s proactive fiscal spending. However, activity has remained sluggish because of delays in executing the previous fiscal year’s budget and construction delays caused by labor shortages at worksites. Several projects are scheduled to begin, including full-scale construction related to the Tokyo Olympics, Linear Chuo Shinkansen construction and redevelopment projects in central Tokyo, and total construction investment is expected to increase.」
Although current conditions remain sluggish because of delays in budget execution and construction delays caused by labor shortages, the company reiterates its expectation of increased construction investment driven by the Tokyo Olympics, the Linear Chuo Shinkansen and redevelopment in central Tokyo. - FY2017-Q2MitigatedAnnual report
「In the construction-related industry, public investment increased as a result of the government’s proactive fiscal spending, while private construction investment declined slightly, partly because domestic capital investment by manufacturers has not increased. Several projects are scheduled to begin, including full-scale construction related to the Tokyo Olympics, Linear Chuo Shinkansen construction and redevelopment projects in central Tokyo, and total construction investment is expected to increase.」
Compared with the previous quarterly report’s expectation of a decline in total construction investment, the outlook has improved on the back of increased public investment and major projects. However, private construction investment remains slightly lower, and the company states that there has been no material change in the risk item itself. - FY2017-Q1RestatedAnnual report
「In the construction-related industry, private construction investment remains firm, while public investment is on a gradual downward trend. Total construction investment is expected to decline this fiscal year, as it did in the previous fiscal year.」
The company indicates a downward trend in public investment and an expected decline in total construction investment, reconfirming the risk of contracting construction-related demand. - FY2016First statedAnnual report
「The prolonged economic stagnation, reductions in public investment and gradual decline in construction investment have led to a significant decrease in demand for asphalt and concrete plants (the “plants”), which could affect the company’s performance.」
The company identifies a contraction in construction-related demand as a major risk to its performance.