Intensifying Order and Price Competition amid Declining Housing Starts
First written in FY2016. 9 of 31 entries say "Worsened", first in FY2017. Latest entry: FY2024.
Taihei Machinery Works,Limited moved to the "Worse" side of this theme in 2017, 3 years before the typical company in this theme (2020).
The whole theme swung hardest in 2023: 15 of 21 companies on the "Worse" side.
3 other companies' latest entry also says "Materialised".
- FY2024MaterialisedAnnual report
「Revenue was limited to ¥840 million, down 23.9% year on year, partly because demand for building materials declined as the new housing market weakened.」
The weakening housing market and decline in demand for building materials were reflected in the results as a 23.9% decrease in revenue in the housing materials business. - FY2024-Q3MaterialisedAnnual report
「In the housing materials business, the company focused on sales activities, including securing orders for panel production for its core 2×4 housing and sales of building materials. However, partly because demand declined with the decrease in housing starts, net sales for the nine-month period of the current consolidated fiscal year were limited to ¥667 million, down 21.3% year on year.」
The decline in demand resulting from lower housing starts was reflected in the results as a 21.3% decrease in revenue in the housing materials business. - FY2024-Q2MaterialisedAnnual report
「Although the company strengthened its sales structure and worked to secure orders, the market slowdown was more severe than expected, resulting in lower revenue.」
Lower housing demand and the market slowdown were reflected in the results as lower revenue and an operating loss in the housing materials business. - FY2024-Q1MaterialisedAnnual report
「As competition for orders intensified further due to the decline in housing starts, both the number of orders and the order value per project declined.」
The intensification of competition for orders resulting from the decline in housing starts was reflected in the results as a decrease in the number of orders and the order value per project. - FY2023MaterialisedAnnual report
「In addition to a decline in orders resulting from lower housing starts, the decline in the advantage of material supply as distribution of housing materials recovered with the fading impact of last year's wood shock, and increasingly intense competition on order prices, both the number of orders and the order value per project declined.」
The number of orders and the order value per project declined because of lower housing starts, a weaker advantage in material supply, and intensifying price competition. - FY2023-Q3MaterialisedAnnual report
「In the housing materials business, revenue increased in the first half, partly as a result of sales efforts such as passing higher costs through to prices, but subsequently stagnated as orders became more difficult to secure owing to the decline in housing starts.」
While revenue increased in the first half as a result of passing higher costs through to prices and sales activities, the deterioration in orders and sluggish revenue caused by the decline in housing starts were reflected in the results. - FY2023-Q2RestatedAnnual report
「Although housing starts were trending lower year on year, revenue remained solid as a result of strengthened sales activities.」
The company states that, while the downward trend in housing starts continued, revenue in the housing materials business remained solid owing to strengthened sales activities. - FY2023-Q1RestatedAnnual report
「In the housing materials business, although housing starts were trending lower year on year, revenue remained solid as a result of strengthened sales activities.」
The company states that, while the downward trend in housing starts continued, revenue remained solid as a result of strengthened sales activities. - FY2022MitigatedAnnual report
「Revenue and profit increased as housing starts remained above the previous year and the company was able to pass the sharp increases in the prices of key materials through to order prices.」
The company states that the year-on-year increase in housing starts and the pass-through of higher material costs mitigated the impact of the previous environment of declining starts and price competition. - FY2022-Q3MitigatedAnnual report
「The housing construction materials business reported higher sales and higher profit, owing in part to an increase in housing starts from the previous year and the successful pass-through of surging prices for major materials to order prices.」
The company states that the housing materials business posted higher revenue and profit, driven by the year-on-year increase in housing starts and the pass-through of higher material costs. - FY2022-Q2MitigatedAnnual report
「Although housing starts showed signs of recovery, including a year-on-year increase,」
Housing starts increased year on year, and the company states that the previous risk of declining starts showed signs of recovery. However, caution toward capital investment in the industry remains. - FY2022-Q1MitigatedAnnual report
「The housing materials business posted higher revenue and profit, supported by an increase in housing starts year on year and the beginning of its ability to pass soaring key-material prices on to order values.」
The company states that the year-on-year increase in housing starts and the beginning of passing higher material costs through to prices have partly mitigated the previous impact of declining housing starts and price competition. - FY2021Improving competitive position in orders and the start of passing through higher costsAnnual report
「The company's competitive position in orders has improved, as it has begun to pass higher material costs through to order prices and has secured materials amid a nationwide shortage caused by the wood shock, providing reassurance over material availability. Business performance is expected to improve, but if market conditions deteriorate more than the company anticipates, this could affect its operating results.」
The company states that its competitive position in orders has improved against a backdrop of beginning to pass through higher material costs and securing materials, while the risk of worsening market conditions remains. - FY2021-Q3Signs of a recovery in orders, but price competition and declining housing starts continueAnnual report
「In the housing materials business, although signs of a recovery in orders were seen toward last autumn, order prices remain under pressure because of the large number of competitors. In addition, housing starts have continued to decline owing to stagnant economic activity resulting from the spread of the novel coronavirus disease and uncertainty about the outlook caused by the lack of visibility on when the outbreak will subside.」
While recognizing signs of a recovery in orders, the company states that order prices remain under pressure because of the large number of competitors and that housing starts continue to decline against a backdrop of the spread of the disease. - FY2021-Q2RestatedAnnual report
「In the housing materials business, housing starts have declined and conditions have remained extremely challenging, owing to stagnant economic activity resulting from the spread of the novel coronavirus disease and uncertainty about the outlook caused by the lack of visibility on when the outbreak will subside.」
Against a backdrop of the spread of the novel coronavirus disease and uncertainty over when it will subside, the decline in housing starts and the challenging environment facing the housing materials business have continued. - FY2021-Q1WorsenedAnnual report
「In the housing materials business, housing starts have declined and conditions have remained extremely challenging, owing to stagnant economic activity resulting from the spread of the novel coronavirus and uncertainty about the outlook caused by the lack of visibility on when the outbreak will subside.」
Against a backdrop of the spread of the novel coronavirus and uncertainty over when it will subside, the company explicitly states that housing starts have declined and that the housing materials business faces a challenging environment. - FY2020WorsenedAnnual report
「Housing starts for general housing increased slightly at the end of the previous fiscal year, possibly due to rush demand ahead of the consumption tax increase, but the challenging environment has continued, with housing starts down 8% year on year in the fiscal year ended March 2020, and competition for orders has intensified.」
Two-by-four housing starts declined 8% year on year in the fiscal year ended March 2020, and competition for orders has remained severe. - FY2020-Q2RestatedAnnual report
「The number of two-by-four housing starts for general housing has shown a slight increase since the second half of the previous fiscal year, possibly due to rush demand ahead of the consumption tax increase, but housing starts for rental housing have declined sharply, and competition for orders has intensified.」
The company continues to recognize that housing starts for general housing are trending slightly higher, while those for rental housing have declined sharply and competition for orders remains severe. - FY2020-Q1WorsenedAnnual report
「The number of two-by-four housing starts for general housing has shown a slight increase since the second half of the previous fiscal year, possibly due to rush demand ahead of the consumption tax increase, but housing starts for rental housing have declined sharply, and competition for orders has intensified.」
The company states that housing starts for general housing showed a slight increase, while those for rental housing declined sharply, and that competition for orders has become increasingly severe. - FY2019RestatedAnnual report
「In the housing materials business, the downward trend in housing starts using the two-by-four construction method has continued, and competition on order prices has intensified.」
The company continues to recognize the downward trend in two-by-four housing starts and intensifying competition on order prices. - FY2019-Q3RestatedAnnual report
「In the housing materials business, the downward trend in housing starts using the two-by-four construction method has continued, and competition on order prices has intensified.」
The company continues to identify the downward trend in two-by-four housing starts and intensifying competition on order prices as challenges in its business environment. - FY2019-Q2WorsenedAnnual report
「In the housing materials business, the downward trend in housing starts using the two-by-four construction method has continued, and competition on order prices has intensified.」
The downward trend in two-by-four housing starts has continued, and competition on order prices has become increasingly severe. - FY2019-Q1WorsenedAnnual report
「In the housing materials business, the downward trend in housing starts using the two-by-four construction method has continued, and competition on order prices has intensified.」
The downward trend in two-by-four housing starts has continued, and competition on order prices has become increasingly severe. - FY2018WorsenedAnnual report
「As the number of housing starts declined, competition on order prices intensified further.」
The company indicates that competition on order prices became increasingly severe as housing starts declined. - FY2018-Q2WorsenedAnnual report
「As the number of housing starts declined, competition on order prices intensified further.」
The company states that, as housing starts declined, competition on order prices in the housing materials business became increasingly severe. - FY2018-Q1WorsenedAnnual report
「Amid sluggish growth in housing starts and increasingly intense competition for orders, the company pursued proactive sales activities, including expanding its sales territory, and worked to secure orders. However, affected by sluggish orders at the end of the previous fiscal year, net sales for the first quarter of the current consolidated cumulative period were ¥216 million, down 6.1% year on year.」
In addition to sluggish housing starts, competition for orders intensified further, and the stagnation in orders at the end of the previous fiscal year resulted in a decline in first-quarter revenue. - FY2017WorsenedAnnual report
「With signs of a slowdown emerging in housing starts, which had been trending toward recovery, and concerns about a future contraction in the housing market, capital investment across the industry is expected to remain cautious.」
In addition to competition on order prices and loss-making projects, the company explicitly cites a slowdown in housing starts and concerns about a future contraction in the housing market. - FY2017-Q3MaterialisedAnnual report
「Although total housing starts showed signs of recovery, the number of detached homes built using the company's core two-by-four construction method remained below the previous year, and the challenging environment continues. As competition on order prices intensifies, the company is focusing on proactive sales activities, but some projects are unprofitable. As a result of strengthening its scrutiny of orders to secure profitability, including avoiding projects with unfavorable terms,」
While total housing starts recovered, the number of detached homes built using the company's core construction method remained below the previous year, and the intensifying competition on order prices and the emergence of loss-making projects are explicitly stated. - FY2017-Q2MaterialisedAnnual report
「Although housing starts showed signs of recovery, competition over order prices is becoming increasingly severe. The company is focusing on proactive sales activities, including expanding its sales area, but some projects are being accepted below cost.」
While housing starts recovered, the intensifying competition on order prices and the emergence of loss-making projects are explicitly stated. - FY2017-Q1RestatedAnnual report
「Housing starts for detached homes remain sluggish, and competition for orders has become intense.」
The company reiterates that sluggish detached-home starts and intense competition for orders remain ongoing conditions in the housing materials business. - FY2016First statedAnnual report
「In an industry where declining housing starts have intensified competition for orders and tend to lead to price competition,」
The company identifies competition for orders and on price, driven by declining housing starts, as challenges for the housing materials business.