Fluctuating material prices and difficulty passing costs through to contract prices
First written in FY2016. 9 of 13 entries say "Restated". Latest entry: FY2026.
Raiznext moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2022: 32 of 49 companies on the "Worse" side.
10 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In light of delays in the supply of raw materials and equipment due to the current situation in the Middle East, it is necessary to carefully assess the risk of delays in procuring construction equipment and materials and the resulting risk of delays in construction progress.」
In addition to the risks of surging equipment and material prices and difficulty passing them through, the disclosure explicitly identifies the risks of delays in the supply of raw materials and equipment due to the situation in the Middle East and resulting delays in construction progress. - FY2025RestatedAnnual report
「Regarding the sharp rise in equipment and material prices, the company is working to collect and disseminate information on individual price trends. It is also implementing measures to reduce risk, including early ordering of equipment and materials, securing diverse suppliers, incorporating conditions covering price increases into contracts, and passing costs through to construction prices.」
The company continues to respond to the risks of surging equipment and material prices and difficulty passing them through by collecting price information, placing orders early, diversifying suppliers, incorporating contractual conditions and passing costs through to prices. - FY2024RestatedAnnual report
「The company is implementing measures to reduce risk, including early ordering of equipment and materials, securing diverse suppliers, incorporating conditions covering price increases into contracts, and passing costs through to construction prices.」
The company continues to respond to the risks of surging equipment and material prices and difficulty passing them through by collecting price information, placing orders early, diversifying suppliers, incorporating contractual conditions and passing costs through to prices. - FY2024-Q2RestatedAnnual report
「Meanwhile, amid the effects of continued global monetary tightening and concerns over the outlook for the Chinese economy, concerns remain over the risk that a downturn in overseas economies could weigh on the domestic economy, as well as the risks of rising prices and volatility in financial and capital markets.」
The disclosure describes continuing concern over external risks related to material prices and the procurement environment, including rising prices and fluctuations in financial and capital markets. - FY2024-Q1RestatedAnnual report
「Meanwhile, as global monetary tightening and other factors continue, concerns persist over the risk that a downturn in overseas economies could weigh on the domestic economy, as well as risks including rising prices and fluctuations in financial and capital markets.」
The disclosure describes continuing concern over external risks related to the cost and procurement environment, including rising prices and fluctuations in financial and capital markets. - FY2023-Q2RestatedAnnual report
「Meanwhile, as global monetary tightening and other factors continue, concerns persist over the risk that a downturn in overseas economies could weigh on the domestic economy, as well as risks including rising prices, supply constraints and fluctuations in financial and capital markets.」
The disclosure states that risks relating to the materials and procurement environment, including rising prices and supply constraints, continue. - FY2023-Q1RestatedAnnual report
「Meanwhile, concerns continue over downside risks from fluctuations in financial and capital markets, in addition to higher raw-material prices and supply constraints resulting from the prolonged situation in Ukraine and restrictions on economic activity in China.」
The disclosure describes an ongoing situation of higher raw-material prices and supply constraints. It confirms that the material-price and procurement-related risks recognized since the previous fiscal year continued during the current quarter. - FY2022WorsenedAnnual report
「Although the prices of some materials used in construction, including stainless steel, rose sharply due to the situation in Ukraine, domestic inventories had been secured and there were no problems securing materials during the current fiscal year. However, if the situation in Ukraine is prolonged, longer delivery times and other issues are a concern going forward.」
Some material prices actually rose sharply due to the situation in Ukraine, and concern about longer delivery times going forward was added. - FY2020MitigatedAnnual report
「Regarding the sharp rise in equipment and material prices, the company is working to collect and disseminate information for monitoring and forecasting individual price trends. It is also implementing measures to reduce risk, including early ordering of equipment and materials, securing diverse suppliers, incorporating conditions covering price increases into contracts, and passing costs through to construction prices.」
In response to the risks of higher material prices and difficulty passing them through to contract prices, the disclosure identifies price monitoring, early ordering, supplier diversification, contractual provisions and price pass-through as specific measures. - FY2019-Q2RestatedAnnual report
「In response to higher material prices, labor costs and subcontract processing costs, we worked to secure earnings through lower direct construction costs and ongoing expense reductions.」
In connection with the possibility that increases in material prices and other costs cannot be passed through to contract prices, the company continues to indicate that it will respond by reducing the cost of direct construction expenses and cutting expenses. - FY2019-Q1RestatedAnnual report
「The group expects scheduled repair projects in the fiscal year ending March 2019 to increase from the previous fiscal year and anticipates continued demand for plant reinforcement projects, modification and renovation projects to address aging and ensure stable operations, and new plant construction projects for the production of high-function products. Accordingly, it will give top priority to securing orders for these projects and work to maintain profitability by reducing the cost of direct construction expenses and continuously cutting overhead in response to rising material prices, labor costs and subcontract processing costs.」
The company continues to recognize the risk of higher costs, including increases in material prices, and states that it will respond by reducing the cost of direct construction expenses and cutting expenses. - FY2017RestatedAnnual report
「If raw-material prices rise more than expected and the company is unable to reflect the increase in contract prices, this could affect operating performance.」
The company continues to identify the risk that increases in material prices cannot be passed through to contract prices. - FY2016First statedAnnual report
「If raw-material prices rise more than expected and the company is unable to reflect the increase in contract prices, this could affect operating performance.」
The disclosure indicates the possibility that increases in raw-material prices cannot be passed through to contract prices.