Rising production and logistics costs due to labor shortages

「Meanwhile, uncertainty about the outlook remains high, due to the impact of rising prices on consumption, geopolitical risks including the situation in the Middle East, and volatility in the financial and capital markets.」

「In the construction-related sector, persistently high material prices and the impact of regulations on overtime work led to a succession of postponements, reviews and cancellations of small and medium-sized projects, and demand remained sluggish.」

「For ordinary steel products, in the construction-related sector, labor shortages, soaring material costs and the impact of regulations on overtime work reduced appetite for capital investment, resulting in delays in starting projects and a decline in projects.」

「For ordinary steel products, in the construction-related sector, our core business area, labor shortages, persistently high material prices and increasingly cautious behavior by clients led to stagnation and postponements of new project starts, mainly for small and medium-sized projects, resulting in a decline in order volumes.」

「For ordinary steel products, delays in starting projects and extensions of construction periods caused by labor shortages and rising material costs in the construction sector have become common not only for small and medium-sized projects but also for large-scale projects. As new projects declined, competition among contractors for orders intensified.」

「Demand for construction has remained sluggish because of chronic labor shortages and higher material prices.」

「In the steel industry, some areas, such as automobile production and large-scale construction projects mainly in the Tokyo metropolitan area, remained firm. However, demand remained sluggish and did not achieve a full-scale recovery due to stagnant external demand, high resource prices and delays in construction schedules caused by chronic labor shortages.」

「Chronic labor shortages and persistently high material prices caused delays in starting small and medium-sized projects and extensions of construction periods, resulting in a decline in new order volumes.」

「Conditions varied by sector, with factors including persistently high resource and energy prices and sluggish demand for small and medium-sized projects owing to labor shortages. Overall, domestic steel demand remained sluggish.」

「No new business or other risks arose during the cumulative third quarter of the fiscal year under review. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「No new business or other risks arose during the six months ended 30 September. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「During the current first-quarter consolidated cumulative period, no new business or other risks arose. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「No new business or other risks arose during the three months ended 30 June. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「No new business or other risks arose during the cumulative third quarter of the fiscal year under review. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「No new business or other risks arose during the first half of the current consolidated fiscal year. In addition, no material changes have occurred in the business and other risks described in the securities report for the previous fiscal year.」

「During the current first-quarter consolidated cumulative period, no new business or other risks arose. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「As costs such as transportation expenses continued to rise against a backdrop of higher raw material prices and labor shortages,」

「Although steel material prices and production and logistics costs are rising due to labor shortages, demand for redevelopment in the Tokyo metropolitan area and major cities, as well as for hotels and logistics warehouses, remains strong.」

「Uncertainty continues, owing to soaring material prices, higher production and logistics costs resulting from labor shortages, the effects of trade friction and the economic impact of natural disasters such as torrential rain, typhoons and earthquakes.」