Fluctuations in Feedstock Procurement and Product Demand Due to Office Relocations and Telework
First written in FY2022-Q1. 2 of 5 entries say "Worsened", first in FY2022. Latest entry: FY2026.
REFINVERSE Group moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
The whole theme swung hardest in 2023: 3 of 6 companies on the "Worse" side.
0 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「Currently, office vacancy rates in central Tokyo are low, at approximately 2%, partly due to the trend toward returning to the office. At the same time, office redevelopment is progressing in central Tokyo, and sufficient quantities of used carpet tiles, the raw material, are expected to be procured through tenant fit-out work associated with redevelopment. However, if increased demand for Refine Powder, a recycled material, results in insufficient procurement of used carpet tiles and recycled resin cannot be produced in sufficient quantities, this may affect the business results of the Group.」
The discussion has shifted from risks centered on telework and increasing vacancies to the expected availability of supplies through the return to offices and redevelopment, alongside the risk of raw material shortages in response to increased demand. - FY2024MitigatedAnnual report
「New office supply in Tokyo's five central wards was 455 thousand tsubo in 2023 and vacant office space was 483 thousand tsubo. The need for corporate office relocations in Japan may decline due to the overseas relocation of offices resulting from industrial hollowing-out and the expansion of telework due to COVID-19, among other factors. If sufficient quantities of used carpet tiles, the raw material, cannot be procured and recycled resin cannot be produced in sufficient quantities, or if demand for carpet tiles declines, this may affect the business results of the Group.」
Office supply increased from 165 thousand tsubo in 2022 to 455 thousand tsubo, while vacant office space decreased from 508 thousand tsubo to 483 thousand tsubo. The risk of dependence on raw material procurement and product demand continues. - FY2023WorsenedAnnual report
「Office supply in Tokyo's five central wards was 165 thousand tsubo in 2022 and vacant office space was 508 thousand tsubo. If sufficient quantities of used carpet tiles, the raw material, cannot be procured and recycled resin cannot be produced in sufficient quantities, or if demand for carpet tiles declines, this may affect the business results of the Group.」
Vacant office space increased to 508 thousand tsubo in 2022 from 497 thousand tsubo in 2021. The risk to raw material procurement and product demand through office supply and demand continues to be quantified. - FY2022WorsenedAnnual report
「Currently, as shown below, new office supply in Tokyo's five central wards (Chiyoda, Chuo, Minato, Shinjuku and Shibuya wards) is declining while vacant office space is increasing. The need for corporate office relocations in Japan may decline due to the overseas relocation of offices resulting from industrial hollowing-out and the expansion of telework due to COVID-19, among other factors. If sufficient quantities of used carpet tiles, the raw material, cannot be procured and recycled resin cannot be produced in sufficient quantities, or if demand for carpet tiles declines, this may affect the business results of the Group.」
Shows 2021 office supply of 150 thousand tsubo and vacant office space of 497 thousand tsubo in Tokyo's five central wards, continuing to raise concerns regarding raw material procurement and product demand. - FY2022-Q1First statedAnnual report
「The need for corporate office relocations in Japan may decline due to the overseas relocation of offices resulting from industrial hollowing-out and the expansion of telework due to COVID-19, among other factors. If sufficient quantities of used carpet tiles, the raw material, cannot be procured and recycled resin cannot be produced in sufficient quantities, or if demand for carpet tiles declines, this may affect the business results of the Group.」
Shows office supply and vacant office space in the five central wards of Tokyo and describes the risk that raw material procurement and sales volumes depend on office supply and demand.