Challenging Business Conditions at Construction-Related Customers and Bad Debt Risk
First written in FY2016. 9 of 23 entries say "Worsened", first in FY2020. Latest entry: 2026-08-21.
Onoken moved to the "Worse" side of this theme in 2024, the same year as the typical company in this theme.
The whole theme swung hardest in 2026: 7 of 22 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「Moreover, labor shortages in the facilities construction-related industry, commonly known as the subcontracting sector, have become evident, and construction delays and postponements of commencement have occurred frequently.」
The environment surrounding construction-related customers was newly described as one in which construction delays and postponements of project starts due to labor shortages occur frequently. - FY2025RestatedAnnual report
「Large projects, including commercial facilities in redevelopment projects already received as orders and logistics warehouses, progressed smoothly, while the Company also focused on expanding sales of civil engineering and construction materials for disaster recovery and similar purposes.」
The Company is reaffirming the coexistence of resilience in large projects and construction postponements and project cancellations affecting small- and medium-sized projects in regional cities. - FY2025-H1WorsenedAnnual report
「In the construction-related sector in particular, there are an exceptionally large number of large construction projects, while demand for small- and medium-sized construction projects lacks momentum due to persistently high construction costs, resulting in a pronounced concentration of demand.」
Among construction-related customers, there are many large construction projects, while demand for small- and medium-sized construction projects is sluggish because construction costs remain high, resulting in a pronounced concentration of demand. - FY2024-Q3Solid large projects and recovery under way in small- and medium-sized projectsAnnual report
「In the construction-related industry, the Company's main customer base, demand for small- and medium-sized projects in regional cities remained sluggish, while large projects, mainly in urban areas, progressed smoothly. Inquiries also began to increase for small- and medium-sized projects involving hotels and commercial facilities, anticipating a recovery in inbound demand, and for new logistics facilities related to the 2024 problem. The Company actively pursued sales activities with the next fiscal year in mind.」
The disclosure states that while sluggish demand for small- and medium-sized projects in regional cities continued, large projects in urban areas performed well and inquiries began to increase for small- and medium-sized projects involving hotels and commercial facilities and for new logistics facilities. - FY2024-Q2WorsenedAnnual report
「Among the Company's main construction-related customers, there are an exceptionally large number of large construction projects, while demand for small- and medium-sized construction projects lacks momentum, resulting in a pronounced concentration of demand.」
The disclosure states that construction-related customers have many large projects, while demand for small- and medium-sized construction projects lacks momentum, resulting in a pronounced concentration of customer demand. - FY2024-Q1RestatedAnnual report
「In the building materials field, although recovery in small- and medium-sized properties is still under way, construction progress has been steady, mainly for large properties.」
The Company is reaffirming that recovery in small- and medium-sized properties remains under way, while construction, mainly on large properties, is progressing smoothly. - FY2023-Q3Resilience in large urban projects and signs of recovery in small- and medium-sized projectsAnnual report
「In the building materials sales business and construction contracting business, demand for small- and medium-sized projects in regional cities remained sluggish in the construction-related industry, the Company's main customer base. Large projects, mainly in urban areas, progressed smoothly, while inquiries for small- and medium-sized projects involving hotels and commercial facilities, anticipating a recovery in inbound demand, also began to increase. The Company actively pursued sales activities with the next fiscal year in mind.」
The disclosure states that demand for small- and medium-sized projects in regional cities remained sluggish, while large projects in urban areas progressed smoothly and inquiries for small- and medium-sized projects involving hotels and commercial facilities began to increase. - FY2023-Q2RestatedAnnual report
「The Company also progressed smoothly with large construction projects already secured in its building materials sales and construction contracting businesses, while actively pursuing orders for small and medium-sized projects to secure stable earnings, as well as orders for large construction projects for the next fiscal year.」
While maintaining progress on large projects, the Company is pursuing orders for small- and medium-sized projects and large projects for the next fiscal year. The disclosure does not state that the downturn in small- and medium-sized projects described in the previous fiscal year has been fully resolved. - FY2023-Q1MitigatedAnnual report
「In the building materials field, although recovery in small- and medium-sized properties has been slow, a recovery in demand, centered on large properties, has become evident, creating conditions in which a recovery in demand can be expected going forward.」
The disclosure states that although recovery in small- and medium-sized properties remains slow, a recovery in construction-related demand, centered on large properties, has become evident. - FY2022-Q3RestatedAnnual report
「In the building materials sales and construction contracting businesses, sales to the construction-related industries, the main customer base, declined for small and medium-sized projects as tourism-related activity fell sharply, mainly due to a steep decline in inbound demand, resulting in hotel and commercial facility construction being postponed or cancelled. Large construction projects already secured progressed smoothly, however, and the Company actively pursued orders to secure stable earnings with the next fiscal year in mind.」
While construction postponements and project cancellations for hotels and commercial facilities due to the tourism-related downturn, as well as the decline in small- and medium-sized projects, continue, large construction projects are progressing smoothly. - FY2022-Q2RestatedAnnual report
「The Company also progressed smoothly with large construction projects already secured in its building materials sales and construction contracting businesses, while actively pursuing small and medium-sized projects to secure stable earnings.」
The Company is reaffirming that large projects for construction-related customers are progressing smoothly and that it is actively pursuing orders for small- and medium-sized projects. The disclosure does not indicate that the recent downturn in small- and medium-sized projects has been clearly resolved. - FY2022-Q1MitigatedAnnual report
「In the building materials sales business and construction contracting business as well, large projects already received as orders progressed smoothly, while the Company actively pursued orders for small- and medium-sized projects.」
The disclosure states that large projects for construction-related customers progressed smoothly and that the Company also actively pursued orders for small- and medium-sized projects. It indicates some improvement in the order environment compared with the impact of construction postponements and project cancellations described in the previous fiscal year. - FY2021-Q3WorsenedAnnual report
「Sales for small- and medium-sized projects declined as the tourism-related downturn, driven mainly by a sharp decline in inbound demand, led to construction postponements and project cancellations for hotels and commercial facilities. Meanwhile, large projects that have continued from the previous fiscal year and projects for logistics facilities progressed largely as planned.」
Among construction-related customers, construction postponements and project cancellations for hotels and commercial facilities occurred against a backdrop of the tourism-related downturn, reducing sales for small- and medium-sized projects. The disclosure also indicates resilience in large projects and projects for logistics facilities. - FY2021-Q2Decline in new orders for small- and medium-sized projects and resilience in large projectsAnnual report
「Although orders for small and medium-sized projects in the construction-related industry, the Company's main sales market, temporarily declined due to uncertainty about the outlook at the beginning of the fiscal year, large projects progressed broadly as expected.」
The disclosure states that orders for small projects among construction-related customers temporarily declined, while large projects progressed largely as expected. No specific change in bad debt risk itself was indicated. - FY2021-Q1WorsenedAnnual report
「Although large projects for the construction-related industry, the Company's main sales market, continued to progress smoothly despite regional differences, new projects, particularly small and medium-sized ones, declined, and the market contracted. As a result, steel product prices entered a declining phase.」
While large projects in the construction-related industry are progressing smoothly, a decline in new small- and medium-sized projects and a contraction in market size were reported. Demand conditions surrounding construction-related customers are not uniformly solid. - FY2020WorsenedAnnual report
「Suspension, delays and cancellations of construction projects」
Suspensions, delays and cancellations of construction projects associated with COVID-19 were described as business concerns affecting the Company through its construction-related customers. - FY2020-Q3RestatedAnnual report
「Although the construction-related industry, the Company's main customer base, continues to perform solidly,」
The construction-related industry, the Company's main customer base, is described as continuing to perform solidly, reaffirming the conditions described in the previous quarter. The disclosure does not state that bad debt risk has disappeared. - FY2020-Q2MitigatedAnnual report
「Although the construction-related industry, the Company's main customer base, continues to perform solidly,」
The construction-related industry is described as continuing to perform solidly, unlike the challenging operating conditions described in FY2016. However, the disclosure does not state that bad debt risk has disappeared. - FY2016First statedAnnual report
「Construction-related companies are expected to remain in a challenging operating environment because material prices and labor costs are trending upward while the pass-through of these increases to order prices has been delayed, increasing the risk of bad debts going forward.」
The Company points to an increase in future bad debt risk against a backdrop of rising costs and delayed price pass-through among construction-related customers.