Profitability Deterioration Due to Intensified Competition for Orders and Rising Labor and Material Costs
First written in FY2016. 25 of 37 entries say "Worsened", first in FY2017-Q3. Latest entry: 2026-10-30.
Marufuji Sheet Piling moved to the "Worse" side of this theme in 2017, 5 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 29 of 42 companies on the "Worse" side.
16 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In the construction industry, continued attention is required regarding delays in starting and progressing construction projects resulting from the existing shortage of skilled workers, the aging of construction workers, persistently high steel prices, surging labor costs, and higher construction costs due to the application of limits on overtime work. Profitability is expected to become even more challenging.」
It cites shortages and aging among skilled workers, persistently high steel prices, surging labor costs, and higher costs and construction delays due to overtime-work regulations, and expects profitability to become even more challenging. - 2026-05-14WorsenedEarnings
「At the same time, concerns arose over tight labor supply and demand resulting from the chronic labor shortage in the construction industry, further increases in construction costs, and delays in the start and progress of construction work due to the application of upper limits on overtime work.」
The chronic labor shortage, tight labor supply and demand, rising construction costs, and delays in construction starts and progress associated with overtime regulations continue to be identified as business-environment risks. - FY2026-H1WorsenedAnnual report
「On the other hand, in addition to tight labor supply and demand due to shortages of skilled workers and persistently high raw-material prices, the application of limits on overtime work is expected to accelerate labor shortages. Concerns have arisen over further increases in construction costs and the revision or delay of construction projects, and profitability is expected to become even more challenging.」
It states that, in addition to tight labor supply and demand and persistently high raw-material prices, limits on overtime work will accelerate labor shortages, further worsening profitability through higher construction costs and the revision or delay of construction projects. - FY2025WorsenedAnnual report
「Although public investment and capital investment remained firm in the construction industry, concerns arose over the impact of higher construction costs due to persistently high steel prices and surging labor costs, tight labor supply and demand due to the aging of construction workers and labor shortages, and delays in starting and progressing construction projects resulting from the application of limits on overtime work.」
While demand remained firm, it explicitly identifies construction costs, labor shortages, tight labor supply and demand, and delays in starting and progressing construction projects due to overtime-work regulations. - FY2025-H1WorsenedAnnual report
「On the other hand, with no sign of improvement in persistently high raw-material prices or tight labor supply and demand, concerns over further increases in construction costs following the application of limits on overtime work in the construction industry are expected to make profitability even more challenging.」
It explicitly identifies the lack of improvement in persistently high raw-material prices and tight labor supply and demand, as well as further cost increases and deteriorating profitability due to limits on overtime work. - FY2024WorsenedAnnual report
「Regarding the future of the construction industry, in addition to the existing shortage of skilled workers and surging raw-material prices, the so-called 2024 problem, involving the introduction of limits on overtime work, is raising concerns that further increases in construction costs will worsen profitability.」
In addition to the existing shortage of skilled workers and surging raw-material prices, it newly identifies concerns over higher construction costs and deteriorating profitability due to the 2024 problem. - FY2024-Q3WorsenedAnnual report
「On the other hand, amid fierce competition for orders, concerns over higher construction costs resulting from the prolonged persistence of elevated construction-material prices and surging labor costs, in addition to the existing shortage of skilled workers, are expected to make profitability increasingly challenging.」
In addition to the shortage of skilled workers, it cites persistently high construction-material prices and cost increases due to surging labor costs, and expects profitability to become increasingly challenging amid competition for orders. - FY2024-Q2WorsenedAnnual report
「On the other hand, amid fierce competition for orders, the impact of higher construction costs, including prolonged surges in raw-material and steel prices, in addition to the existing shortage of skilled workers, is expected to make profitability increasingly challenging.」
Amid the continuing shortage of skilled workers and surging raw-material and steel prices, it states that profitability will become even more challenging, indicating a deepening risk to order profitability. - FY2024-Q1WorsenedAnnual report
「On the other hand, amid fierce competition for orders, the impact of higher construction costs, including prolonged surges in raw-material and steel prices, in addition to the existing shortage of skilled workers, is expected to make profitability increasingly challenging.」
In addition to the shortage of skilled workers, it cites surging raw-material and steel prices and rising construction costs, and expects profitability in order competition to become increasingly challenging. - FY2023-Q3WorsenedAnnual report
「On the other hand, concerns remain that higher construction costs could lead to delays in contracted construction projects as capital investment plans are revised, while intensified price competition could reduce profitability.」
It explicitly identifies the possibility that intensified price competition, in addition to higher construction costs, will reduce profitability. - FY2023-Q2WorsenedAnnual report
「However, due to the impact of higher construction costs resulting from surging raw-material and steel prices, profitability in order competition is expected to become even more challenging.」
Against the backdrop of higher construction costs due to surging raw-material and steel prices, it expects profitability in order competition to become even more challenging. - FY2023-Q1WorsenedAnnual report
「At present, a certain level of demand is expected to be maintained, supported by large-scale projects such as urban redevelopment and by government measures for disaster prevention and mitigation, national resilience, and aging infrastructure, aimed at recovery and reconstruction after major natural disasters. However, the increase in construction costs resulting from surging raw-material and steel prices is expected to make profitability in order competition increasingly challenging.」
While demand is expected to remain supported, it expects profitability in order competition to become more challenging as construction costs rise due to surging raw-material and steel prices. - FY2022-Q3WorsenedAnnual report
「Against this backdrop, we pursued sales activities focused on profitability and concentrated on securing construction orders through price improvements and cooperation with consolidated subsidiaries. However, in addition to the impact of delays in starting and progressing contracted construction projects, intensified price competition in order acquisition made it difficult to maintain profitability.」
It states that, in addition to delays in starting and progressing construction projects, intensified price competition in order acquisition made it difficult to maintain profitability. - FY2022-Q2RestatedAnnual report
「In addition, shortages of engineers and continued sharp increases in raw-material and steel prices remain.」
It reconfirms that continuing shortages of engineers and surging raw-material and steel prices, together with delays in starting and progressing contracted construction projects and intensified price competition, have made it difficult to maintain profitability. - FY2022-Q1WorsenedAnnual report
「In addition, the difficulty of securing personnel and construction equipment and materials continued, and, together with intermittent increases in steel prices due to higher raw-material costs, contributed to higher costs.」
While difficulties in securing personnel and construction equipment and materials continued, intermittent increases in steel prices due to higher raw-material costs were explicitly identified as a factor driving up costs. In addition, intensified price competition has made it difficult to maintain profitability. - FY2021-Q3RestatedAnnual report
「In addition, if the economic slowdown continues, concerns over the revision or cancellation of new construction plans due to lower private-sector appetite for capital investment mean that challenging profitability in order intake is expected to continue.」
It reconfirms that lower private-sector appetite for capital investment due to the economic slowdown, and the revision or cancellation of new construction plans, are factors behind continued challenging profitability in order intake. - FY2021-Q2RestatedAnnual report
「In addition, if the economic slowdown continues, concerns over the revision or cancellation of new construction-start plans due to lower private-sector appetite for capital investment mean that challenging profitability in order intake is expected to continue.」
It reconfirms that lower private-sector appetite for capital investment due to the economic slowdown, and the revision or cancellation of new construction-start plans, are factors behind continued challenging profitability. - FY2021-Q1WorsenedAnnual report
「Due to the impact of COVID-19, delays in the start of construction and delays in progress are expected to continue. In addition, as a slowdown in the economy may reduce private-sector appetite for capital investment, there are concerns that new construction plans may be revised or canceled. Accordingly, challenging profitability in order intake is expected to continue.」
In addition to construction delays caused by the infectious disease, lower private-sector appetite for capital investment and the revision or cancellation of construction plans are explicitly identified as factors that will prolong challenging profitability. - FY2020RestatedAnnual report
「However, difficult conditions continue, including higher labor and transportation costs resulting from labor shortages and persistently high steel prices, among other factors.」
Higher labor and transportation costs resulting from labor shortages and persistently high steel prices continue to make profitability challenging. - FY2020-Q3RestatedAnnual report
「However, difficult conditions continue, including higher labor and transportation costs resulting from labor shortages and persistently high steel prices, among other factors.」
Higher labor and transportation costs resulting from labor shortages and persistently high steel prices continue to contribute to difficult conditions. - FY2020-Q2RestatedAnnual report
「However, the impact of higher labor and transportation costs resulting from labor shortages, together with persistently high steel prices, has become increasingly pronounced.」
Higher labor and transportation costs resulting from labor shortages, together with persistently high steel prices, continue to be cited as factors making profitability challenging. - FY2020-Q1RestatedAnnual report
「However, the impact of higher labor and transportation costs resulting from chronic labor shortages, together with persistently high steel prices, has become increasingly pronounced.」
Higher labor and transportation costs resulting from labor shortages, together with persistently high steel prices, continue to be cited as factors making profitability challenging. - FY2019WorsenedAnnual report
「However, the impact of higher labor and transportation costs resulting from chronic labor shortages, together with persistently high steel prices, has become more severe.」
It states that the impact of higher labor and transportation costs caused by labor shortages, together with persistently high steel prices, has become more severe. - FY2019-Q3WorsenedAnnual report
「However, the impact of higher labor and transportation costs resulting from labor shortages, together with persistently high steel prices, has become more severe.」
It states that the impact of higher labor and transportation costs caused by labor shortages, together with persistently high steel prices, has become more severe. - FY2019-Q2RestatedAnnual report
「However, labor shortages and rising steel prices and transportation costs, among other factors, have become increasingly pronounced.」
Labor shortages and rising steel prices and transportation costs continue to be cited as factors making profitability challenging. - FY2019-Q1WorsenedAnnual report
「However, labor shortages and rising steel prices and transportation costs, among other factors, have become increasingly pronounced.」
It states that labor shortages and rising steel prices and transportation costs have become more pronounced than before. - FY2018WorsenedAnnual report
「The business environment surrounding the construction industry remained firm, with private-sector capital investment centered on redevelopment projects in the Tokyo metropolitan area and infrastructure development, while Tokyo Olympic-related projects also moved into full swing and public-sector investment increased. However, labor shortages and rising steel prices and transportation costs, among other factors, have become chronic.」
It specifically identifies the shortage of skilled workers and labor, together with the chronic rise in transportation costs in addition to higher steel prices, as factors worsening profitability. - FY2018-Q3WorsenedAnnual report
「However, persistently high labor costs due to the worsening shortage of skilled workers, as well as rising steel prices, have become chronic.」
It states that the shortage of skilled workers is worsening, while persistently high labor costs and rising steel prices have become chronic, indicating that the factors contributing to deteriorating profitability are becoming more severe. - FY2018-Q2RestatedAnnual report
「However, shortages of skilled workers, persistently high labor costs and rising steel prices, among other factors, continue to persist.」
The shortage of skilled workers, persistently high labor costs, and rising steel prices continue to make profitability challenging. - FY2018-Q1WorsenedAnnual report
「The construction industry is expected to see steady construction investment, driven by rising construction demand in major metropolitan areas and recovery from delays in project starts. However, difficult conditions for order profitability, including persistently high labor costs and further increases in steel prices, are expected to continue.」
In addition to persistently high labor costs, the company describes steel prices as subject to “further increases,” indicating that difficult profitability conditions are expected to continue. - FY2017WorsenedAnnual report
「However, shortages of engineers, persistently high labor costs, delays in project starts and construction progress continued, while steel prices also continued to rise gradually.」
In addition to persistently high labor costs, construction delays and rising steel prices, the company specifically identifies engineer shortages and states that factors that could lead to deteriorating profitability remain in place. - FY2017-Q3WorsenedAnnual report
「The construction industry is expected to see steady construction investment, driven by rising construction demand centered on the Tokyo metropolitan area and recovery from delays in project starts. However, difficult conditions for order profitability, including persistently high labor costs, soaring steel prices and price competition for orders, are expected to continue.」
In addition to previously cited rising labor costs and bidding competition, the company specifically identifies soaring steel prices, clarifying the cost increases contributing to difficult profitability conditions. - FY2017-Q2RestatedAnnual report
「Although the economy remains on a recovery trend, difficult operating conditions are expected to continue, including lower profitability due to bidding competition and higher costs resulting from rising labor expenses.」
The company continues to cite lower profitability due to bidding competition and higher costs due to rising labor expenses as difficult operating conditions. - FY2017-Q1RestatedAnnual report
「Although construction investment has shifted toward recovery, difficult operating conditions are expected to continue, including deteriorating profitability due to intensifying bidding competition and higher costs resulting from rising labor and material expenses.」
The company continues to cite bidding competition, rising labor and material costs, and deteriorating profitability as difficult operating conditions. - FY2016First statedAnnual report
「The construction industry is expected to see steady construction investment, driven by rising construction demand as the economy moves toward recovery and the full-scale development of reconstruction projects in Tohoku. However, difficult conditions for order profitability, including persistently high labor and material costs, are expected to continue.」
The company identifies cost increases and price competition as ongoing risks to profitability, and explains that intensified price competition made it difficult to secure profitability during the current fiscal year as well.