Soaring Raw Material, Construction Material and Logistics Prices, and the Wood Shock
First written in FY2021. 8 of 24 entries say "Worsened", first in FY2022-Q1. Latest entry: 2026-07-31.
Fuji Corporation Limited moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2022: 32 of 49 companies on the "Worse" side.
14 other companies' latest entry also says "Mitigated".
- FY2026RestatedAnnual report
「The business environment surrounding the real estate industry has become more difficult than before due to the Bank of Japan's policy rate hikes, persistently high land prices and surging construction costs, among other factors.」
In addition to surging construction costs and persistently high land prices, the Company cites policy rate hikes and continues to describe the difficult cost environment surrounding the housing and real estate businesses. - FY2026-H1WorsenedAnnual report
「In the real estate industry, new housing starts and sales are showing signs of slowing as rising or persistently high land prices and construction costs push up the prices of newly built properties, while」
Rising or persistently high land prices and construction costs are linked to higher prices for newly built properties and a slowdown in new housing starts and sales. - FY2025WorsenedAnnual report
「The business environment surrounding the real estate industry has become more difficult than before due to the Bank of Japan's policy rate hikes, persistently high land prices and surging construction costs, among other factors.」
The Company cites policy rate hikes, persistently high land prices and surging construction costs, stating that the business environment has become more difficult. - FY2024-Q3WorsenedAnnual report
「Prices of newly built condominiums have risen more sharply than those of newly built detached homes, and this trend remains unchanged. However, developers are adopting cautious sales policies, limiting the number of buildings supplied, and sales are expected to remain firm. Investors' appetite for investment real estate with strong inflation resilience also remains strong.」
Housing prices, particularly those for newly built condominiums for sale, continue to rise sharply, indicating that surging construction and real estate prices are making home purchases more difficult. - FY2024-Q2WorsenedAnnual report
「In the real estate industry, demand for home purchases by first-time buyers remains firm, but overall residential investment is weak because property prices have risen further, primarily due to elevated real estate prices and surging construction costs, with prices in some regions exceeding purchasing power.」
Surging construction costs have led to further increases in property prices, which in some regions exceed purchasing power, resulting in weak residential investment. - FY2023MaterialisedAnnual report
「The Company was unable to absorb rising building costs, resulting in lower segment profit.」
Rising building costs reduced profit in the construction-related segment, which reported a segment loss of ¥14 million for the full fiscal year. - FY2023-Q3MaterialisedAnnual report
「Segment profit was ¥1,517 million, down 11.7% year on year, reflecting surging building costs.」
Surging building costs have actually resulted in lower profit in the land utilization segment. - FY2023-Q2RestatedAnnual report
「Real estate prices, construction prices and housing equipment prices continue to rise or remain elevated.」
The Company continues to describe the risk of rising construction costs, with real estate prices, construction prices and housing equipment prices continuing to rise or remain elevated. - FY2023-Q1WorsenedAnnual report
「A broad-based rise or sustained elevation in real estate prices, construction prices and housing equipment prices in urban areas continues.」
In addition to the previously identified surge in raw material and material prices, the Company states that real estate prices, construction prices and housing equipment prices continue to rise broadly or remain elevated. - FY2022WorsenedAnnual report
「The sales environment is becoming increasingly difficult as surging timber prices caused by the wood shock and successive price increases for housing equipment push up building costs, which are passed through to selling prices.」
In addition to the previously identified risk of rising raw material and material prices, the Company explicitly identifies surging timber prices, successive price increases for housing equipment, and higher building costs. - FY2022-Q3RestatedAnnual report
「The impact of shortages of residential construction materials and surging raw material prices caused by the wood shock on new housing starts and sales profit remains uncertain.」
The Company continues to describe the uncertain impact of shortages of construction materials and surging raw material prices on new housing starts and sales profit. - FY2022-Q2RestatedAnnual report
「The impact of shortages of residential construction materials and surging raw material prices caused by the wood shock on new housing starts and sales profit remains uncertain.」
The Company continues to describe the uncertain impact of shortages of construction materials and surging raw material prices on new housing starts and sales profit. - FY2022-Q1WorsenedAnnual report
「The impact of shortages of residential construction materials and surging raw material prices caused by the wood shock on new housing starts and sales profit remains uncertain.」
For the previously identified risk of rising construction costs, the Company states that the wood shock has caused shortages of residential construction materials and surging raw material prices, with an uncertain impact on new housing starts and sales profit. - FY2021First statedAnnual report
「Construction costs are a major component of cost of sales, alongside procurement costs, and when raw material, material and logistics prices rise due to trends in domestic and overseas markets, the Company passes the increase through to selling prices. However, if construction costs rise beyond expectations and it becomes difficult to pass the increase through to selling prices, this could affect the Group's business results and financial position.」
The Company identifies surging construction costs, as well as rising raw material, material and logistics prices and difficulty passing these increases through to selling prices, as separate risks.