Risk of earnings volatility due to economic trends in the construction industry
First written in FY2023. 1 of 2 entries say "Mitigated", first in FY2024. Latest entry: FY2024.
The whole theme swung hardest in 2020: 21 of 36 companies on the "Worse" side.
12 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「While primarily developing a staffing business for the construction industry, our group is diversifying its operations to avoid significant exposure to the business conditions of any particular industry or customer. It is doing so by leveraging the expertise and experience accumulated in the construction industry to provide staffing services in areas including plant engineering, BIM and IT.」
The company explicitly identifies diversification through staffing services in the plant engineering, BIM and IT fields as a response to the risk of business-cycle fluctuations in the construction industry. - FY2023First statedAnnual report
「Our group operates a staffing business focused primarily on the construction industry. Although we believe demand for dispatched personnel in the construction industry will continue to expand, driven by factors including labor shortages, our group's performance is affected to a certain extent by trends in domestic construction investment.」
The company identifies shorter working hours, deterioration in contract terms, early contract termination and the personnel costs of technical staff awaiting assignment as risks arising from a decline in construction investment.