Shortage of Construction Engineers and Workers and Declining Regional Construction Demand
First written in FY2016. 11 of 25 entries say "Worsened", first in FY2017. Latest entry: FY2026.
Maruken Lease moved to the "Worse" side of this theme in 2018, 4 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 17 of 27 companies on the "Worse" side.
9 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Although large-scale redevelopment projects, mainly in urban areas, remain firm in the construction industry, persistently high prices for materials and equipment and tight labor supply and demand are affecting construction schedules and earnings.」
It states that although demand for large-scale redevelopment remains firm, persistently high prices for materials and equipment and tight labor supply and demand are actually affecting construction schedules and earnings. - FY2026-H1RestatedAnnual report
「Although public works and large-scale redevelopment projects remain firm in the construction industry, the surge in prices for materials and equipment and labor shortages have not improved, and difficult conditions continue.」
The firmness of public works and large-scale redevelopment projects, together with difficult conditions caused by surging material and equipment prices and labor shortages, continues. - FY2025WorsenedAnnual report
「Further cost increases are also a concern, against a backdrop of surging prices for materials and equipment, an aging technical workforce, and labor shortages.」
It explicitly identifies concerns that costs will rise further against a backdrop of surging prices for materials and equipment, an aging technical workforce, and labor shortages. - FY2024-Q3RestatedAnnual report
「Construction investment remained solid and capital investment also showed signs of recovery, but a difficult order-taking environment continues due to persistently high costs for materials, equipment, and logistics, as well as surging labor costs.」
Although construction investment and capital investment remain solid or show signs of recovery, a difficult order-taking environment continues due to persistently high costs for materials, equipment, and logistics and surging labor costs. - FY2023-Q1MaterialisedAnnual report
「Against this backdrop, the Group's performance was affected by delays in starting and progressing some construction projects, among other factors,」
It states that persistently high prices for steel, materials, fuel, and other items, as well as delays in starting and progressing some construction projects, actually affected performance in the quarter. - FY2022WorsenedAnnual report
「Public investment remained solid, and private-sector construction investment also showed signs of recovery, but further increases in steel and other prices are forecast, raising concerns about their impact.」
While private-sector construction investment shows signs of recovery, further increases in steel and other prices are forecast, and concerns regarding construction demand and costs continue. - FY2022-Q3Private-sector investment begins to recover, while material prices remain elevatedAnnual report
「Although private-sector construction investment shows some signs of recovery compared with solid public investment, it remains in the process of recovering. Material prices, including steel, also remain elevated, raising concerns about their impact on future order-taking activities.」
Although private-sector construction investment shows some recovery, it remains on the road to recovery, while persistently high prices for materials such as steel may affect future order-taking activities. - FY2022-Q1WorsenedAnnual report
「In the construction industry to which the Group belongs, private-sector capital investment has generally remained weak compared with solid public investment. In addition, the continued surge in prices of steel and other raw materials raises concerns about its impact on future order-taking activities.」
Public investment is described as solid, while weak private-sector capital investment and surging raw-material prices continue, raising concerns about their impact on future order-taking activities. The risks related to construction demand and costs are described more specifically. - FY2020-Q3WorsenedAnnual report
「The business environment surrounding the Group includes some slowing factors, such as the gradual decline in demand for reconstruction in eastern Japan and the shift in Olympic and Paralympic-related demand from foundation work to construction work. However, demand remains strong for the renewal of aging infrastructure and large-scale urban redevelopment projects, and firm conditions are expected to continue for the time being. Customers are also expected to increasingly request integrated provision of materials and construction work, as well as efficient products and construction methods. At the same time, rising steel prices and transport costs, together with labor shortages and an aging workforce resulting from the declining birthrate, population aging, and greater labor mobility, are becoming more serious, requiring efforts to strengthen cost management while transforming the workplace into one that is easier to work in.」
In addition to the slowing factors of gradually declining reconstruction demand and the shift in Olympic-related demand, it adds that labor shortages and population aging are expected to become more serious. At the same time, demand for large-scale urban projects is described as strong. - FY2020-Q2WorsenedAnnual report
「Although construction demand remained solid, centered on large-scale projects in the Tokyo metropolitan area, the effects of labor shortages and increases in costs such as steel prices and transport expenses continued. Delays in starting and progressing construction work also led to a pause in demand for heavy temporary works steel materials.」
In addition to labor shortages and rising costs, it explicitly identifies delays in starting and progressing construction work and a pause in demand for heavy temporary works steel materials, indicating that the existing supply constraint risks are affecting the business environment. - FY2020-Q1RestatedAnnual report
「In the construction industry to which the Group belongs, construction demand remained firm, centered on large-scale projects in the Tokyo metropolitan area, but the effects of labor shortages and rising costs, including steel material prices and transportation expenses, continued.」
It states that the effects of labor shortages and rising costs continue, reaffirming the construction industry's existing risk of supply constraints. - FY2019-Q3RestatedAnnual report
「Although labor shortages and increases in steel prices and transport costs continue in the civil engineering and construction industries to which the Group belongs, and are expected to become even more serious, construction demand remained firm, centered on large-scale projects in the Tokyo metropolitan area.」
It describes labor shortages, rising steel prices and transport costs, and concerns that these conditions will become more serious, as in the previous quarter. - FY2019-Q2WorsenedAnnual report
「Although labor shortages and increases in steel prices and transport costs continue in the civil engineering and construction industries to which the Group belongs, and are expected to become even more serious, construction demand remained firm, centered on large-scale projects in the Tokyo metropolitan area.」
In addition to the existing labor shortage, it explicitly states that steel prices and transport costs continue to rise and may become even more serious. - FY2019-Q1WorsenedAnnual report
「Although labor shortages and shortages of construction machinery and transport equipment continue and are expected to become even more serious, construction demand remains firm, as in the previous fiscal year, centered on redevelopment in the Tokyo metropolitan area, Olympic and Paralympic-related projects, and infrastructure development.」
It explicitly states that shortages of labor, construction machinery, and transport equipment continue and may become even more serious. Demand is described as firm, while the risk associated with supply constraints is described more strongly than in the previous fiscal year. - FY2018WorsenedAnnual report
「Although labor shortages and shortages of construction machinery and transport equipment are a concern in the construction industry to which the Group belongs, the industry is expected to remain firm, centered on infrastructure development and large-scale redevelopment projects in the Tokyo metropolitan area.」
In addition to labor shortages, shortages of construction machinery and transport equipment are explicitly identified as concerns, indicating that supply constraints have broadened. - FY2018-Q3RestatedAnnual report
「Although selective acceptance of projects by general contractors affected by the unresolved labor shortage continues, Japan's civil engineering and construction industries as a whole remain firm, centered on large-scale redevelopment projects in the Tokyo metropolitan area and public works.」
It states that labor shortages have not improved and selective acceptance of projects by general contractors continues, while the industry as a whole remains firm, centered on large-scale redevelopment projects in the Tokyo metropolitan area and public works. - FY2018-Q2RestatedAnnual report
「Although selective acceptance of projects by general contractors affected by the unresolved labor shortage continues, Japan's civil engineering and construction industries as a whole remain firm, centered on large-scale redevelopment projects in the Tokyo metropolitan area and public works.」
It states that labor shortages have not improved and selective acceptance of projects by general contractors continues, while the industry as a whole remains firm, centered on large-scale redevelopment projects in the Tokyo metropolitan area and public works. - FY2018-Q1RestatedAnnual report
「Japan's civil engineering and construction industries remain firm, centered on large-scale redevelopment projects in the Tokyo metropolitan area, although the trend of delays in starting and progressing construction work due to labor shortages continues.」
It states that delays in starting and progressing construction work due to labor shortages continue to occur, while large-scale redevelopment projects in the Tokyo metropolitan area remain firm. - FY2017WorsenedAnnual report
「Projects related to earthquake reconstruction in the Tohoku region are trending downward, and construction demand in other regions is also expected to take time to gain full momentum. In addition, delays in starting and progressing construction work due to labor shortages and other factors continue in some areas, raising concerns that any delays in shipments of the Company's construction equipment could affect performance.」
It states that delays in starting construction, for which a recovery trend had been indicated in the previous quarter, have continued in some areas, and newly specifies the decline in Tohoku reconstruction demand and the delay in the full-scale recovery of regional demand. - FY2017-Q3MitigatedAnnual report
「Japan's civil engineering and construction industries remained firm, led by reconstruction demand and large-scale urban redevelopment. A recovery trend was also seen in delays in starting already-ordered construction projects during the first half, and shipments of the heavy temporary works steel materials handled by the Company finally began in earnest.」
A recovery trend was indicated in the delays in starting construction that had actually occurred through the previous quarter, and shipments of heavy temporary works steel materials also began in earnest. However, it does not state that labor shortages or declining regional demand had been resolved. - FY2017-Q2MaterialisedAnnual report
「Japan's civil engineering and construction industries are booming, driven by reconstruction demand and large-scale urban redevelopment. However, delays in starting already-ordered construction projects and selective acceptance of new projects have recently emerged against a backdrop of labor shortages, and the strength of the civil engineering and construction industries has not yet had a positive impact on the heavy temporary works industry to which the Company belongs.」
It states that delays in starting construction and selective acceptance of new projects actually occurred against a backdrop of labor shortages, and that the construction industry's strong performance has not spread to the heavy temporary works industry or the Company. - FY2017-Q1MaterialisedAnnual report
「Although large-scale projects, mainly in the Tokyo metropolitan area, are scheduled in the second half of the current fiscal year in the construction industry to which the Group belongs, orders for construction projects have recently been noticeably delayed or stalled in the first quarter of the current fiscal year, affecting the Company's performance.」
It states that delays and stagnation in the ordering of construction projects actually occurred in the first quarter and affected the Company's performance. - FY2016First statedAnnual report
「Meanwhile, shortages of construction engineers and workers have become chronic, and higher procurement costs, construction delays and delays in starting work are continuing for an extended period. In regional areas, construction demand is expected to decline gradually over the medium to long term.」
It identifies labor shortages, higher costs, construction delays and delays in starting work, and declining regional demand as risks to the outlook for the construction industry.