Demand fluctuations caused by economic fluctuations and weak capital investment
First written in FY2016. 14 of 37 entries say "Restated". Latest entry: 2026-11-10.
Totech moved to the "Worse" side of this theme in 2019, 1 year before the typical company in this theme (2020).
The whole theme swung hardest in 2024: 10 of 32 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Corporate earnings showed signs of improvement, and private-sector capital investment also recovered. Public investment likewise remained firm due to the effects of supplementary budgets and other measures.」
The company describes a recovery in private-sector capital investment and firm public investment, indicating some easing of demand-side pressures. Meanwhile, persistently high construction material prices and labor shortages are identified as ongoing challenges. - 2026-05-14WorsenedEarnings presentation materials
「原価の上昇や物流コスト増が予想されます。」
2027年3月期の事業環境見通しとして、原価上昇と物流コスト増を新たなコスト上昇要因として示している。 - FY2026-H1MitigatedAnnual report
「Capital investment has been gradually recovering against a backdrop of firm corporate earnings, including investment in new areas such as data centers and renewable energy. Public investment also remained firm following the execution of related budgets.」
Capital investment, including investment related to data centers and renewable energy, is described as gradually recovering, while public investment also remained firm, indicating some easing of demand-side pressures. Meanwhile, volatility in foreign exchange rates and resource prices, persistently high construction material prices, and labor shortages continue to be recognized. - FY2025WorsenedAnnual report
「During the current consolidated fiscal year, Japan's economy remained uncertain as the effects continued of soaring resource and energy prices resulting from prolonged conflicts overseas and global inflation.」
While construction demand and public and private-sector investment are described as firm, the company specifically identifies prolonged overseas conflicts, soaring resource and energy prices, and global inflation as new sources of uncertainty. - FY2025-H1RestatedAnnual report
「In the construction industry surrounding the group, domestic construction demand remained strong, and public and private-sector investment remained firm, leaving the order environment favorable. However, many supply-side challenges remain, including persistently high construction material prices and a chronic shortage of engineers, and the company needs to continue monitoring their impact on the business environment.」
The company has reaffirmed its recognition that construction demand and public and private-sector investment remain firm and the order environment is favorable, while many supply-side challenges caused by persistently high construction material prices and a shortage of engineers remain. - FY2024WorsenedAnnual report
「Domestic construction investment remained firm and the order environment was favorable, but supply-side constraints caused by high resource prices and labor shortages have intensified further. The operating environment surrounding the group is expected to remain uncertain for the time being.」
While construction investment and the order environment are described as favorable, the company states that supply-side constraints caused by high resource prices and labor shortages have become “even more severe,” strengthening its existing concerns about supply constraints. - FY2024-Q3WorsenedAnnual report
「In the construction industry surrounding the group, domestic construction demand remained strong, and public and private-sector investment remained firm, leaving the order environment favorable. However, many supply-side challenges remain, including persistently high construction material prices and a chronic shortage of engineers, and the challenging operating environment continues. In the global economy, concerns about a recession remain against a backdrop of continued monetary tightening by countries and expanding geopolitical risks, and the outlook remains uncertain.」
While public and private-sector investment are described as firm and the order environment as favorable, the company specifically identifies persistently high construction material prices, a shortage of engineers, continued monetary tightening by countries, expanding geopolitical risks, and concerns about a recession as new sources of uncertainty. - FY2024-Q1MitigatedAnnual report
「Domestic construction demand remained strong, and public and private-sector investment remained firm, leaving the order environment favorable. However, many supply-side challenges remain, including persistently high construction material prices and a chronic shortage of engineers, and the challenging operating environment continues.」
Public and private-sector investment are described as firm and the order environment as favorable, with some easing of demand-side pressures. Meanwhile, supply-side challenges caused by persistently high construction material prices and a shortage of engineers remain. - FY2023-Q3RestatedAnnual report
「In the construction industry surrounding the group, with an eye to the post-COVID-19 period, public and private-sector investment remained firm and the order environment was favorable. However, the operating environment remained challenging on the supply side as the effects of soaring construction material prices, delivery delays, and other factors persisted.」
The company has reaffirmed its recognition that, while public and private-sector investment remain firm and the order environment is favorable, challenging supply-side conditions caused by soaring construction material prices and delivery delays continue. - FY2023-Q2RestatedAnnual report
「In the construction industry surrounding the group, public and private-sector investment remained firm and the order environment was favorable, but the operating environment remained challenging on the supply side as the effects of soaring construction material prices, delivery delays, and other factors persisted.」
The company has reaffirmed its recognition that, while public and private-sector investment remain firm and the order environment is favorable, challenging supply-side conditions caused by soaring construction material prices and delivery delays continue. - FY2023-Q1Firm demand and ongoing supply constraintsAnnual report
「During the first quarter of the current consolidated fiscal year, Japan's economy saw a relaxation of the severe conditions caused by COVID-19 and progress toward the normalization of socioeconomic activity. However, the outlook remained uncertain due to exchange-rate volatility caused by the sharp depreciation of the yen, soaring resource prices stemming from Russia's military invasion of Ukraine, restrictions on activity resulting from lockdowns in China, and other factors. In the construction industry surrounding the group, public and private-sector investment remained firm and the order environment was favorable, but the operating environment remained challenging on the supply side as the effects of soaring construction material prices, delivery delays, and other factors persisted.」
While public and private-sector investment are described as firm and the order environment as favorable, uncertainty and challenging conditions in the external environment and on the supply side continue due to the weak yen, soaring resource prices, activity restrictions in China, and soaring construction material prices and delivery delays. - FY2022MitigatedAnnual report
「In the construction industry surrounding the group, public investment remained firm and private-sector construction investment also showed signs of recovery. However, the operating environment remains challenging on the supply side due to the impact of soaring construction material prices, delivery delays, and other factors.」
Private-sector construction investment showed signs of recovery, partly easing demand-side pressures. Meanwhile, supply-side pressures caused by soaring construction material prices and delivery delays continue. - FY2022-Q2MitigatedAnnual report
「In the construction industry surrounding the group, private-sector capital investment began to resume as corporate earnings showed signs of recovery. However, the earnings environment remains challenging due to a chronic shortage of engineers and persistently high labor costs.」
The company explains that corporate earnings have recovered and private-sector capital investment has begun to resume, indicating some improvement in demand-side risks arising from weak capital investment. Meanwhile, the challenging earnings environment continues due to a shortage of engineers and persistently high labor costs. - FY2022-Q1RestatedAnnual report
「In the construction industry surrounding the group, capital investment remained sluggish, but private-sector capital investment was expected to resume as corporate earnings showed signs of recovery.」
While weakness in capital investment has continued, the company indicates that private-sector capital investment is expected to resume against a backdrop of recovering corporate earnings. - FY2021MaterialisedAnnual report
「While public investment remained firm, private-sector construction investment showed signs of bottoming out toward the end of the fiscal year, but capital investment declined sharply over the year as a whole due to worsening corporate earnings and increasing uncertainty about the economic outlook.」
The company states that weakness in private-sector construction investment and capital investment materialized as actual results for the fiscal year, rather than remaining merely an outlook risk. - FY2021-Q3WorsenedAnnual report
「In the construction industry surrounding the group, public investment remained firm, but postponements and cancellations of private-sector construction investment plans spread amid worsening corporate earnings and an uncertain economic outlook.」
While public investment is described as firm, postponements and cancellations of private-sector construction investment plans have spread against a backdrop of worsening corporate earnings and an uncertain economic outlook. Concerns about the risk of demand fluctuations have become more concrete. - FY2021-Q2WorsenedAnnual report
「In the construction industry surrounding the group, public investment remained firm, but private-sector construction investment declined amid worsening corporate earnings and an uncertain economic outlook.」
While public investment is described as firm, private-sector construction investment declined amid worsening corporate earnings and an uncertain economic outlook. Concerns about the risk of demand fluctuations have materialized as an actual decline in private-sector construction investment. - FY2021-Q1WorsenedAnnual report
「In the construction industry surrounding the group, public investment remained firm, but private-sector construction investment was expected to decline. With no clear prospect for the containment of COVID-19, concerns remained about uncertainty in the future order environment.」
While public investment is described as firm, the company cites an expected decline in private-sector construction investment and uncertainty about the outlook for containing COVID-19, explicitly expressing concern about the future order environment. - FY2020WorsenedAnnual report
「As COVID-19 continued to spread worldwide, construction projects were delayed at some sites in the construction industry, while plans were also expected to be postponed or canceled. Accordingly, the operating environment surrounding the group was expected to become uncertain and challenging.」
In addition to the existing risk of fluctuations in economic conditions and capital investment, the company cites delays in construction progress and the postponement or cancellation of plans due to COVID-19, describing the operating environment as uncertain and challenging. - FY2020-Q3WorsenedAnnual report
「Meanwhile, uncertainty in overseas economies remained, including a slowdown in the Chinese economy caused by US-China trade frictions and the increasingly tense situation in the Middle East, and the outlook for the economy remained uncertain.」
In addition to the existing US-China trade frictions, the company specifically identifies the slowdown in the Chinese economy and the increasingly tense situation in the Middle East as sources of uncertainty in overseas economies. - FY2020-Q2WorsenedAnnual report
「Meanwhile, uncertainty in overseas economies remained, including the intensification of trade issues such as US-China trade frictions, and the outlook for the economy remained uncertain.」
The company specifically identifies the intensification of trade issues, including US-China trade frictions, as a source of uncertainty in overseas economies. - FY2020-Q1WorsenedAnnual report
「Meanwhile, uncertainty in overseas economies remained, including concerns about escalating trade frictions and slowing growth in the Chinese economy, and the outlook for the economy remained uncertain.」
In addition to the existing uncertainty caused by trade frictions and other factors, the company specifically identifies slowing growth in the Chinese economy as a source of uncertainty in overseas economies. - FY2019WorsenedAnnual report
「Although conditions in the construction industry are expected to remain favorable and domestic construction demand is expected to remain firm, the operating environment surrounding the group is expected to remain uncertain due to rising uncertainty in the global economy, soaring construction costs, an acceleration in labor shortages following the enforcement of laws related to work-style reforms, and volatility in financial and capital markets, among other factors.」
While construction demand is described as firm, the company lists uncertainty in the global economy, soaring construction costs, an acceleration in labor shortages resulting from laws related to work-style reforms, and volatility in financial and capital markets as new sources of uncertainty. - FY2019-Q3RestatedAnnual report
「Meanwhile, the outlook for the economy remained uncertain due to concerns about escalating trade frictions in the global economy and the impact of volatility in financial and capital markets, among other factors.」
The company cites concerns about escalating trade frictions and volatility in financial and capital markets as factors contributing to the uncertain economic outlook. Meanwhile, it states that there were no new risks or significant changes in business and other risks. - FY2019-Q2RestatedAnnual report
「In the construction industry, public investment remained at a high level, while private-sector capital investment increased, including investment in urban redevelopment projects and in rationalization and labor-saving measures against a backdrop of labor shortages. Both public- and private-sector investment remained firm.」
Public and private-sector capital investment are described as firm. The company states that there were no new risks or significant changes in business and other risks, and continues to recognize the risk of demand fluctuations driven by economic conditions and capital investment. - FY2019-Q1RestatedAnnual report
「In the construction industry, public investment remained at a high level, while private-sector capital investment increased, including investment in urban redevelopment projects and in rationalization and labor-saving measures against a backdrop of labor shortages. Both public- and private-sector investment remained firm.」
Public and private-sector capital investment are described as firm. The company states that there were no new risks or significant changes in business and other risks, and continues to recognize the risk of demand fluctuations driven by economic conditions and capital investment. - FY2018RestatedAnnual report
「The building services industry is highly susceptible to economic fluctuations, government economic policies and other factors. If private-sector capital investment or public investment were to stagnate more than expected, this could affect the operating results and financial position of our Group.」
Although public and private-sector capital investment are described as firm, the company continues to recognize the risk of demand fluctuations driven by economic conditions and capital investment trends. - FY2018-Q3RestatedAnnual report
「In the construction industry as well, public investment remained at a high level, while private-sector capital investment increased, including investment in rationalization and labor-saving measures against a backdrop of the full-scale development of urban redevelopment projects and labor shortages. Both public- and private-sector investment remained firm.」
Although the company explains that public and private-sector capital investment remained firm, it states that there were no significant changes in business and other risks, indicating that the risk of demand fluctuations remains recognized as before. - FY2018-Q1RestatedAnnual report
「In the construction industry, private-sector capital investment remains firm, but the order environment remains challenging due to delays in construction starts in Japan and other factors.」
The company has reaffirmed its recognition that, while private-sector capital investment remains firm, the order environment continues to be challenging due to delays in construction starts and other factors. - FY2017RestatedAnnual report
「In the construction industry, private-sector capital investment remained firm, but the order environment remained challenging, partly due to delays in construction starts in Japan.」
The company presents both the resilience of private-sector capital investment and the challenging order environment caused by delays in construction starts and other factors, continuing to recognize the risk of demand fluctuations driven by economic conditions and capital investment. - FY2017-Q3RestatedAnnual report
「In the construction industry, private-sector capital investment has been improving gradually, but the impact of delays in construction starts in Japan and other factors has continued, and the order environment has remained challenging.」
While private-sector capital investment has shown signs of improvement, we continue to recognize that the order environment remains challenging due to delays in construction starts and other factors. - FY2017-Q2RestatedAnnual report
「In the construction industry, the challenging order environment has continued, due in part to ongoing delays in construction starts in Japan.」
The disclosure states that the challenging order environment due to delays in construction starts has continued. It also states that there have been no new risks or material changes in business and other risks. - FY2017-Q1RestatedAnnual report
「In the construction industry, the order environment has remained challenging, due in part to delays in construction starts in Japan.」
The disclosure describes a challenging order environment due to delays in construction starts. It also states that there have been no new risks or material changes in business and other risks. - FY2016First statedAnnual report
「The building services industry is highly susceptible to economic fluctuations, government economic policies and other factors. If private-sector capital investment or public investment were to stagnate more than expected, this could affect the operating results and financial position of our Group.」
Risk that demand in the building services industry will be affected by the economy, government policy, and private- and public-sector investment.