The construction industry is facing a sharp increase in bankruptcies， the highest rate in the past 10 years， as a severe shortage of craftsmen causes difficulties for companies， and rising labor costs are also putting pressure on management．
Small and medium-sized construction companies continue to struggle. As of October, the number of bankruptcies (debts of 10 million yen or more, legal reorganization) in the construction industry that occurred in 2024 had reached 1,566. The pace of demand is expected to exceed last year’s record high, the highest in eight years, and the full year figure is expected to be the highest in the past 10 years. Small and medium-sized construction companies continue to struggle. As of October, the number of bankruptcies (debts of 10 million yen or more, legal reorganization) in the construction industry that occurred in 2024 had reached 1,566. The pace of demand is expected to exceed last year’s record high, the highest in eight years, and the full year figure is expected to be the highest in the past 10 years. In addition to the high prices of wood and other building materials, a shortage of craftsmen at construction sites and rising labor costs due to a lack of recruits are putting pressure on the management of small and medium-sized construction companies. According to a survey by Teikoku Databank, the percentage of construction companies experiencing a labor shortage rose to 69.8% as of September 2024, and remains at a high level. While redevelopment projects are booming, especially in urban areas, and there is strong demand for construction work due to disaster recovery projects, the introduction of a cap on overtime hours in April this year has made it clear that there is a shortage of craftsmen and site supervisors to carry out construction work. The serious labor shortage has also contributed to rising labor costs at construction sites, with total cash wages in July 2012 increasing by approximately 10% compared to the same month last year, continuing a high growth rate that significantly exceeds that of all industries. The number of “bankruptcies due to labor shortages” caused by companies finding it difficult to operate their businesses due to employees with qualifications essential to carrying out their work being transferred or retiring is also on track to exceed the pace of the previous year. The lack of manpower makes it easy for a vicious cycle to develop, with construction periods being extended or postponed, and this is one of the major factors pushing up the number of bankruptcies among small and medium-sized construction companies. At present, the industry environment is in chaos, with some companies reporting sluggish housing starts due to rising prices for detached houses and interest rates. As construction companies face pressure from both within and outside the country to raise wages, there is a growing possibility that bankruptcies will continue to increase among small and medium-sized companies that have little room to raise wages. [Teikoku Databank] 2024/11/3 (Sun) 7:03.
>>1 They’re ignoring the declining birthrate and not supporting the construction industry and that’s what’s going to happen The problem is that the infrastructure is collapsing one after another How are the Japanese people going to manage this when they hate immigrants too?
>>3 Japan is at full employment, so even if raising wages solves a company’s labor shortage, it will only mean that people have moved from other companies, and the company they moved from will experience a labor shortage.
>>3 In fact, labor costs are rising rapidly. Also, mergers and consolidations of small and medium-sized companies and strengthening compliance with management are necessary. Many CEOs are untalented people who don’t need much skill.
Just before Aneha, there was a lack of work and low pay, so a lot of people left. Shortcutting of corners is commonplace, so if you have normal nerves you wouldn’t be able to work there. Nowadays, inspection fraud and window dressing have become commonplace, right? Normally, people don’t want to do that. But if they get caught, they’ll be fired and go bankrupt, so some people go along with it.
To begin with, there were not many people at the end of the line and the workforce was aging, but with the combination of rising prices and labor costs, they have no choice but to go under. It’s the same with nursing care, but they’ll start to go under from now on.
They say there’s been a “drastic increase in bankruptcies due to a labor shortage,” but in every industry, it’s only small and medium-sized businesses that are going bankrupt. Decent companies are raising wages and securing human resources, so there’s no problem. Incidentally, even if no companies went bankrupt due to a labor shortage, no industry would be affected at all.
Zen University is accredited, selection is based on reasons for wanting to attend and a short essay, tuition is 380,000 yen >The enrollment capacity is 3,500 students, making it the second largest correspondence university after the Open University of Japan (15,000 students). >There is only one faculty, the Faculty of Intelligent Information and Society, where students can choose to study subjects from fields such as mathematics and digital industry. It is possible to earn a bachelor’s degree entirely online, without having to attend classes in person. Construction worker…
The law to regulate trade will be implemented, so the trend of companies going bust won’t change for the time being. Payment intervals will be until February, and there will be no forced discounts, and no free services will be allowed – that’s a big strike…
When I went to visit a family member in hospital, it seemed like the bed next to him was occupied by a young carpenter. He had fallen from a great height and hit his head, and he was slurring his words and couldn’t walk without a walker, so it seemed like he’d never get back to normal, which was a shame. Lots of friends came to visit him every day, and there were lots of photos of them hanging up by his bedside…
>>40 I heard that construction workers don’t get work-related accidents There are a lot of accidents, and it’s normal for them to lose fingers They’re run by delinquents, but the boss of the one-man boss is often a thug or a gang leader.
You seriously don’t see the stereotypical dwarf-like construction worker with a pickaxe anymore. I guess the small businesses that employed a lot of those workers were weeded out due to labor shortages and inefficiency.
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