Hello, everyone.
This is Enta.
We recently wrapped up a project at a site in Nagano.
The types of construction work are
Framework Engineer
Ground Anchor System (Compression Plate)
Drainage Boring Worker
That was it.
Well, it's the full slope course, huh? lol
Since we were a second-tier subcontractor on this project, there was no supervision.
It turned out really nice—it looks great lol
Well, here we took on some new challenges (on our own initiative), and it paid off for the company.
It was a project with pretty slim margins, but I’ll have to find a way to make it work, so I’ll do my best lol.
Lately, I haven't been able to do it because the profit margins are just too thin.
I think this is especially true for contractors who own their own equipment.
(All of the above projects were completed using our own equipment.)
Machinery expenses have risen to nearly double their pre-COVID levels.
After all, consumables have become quite expensive.
I try to buy in as large batches as possible, but,
Even so, since the total cost isn't going down, if we factor that into the construction price, the unit price will go up, won't it?
Furthermore, starting in April 2024, the Ministry of Land, Infrastructure, Transport and Tourism will eliminate the premium pay for working on weekends.
As a transitional measure, a premium was paid for the "4 weeks, 8 days off" schedule.
As subcontractors, we naturally added a surcharge to cover that cost, but if the Ministry of Land, Infrastructure, Transport and Tourism is going to eliminate it starting in April,
I bet every local government will cut funding right away, lol (They're quick to cut it!)
While operating costs are steadily rising, if the national government and local governments start cutting expenses, it’s the subcontractors who will suffer.
Of course, I understand that the general contractor is also struggling, but,
As for the small businesses at the bottom of the chain, they’ll probably be cut off left and right under the pretext that “there’s nothing we can do,” and end up going out of business.
Since last year, there has been a significant increase in the number of subcontracting construction companies going bankrupt.
It is said that this trend will accelerate this year.
With the 2024 overtime regulations coming into effect and expenses being cut as well, I wonder what they're trying to achieve with this.
This situation is really getting to the point where it's no longer funny.
2024 looks like it’s going to be a wild year for the construction industry.
To all contractors: This year is a time to be cautious yet bold in your actions!
Let's give it our all!
See you later.
