Hello, everyone.
This is Enta.
It looks like bankruptcies in the construction industry are accelerating rapidly!
No End in Sight to Construction Firm Bankruptcies; Pace at Highest Level in Five Years
Material costs skyrocketed between the time the order was placed and the start of construction!
It seems that many companies are going out of business because they are unable to cope with this.
In our case, since we’re a first-tier subcontractor, we have to cover the cost of materials, so there’s a possibility we won’t be able to secure our projected profit, right?
If it's just the second stage, it'll just be construction, so I'm sure we'll manage somehow.
But as inflation keeps accelerating, material costs are going up while wages stay the same...
And then the government's
was announced,
"When entering into a construction contract, we plan to issue administrative guidance if the client or contractor sets wages significantly below the guideline."
That's what they say, lol
But how can you tell that?
I mean, it’s all based on the assumption that all the purchase orders are genuine, right? lol
On the other hand, if we were to do this, it would be helpful to have an organization where business owners and employees could report how much they’re earning, but,
If you report it, there’s a very high chance the general contractor will cut you off.
It'd be tough to just put on a facade, wouldn't it?
Our slope maintenance industry is also shrinking more than you might expect. (An aging workforce is a major factor.)
As a result, the workload for each company has increased, and I’ve heard that they’re all having a hard time.
We're pretty swamped right now, too, but the quotes keep coming in...
I'm making it conditional on whether I can do it or not lol (just giving myself an out)
Next year will be tougher than this year, and the year after that will be even tougher than next year, won't it?
We're short-staffed...
If we don't start taking various measures now, it looks like we're heading into a tough time!
The slope maintenance industry involves a lot of manual labor, so people do the work.
People talk about "construction ICT," but slope work is still mostly done by hand!
So, there's no doubt that work tends to pile up at companies with a lot of employees.
See you later
