Hello, everyone.

This is Enta.

Are you paying your social insurance premiums?

Do you have any orders?

Is there a lot of work?

June is Safety Awareness Month for many companies, so I visit various companies and hear all sorts of stories.

Voices of Subcontractors

Lately, I’ve been hearing things like this from people around me.

Social insurance is killing me.

If we enroll in social insurance, the company will go under.

I want to opt out of social insurance.

I want to outsource everything.

It's tough because the unit price isn't going up.

It's better to use the standard one.

In the end, providing labor is a profitable business.

The reason for that

The reason this topic has come up is that,There's an overwhelming lack of workFor that reason, and

Unit prices have not increasedThat's the point.

I can still accept that there's no work at this time of year, but,

If construction unit prices don't go up, subcontractors are definitely going to go out of business, right?

Why isn't it going up?

Ultimately, it comes down to the workload—though that’s intertwined with the reasons mentioned above.

Companies that are hiring people simply because they don't have enough work are in a situation where they have no choice but to cut back.

The bureaucratic mindset is, “No, no—labor costs are going up! Construction costs are going up!”

It’s true—prices are going up. From the government agency to the general contractor.

Prices have risen to a certain extent, from the prime contractor down to the first-tier subcontractors.

Here's the problem: the pay drops sharply from first-tier subcontractors to second-tier subcontractors, and it hasn't changed much from the past. (It's only a slight improvement.)

The reasons for the prime contractor to negotiate price reductions with the first-tier subcontractor include company policy and a tight winning bid price, right?

Various on-site conditions can also serve as bargaining points.

Occasionally, people bring up the winning bid price even when moving from a first-tier subcontractor to a second-tier subcontractor.

But you know, the minimum winning bid has gone up compared to the past, and,

It’s like, “Everything’s gone way up overall, so why are the unit prices still the same as before?” lol

So, if you own machinery and a truck and hire people, it’s all risk, isn’t it?

I think I understand why people say that providing labor is a profitable business.

Paying social insurance makes me feel like I'm going out of business.

Social insurance premiums get deducted in one big lump sum from my designated account at the end of every month!

The more employees there are, the harder it is.

After all, the money is deducted without mercy right at the end of the month, when you need it most.

Of course, since we're a company, we set aside funds and make preparations.

But it really gets to me that my insurance premiums keep getting deducted even though my pay rate isn't going up!

Measures for Subcontractors

This is the only option, but I have no choice but to turn down work from general contractors that force me to accept unreasonably low rates.

I want the job, but I have no choice but to find the courage to turn it down.

The more you do it, the more it becomes a vicious cycle.

The harder employees work, the more exhausted they become, which can ultimately lead to serious accidents.

There are also general contractors who aren't like that

There are some really great general contractors out there! They let you make a solid profit.

That’s exactly why I’m willing to lend a hand with the general contractor’s work there, even when things get tough.

Situations like that usually work out just fine!

Here's what will happen going forward

Probably,The volume of subcontracting will drop dramatically.

(Although the number of general contractors will probably decrease as well.)

What this means is that the shortage of skilled workers will accelerate rapidly.

If that happens, we won't be able to proceed with the construction, andThe unit price will go up.

Subcontractors are less likely to work with an unpopular general contractor.

This means there is a possibility that a reversal of roles could occur.

What's more, at the prefectural and municipal levels, the preference for local businesses is becoming even stronger.

It's quite likely that even branch operators won't be able to enter.

In the end

A place to relax isWhether or not there's a sense of "it goes both ways"That's the point.

Prime contractors and subcontractors are two sides of the same coinThat's it.

It means that if either one is missing, it just won't work, right?

With a spirit of mutual support, for the sake of the general contractor,

I think it would be great if I could do this work as a subcontractor.

See you later.