{"id":49719,"date":"2023-09-11T23:25:41","date_gmt":"2023-09-11T14:25:41","guid":{"rendered":"https:\/\/norimen.net\/wordpress\/?p=49719"},"modified":"2026-05-16T14:08:59","modified_gmt":"2026-05-16T05:08:59","slug":"construction-bankruptcy-norimen","status":"publish","type":"post","link":"https:\/\/norimen.net\/en\/construction-bankruptcy-norimen\/","title":{"rendered":"Bankruptcies in the construction industry show no signs of stopping, and this is not just someone else\u2019s problem for us in the slope stabilization industry."},"content":{"rendered":"<p>Hello, everyone.<\/p>\n<p>This is Enta.<\/p>\n<p>It looks like bankruptcies in the construction industry are accelerating rapidly!<\/p>\n<p class=\"entry-title\"><a title=\"No End in Sight to Construction Firm Bankruptcies; Pace at Highest Level in Five Years\" href=\"https:\/\/www.s-housing.jp\/archives\/324227\" target=\"_blank\" rel=\"noopener\">No End in Sight to Construction Firm Bankruptcies; Pace at Highest Level in Five Years<\/a><\/p>\n<p>Material costs skyrocketed between the time the order was placed and the start of construction!<\/p>\n<p>It seems that many companies are going out of business because they are unable to cope with this.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-39810\" src=\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2019\/08\/4f0ebc5299abcce7e944e33600f3da61.jpg\" alt=\"Square Washers: Materials Received\" width=\"600\" height=\"460\" srcset=\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2019\/08\/4f0ebc5299abcce7e944e33600f3da61.jpg 600w, https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2019\/08\/4f0ebc5299abcce7e944e33600f3da61-300x230.jpg 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/p>\n<p>In our case, since we\u2019re a first-tier subcontractor, we have to cover the cost of materials, so there\u2019s a possibility we won\u2019t be able to secure our projected profit, right?<\/p>\n<p>If it's just the second stage, it'll just be construction, so I'm sure we'll manage somehow.<\/p>\n<p>&nbsp;<\/p>\n<p>But as inflation keeps accelerating, material costs are going up while wages stay the same...<\/p>\n<p>And then the government's<\/p>\n<p class=\"content--title\"><a title=\"Ministry of Land, Infrastructure, Transport and Tourism Sets Wage Guidelines to Improve Working Conditions at Construction Sites; Contracts Falling Below the Guidelines Will Be Subject to Administrative Guidance\" href=\"https:\/\/www3.nhk.or.jp\/news\/html\/20230911\/k10014191191000.html\" target=\"_blank\" rel=\"noopener\">Ministry of Land, Infrastructure, Transport and Tourism Sets Wage Guidelines to Improve Working Conditions at Construction Sites; Contracts Falling Below the Guidelines Will Be Subject to Administrative Guidance<\/a><\/p>\n<p>was announced,<\/p>\n<p><span style=\"font-size: 120%; color: #ff0000;\"><strong>\"When entering into a construction contract, we plan to issue administrative guidance if the client or contractor sets wages significantly below the guideline.\"<\/strong><\/span><\/p>\n<p>That's what they say, lol<\/p>\n<p>&nbsp;<\/p>\n<p>But how can you tell that?<\/p>\n<p>I mean, it\u2019s all based on the assumption that all the purchase orders are genuine, right? lol<\/p>\n<p>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\u2019re earning, but,<\/p>\n<p>If you report it, there\u2019s a very high chance the general contractor will cut you off.<\/p>\n<p>It'd be tough to just put on a facade, wouldn't it?<\/p>\n<p>&nbsp;<\/p>\n<p>Our slope maintenance industry is also shrinking more than you might expect. (An aging workforce is a major factor.)<\/p>\n<p>As a result, the workload for each company has increased, and I\u2019ve heard that they\u2019re all having a hard time.<\/p>\n<p>We're pretty swamped right now, too, but the quotes keep coming in...<\/p>\n<p>I'm making it conditional on whether I can do it or not lol (just giving myself an out)<\/p>\n<p>&nbsp;<\/p>\n<p>Next year will be tougher than this year, and the year after that will be even tougher than next year, won't it?<\/p>\n<p>We're short-staffed...<\/p>\n<p>&nbsp;<\/p>\n<p>If we don't start taking various measures now, it looks like we're heading into a tough time!<\/p>\n<p>The slope maintenance industry involves a lot of manual labor, so people do the work.<\/p>\n<p>People talk about \"construction ICT,\" but slope work is still mostly done by hand!<\/p>\n<p>So, there's no doubt that work tends to pile up at companies with a lot of employees.<\/p>\n<p>&nbsp;<\/p>\n<p>See you later<\/p>","protected":false},"excerpt":{"rendered":"<p>Hello, everyone. This is Enta. It looks like bankruptcies in the construction industry are accelerating rapidly! There\u2019s no end in sight to construction company bankruptcies, which are occurring at the highest rate in the past five years. Material costs have skyrocketed during the period between winning a contract and starting construction! It seems many companies are going bankrupt because they can\u2019t keep up with these rising costs. In our case, as a first-tier subcontractor, materials\u2026<\/p>","protected":false},"author":2,"featured_media":49577,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[185,1507,3615,4709,5824],"class_list":["post-49719","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-185","tag-1507","tag-3615","tag-4709","tag-5824"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.2 (Yoast SEO v28.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ 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