We specialize in slope stabilization, but we also install temporary scaffolding.
\nThe reason is that, for some reason, even when we\u2019ve tried to hire a scaffolding company over the past few years, they\u2019ve been slow to show up, so we\u2019ve ended up doing the work ourselves.<\/p>\n
Why Are Scaffolding Companies Disappearing? I\u2019ll write about what I\u2019ve seen and felt on construction sites\u2014including media coverage, the regulations under the Construction Industry Act, and the trend of scaffolding companies going out of business.<\/p>\n According to Tokyo Shoko Research, there were 110 bankruptcies (with liabilities of 10 million yen or more) in the scaffolding industry from January through August 2026, representing a 26.4% increase compared to the same period last year. The scaffolding industry includes not only companies that set up scaffolding but also those that install steel frames and support columns\u2014and that includes us, the slope stabilization specialists.<\/p>\n Please be aware that this figure does not represent the number of cases involving only scaffolding contractors.<\/p>\n It's easier to understand when you look at the contents.<\/p>\n Most of the companies that have gone out of business are small businesses with fewer than 10 employees.<\/strong>That's the point.<\/p>\n On the other hand, looking at the combined figures for the 15,941 scaffolding contractors for which performance data is available, revenue has increased for four consecutive fiscal periods, and net income has risen by 24.4 percent compared to the previous period. Despite this, 37.5 percent of companies with annual construction revenue of less than 100 million yen are operating at a loss. It's tough even in terms of population numbers. Even though there are jobs available, it\u2019s only the small companies that are going out of business. Here\u2019s an overview of the workflow of the scaffolding crews I\u2019ve observed on-site.<\/p>\n To be honest, a lot of the guys who work in scaffolding are pretty rowdy (though there are quite a few from the slope stabilization crews too, lol). Work is tough. After about five years, differences begin to emerge among colleagues who started at the same time.<\/p>\n When this happens, I usually start to feel the following:<\/p>\n \"Even I can do it!\" That's when I completely forget about the company's reputation and start thinking it's all down to my own ability.<\/p>\n And then came independence.<\/p>\n Scaffolding is a line of work where the barriers to starting your own business are low. If it's a large-scale apartment building renovation, even more manpower will be needed. Anyone can start a company at any time. I spent five years as a craftsman, during which I learned how to select materials and assemble them. I can handle work on-site.<\/p>\n But no one on the job site teaches you how to prepare estimates, manage costs, handle social insurance procedures, or manage cash flow.<\/p>\n The moment you become independent, all the consequences of not having studied up until then come crashing down on you at once.<\/p>\n This is exactly when what you learn in school really pays off! Japanese, math, science, social studies, and art! This is what happens when you think it\u2019s a waste of time.<\/p>\n Being able to compile a list of materials and being able to prepare a quote are two different things. Conversely, there are certainly plenty of areas where we\u2019re being taken advantage of by major general contractors and local general contractors offering low rates.<\/p>\n One of the first hurdles you\u2019ll face when starting your own business is obtaining a construction business license.<\/p>\n Under the Construction Industry Act, construction work that can be undertaken without a construction business license is classified as \u201cminor construction work,\u201d and as long as it is not general building construction,The contract price for a single project is less than 5 million yen<\/strong>That's it. Furthermore, this 5 million yen includes consumption tax, and if the client provides materials, the cost of those materials will be included in the calculation. Sometimes people say, \u201cFor a 6 million yen project, you can just split the contract into two 3 million yen contracts,\u201d but that won\u2019t work lol. You might think, \u201cWell, why not just get permission?\u201d but it\u2019s not that simple.<\/p>\n Legally, the following requirements are generally necessary to obtain a construction business license.<\/p>\n Social insurance has been included as a licensing requirement since October 2020.<\/p>\n For corporations, even if there is only one representative, enrollment in health insurance and the Employees' Pension Insurance is required. And when construction begins, you\u2019re asked to confirm whether you have insurance and to submit the necessary documents, right?<\/p>\n That\u2019s because, according to the Ministry of Land, Infrastructure, Transport and Tourism\u2019s \u201cGuidelines for Instructing Subcontractors on Social Insurance Enrollment,\u201d prime contractors are responsible for instructing subcontractors regarding social insurance enrollment.<\/p>\n It is now standard practice for subcontractors working on public works projects or at major construction sites to have their social insurance enrollment status verified 100 percent.<\/p>\n Scaffolding contractors without a license or social insurance have no choice but to make a living doing private construction projects worth less than 5 million yen.<\/strong>Here is the translation.<\/p>\n What's more, they take on projects worth less than 5 million yen, with teams of three or four craftsmen moving from one job to the next.<\/p>\n Since the profit margin per bottle is so small, it\u2019s extremely difficult to make up for a loss on just one bottle.<\/p>\n And when you factor in the cost of ingredients...<\/p>\n The main reason for bankruptcy is money.<\/p>\n Let's say there's a scaffolding company that has obtained a construction business license and operates with a staff of about five people.<\/p>\n Roughly speaking, the money that goes out of revenue breaks down as follows:<\/p>\n Scaffolding materials are not something a company that has just become independent can afford to purchase in their entirety. This lease payment is really a strain. When I actually rented it, in the end...Almost half of what I received went toward the lease payments, lol.<\/strong><\/p>\n There's a reason for that: when construction is underway, stress is placed on certain parts, causing steel pipes to bend, scaffolding planks to crack, or clamps to go missing...<\/p>\n I'm getting charged a ton, lol.<\/p>\n So we're just buying everything up now, lol.<\/p>\n I went on a real shopping spree for scaffolding materials!!<\/p>\n With tears in my eyes and spitting up blood lol (just me, lol)<\/p>\n That's why I really want you to take good care of the ingredients! (I'm really hoping you will!)<\/p>\n <\/p>\n That said, it would be ideal if we could set our rates after giving that kind of consideration, but in most cases, that\u2019s not how it works.<\/p>\n Thinking, \u201cIf I take on the job, I\u2019ll make money,\u201d I just end up accepting it.<\/p>\n This is the most dangerous.<\/p>\n Here\u2019s a formula I\u2019d like you to be able to calculate before you go out on your own.<\/p>\n Gross Profit = Contract Amount \u2013 (Labor Costs + Employer\u2019s Share of Social Insurance + Scaffolding Equipment Rental Fees + Vehicle, Fuel, and Transportation Costs)<\/strong><\/p>\n This is just the bare minimum, lol.<\/p>\n Specifically, let's consider a project with a total cost of 4 million yen, including tax. Another thing that\u2019s easy to overlook is when the money comes in. The more sites we add, the more our upfront costs will increase.<\/p>\n Even though all our operations are profitable on paper, we don't have enough cash on hand to pay salaries.<\/p>\n This is the most common way small companies go out of business.<\/p>\n What's even more concerning is when the construction schedule is delayed due to rain or delays from other contractors.<\/p>\n The rental period for the erected scaffolding continues until it is dismantled.<\/p>\n Even on slope construction sites, it\u2019s not uncommon for scaffolding to remain in place for a week while waiting for the spray-on work to begin.<\/p>\n According to data from Tokyo Shoko Research, 70 percent of bankruptcies were caused by poor sales, and 20 percent were due to accumulated losses.<\/p>\n I'm just guessing, but I think much of the content is,The result of continuing to accept low-priced work without knowing my own cost<\/strong>That's what I think.<\/p>\n Improving one's skills as a craftsman and ensuring the company turns a profit are two completely different things.<\/p>\n If you're going to start your own business, I'd like you to wait until you're able to calculate costs just as well as you can identify materials.<\/p>\n The slope maintenance industry is one where it\u2019s relatively easy to go into business for yourself, but there aren\u2019t many flashy people in this line of work!<\/p>\n That's why I think, conversely, they tend to be less likely to go bankrupt.<\/p>\n Scaffolding crews sure are flashy, aren't they? (That's the strong image I have of them, lol)<\/p>\n <\/p>\n Scaffolding contractors are indispensable to our slope stabilization company. That\u2019s exactly why it\u2019s so frustrating to see skilled craftsmen strike out on their own only to disappear within two or three years.<\/p>\n I don't think becoming independent is a bad thing in and of itself. If there are any young craftsmen out there who are thinking about going into business for themselves, please start by calculating the cost of one job site on your own. If you want, I'll teach you everything!<\/p>\n How to Calculate Money.<\/p>\n At what price would I make a profit if I took on the job?<\/p>\n At what price per unit would the business start operating at a loss?<\/p>\n And the most important thing is not to get too cocky just because you did something well!<\/p>\n There was another incident involving a scaffolding company just the other day.<\/p>\n \u201cTsukuba Stabbing\u201d: \"Let's do it\"\u2014Six Young Employees \"Conspired\" to Stab the President (28); Arrested on Attempted Murder Charges\u2026 Disputes Over Overtime and Pay May Have Been a Factor\u2026 In the Past, He Had Even Held a Casual BBQ with Employees<\/a><\/p>\n This is the result of never outgrowing his mischievous streak, failing to grow up, and acting out his frustration.<\/p>\n Is this the result of not learning proper ethics in school?<\/p>\n This is truly a regrettable incident.<\/p>\n To avoid this kind of situation, I think it\u2019s best to get a solid education before striking out on your own!<\/p>\n I think the future for scaffolding contractors in the construction industry is pretty bright, but I don\u2019t want them to do anything that would ruin their own business.<\/p>\n <\/p>\n See you later.<\/p>\n Words a Director Should Never Say | On-Site Management<\/a><\/p><\/blockquote>\n
\nTo state my opinion right off the bat,Because it's easy to start your own business<\/strong>That's it.
\nI think that really sums it up.<\/p>\n
\nNumber of Bankruptcies in the Scaffolding Industry and Analysis by Tokyo Shoko Research<\/h2>\n
\nThis is the first time in 16 years\u2014since 2010\u2014that the number has exceeded 100 from January through August.
\nIf this pace continues, it is estimated that the annual total could reach as high as 170 cases.<\/p>\n\n
\nSo, as a whole, there's an absurd amount of work in this industry.<\/p>\n
\nThe loss rate for companies with annual revenue of 1 to 5 billion yen is 7.0%, so there\u2019s a clear difference based on size!!<\/p>\n
\nAccording to the same article, while the Ministry of Health, Labor, and Welfare\u2019s job openings-to-applicants ratio for all industries in July was 1.18, the ratio for workers in structural construction\u2014including scaffolders\u2014was 7.94.
\nThat works out to nearly eight companies competing for each job seeker.
\nIf a small scaffolding company lets one of its workers go, it will be nearly impossible to find a replacement.<\/p>\n
\nThe bottom line is, we just can't keep things running on the ground.<\/p>\n![\"Trends](\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2026\/09\/4e66140872ebf4ffdbfc99e8a3c09e3f.jpg\")
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\nWhy It's Too Easy for Scaffolding Contractors to Start Their Own Businesses<\/h2>\n
\nThanks to an introduction from a former delinquent senior and an invitation from some local friends, I casually walked into a nearby scaffolding company.<\/p>\n
\nStill, compared to others my age, even though the work is tough, I make a decent amount of money.<\/p>\n\n
\n\"Why am I only getting this much when I'm working so hard!?\"<\/p>\n
\nWith one 2-metric-ton truck and a crew of three to four workers, we can at least set up the scaffolding.
\nFor temporary scaffolding for slope construction projects like ours, that many people are more than enough to handle the job.<\/p>\n
\nHowever, I get the impression that small-scale private construction projects are often handled by sole proprietors who round up a group of young people they know.<\/p>\n
\nThe problem is,The knowledge you\u2019ll need after you\u2019ve created something\u2014something no one has ever taught you before<\/strong>That's it.<\/p>\n
\nThe initial estimate focuses on \u201chow many of each item to use,\u201d while the final estimate covers \u201chow much to pay to rent them for how many days, how many man-days to allocate, and at what price to sell them.\u201d
\nThere are quite a few apprentices who strike out on their own without ever having prepared a single estimate while working alongside their master.<\/p>\n![\"The](\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2026\/09\/8fd26461d8af4d5f2c9427ab948187dd.jpg\")
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\nConstruction Licenses and Social Insurance Pose Challenges After Becoming Self-Employed<\/h2>\n
\nPeople often misunderstand this to mean \u201cup to 5 million yen per month,\u201d but this amount applies to each individual transaction, not per month.<\/p>\n
\nEven for construction work costing 4.8 million yen before tax, the total amount exceeds 5 million yen when tax is included, so a permit is required.<\/p>\n
\nSplitting a single construction project into separate contracts to circumvent permitting requirements is considered a circumvention of the law, and even if the project is split, it will be evaluated based on the total amount.
\nIf you undertake construction work worth 5 million yen or more without a license, you will be subject to penalties for violating the Construction Industry Act, and you will be barred from obtaining a license for the following five years.
\nSince the general contractor who places the order would also be in violation, any reputable general contractor wouldn't place such an order in the first place.<\/p>\n![\"Scaffolding](\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2024\/11\/2024-11-08-08.33.11.jpg\")
<\/p>\n\n
\nIf you hire employees, the company will incur corresponding monthly expenses.<\/p>\n![\"A](\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2026\/09\/2250730155b8d7a54f43478b7ea183cf.jpg\")
<\/p>\n
\nCost Accounting: Profits Eroded by Scaffolding Rental Fees and Labor Costs<\/h2>\n
\n
\nThat's why most companies start with a lease.<\/p>\n
\nSince lease fees accumulate based on the number of days and the quantity leased, any extension of the construction period will directly increase costs.
\nWhen we first started working with scaffolding, we rented it, too.<\/p>\n
\nIf the lease payment is 2 million yen\u2014half the total cost\u2014then the remaining amount is 2 million yen.
\nAfter paying the labor costs and social insurance premiums for five people, plus the truck rental fee, will there be anything left?
\nIf there's no profit left over, that project is guaranteed to be in the red from the moment it's accepted.<\/p>\n![\"A](\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2026\/09\/b1648e0f5e8f099924675e179333dd01.jpg\")
<\/p>\n
\nIt typically takes one to two months from the time the work is completed and the invoice is issued until payment is received.
\nIn the meantime, we'll pay the workers' wages that month. I think it's fine to pay the lease fee next month.<\/p>\n![\"Cost](\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2026\/09\/cc0fdf142409f8d51c7f91ba769dfd8f.jpg\")
<\/strong><\/p>\n
\n
\nWithout scaffolding, the anchor won\u2019t move even 1 mm.<\/p>\n
\nHowever, a company can't run on skill alone.
\nConstruction business license, employee salaries, social insurance, lease payments, and my own costs.
\nIf you start your own business without understanding this, no matter how hard you work, you\u2019ll end up in debt.<\/p>\n
\nIt\u2019s not too late to wait until you can determine a unit price that yields a profit.<\/p>\n