43% of Construction Companies "Turn Down Orders" Due to Labor Shortage, 74% Predict "Construction Costs Will Rise Further in the Next 5 Years"

Bonobo Inc. (Headquarters: 16F Hankyu Terminal Building, 1-1-4 Shibata, Kita-ku, Osaka, CEO: Takuya Sugimoto), part of the Seiko Holdings Group, which develops services for the construction industry, conducted a "Survey on the Reality of Labor Shortage and Construction Costs in the Construction Industry" targeting executives and board members of construction companies.

<Survey Summary> 1. About 70% of construction companies reported a labor shortage. 2. About 40% are in a situation where they "turn down orders" due to labor shortages. 3. Over 70% responded that construction costs will "rise further" in the next five years. 4. Only a little over 10% of companies are hiring foreign talent.

### 1. About 70% of construction companies reported a labor shortage When asked about the current hiring situation, a total of 72.4% of companies responded with "severe labor shortage (36.2%)" and "somewhat of a labor shortage (36.2%)," revealing that many companies in the construction industry are feeling the strain of insufficient personnel.

On the other hand, only a fraction of companies responded that they "have enough staff (13.8%)," suggesting that securing human resources remains a challenge for the industry as a whole.

The construction industry has long been pointed out for its aging workforce and lack of young talent, and this survey suggests that the structure of chronic labor shortage continues.

### 2. About 40% are in a situation where they "turn down orders" due to labor shortages When asked about the problems caused by the labor shortage, "concentration of burden on veterans (47.5%)" was the most common answer, followed by "turning down orders (43.1%)." Other responses included "construction delays (31.2%)" and "concerns about quality decline (23.2%)," indicating that the burden on the field and the impact on operations are spreading.

In particular, the fact that about 40% of companies are turning down orders due to labor shortages suggests that a situation where supply is insufficient to meet construction demand may be emerging. Such supply constraints are thought to be a risk that could lead to upward pressure on construction costs and affect the future construction market.