Market Monitor - Construction industry - Japan

Market performance at a glance

Japan

• The general outlook for the Japanese construction sector is positive as the industry benefits from an increase in public works and credit easing measures by the government.
•  Construction insolvencies decreased 18% year-on-year in 2014  are expected to level off in 2015.
• There was no increase in payment delays in 2014, and we expect no increase in 2015.
• That said, construction businesses face some difficulties due to a lack of workforce, leading to higher labour costs.
• Another issue is rising material prices due to the depreciation of the Yen.
• Smaller construction businesses with weak financials could face some difficulties in 2015.