Domestic Construction Business (Building Construction)
We provide all kinds of buildings---offices, condominiums, commercial facilities, factories, hospitals, schools, and more---for the varied needs of our customers and society. We have completed many projects emblematic of the era and culture. In response to the social challenge of carbon neutrality in recent years, we are promoting initiatives such as environmentally responsible building construction, including wooden structures and interiors, and ZEB (Zero Energy Buildings) , and eco-friendly construction using low-carbon material and fuel.
- Net Sales
- JPY1,059.9bn
- Operating Income
- JPY(8.9)bn
Net Sales Transition (FY ended March 31)
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FY2022.3
JPY1,059.9bn
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FY2021.3
JPY964.6bn
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FY2020.3
JPY1,138.9bn
(Figure are as of March 31,2022)
News
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Sustainability
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Sustainability
Obayashi Technical Research Institute was honored as an outstanding sustainable building
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Sustainability
Business Strategy
Maximize value to be delivered, collaborating with supply chains
- Secure steady earnings based on strategic work portfolio in line with production capacity
- Maintain, strengthen, and expand supply chains and increase the production capacity by utilizing next-generation production technologies and DX
- Secure stable earnings by solidifying risk management process and by improving cost competitiveness, gathering effort of all the construction business process including ｍarketing, design, procurement, and production
- In response to an increase in building stock and the needs of society (environmental responsibility, etc.), strengthen marketing abilities and set up a construction system toward gaining renovation construction projects, for which an increase is projected
- Further promote initiatives in growing sectors (including data centers, semiconductor plants, pharmaceutical plants, wooden structures and interiors, and ZEB (net Zero Energy Building))
- Strengthen the construction value chain and expand construction service domains by utilizing networks toward solving social issues such as carbon neutrality and well-being (including the usage of M&As)
Business Environment
- Intensifying competition due to lack of expected significant expansion of the domestic construction market
- Solid demand in fields such as redevelopment, renovation, smart cities, and green energy
- Rapidly increasing and diversifying customer needs for carbon neutrality
- Unprecedented price hikes for a wide range of construction material and disruptions in supply chains
- Application of overtime cap regulation under the revised Labor Standards Act of Japan in April 2024, lack of skilled workers in the construction industry due to declining birthrate and aging society
Specific Initiatives
- Continue aiming for over ¥1 trillion in value of completed construction contracts while keeping in mind capacity for design and construction processes
- Secure profitability with a strategy that considers a good balance for orders received between large-scaled, small- to medium-scaled projects, and renovation projects
- Reflect rises in construction material costs in price conditions for biddings, add a clause to construction contracts requiring discussions surrounding cost increases, and conclude contracts for materials promptly after finalizing a construction contract in order to minimize the effects of price hikes for construction material
- Reform in business processes through BPR (Business Process Re-engineering)* and increased productivity through creating production systems and labor-saving methods utilizing IoT/AI/robotics
- Secure skilled workers through improvements in working environments and on-site operations in cooperation with supply chains
* A review of existing organizations and systems, and re-designing the business flows, etc. from a process-prospective toward the intended objective of the business