The business environment facing the construction industry in Japan has changed significantly since 2011 when the Great East Japan Earthquake occurred. In addition to the demand from post-earthquake reconstruction, a series of redevelopment projects are up and running in line with the holding of the 2020 Tokyo Olympic and Paralympic Games. These have caused hikes in the cost of labor and materials. However, supply and demand seems to have been completely reversed. One of the growth areas is investments in the construction of infrastructure outside Japan which is expected to contribute to a constant increase in overseas sales.
Meanwhile, the construction industry has intrinsic issues of insufficient cost management against cost fluctuation factors including the cost of labor and materials that are specific to the industry. There is also the issue of a stratified subcontracting system.
There is strong demand for new public investments in rural areas as the reconstruction business has run its course.
In addition to general accounting audit and internal control, BDO provides advanced services in strategic areas such as providing advice on cost management on cost fluctuation factors through the understanding of a business environment unique to the construction industry and supporting M&A to achieve future growth.