Domestic Building Construction Business
Characteristics and Strengths of the Business
In the housing business, we have an extensive track record in super high-rise residential buildings using our proprietary SQRIM construction method, which achieves high quality and short construction time. Technology that enables high-speed construction allows single floors to be built in as little as three days utilizing the Group's precasting plants are becoming Sumitomo Mitsui Construction's strength. We are further strengthening this technology to improve construction efficiency and productivity.
For warehouses, data centers, and large factories, we use MIC (Mitsui Sumitomo Integrated Composite System), a hybrid steel-frame-reinforced concrete construction method, to provide buildings that are resistant to vibration while providing large spaces.
In addition, we are focusing on ZEB/ZEH construction to achieve carbon neutrality, and have obtained ZEH-M certification for our company's single-employee dormitories, which operate with a zero energy balance.
Mid- to Long-term Policy
In the domestic building construction market, brisk investment is continuing thanks to robust demand. On the other hand, supply-side constraints are increasing due to restrictions on maximum overtime work.
For this reason, the supply capacity of general contractors is unable to keep pace with construction demand. This situation is particularly conspicuous among facility construction companies and this supply-demand imbalance is expected to persist for the time being.
We have restricted new orders to prioritize the completion of our order backlog. We are steadily progressing with the completion of the order backlog. We will now strive to rebuild our construction structure and thoroughly implement initiatives that emphasize profitability while undertaking sales activities for securing new construction work with the aim of increasing profit levels.
Major Initiatives for FY2024
Restarting and Moving Toward the Next Stage of Growth in the Building Construction Business
Large-scale domestic building construction projects were successfully completed thanks to a Company-wide support system and the implementation of prevention measures based on past failures. Furthermore, buildings that exemplify Sumitomo Mitsui Construction's technology capabilities were successively completed in regions across Japan. Taking this as an opportunity, the Building Construction Business will restart efforts toward building an efficient system that achieves both reliability and speed and will raise the quality of all processes from customer service to construction.
Moreover, we will further solidify the earnings base of the entire Building Construction Business by thoroughly implementing initiatives focused on profitability, strengthening our construction system, and implementing strict target management. Looking ahead, we aim for further growth of the Building Construction Business by ensuring high productivity in response to an age of shrinking workforces and by promoting technology development and strategic investments.
Top center: Japan's number-one (largest) multi-store outlet mall Bottom center: Kyushu's largest logistics center
Right: Asahikawa's first tower (residential) apartment building (Japan's northernmost)
Efforts for Appropriate Staffing and Training of Young Employees
In order to enable systematic staffing after the construction system shortage is resolved, we have systematized the staffing status of project execution engineers, and we are implementing the appropriate staffing of engineers in all branches. Additionally, we aim to further expand our overseas business and are systematically shifting our technicians from Japan to overseas locations. In addition, in order to quickly develop young engineers who can fill the shortage of middle level employees, we will systematically train young engineers in conjunction with annual training. For design engineers, we have shifted from traditional on-the-job training to intensive training from the first year to promote early.
FY2024 Construction Results
PROUD Jingu-mae
Overlooking the Meiji Shrine forest, this luxury residence with a total of 76 units was designed and built by Sumitomo Mitsui Construction under the design supervision of Kengo Kuma.