Home » Business » Construction Companies Embrace Digital Transformation Amid Overtime Work Limitations: Building Technology Stocks in Focus

Construction Companies Embrace Digital Transformation Amid Overtime Work Limitations: Building Technology Stocks in Focus

From April 1, 2024, the rules of the upper limit of overtime work based on the “Work Style Reform Act” were applied to construction companies, but many companies are now moving on proceed with digital transformation as a countermeasure. Building technology stocks still need attention.

– Measures to deal with the worsening job shortage and a growing population are attracting attention, and a review of “analog rules” is also a good start-

From April 1, 2024, rules for the upper limit of overtime work based on the “Act Relating to Work Style Reform” will be applied to construction companies.Severe labor shortage construction industryWe have been trying to respond to the problem of 2024 by streamlining all activities, but not everything is ready in April. Some companies useDX (Digital Transformation)Many companies will begin to introduce this technology in earnest in the future, and business opportunities for companies involved in construction technology, including DX construction, are likely to continue to expand. at the moment.

The upper limit on overtime work will start from April.

The upper limit on overtime work based on the Working Style Reform Act was applied to the construction industry from April this year after a five year grace period. Unless there are special circumstances, overtime work must be kept within 45 hours a month and 360 hours a year, the same as general companies. In addition, even if workers and management agree on specific conditions, upper limits are set as “up to 720 hours per year,” “up to 80 hours per month on average for 2 to 6 months,” and “less than 100 times a month.” (Excluding those involved in reconstruction projects).

If a company violates the rules, the company will be subject to up to six months in prison or a fine of up to 300,000 yen If the company receives a penalty, it will be deemed to have violated the Labor Standards Act and will be prohibited from operating future acceptance of public building orders will also be affected. Therefore, companies must manage working hours appropriately so that they do not exceed the maximum limit.

● More than half of the companies cannot implement a two-day working week

What was the situation regarding overtime work in the construction industry before the Working Style Reform Act was introduced? According to the “Member Company Working Hours Survey Report – FY2022-” published in July 2021 by the Japan Construction Contracts Federation, which is made up of general contractors nationwide, in a survey conducted among 140 member company in FY2012, 22.7% of employees at the 72 companies surveyed had overtime hours that exceeded the upper limit regulations. In addition, according to the “Follow-up report for the first half of 2023,” an action plan to achieve two days off per week, published by the federation in December 2013, the association also implemented “. 4-week, 8-day closed facility,” which takes 8 days off in 4 weeks Of the 104 companies that responded to the survey, less than half responded to the survey.

In fact, the Ministry of Lands, Infrastructure, Transport and Tourism, in anticipation of the application of the maximum limits on overtime work, had a policy of working on two days off per week in principle announced, with all construction works directly managed by the Governing Body. a client. This meant that there was a huge shortage of work.

● Increased labor shortages and the aging of the construction workforce

According to the Labor Force Survey of the Ministry of Internal Affairs and Communications, the number of people employed in the construction industry in 2013 was 4.83 million, an increase of 40,000 compared to the previous year, but the number has gradually decreased from the peak of 6.85. million in 1997. The number of people has decreased by more than 2 million people in 26 years. In addition, 36.6% of employed workers are 55 years old or older, which is 4.7 percentage points higher than the 31.9% for all industries. On the other hand, 11.6% of people under 29 years of age are 5.1 points lower than the 16.7% for all industries, and the age of the population is also a serious problem.

If the number of working hours per person is reduced by the Working Style Reform Act, simply put, more people will have to perform traditional tasks, which will worsen the labor shortage. What we need to do to solve this problem is to introduce construction technology.

● There is a lot of room for growth in the introduction of drones and the introduction of IT.

Construction technology is an initiative to improve efficiency in construction by introducing IT and modern technology. The introduction of IT is progressing mainly among major general contractors, and there are cases where productivity has improved at some sites, but many construction companies are said to be slower bringing it into the other industries.

In addition, the review of the “analog rules” announced by the government in June 2022 will also provide a background for construction technology. In the construction industry, these include the elimination of regulations that require a visual inspection of infrastructure and regulations that require a permanent presence on site; droneThis allows remote authentication using web cameras. The fact that IT adoption has been slower than other industries means that there is a lot of room for growth, so we need to pay attention to related stocks.

● Stocks are related to construction technology

As mentioned above, although the cap on overtime work began to be applied in April, not all companies have introduced construction technology. However, there is no time to take measures to deal with the lack of work, and it is not difficult to imagine that companies that have not yet been introduced will have to do so.

Spider Plus is one of the most popular brands.4192> [東証G]right. We are developing the DX construction service “SPIDERPLUS”, which locally manages construction site pictures, photos, construction status, etc. on the cloud. At the end of December 2023, the number of companies that have introduced it has reached 1,841 (a 20.8% increase compared to the same period last year). According to the company, in addition to large companies, implementation is underway among small and medium-sized enterprises that are looking for solutions to the problem of 2024, and they will continue to expand optional activities to increase ARPU (unit price contract per ID). Expected.

Aret5254> [東証G]involved in DX consulting specifically for the construction industry, with a focus on new business creation (co-creation and product development business), as well as a co-creation product sales business that sells products that have been created by client companies. The product co-creation and development business includes both capital development costs (flow income) and ongoing development costs (stock income), and since the development period overlaps over a long period of time, it achieves steady income growth. On the other hand, in the co-creation product sales business, we offer SaaS “PlantStream” specialized for the plant engineering industry.

Fukui computer features9790> [東証P]is a leading domestic BIM/CIM company that is growing into the construction industry. BIM stands for building information modeling, and CIM stands for building information modeling, which is a digital technology that creates three-dimensional structures, but foreign companies dominate. Fukui Computer Architect’s “GLOOBE” has the advantage of being compatible with Japanese design methods, such as architectural data according to Japanese standards, and it increases its market share.

CTS4345> [東証P]As a company specializing in construction ICT, our main focus is on providing cloud storage services that manage construction related data such as files, photos, images and videos in the cloud.Especially at my feet, rentsubscription servicegrowing In addition, last July, we released the “Site Assist Service,” which allows you to understand the situation even when you are not on site, and contributes to improving efficiency work by supporting progress management in conjunction with storage services.

Concept technology4371> [東証G]The two pillars of our business are DX support and IT human resources procurement support, and DX support is based on the manufacturing and construction industries. The company’s DX development platform “Orizuru” is characterized by its ability to respond to customer requests quickly and at low cost, and has a strong track record in supporting the development of BIM / CIM management systems .

blue innovation5597> [東証G]the use of drones to inspect social infrastructure such as the construction of exterior walls, roofs and bridges. Using GPS-equipped drones, which have the advantage of outdoor surveys, we carry out photography, inspection, and surveying while flying steadily, supporting remote verification.

genoa5570> [東証G]provides GNSS (Global Navigation Satellite System) correction information distribution services, and the research area is a source of constant growth. In addition, the company focuses on the fields of civil engineering, agriculture and drones, and is planning to sign new contracts.

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2024-04-25 10:30:00
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