rehgHiTOYO CONSTRUCTION I INTEGRATED REPORT 2024 laitnetophtworgtekraM* Includes warehouses with industrial-scale refrigerators and freezers construction or repairs or renovation to an existing structure, we are saying, “When you engage Toyo Construction, you receive a wide range of whole-package, highly cost-effective proposals addressing everything from problem solving to engineering.” Furthermore, to deal with medium- to long-term changes in the business environment, we must explore areas beyond traditional contracting. Toward this end, we have launched new businesses. One component of our business expansion plan is building renovation. We have already been involved in a building revitalization project where we completely remodeled an old medical building into fully furnished office space, increasing its added value as an income-generating property and then reselling it. That project showcases our ability to effectively read emerging trends in society. We will continue to pursue business opportunities that reflect the times. Meanwhile, the labor shortage in the construction industry is growing more severe every year. Upper limits on overtime work, applied in the construction industry in fiscal 2024, have made improving productivity an urgent task. Groupwide, we are proactively adopting cutting-edge ICT technologies such as BIM (Building Information Modeling) and promoting labor-saving technologies and strategies to reduce manpower needs. We must strive to boost productivity, limit working hours to create a more comfortable work environment, and attract more people, not just men but also women, to the construction industry. On the recruitment front, since competition for job seekers is intensifying not only among peers within the construction industry but with companies in other industries as well, we know how important it is to improve the work environment and enhance training content in the medium to long term.PresentFocus areasThe Toyo Construction Group is directing concerted efforts into multiple sectors of the domestic construction market, including production facilities, logistics facilities, and environmental facilities, to accelerate sales expansion. The Group has particular strengths in cold storage warehouses and food factories. Demand for this expertise has been driving performance over the past few years. However, a look at the market environment shows that demand for new construction is likely to retreat significantly due to the accelerating rate of the population decrease. Moreover, in recent years, construction costs have continued to climb, dramatically increasing the number of projects being scaled back, postponed, or even canceled, and some planned new construction has even been changed to renovation or reconstruction. Therefore, the Group’s response to these market changes and evolving client needs has been to emphasize solution-driven sales highlighting diverse options backed by technology and experience and tailored to client requirements. Despite an environment characterized by such factors as rising costs, we have been receiving many orders for special projects. This trend undoubtedly reflects the sincerity of our approach to proposal formation that supports transitions to project realization.In addition, with future market changes in mind, we strengthened sales activities by establishing a dedicated department for ReReC® (Renewal, Renovation Conversion), a business designed to improve the value of existing buildings and facilitate a change in use or application. We are already seeing results. With this change, we are making our expertise even more appealing to clients. Whether a project is for new Efficient operation areasReReC®Hiromi HirataExecutive Vice President General Manager, Architectural Construction DivisionOfficesAccommodationsProduction facilitiesLogistics facilitiesEnvironmental facilitiesHousingGovernment office buildingsMedical welfare and educationIn both new construction and ReReC® activities, we aim to increase market trust and improve profitability through an enhanced ability to offer total proposals from engineering work to solutions.PastFutureAreas to be enhancedPositioning of our focus areasGrowth Strategies for the Future37
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