[Construction Industry's Transformation: From "Owning" to "Using"] Hoshin's Rental Inquiry Ratio Soars to 116.6% Year-Over-Year.

Hoshin Co., Ltd. (Headquarters: Kadoma, Osaka; President: Takuji Nakao), a company that develops, sells, and rents equipment for construction sites, is pleased to announce that its rental ratio for fiscal 2025 has reached 116.6% year-over-year. Trend in Rental Inquiry Ratio 1. [Current Situation in Data] Rental demand expands to 116.6% YoY. Analysis of the latest inquiry data sent to our company shows that the need for rentals is increasing at a pace that far exceeds previous trends. Surge in rental ratio: The rental inquiry ratio rose from 18.1% in fiscal 2024 to 21.1% in fiscal 2025. This represents a high growth rate of 116.6% when the previous year is taken as 100%. Urgent changes on site: In particular, consideration of rental adoption has increased significantly for lightweight equipment that reduces the workload, such as "Alwalk (aluminum scaffolding brackets)," and lightweight shoring equipment used in sewerage construction, such as "Super SS Jack (aluminum gear-type support)" and "Aluminum Sheeting." This clearly shows an increasing need for an "asset-light" management style on site. 2. [Industry Issues in the Background] The deepening "dual bottleneck." Behind this rapid shift to rentals lies a dual bottleneck that plagues construction sites: "chronic issues" and "recent external factors." ■ Chronic issue: Labor shortage and aging workforce The construction industry's long-standing problems of an "aging skilled workforce" and a "shortage of young workers" have brought the risks of continuing to "own" equipment in-house to a breaking point. Burden of management and maintenance: With limited personnel, it has become difficult to allocate resources for equipment inspection, repair, and inventory management. Reduction of physical burden: There is a growing need to constantly introduce lightweight and state-of-the-art equipment that is easy for both older and younger workers to handle, to protect their health and safety. ■ Recent issue: Unstoppable rise in raw material and logistics costs To make matters worse, the soaring prices of raw materials such as steel and aluminum are putting pressure on management. Heavy burden of initial investment: The cost of purchasing equipment has jumped compared to before, and the risk of holding it as an asset has become even heavier. Reduction of fixed costs: The management decision to switch to renting necessary equipment for each site, thereby treating maintenance and storage costs as "completely variable costs (expenses)," is accelerating. ■ [Hoshin's Answer] A flexible service lineup that supports the job site. In response to these challenges, Hoshin goes beyond being just a manufacturer to become a "support partner" that shoulders the burdens of the site, strengthening the following services: "Professionally maintained equipment" to compensate for labor shortages: We promptly provide equipment that has been rigorously maintained by our staff. This reduces on-site inspection man-hours and ensures safety. "Flexible rental plans" that don't strain management: Use only what you need, for as long as you need it. This eliminates the risk of assetization due to soaring material costs and helps to improve cash flow. Immediate introduction of DX and lightweight technology: Even expensive latest DX equipment and aluminum products that dramatically reduce physical burden can be introduced to the site from tomorrow without risk through rental. ■ Comment from Takuji Nakao, President of Hoshin Co., Ltd. "The figure of 116.6% year-over-year is also proof of how severe the cost increases and labor shortages are that everyone on site is currently facing. We believe that by providing our products not just as manufactured goods, but in the form of 'rental,' we can be a presence that shares the management risks of the site. In an era of soaring material costs and a shortage of people, Hoshin will continue to support the 'vitality for tomorrow' of everyone on the site from a step back through flexible equipment provision." About Hoshin Co., Ltd. With the slogan "Creating the future from the voices of the field," we develop products that support the safety and efficiency of work sites, focusing on civil engineering, sewerage, and surveying materials. We contribute to the spread of construction DX and continue to support the next generation of "working environments." [Company Profile] Company Name: Hoshin Co., Ltd. Location: 3-10-34 Shinomiya, Kadoma, Osaka Representative: Takuji Nakao, President URL: https://hoshin.co.jp/ Business: Development, manufacturing, sales, rental, and maintenance of temporary materials for civil engineering and construction. Instagram: https://www.instagram.com/k.hoshin_hokun/ X: https://x.com/hokun_life TikTok: https://www.tiktok.com/@hoshin_hokun