“Price Hike Bankruptcies” Surge - April Sees Record 108 Cases, Up 50% Year-on-Year; “Construction Industry” Price Hike Bankruptcies Up 80%; Concerns of “Oil Crisis” Bankruptcies from May Onwards

Teikoku Databank, Ltd. has defined "price hike bankruptcies" as corporate bankruptcies (legal reorganizations) that occurred because companies could not maintain profitability due to "rising procurement prices" of crude oil, fuel, raw materials, etc., or "difficulty in raising prices" where they could not pass on price increases due to pressure from customers. The company then compiled and analyzed these cases.

SUMMARY

In April 2026, there were 108 "price hike bankruptcies," a 50% increase from the same month last year (71 cases), and the highest monthly figure since data collection began in 2018. The cumulative total for January-April 2026 reached 346 cases, approximately 20% higher than the 295 cases in the same period last year, indicating a potential to set a new annual record.

[Note] Collection period: January 1, 2018 - April 30, 2026

"Price Hike Bankruptcies" Surge - April Sees Record 108 Cases, Up 50% Year-on-Year

"Price hike (inflation) bankruptcies," where profitability deteriorated due to "rising procurement prices" of fuel and raw materials that could not be passed on to customers ("difficulty in raising prices"), have once again entered a phase of rapid increase. In April 2026, there were 108 "price hike bankruptcies," a 50% increase from the same month last year (71 cases), and a new monthly record since data collection began in 2018. The cumulative total for January-April 2026 also reached 346 cases, approximately 20% higher than the 295 cases in the same period last year, indicating a potential to set a new annual record.

Looking at the "price hike bankruptcies" that occurred in April by factor (including overlaps), "raw materials" was the most common cause, accounting for 63 cases, or 58.3% of the total in April. This was a significant increase from April last year (30 cases, 42.3%), and the first time in 1 year and 1 month since March 2025 (54.8%) that this factor exceeded half of the total. "Labor costs" (24 cases, 22.2%) and "energy" such as electricity and gas (16 cases, 14.8%) followed, but the proportion of these factors decreased compared to the same month last year.

As of May 13, no price hike bankruptcies caused by the ongoing "naphtha supply shortage" were confirmed.

"Construction Industry" Sees 80% Increase, Major Impact from Material Costs

Among the "price hike bankruptcies" in April, the most affected industry was "construction," accounting for 33 cases (30.6%). This represents an approximately 80% increase from the same month last year (18 cases) and set a new monthly record. Within the construction industry, "general construction" (20 cases) was particularly numerous, with "wooden building construction" (12 cases), mainly focusing on new construction of detached houses and condominiums, making up a large portion. This was the highest monthly figure for price hike bankruptcies in wooden building construction since data collection began in 2018. Furthermore, in the breakdown of factors for price hike bankruptcies in the construction industry, bankruptcies originating from "rising raw material costs" due to soaring prices of materials such as steel, wood, and concrete accounted for 23 cases, the highest among all factors. While the impact of the rapidly worsening "naphtha supply shortage" was not yet confirmed, in addition to the continuous "wood shock" and rising prices of building materials due to inflation, a shortage of on-site workers due to the lack of young skilled workers and the retirement of older ones led to increased outsourcing costs and bankruptcies due to "increased labor costs."

"Manufacturing" and "Retail" industries followed (20 cases each), with "food, feed, and beverage manufacturing" (6 cases) being the most common in manufacturing, and "restaurants" (10 cases) being the most common in retail.

Possibility of "Oil Crisis Bankruptcies" from May Onwards

Currently, the impact of crude oil shortages stemming from the rapidly deteriorating situation in the Middle East, along with anxiety over naphtha (crude gasoline) supply, has become apparent in the form of soaring prices and inventory shortages, especially for petrochemical products. While no price hike bankruptcies related to naphtha supply difficulties were confirmed as of April, it is anticipated that crude oil prices and inflation may further escalate depending on the Middle East situation. Transportation industries, which rely heavily on fuels like diesel, and construction and manufacturing industries, which extensively use fossil fuel-derived materials, will be particularly affected. It is highly possible that "oil shock bankruptcies" due to crude oil shortages and soaring petrochemical product prices will occur from May onwards, necessitating careful monitoring of future trends.