Why "Paper, FAX, Excel" Persist in the Construction Industry ── Structural Issues Seen from Construction Material Leasing and the Challenge of AI Business OS "BuildOS"
Leach Inc. aims to solve the construction material leasing industry's structural challenges (difficulty moving away from paper, fax, Excel, and over-reliance on individual knowledge) through the development of its AI business OS "BuildOS."
📋 Article Processing Timeline
- 📰 Published: May 12, 2026 at 00:10
- 🔍 Collected: May 11, 2026 at 15:31
- 🤖 AI Analyzed: May 11, 2026 at 20:54 (5h 22m after Collected)
Leach Inc. (Headquarters: Tokyo, CEO: Takuya Tominaga, hereinafter "the Company") has conducted on-site interviews with construction material leasing companies during the development of "BuildOS," an AI business system for the construction material leasing industry.
This article reports on the operational realities revealed through these interviews, the structural background preventing digitalization, and the direction of solutions that BuildOS aims to achieve.
**Daily Life: Opening Multiple Screens Simultaneously and Manually Transcribing Data**
When we visited the office of a certain construction material leasing company, the first thing that caught our eye was the number of monitors.
On the administrative staff's desk, multiple tabs for inventory management, unit price lists, site information, and transaction history were constantly open. They would search for necessary information as needed, manually confirm it, and then transcribe it to another screen. This work continued without interruption throughout the day.
"Even to confirm a single unit price, we have to go back and forth between screens. While experienced staff can handle it smoothly, it takes a considerable amount of time for new employees to become proficient."
This leasing company handles a huge volume of daily inbound and outbound transactions with various clients, such as general contractors and construction companies, and manages sites across the country. The company is divided into multiple departments, with each 담당者 performing final checks of vouchers at each closing date.
On-site staff unanimously state that the most burdensome task is the verification work related to inventory reconciliation and processing. They meticulously identify discrepancies one by one from vast transaction data and manually verify the consistency of amounts and quantities. Even if verification seems complete, if a discrepancy is found later, they have to start over from scratch. What appears to be simple work is, in fact, a continuous series of judgments.
There are also circumstances unique to the construction material leasing industry that contribute to the complexity of administrative tasks. Temporary materials are not simply sold; their entire lifecycle from loan to return must be tracked. This includes outbound dates, return dates, calculation of days, presence of damage, and processing in case of loss. Return times can vary depending on project progress, and management responsibility may shift due to site consolidation. These fluctuating factors multiply the effort required for management.
**Quiet Risk: Over-Reliance on Individual Knowledge (Personalization)**
The term "personalization" (属人化) was repeatedly heard during the interviews.
Certain processing decisions can only be made by one specific person. Other tasks cannot proceed without another specific individual. The more judgment-intensive a task is, the more it concentrates on specific individuals, making training and handover extremely difficult.
Why does personalization progress? The background lies in the differing business practices and numerous exceptions for each client. Even for the same "inbound" operation, unit price systems and calculation methods differ by client. One client might use daily calculations, another monthly. Discount rules, handling of special materials, verification procedures stemming from past problems—such tacit knowledge cannot be fully documented in a manual.
"We do have a vision to expand our bases in the future. But with our current way of working, adding more people won't solve the problem. Unless we change the system itself, expansion will be difficult."
Management expressed a sense of crisis, stating that this personalization is the biggest bottleneck to business expansion. If a staff member falls ill or transfers, operations immediately stall. Operations dependent on tacit knowledge continue to be a silent risk for the organization.
The roots of personalization are deep. Even if operational manuals are prepared, there are too many exception patterns for the manuals to keep up. What an experienced employee knows immediately requires an immense amount of work to document. As a result, a culture of "it's quicker to ask" becomes established, and personalization becomes even more entrenched.
**Three Barriers Hindering Digitalization in the Construction Industry**
These challenges are not limited to the interviewees. There is a deep-rooted structural background across the entire construction industry.
**Barrier 1: Physical Constraints of "On-site Priority"**
The core of construction work is "on-site." This involves operating heavy machinery outdoors, transporting materials, and working at heights. Operating a touch panel with gloves on is not easy, and bringing precision equipment into environments exposed to dust and rain is inherently risky.
As a result, paper slips remain a rational choice on-site. Handwriting can be done with gloves on, and no power source or communication environment is required. It is not uncommon for communication to be unstable in building basements or mountainous construction sites. No matter how excellent a cloud system is, it cannot be used if there is no signal. The survival of paper slips on-site is not merely an old custom but a result of adaptation to the physical environment. Ignoring this fact and ordering "abolish paper and switch to digital" will not move the site. In many cases where past digitalization attempts failed, this on-site rationality was overlooked.
**Barrier 2: Multi-layered Subcontracting Structure**
The construction industry has a unique industrial structure where multiple layers of companies are involved, from the client to the prime contractor (general contractor), then first, second, and third-tier subcontractors.
This article reports on the operational realities revealed through these interviews, the structural background preventing digitalization, and the direction of solutions that BuildOS aims to achieve.
**Daily Life: Opening Multiple Screens Simultaneously and Manually Transcribing Data**
When we visited the office of a certain construction material leasing company, the first thing that caught our eye was the number of monitors.
On the administrative staff's desk, multiple tabs for inventory management, unit price lists, site information, and transaction history were constantly open. They would search for necessary information as needed, manually confirm it, and then transcribe it to another screen. This work continued without interruption throughout the day.
"Even to confirm a single unit price, we have to go back and forth between screens. While experienced staff can handle it smoothly, it takes a considerable amount of time for new employees to become proficient."
This leasing company handles a huge volume of daily inbound and outbound transactions with various clients, such as general contractors and construction companies, and manages sites across the country. The company is divided into multiple departments, with each 담당者 performing final checks of vouchers at each closing date.
On-site staff unanimously state that the most burdensome task is the verification work related to inventory reconciliation and processing. They meticulously identify discrepancies one by one from vast transaction data and manually verify the consistency of amounts and quantities. Even if verification seems complete, if a discrepancy is found later, they have to start over from scratch. What appears to be simple work is, in fact, a continuous series of judgments.
There are also circumstances unique to the construction material leasing industry that contribute to the complexity of administrative tasks. Temporary materials are not simply sold; their entire lifecycle from loan to return must be tracked. This includes outbound dates, return dates, calculation of days, presence of damage, and processing in case of loss. Return times can vary depending on project progress, and management responsibility may shift due to site consolidation. These fluctuating factors multiply the effort required for management.
**Quiet Risk: Over-Reliance on Individual Knowledge (Personalization)**
The term "personalization" (属人化) was repeatedly heard during the interviews.
Certain processing decisions can only be made by one specific person. Other tasks cannot proceed without another specific individual. The more judgment-intensive a task is, the more it concentrates on specific individuals, making training and handover extremely difficult.
Why does personalization progress? The background lies in the differing business practices and numerous exceptions for each client. Even for the same "inbound" operation, unit price systems and calculation methods differ by client. One client might use daily calculations, another monthly. Discount rules, handling of special materials, verification procedures stemming from past problems—such tacit knowledge cannot be fully documented in a manual.
"We do have a vision to expand our bases in the future. But with our current way of working, adding more people won't solve the problem. Unless we change the system itself, expansion will be difficult."
Management expressed a sense of crisis, stating that this personalization is the biggest bottleneck to business expansion. If a staff member falls ill or transfers, operations immediately stall. Operations dependent on tacit knowledge continue to be a silent risk for the organization.
The roots of personalization are deep. Even if operational manuals are prepared, there are too many exception patterns for the manuals to keep up. What an experienced employee knows immediately requires an immense amount of work to document. As a result, a culture of "it's quicker to ask" becomes established, and personalization becomes even more entrenched.
**Three Barriers Hindering Digitalization in the Construction Industry**
These challenges are not limited to the interviewees. There is a deep-rooted structural background across the entire construction industry.
**Barrier 1: Physical Constraints of "On-site Priority"**
The core of construction work is "on-site." This involves operating heavy machinery outdoors, transporting materials, and working at heights. Operating a touch panel with gloves on is not easy, and bringing precision equipment into environments exposed to dust and rain is inherently risky.
As a result, paper slips remain a rational choice on-site. Handwriting can be done with gloves on, and no power source or communication environment is required. It is not uncommon for communication to be unstable in building basements or mountainous construction sites. No matter how excellent a cloud system is, it cannot be used if there is no signal. The survival of paper slips on-site is not merely an old custom but a result of adaptation to the physical environment. Ignoring this fact and ordering "abolish paper and switch to digital" will not move the site. In many cases where past digitalization attempts failed, this on-site rationality was overlooked.
**Barrier 2: Multi-layered Subcontracting Structure**
The construction industry has a unique industrial structure where multiple layers of companies are involved, from the client to the prime contractor (general contractor), then first, second, and third-tier subcontractors.