Construction Material Price Surge: Over 60% of Construction Companies Expect Profit Declines, Nearly Half Fear Major Impact Within a Year
Key facts
- Construction Material Price Surge: Over 60% of Construction Companies Expect Profit Declines, Nearly Half Fear Major Impact Within a Year
- A survey by Lev Job, operated by Leverages, Inc., of 225 construction company executives reveals that over 60% expect profit declines due to soaring material prices, and nearly half fear a major impact on business continuity within a year. While over half are implementing or negotiating price pass-throughs, concerns about client relationships persist.
- Source: PR Times
- Date: June 10, 2026
Direct answer
A survey by Lev Job, operated by Leverages, Inc., of 225 construction company executives reveals that over 60% expect profit declines due to soaring material prices, and nearly half fear a major impact on business continuity within a year. While over half are implementing or negotiating price pass-throughs, concerns about client relationships persist.
- Citation
- Construction Material Price Surge: Over 60% of Construction Companies Expect Profit Declines, Nearly Half Fear Major Impact Within a Year (June 10, 2026), PR Times
- Source
- PR Times
- Date
- June 10, 2026
A survey by Lev Job, operated by Leverages, Inc., of 225 construction company executives reveals that over 60% expect profit declines due to soaring material prices, and nearly half fear a major impact on business continuity within a year. While over half are implementing or negotiating price pass-throughs, concerns about client relationships persist.
📋 Article Processing Timeline
- 📰 Published: June 10, 2026 at 20:00
- 🔍 Collected: June 10, 2026 at 11:21
- 🤖 AI Analyzed: June 11, 2026 at 06:16 (18h 54m after Collected)
Lev Job, a career support service for essential workers operated by Leverages, Inc., conducted a survey titled 'Survey on the Impact on Business and Employment' targeting 225 executives and stakeholders of construction companies, in response to the surge in construction material prices due to the situation in the Middle East.
Survey Summary
Over 60% of construction companies expect profit declines due to soaring material prices, with some expressing concerns about business continuity.
Approximately 60% of construction companies reported an impact on employees due to rising crude oil prices.
Price pass-through is progressing in the construction industry, with over half of companies reporting implementation or ongoing negotiations.
1. Over 60% of construction companies expect profit declines due to soaring material prices, with some expressing concerns about business continuity.
When asked about the impact of the surge in crude oil prices due to the heightened Middle East situation on their business, the most common response was 'delays in construction schedules due to material shortages (50.7%)', followed by 'surge in material prices (43.6%)' and 'on-site costs exceeding budgets (43.1%)'. Regarding supply restrictions or delivery delays from business partners, responses included 'already experiencing specific restrictions (19.6%)' and 'requested delivery postponements or quantity restrictions (32.0%)', indicating a situation where materials are becoming difficult to obtain.
Regarding business performance forecasts for fiscal year 2026, over 60% of construction companies responded with 'expecting a significant profit decline (9.3%)' or 'expecting a slight profit decline (56.4%)'.
Regarding the impact on business continuity, 6.7% of companies responded that they are 'already in a difficult situation for business continuity', and approximately 50% responded that a 'major impact will occur within a year'. This shows a growing sense of anxiety about the future of their business in response to the surge in material prices.
2. Approximately 60% of construction companies reported an impact on employees due to rising crude oil prices.
Regarding the impact of the crude oil price surge on employees, combining 'significant impact (19.6%)' and 'some impact (36.4%)', approximately 60% felt some kind of impact.
Regarding the specific impacts occurring, 'suspension or reduction of bonuses (36.5%)' and 'worsening labor shortage due to hiring difficulties and inability to fill vacancies (34.9%)' were cited as top issues.
Regarding the impact on recruitment activities, 'no particular impact (36.0%)' was the most common response. However, cost-related challenges such as 'inability to increase offered annual salary (28.4%)' were observed, along with some companies adopting flexible methods in response to environmental changes, such as 'online company information sessions and interviews (16.9%)'.
3. Price pass-through is progressing in the construction industry, with over half of companies reporting implementation or ongoing negotiations.
Regarding whether the increase in material costs is being appropriately reflected in the estimated prices to clients (owners), combining 'implementing (17.3%)' and 'currently working on it (34.7%)', over half of the companies were engaged in price pass-through.
Regarding the reasons for being able to proceed with price pass-through, over 70% of companies responded 'because there is a trend of price increases across the industry (70.9%)', indicating that understanding of price revisions is progressing to a certain extent across the industry.
On the other hand, the most common reason for not being able to implement it was 'because there is a risk of losing business if we negotiate prices (28.9%)'. Due to the multi-tiered subcontracting structure in the construction industry, price negotiations can be difficult depending on one's position, and it seems that many companies are facing challenges in responding to cost increases.
Comment from Moriyama, Business Manager
This survey has revealed the reality that many construction companies are feeling anxious about profitability and business continuity due to the surge in construction material prices. The severity of the business environment is evident, particularly in the fact that over 60% of companies expect profit declines and approximately half responded that there is a 'possibility of a major impact on business continuity within a year'.
On the other hand, over half of the companies responded that they are implementing or negotiating price pass-through, indicating that understanding of fair pricing is gradually progressing across the industry. However, due to the structure involving many players such as clients, prime contractors, and subcontractors in the construction industry, there is a tendency for differences in the ease of price negotiations depending on one's position. Especially for small and medium-sized enterprises, there may be cases where sufficient price pass-through is difficult due to concerns about the impact on business relationships.
Furthermore, impacts on bonuses and recruitment activities are also observed to some extent. For the sustainable growth of the construction industry, it will be important to continue discussions across the industry regarding fair price pass-through and improving the business environment.
Survey Overview
Survey Period: May 7, 2026 - May 10, 2026
Survey Method: Internet survey
Survey Conducted by: Leverages, Inc.
Survey Implementation Partner: GMO Research & AI Inc.
Valid Responses: 225
Survey Target: Executives and stakeholders of construction companies who are aware of the impact of the crude oil price surge due to the Middle East situation.
About Lev Job
Lev Job is a job change service for people called 'essential workers' who are engaged in jobs essential for maintaining people's lives and infrastructure. In the essential work field, labor shortages are becoming severe due to the decline and aging of the domestic working-age population. Starting with support for the logistics and construction industries, where labor shortages and long working hours have become particularly severe in recent years, the service aims to realize a society where everyone can live with peace of mind through job change and recruitment support.
About Leverages, Inc.
Head Office Location: 24th/25th Floor, Shibuya Scramble Square, 2-24-12 Shibuya, Shibuya-ku, Tokyo
Representative Director: Tomohide Iwatsuki
Capital: 50 million yen
Established: April 2005
Business Description: Own media business, human resources-related business, system engineering business, system consulting business, M&A advisory business, DX business, medical-related business, education-related business
With the mission of solving social problems and continuously pursuing the happiness of all stakeholders, the company solves problems across countries and industries in the fields of internet media, human resources, system engineering, and M&A. Since its founding in 2005, it has maintained profitable management, and in fiscal year 2024, it exceeded annual sales of 142.8 billion yen. With an all-in-house organizational structure of specialists in each field and portfolio management without limiting industries, the company aims to become a global company representing the era.
Survey Summary
Over 60% of construction companies expect profit declines due to soaring material prices, with some expressing concerns about business continuity.
Approximately 60% of construction companies reported an impact on employees due to rising crude oil prices.
Price pass-through is progressing in the construction industry, with over half of companies reporting implementation or ongoing negotiations.
1. Over 60% of construction companies expect profit declines due to soaring material prices, with some expressing concerns about business continuity.
When asked about the impact of the surge in crude oil prices due to the heightened Middle East situation on their business, the most common response was 'delays in construction schedules due to material shortages (50.7%)', followed by 'surge in material prices (43.6%)' and 'on-site costs exceeding budgets (43.1%)'. Regarding supply restrictions or delivery delays from business partners, responses included 'already experiencing specific restrictions (19.6%)' and 'requested delivery postponements or quantity restrictions (32.0%)', indicating a situation where materials are becoming difficult to obtain.
Regarding business performance forecasts for fiscal year 2026, over 60% of construction companies responded with 'expecting a significant profit decline (9.3%)' or 'expecting a slight profit decline (56.4%)'.
Regarding the impact on business continuity, 6.7% of companies responded that they are 'already in a difficult situation for business continuity', and approximately 50% responded that a 'major impact will occur within a year'. This shows a growing sense of anxiety about the future of their business in response to the surge in material prices.
2. Approximately 60% of construction companies reported an impact on employees due to rising crude oil prices.
Regarding the impact of the crude oil price surge on employees, combining 'significant impact (19.6%)' and 'some impact (36.4%)', approximately 60% felt some kind of impact.
Regarding the specific impacts occurring, 'suspension or reduction of bonuses (36.5%)' and 'worsening labor shortage due to hiring difficulties and inability to fill vacancies (34.9%)' were cited as top issues.
Regarding the impact on recruitment activities, 'no particular impact (36.0%)' was the most common response. However, cost-related challenges such as 'inability to increase offered annual salary (28.4%)' were observed, along with some companies adopting flexible methods in response to environmental changes, such as 'online company information sessions and interviews (16.9%)'.
3. Price pass-through is progressing in the construction industry, with over half of companies reporting implementation or ongoing negotiations.
Regarding whether the increase in material costs is being appropriately reflected in the estimated prices to clients (owners), combining 'implementing (17.3%)' and 'currently working on it (34.7%)', over half of the companies were engaged in price pass-through.
Regarding the reasons for being able to proceed with price pass-through, over 70% of companies responded 'because there is a trend of price increases across the industry (70.9%)', indicating that understanding of price revisions is progressing to a certain extent across the industry.
On the other hand, the most common reason for not being able to implement it was 'because there is a risk of losing business if we negotiate prices (28.9%)'. Due to the multi-tiered subcontracting structure in the construction industry, price negotiations can be difficult depending on one's position, and it seems that many companies are facing challenges in responding to cost increases.
Comment from Moriyama, Business Manager
This survey has revealed the reality that many construction companies are feeling anxious about profitability and business continuity due to the surge in construction material prices. The severity of the business environment is evident, particularly in the fact that over 60% of companies expect profit declines and approximately half responded that there is a 'possibility of a major impact on business continuity within a year'.
On the other hand, over half of the companies responded that they are implementing or negotiating price pass-through, indicating that understanding of fair pricing is gradually progressing across the industry. However, due to the structure involving many players such as clients, prime contractors, and subcontractors in the construction industry, there is a tendency for differences in the ease of price negotiations depending on one's position. Especially for small and medium-sized enterprises, there may be cases where sufficient price pass-through is difficult due to concerns about the impact on business relationships.
Furthermore, impacts on bonuses and recruitment activities are also observed to some extent. For the sustainable growth of the construction industry, it will be important to continue discussions across the industry regarding fair price pass-through and improving the business environment.
Survey Overview
Survey Period: May 7, 2026 - May 10, 2026
Survey Method: Internet survey
Survey Conducted by: Leverages, Inc.
Survey Implementation Partner: GMO Research & AI Inc.
Valid Responses: 225
Survey Target: Executives and stakeholders of construction companies who are aware of the impact of the crude oil price surge due to the Middle East situation.
About Lev Job
Lev Job is a job change service for people called 'essential workers' who are engaged in jobs essential for maintaining people's lives and infrastructure. In the essential work field, labor shortages are becoming severe due to the decline and aging of the domestic working-age population. Starting with support for the logistics and construction industries, where labor shortages and long working hours have become particularly severe in recent years, the service aims to realize a society where everyone can live with peace of mind through job change and recruitment support.
About Leverages, Inc.
Head Office Location: 24th/25th Floor, Shibuya Scramble Square, 2-24-12 Shibuya, Shibuya-ku, Tokyo
Representative Director: Tomohide Iwatsuki
Capital: 50 million yen
Established: April 2005
Business Description: Own media business, human resources-related business, system engineering business, system consulting business, M&A advisory business, DX business, medical-related business, education-related business
With the mission of solving social problems and continuously pursuing the happiness of all stakeholders, the company solves problems across countries and industries in the fields of internet media, human resources, system engineering, and M&A. Since its founding in 2005, it has maintained profitable management, and in fiscal year 2024, it exceeded annual sales of 142.8 billion yen. With an all-in-house organizational structure of specialists in each field and portfolio management without limiting industries, the company aims to become a global company representing the era.
FAQ
What is the purpose of this survey?
To clarify the impact of the surge in construction material prices due to the Middle East situation on the business and employment of construction companies.
What are the main findings of the survey?
Over 60% of construction companies expect profit declines, and nearly half fear a major impact on business continuity within a year.
What is the status of price pass-through?
Over half of companies are implementing or negotiating, but some cannot due to concerns about client relationships.