(Minews) - While demand from Japan’s construction industry is running at a multi-year high, a labour shortage in the sector is putting pressure on the country’s steel producers as building projects are delayed, or even cancelled.
In addition to demand for reconstruction work in areas devastated by the earthquake and tsunami that hit the north of Japan in 2011, construction demand from both residential and industrial divisions has been increasing along with the nation’s economic recovery.
Moreover, work on improving the country’s aging public infrastructure ahead of the Tokyo Olympics in 2020 will also increase.
Indeed, according to the Japan Federation of Construction Contractors, the total value of domestic construction orders received by its 48 member companies in 2013 was ¥11.94 trillion ($117 billion), up 21% from 2012 and exceeding the ¥10-trillion ($98 billion) mark for the first time in five years.
However, concerns have been mounting over the lack of skilled workers and engineers that are delaying construction plans. The shortfall in manpower has already seen a drop in bids for some public works, as one third of construction companies believe they cannot secure an adequate labour force.
According to a survey by the Land, Infrastructure, Transport &Tourism Ministry, the shortage of workers against the number required at construction sites in 2013 was 1.6% on average. This is the highest level since 1993, when comparable data became available.
The average number of people working in the construction industry in 2012 was 5.03 million, down 26% from 1997, due to a prevailing perception that wages are low despite the hard work.
