Building Construction

Continuing to develop technologies and exercise true craftsmanship

We provide all types of buildings such as offices, condominiums, commercial facilities, factories, hospitals and schools that meet diverse needs including reduced environmental load and energy conservation, comfort and convenience as well as seismic resistance and disaster readiness for securing business continuity.

We have completed many historically and culturally symbolic projects, such as Tokyo Central Station (currently Tokyo Station), Osaka Castle, Japan World Exposition (Theme Pavilion), Roppongi Hills, TOKYO SKYTREE®, and Toranomon Hills.

Net Sales
JPY1,268.9bn
Operating Income
JPY63.3bn

Net Sales Transition (FY ended March 31)

  • 2020

    JPY 1,268.9 bn

  • 2019

    JPY 1,537.4 bn

  • 2018

    JPY 1,535.2 bn

(Figure are as of March 31, 2021)

Business Policy

Productivity Increasing Initiatives Contributing to Growth of an Attractive Construction Industry

Given the worries about a shortage of skilled workers in future, increasing productivity is the biggest challenge for the construction industry if it is to continue developing sustainably. Obayashi will of course enhance safety and quality by developing and acquiring advanced technologies. We will also work to reduce overburden, waste, and unevenness at construction sites, strongly promote work style reform, and contribute to the growth of an attractive construction industry. We will also work to maximize earnings for the Group as a whole by responding flexibly to changes in the market.

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Opportunities in Business Environment

  • Abundant private-sector non-residential construction demand will continue, including large-scale redevelopment in urban areas and capital investment as the manufacturing industry returns to Japan
  • Creation of new demand and added value with increased productivity as IoT, AI, and robotics evolve and spread
  • Robust construction demand in Southeast Asia, North America, and Oceania

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Risks and Responses

Risks Responses
Decline in private construction investment when business conditions slow Maintain and expand orders received and profitability by expanding and leveraging our network and offering high-value-added services
Social demands to correct problems in working environments, such as long work hours Increase productivity by using next-generation production systems and transforming business processes
Materials supply shortages, skilled worker shortages and aging, and the resulting cost increases Secure and train human resources by further enriching our global procurement networks and improving working environments and conditions
Impact on earnings and business evaluation if there are major safety or quality incidents Fully implement safety and quality education programs and policies
Great fluctuations in legal systems and political and economic conditions overseas where we do business Develop business and practice risk management in a locally-based way (e.g., collaborate with local businesses)

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Business Strategy Based on Medium-Term Business Plan

  • Realize stable earnings by enhancing competitive advantages in growth markets and areas and providing integrated high-value-added services for buildings, centered on leveraging the Group's total capabilities and global network
  • Improve productivity by building next-generation production systems utilizing IoT, AI, and robotics, transforming business processes by basing them on BIM, and developing labor-saving construction methods, etc.
  • Eradicate serious accidents and quality and construction defects by implementing diverse education programs and rigorously managing safety and quality by ICT
  • Secure production capacity by improving the working environment at construction sites, developing multiskilled workers, securing skilled workers, and providing educational support, etc.
  • Enhance earnings capacity and expand business domains by collaborating with local partners and sharing our technology in our overseas building construction business

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Specific Measures Based on Business Strategy and Outcomes

  • Establish Marketing Division in April 2020 and centrally manage information across the business domains of building construction and civil engineering. Draw up a strategy for marketing in cooperation with all branches, further boost marketing, and strengthen partnerships and cooperation within the Group
  • Collaborate with external businesses, etc., to build next-generation design and construction management systems and safety and quality control techniques using autonomous construction machinery and ICT/AI
  • Promote consistent use of one-model BIM, which centralizes information. Increase competitiveness and productivity by using BIM as a work platform
  • Improve environment on construction sites (such as enabling reasonable working hours) and ensure their productivity by introducing Construction Career Up System
  • Secure excellent skilled workers with Excellent Site Supervisor and Excellent Operator certification systems, and train and enhance the technological capabilities of skilled workers and pass down technical skills to the next generation through Obayashi Rin-yu-kai Vocational Training School
  • Strengthen locally-based marketing by establishing North American Regional Headquarters and Asia-Pacific Regional Headquarters. Expand on Obayashi technology and increase work skills by promoting exchanges of personnel with Group companies outside Japan

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