No.2578
11/18/2020

Corporate Questionnaire on Air Conditioning and Sanitary Installation Works in Japan: Key Research Findings 2020

Yano Research Institute (the President, Takashi Mizukoshi) carried out a corporate questionnaire to domestic major 89 companies that undertake installations of air conditioning and sanitary equipment, and found out the transition of sales of air conditioning and sanitary installation works.


Transition of Sales of Air Conditioning and Sanitary Installation Works at 89 Businesses
Transition of Sales of Air Conditioning and Sanitary Installation Works at 89 Businesses

Summary of Research Findings

This research was a corporate questionnaire to 89 domestic major companies undertaking air conditioning and sanitary installation works. The sales of air conditioning and sanitary installation works for FY2019 (total sales at 89 major air conditioning and sanitary works contractors) attained 1,427,600 million yen, 104.9% of the size of the previous fiscal year. The companies favorably received the domestic orders for air conditioning and sanitary installation works, which expanded the market size. However, as the demand for installation works for Tokyo Olympic and Paralympic Games have overall done, the growth has slowed down. The market seems to have peaked out in FY2019 for the moment.

In 2020 when the COVID-19 infections spread, the orders from accommodations and other related facilities for foreign tourists started being affected by the infections. While the installation orders that had already started the works by April 2020 were able to go on as planned, some orders planned after April were postponed or suspended, according as the clients intended. Furthermore, there were period of voluntary restraint after the state of emergency was declared, which decreased the orders of multiple small-size works that should have been an opportunity for sales activities. These factors are considered to press down the sales performance after the latter half of FY2020.

Noteworthy Topics

Decreased Installation Works in COVID-19 Calamity Deterred Unilateral Rise of Costs for Equipment and Labor

In addition to constant shortage of workers, increased demand by Tokyo Olympic and Paralympic Games caused rapid increase in the orders for installations, which led the companies undertaking the installation works for air conditioning and sanitary equipment to be totally at a loss to secure manpower for construction and installation works that need specific skills.

However, the COVID-19 calamity brought about the changes in the supply-and-demand balance, which temporarily eased the issue of manpower shortage, retaining the labor cost to stay flat at a high level and averting unilateral rise of the cost. This, however is caused by the special factor i.e. COVID-19 infections, and no basic solutions have been provided. Therefore, the issue of manpower shortage is likely to become obvious once again after the infections are subdued. Currently, price negotiations by the air conditioning and sanitary works contractors to the clients have become scarce, though they used to frequently carried out at the time when personnel expenses were ever rising.

Research Outline

1.Research Period: August to October 2020
2.Research Object: Domestic major 89 companies dealing with air conditioning and sanitary installation works
3.Research Methogology: Mailed questionnaire and Face-to-face research by the expert researchers, surveys via telephone and email

About This Research

Corporate questionnaire was carried out in this research to 89 companies that undertake installations of air conditioning and sanitary equipment. There are installation works for electricity, air conditioning and sanitary equipment, and this research is about air conditioning and sanitary equipment. The sales of air conditioning and sanitary equipment installations at 89 businesses include the works of air conditioning systems, water supply and drainage systems, environmental sanitary equipment, fire extinguishment, and special tube systems. This research disclosed the trend of air conditioning and sanitary installation work business by totaling the sales for the construction works from FY2015 to FY2019 at 89 domestic major companies undertaking air conditioning and sanitary installation works, and found out the trend of received orders and supplied materials, and what the businesses focus on.

<Products and Services in the Market>

works of air conditioning systems, water supply and drainage systems,

Published Report

Contact Us

©2019 Yano Research Institute Ltd. All Rights Reserved.
The copyright and all other rights pertaining to this report belong to Yano Research Institute.
Please contact our PR team when quoting the report contents for the purpose other than media coverage.
Depending on the purpose of using our report, we may ask you to present your sentences for confirmation beforehand.