The number of corporate bankruptcies in the construction industry in Japan fell 20.4 percent from a year earlier to 2,280 in April-March 2013, recording a five-year consecutive down, Tokyo Shoko Research announced. The nation’s all regions saw a decline from fiscal 2012. The research institute said in a report that there are no major factors at this moment shifting the trend to increase bankruptcies in construction during the time of increasing public works.
The total liabilities left by failing businesses increased for the first time in five years to 786.8 billion yen (111.6 percent of a year earlier), largely because of special liquidation of a dissolved construction company in Hokkaido, Kabutodecom with 506.1 billion yen debt.
According to Tokyo Shoko Research, the drop in bankruptcies results from accelerating reconstruction works in disaster-hit Tohoku region and the administration’s policy to expanding public works, as well as the increasing number of banks that approve easing of repayment conditions. It also noted that serious labor shortage and cost hike of materials are possible concerns for the coming time. (2014/04/09)