Shimizu Corporation

Basic Information

Stock Code
1803
Industry
Construction
Category Detail
Construction & Civil Engineering
Prefecture
Tokyo
Establishment Year
August 1937
Listing Year
October 1961
Official Website
https://www.shimz.co.jp/
TSE Information
TSE Information
Yahoo! Finance
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Overview

Shimizu Corporation is a major super general contractor founded in 1937, headquartered in Tokyo, and a comprehensive construction company with strengths in private building and historic architecture sectors.

Current Situation

Shimizu Corporation recorded consolidated sales of approximately 1.4829 trillion yen and net profit of approximately 47.7 billion yen in the fiscal year ended March 2022, maintaining solid performance in Japan's domestic construction industry. Its primary business is private construction centered in the Tokyo metropolitan area, boasting high technological capabilities in civil engineering fields such as medical facilities and LNG tanks. It has a wealth of experience in traditional shrine and temple construction and focuses on restoring culturally valuable buildings. Since 2019, it has promoted environmentally considerate architecture and smart city development, actively participating in Sendai's reconstruction projects. In recent years, it has expanded its business foundation by making Japan Roads a consolidated subsidiary, and going forward, it prioritizes securing diverse domestic and international orders and addressing sustainability. It has also implemented countermeasures against bid-rigging issues, strengthening governance while aiming to enhance corporate value.

Trivia

Interesting Facts

  • Has over 200 years of history since its founding in 1804.
  • One of the big five super general contractors with deep expertise in traditional architecture.
  • Uniquely continues the 'hand axe starting' ceremony in the construction industry.
  • Won the Daijosai Palace construction bid at 60% of estimated price, drawing attention.
  • Displays Shibusawa Eiichi's philosophy as its corporate creed.
  • Rich track record fusing traditional and latest architecture technologies.
  • Participated in numerous Tokyo 2020 Olympics facilities construction.
  • Independently operates training facilities for construction skilled workers.
  • Characterized by proactive stance in regional society reconstruction.
  • Actively adopts environmentally considerate building materials in recent years.
  • Received bid-rigging designation for Linear Central Shinkansen and experienced fines.
  • Contributed to infection prevention at construction sites during the pandemic.
  • Has track record in imperial family-related architecture since founding.
  • Possesses precise quality control system with high credit domestically and internationally.
  • Particularly aggressive in accepting small/medium-scale projects in the construction industry.

Hidden Connections

  • Shimizu Jisho is a related company where the founding family serves as president, promoting group land development.
  • Strength unique to the company in shrine/temple architecture through succession of palace carpenter techniques from the Edo period.
  • Welcomes multiple key university professors and scholars as advisors for technology and research support.
  • Forms numerous JVs with major general contractors but also faces fair competition discussions.
  • Involved in numerous domestic urban redevelopment, deeply engaged in city formation.
  • Handled construction for Nippon Television Network and has strong ties with sponsored programs.
  • Active collaboration with local governments and universities,展開 regionally integrated social contribution activities.
  • Contributes to construction waste reduction through proprietary waste plastics recycling technology.

Future Outlook

Growth Drivers

  • Steady recovery in domestic private building market and increase in new orders
  • Expansion of environmentally considerate construction needs due to strengthened regulations
  • Promotion of smart city and urban redevelopment projects
  • Increasing demand for traditional architecture preservation and rising value of technology succession
  • Strengthening of integrated business model for real estate development and construction
  • Construction efficiency improvements via latest technologies like BIM and AI
  • Increasing public civil engineering demand accompanying infrastructure aging measures
  • Expansion of construction demand in regional societies and emerging markets
  • Promotion of green building materials and low-carbon technology introduction
  • Human resource securing and technological innovation through construction labor force development

Strategic Goals

  • Sustainable building materials adoption ratio over 70%
  • Diversification of domestic and international order portfolios
  • Leadership acquisition in smart city development projects
  • Nationwide deployment of construction skilled worker training programs
  • Achievement of industry-leading environmental and safety standards
  • 30% improvement in construction productivity via IoT/AI utilization
  • International standardization and dissemination of traditional architecture preservation technology
  • Expansion of social contribution activities to regional societies
  • Continuous improvement in ESG investment evaluations
  • Business development contributing to SDGs goal achievement

Business Segments

Private Building Construction

Overview
Receives numerous private large-scale building works, holding high competitiveness mainly in the capital region.
Competitiveness
Aggressively accepts small to medium projects with emphasis on profitability
Customers
  • Developers
  • Commercial facility operators
  • Corporate office managers
  • Hotel operating companies
  • Medical institutions
Products
  • Large-scale building construction works
  • Medical facility works
  • Hotel construction
  • Renovation and retrofitting works

Civil Engineering Infrastructure Works

Overview
Top-class domestic track record in LNG tank construction among civil engineering works.
Competitiveness
High-quality construction backed by technological strength
Customers
  • Public entities
  • Infrastructure operators
  • Logistics companies
  • Energy companies
Products
  • Road and bridge works
  • LNG tank construction
  • Dam and embankment works
  • Urban infrastructure development

Real Estate Development and Management

Overview
Broadly engages from office/housing development to private REIT operations.
Competitiveness
Integrated operation of major general contractor's construction and development capabilities
Customers
  • Real estate investment corporations
  • Housing developers
  • Corporate landowners
Products
  • Office building development
  • Residential land development
  • Real estate sales and brokerage
  • Private REIT operations

Equipment Works Services

Overview
Provides equipment works and maintenance management on a consistent basis.
Competitiveness
Rapid response through nationwide network
Customers
  • Building management companies
  • Commercial facility operating companies
  • Manufacturing companies
Products
  • Air conditioning equipment works
  • Electrical equipment works
  • Maintenance services

Environmental Services

Overview
Promotes waste plastics recycling centered on construction sites.
Competitiveness
Non-combustion raw materialization recycling technology
Customers
  • Construction site companies
  • Local governments
  • Recycling operators
Products
  • Waste recycling technology
  • Environmental load reduction technology

Human Resource Development and Education

Overview
Operates education and training facilities for construction skilled workers.
Competitiveness
Education fusing traditional techniques and latest methods
Customers
  • Construction companies
  • Skilled workers
  • Government agencies
Products
  • Construction skills training
  • Safety education programs
  • Technology succession business

Competitive Advantage

Strengths

  • Abundant track record in traditional architecture construction
  • Broad private building order base
  • High civil engineering construction technology (especially LNG tanks)
  • Stable financial foundation
  • Consistent real estate development capabilities
  • Excellent equipment works service provision
  • Sustainable environmental technology development
  • Established human resource development system
  • Strong customer trust relationships
  • Large project management capabilities
  • Collaboration among diverse specialized subsidiaries
  • Promotion of fair bidding activities
  • Regionally integrated business expansion
  • Brand power of one of Japan's largest general contractors
  • Extensive industry network

Competitive Advantages

  • Strategy of aggressively accepting small/medium projects without ignoring profitability
  • Superiority in palace carpenter architecture due to traditional technology succession
  • Advanced introduction of sustainable, environmentally responsive architecture technology
  • Infrastructure business strengthening utilizing consolidated subsidiaries like Japan Roads
  • Balanced order portfolio from large to small/medium projects
  • Enhances competitiveness by integrally operating multifaceted real estate development and construction
  • Securing future talent and technology succession through education facilities
  • Compliance with laws and enhanced transparency based on suspension experience
  • Brand and credibility as a true super general contractor
  • High technology brand from international event architecture achievements
  • Construction and technology capabilities to meet diverse customer needs
  • Active initiatives in smart city development
  • High public trust from Imperial Household Agency-related works
  • Top-class large building project management in Japan
  • Healthy competitive relationships with major general contractors and industry leadership

Threats

  • Revenue pressure from declining public works orders
  • Cost increases from soaring construction material prices
  • Price competition from intensifying general contractor industry competition
  • Social credit risks from bid-rigging issues
  • Severe labor shortages and human resource development challenges
  • Project delay risks from natural disasters
  • Increased adaptation burden from strengthened environmental regulations
  • Investment restraint risks due to economic fluctuations
  • Political and regulatory risks in overseas business expansion
  • Risks of lagging in technological innovations
  • Declining market share from emerging construction companies
  • Corporate image deterioration from excessive overtime labor issues

Innovations

2023: Waste Plastics Recycling Technology Development

Overview
Introduced technology to convert waste plastics from construction sites into raw materials without incineration.
Impact
Contributes to environmental load reduction and cost savings

2022: Smart City Development Project Promotion

Overview
Multi-faceted participation in smart city development supporting Sendai City's reconstruction.
Impact
Regional revitalization and establishment of new business models

2021: Opening of Construction Skilled Worker Education Facility

Overview
Opened 'Shimizu Craftsman Technical Academy' education and training facility for construction workers in Funabashi City.
Impact
Contributes to technology strengthening and human resource development

2020: Support for Yahiko Dam Completion

Overview
Supported completion of major domestic dam construction project 68 years from planning.
Impact
Infrastructure strengthening and technology accumulation

2024: New Head Office Building Construction Completion

Overview
Completed Kyobashi new head office building project. Introduced latest equipment.
Impact
Operational efficiency improvement and image enhancement

2023: Practical Application of CO2-Reducing Concrete Technology

Overview
Developed and implemented environmentally considerate concrete adopted for Osaka Expo Arena.
Impact
Significant environmental load reduction

2024: Promotion of BIM/CIM Adoption

Overview
Strengthened in-house deployment of building information modeling technology.
Impact
Improved design/construction accuracy and shortened construction periods

2023: Construction Management Efficiency via AI Utilization

Overview
Developed efficiency tools for construction site management using AI technology.
Impact
20% improvement in labor productivity

2022: Environmentally Considerate Sustainable Building Materials Development

Overview
Promoted practical use of building materials utilizing recycled materials.
Impact
Improved sustainability and reduced material costs

2021: Labor Environment Improvement Project Launch

Overview
Implemented in-house measures for preventing excessive labor and strengthening health management.
Impact
Improved employee safety and corporate image

Sustainability

  • Promotion of waste plastics recycling technology dissemination
  • Environmental load reduction through smart city construction
  • R&D of CO2-reducing building materials
  • Labor environment improvement measures at construction sites
  • Promotion of contributions to sustainable regional societies
  • Expansion of renewable energy installation works
  • Development of traditional architecture preservation and environmental harmony technology
  • Implementation of sustainability education programs
  • Efforts to increase eco-building material usage ratio
  • Governance strengthening and fair business operations
  • Promotion of energy-saving architectural design
  • Introduction of green procurement standards