Sending in Reinforcements to Rebuild an Aging Industry

Could you explain how your approach to the Japanese construction industry differs from other startups in the construction DX space, such as ANDPAD and SpiderPlus?

Certainly. Companies like ANDPAD or SpiderPlus focus on tools designed primarily for construction managers and site supervisors. In Japan, there are roughly 500,000 people working in construction management. However, there are approximately 3 million craftspeople the individuals actually performing the skilled trade work on-site. Our core users are these craftspeople, not the managers. So while many DX solutions target site management workflows, our priority is to empower the skilled workforce itself. We believe that supporting and digitizing the daily operations of the three million craftspeople is where the greatest structural impact lies.

There is often a misunderstanding regarding our service “Sukedachi.” Some assume it is a short-term job matching platform like connecting one-day labor needs with contractors. But our purpose is business matching, not temporary dispatch. Our platform introduces construction companies to new subcontractors and craftspeople, helping them build ongoing professional relationships. People sometimes compare us to spot work apps. While those platforms match individuals to short-shift jobs where work already exists. In contrast, we facilitate the formation of long-term business partnerships between companies and skilled workers. We do not place someone on a site for a single day that would fall under labor dispatch, which is illegal in the construction sector in Japan. Our role is to create sustainable relationships and new trade partners within the industry.

Based on this, it may be best to begin from your company’s philosophy and long-term vision. Sukedachi is often described as redefining working culture in Japan’s construction sector. Could you share your founding mission and the broader vision you aim to achieve?

Our mission since the founding of the company has been very clear: to make construction sites workplaces that people are proud to work in. The deepest structural challenge in Japan’s construction industry is labor shortage. As shown in our presentation, our core business is business matching among construction firms. We currently have 220,000 registered users, and we are the only platform in Japan with that level of reach among active construction professionals.

From this foundation, we are expanding into adjacent areas that support our users’ careers and economic well-being such as education, fintech services, and tool procurement/rental via the app. Construction exists in every country, so our vision naturally extends to international markets as well. We have also launched education services that allow users to obtain mandatory construction qualifications directly on-demand through our app even if they are new to the industry.

While we originally expected to expand outward into overseas markets, our immediate next step is actually the reverse: bringing foreign workers to Japan. However, due to legal and regulatory restrictions, starting with craftspeople is difficult today. Therefore, we are initially focusing on foreign construction managers, where the regulatory framework is more viable. In the future, as regulations evolve, we will be prepared to support skilled craftspeople from overseas as well. Our discussions are currently advancing with partners in the Philippines and Vietnam.

Let’s talk about workforce demographics. Recent data shows that nearly half of construction workers in Japan are over 55, and only 12% are under 29. Additionally, the industry still struggles with a reputation for being physically demanding and outdated. How are you addressing both the aging labor force and the modernization of the industry’s image?

To realize our mission of making construction a desirable career for young people, we must improve both the working environment and the perceived value of the profession. First, regarding labor conditions: Many construction sites in Japan still operate on only one day off per week, which is unacceptable today. This must be corrected as soon as possible. Additionally, summers in Japan are becoming dangerously hot. It is increasingly necessary to shorten working hours during peak heat, similar to regulations adopted in Europe.

Second, on improving the profession’s attractiveness: Young people need to see construction as a career where they can earn well and build something meaningful. On Sukedachi, we already see this happening: individuals begin as craftsmen, build new client relationships through the platform, expand their operations, and eventually use Sukedachi to hire full-time employees of their own.

In a recent interview, TOWA Corporation described attracting young workers as a strategic opportunity, supported by investment in digital tools and automation. Do you agree with that assessment?

Yes, I fundamentally agree. We enable independent craftspeople the core belief is the same: bringing younger generations back into construction is essential for the industry’s future.

You mentioned plans to bring foreign construction managers into Japan. When will this begin, and what scale are you targeting?

We plan to start early next year with a small-scale pilot intake. Over the next five years, our goal is to scale to around 1,000 foreign construction managers working in Japan through our platform. Currently, it is estimated that there are tens of thousands of construction managers working through dispatch companies in Japan, of which several thousand are foreign nationals.I believe that within a few years, one-third of construction managers in Japan will be foreign workers. The market is still young, with no major incumbents leading it yet, so opportunities are significant.

Japanese Construction Job-Matching App - Sukedachi

Are you also considering offering your business-matching model overseas for example, matching local construction firms and craftspeople in Vietnam or Indonesia?

Yes, that is our long-term intention. Historically, when Japanese general contractors expanded abroad, they tried to bring Japanese companies and labor with them, which was difficult because the domestic industry consists largely of small firms. That was essentially an attempt to export hardware. Sukedachi’s model is the export of software a matchmaking infrastructure. If we support local companies and local craftspeople abroad, using our platform to connect them, the model becomes scalable and sustainable. But first, we will continue strengthening our foundation in Japan.

Could you explain your competitive advantages and what differentiates Sukedachi in the market?

When we founded the company in 2017, the term “Construction Tech” wasn’t widely used. Many people told us that creating an app used directly by craftspeople would fail. Our first major advantage is network effects. Today, we are the largest platform of active craftspeople in Japan, and that scale creates a high barrier to entry. Second, we invested heavily in UI/UX designed specifically for craftspeople simple, intuitive, and practical. Even those who may not use Excel can navigate our app with confidence.

Finally, advocacy and policy engagement have been crucial. Construction is one of the most conservative sectors in Japan. Early on, we were misunderstood, even compared to “Uber in construction,” which implied we might operate outside legal frameworks. We invested years in dialogue with the Ministry of Land, Infrastructure and Transport and industry associations to build trust. Today, we co-host major industry conferences with government stakeholders. That legitimacy is a key competitive advantage.

Sukedachi offers both a matching service and a full-time employment service. How do these operate together strategically?

We provide two services, but our customers’ needs are singular: building the right team for each project. Because construction workflows fluctuate dramatically between busy and slow periods, companies cannot staff entirely with full-time employees. They need a mix of permanent staff and subcontract partners. Our model allows them to do exactly that. And because both solutions solve parts of the same problem, we can cross-sell efficiently, which keeps our customer acquisition cost low.

Could you describe the purpose of Sukedachi Academy?

Sukedachi Academy serves two key purposes: Firstly it is creating an entry path from outside the industry. Construction has historically been closed-off. With our academy, anyone can obtain necessary certifications through our app and prepare to work on-site. Secondly, it is supporting career progression. Craftspeople typically reach their income peak in their late twenties and remain at a similar level thereafter. To increase earning potential, many need a path to become site managers. The academy provides that pathway.

As you move into post-startup scale, how do you see the next phase of growth?

Our core business will remain matching, and we will continue growing our user base. From that platform, we will expand into synergistic businesses education, fintech, procurement, and international labor mobility. We will also actively pursue new business development, M&A, and overseas expansion.

If you had to summarize your company in one sentence for an international audience, what would you say?

We are a startup that is driving meaningful innovation in one of the most traditional and conservative industries in Japan construction and transforming it into a field where skilled work is respected, valued, and sustainable for the future.

For more information, visit their website at: https://company.suke-dachi.jp/en/