"Even if you have to go into debt, treat your guests well": Learning from the teachings of the Iwate coast about the "customer commitment" needed in the construction industry of the future

Hello! This is Kai Suzuki.

When I was a member of the Ofunato Junior Chamber, a senior colleague told me, "My mother taught me to treat guests well, even if it means going into debt." That phrase has stayed with me for 10 years, and in this note, I share my personal view that it might be the key to a survival strategy for the turbulent construction industry.

It is often said that "people from Tohoku are patient."

Living side-by-side with harsh, long winters and a severe natural environment, the habit of "enduring and waiting for spring" has fostered perseverance. There is certainly some truth to that.

However, what I feel when interacting with people and job sites in Tohoku is that the essence of the Tohoku spirit is not just "patience." Behind it lies an "incredibly deep sense of affection for family and those with whom one has a connection."

Ten years ago, I heard a very interesting story from a senior colleague from Ofunato City, Iwate Prefecture.

He said that his mother had raised him with these words since he was a child.

"Even if you have to go into debt, treat the guests who come to our home well."

For a moment, I doubted my ears. From a modern perspective, one might think, "You don't have to go that far," or "What about compliance and cost management?"

However, when I thought about the climate of the Sanriku coast behind these words and the temperament of the people who have lived with the harsh sea, I realized that this sharply points to an "element" that is most lacking in the modern construction industry.

The spirit of "overwhelming give" rooted in the coastal region

The Sanriku coastal region, including Ofunato, is a place that is sometimes blessed with big catches, but is also always side-by-side with rough seas and natural disasters. That is precisely why the culture of "hospitality"—valuing every encounter and doing one's best for those who have traveled from afar, even if it means cutting back on one's own living—is deeply rooted.

What is important here is the attitude of "never showing one's own hardships or budget constraints (patience) to the other party, and providing the best to the person in front of you."

"Even if you have to go into debt" does not mean you should actually go into reckless debt. It is an expression of overwhelming loyalty and pride (face) that says, "Never treat the other party poorly just because of your own circumstances."

So, when we apply this teaching to the modern construction industry, what should we learn?

A period of transformation from "just building" to "business partner"

The construction industry is currently facing a major turning point.

Rising material costs, labor shortages, and the increasing complexity of client needs—the business model of just "building cheaply and quickly according to ordered specifications (contracting)" as in the past is reaching its limit.

What is required in the future of the construction industry, especially in sales, consulting, or public-private partnership projects such as PPP/PFI, is a "partnership that walks alongside the client or business owner to solve their true problems."

However, what is the situation like on actual job sites?

“That is outside the scope of the contract, so we cannot handle it.”

“We don't have enough budget, so this is as far as our proposal goes.”

Of course, it is important to draw a line as a business. However, many clients (local governments and business operators) are not professionals in construction or business planning. Faced with huge investments, they harbor great anxiety and a sense of isolation.

In such times, will clients truly place their trust in a construction company that only provides formulaic responses?

This is where the lesson from a mother in Ofunato comes to life: **“Even if you have to borrow money, provide hospitality” = “The determination to commit to the other party's expectations even if it means exceeding the limits of your available resources.”**

Redefining “hospitality” in the modern construction industry

“Hospitality” in the construction industry does not mean mere entertainment or banquets.

“To deliver value that exceeds expectations by not being satisfied with just your own company's resources, but by making ‘self-investments (out-of-pocket expenses)’ such as collaborating with other companies, acquiring the latest skills, and refining proposals to address the anxieties and challenges faced by the client.”

This is the essence of “hospitality” in the modern construction business.

Invest your own time and energy to study the other party's business and present solutions to challenges that even the client themselves has not noticed. Before calculating whether your company will profit, how far can you empathize with the other party's desire to “make this project a success”?

Instead of “getting by within the budget and resources at hand,” it is about “even if you have to sweat (invest) to procure what is lacking, you satisfy the other party.” Only companies and individuals with this determination will gather deep trust in the coming era.

To ensure it doesn't end in mere “self-sacrifice”

However, there is one point that must be noted.

Like in the Showa or Heisei eras, if you just keep wearing yourself out and repeating out-of-pocket sales (unpaid overtime or free additional construction), both the company and the employees will become exhausted. This lacks sustainability.

To elevate the teachings of Ofunato to modern business, the following update in perspective is necessary.

Old “hospitality”: Devoting yourself to the other party by wearing yourself out (a virtue of one-time action, self-sacrifice)

Modern construction industry “hospitality”: Making an initial proposal (give) that far exceeds the other party's expectations, and building a long-term, sustainable relationship of trust (stock value) where they feel “the business cannot function without this person (this company)”

The initial “overwhelming hospitality (give)” will, in turn, return as business value many times over in the form of “future designated orders” or “continuous partnerships.”

It is not self-sacrifice, but rather converting it into **“a commitment as an upfront investment to acquire overwhelming trust for the future.”**

Summary: Trust is determined by the “amount of determination”

No matter how much technology, IT tools, and generative AI evolve, the reason why people ultimately make major decisions remains the same.

“How seriously is this person thinking about my business?”

The earthy local teaching, “Even if you have to borrow money, show hospitality,” confronts us with an essential question before any know-how or skills: “How much commitment do you have toward the customer in front of you?”

Instead of holding back due to your own company's circumstances or limitations, take a step forward and sweat for the sake of the other party.

This warm yet strict teaching of human kindness, nurtured by the harsh winters and the sea of Tohoku, may well be the strongest strategy for the construction business to survive in the uncertain era ahead.

The senior who taught me this has since become independent, and thanks to their wonderful personality, they are working with excellent local companies. I have also heard that they are successfully attracting employees.
I truly feel that people naturally gather around wonderful individuals.