In April 2020, the AMADA Group will start a new initiative under the slogans of "Creation" and "Challenge."
Representative Director, President Tsutomu Isobe
I would like to express my sincere gratitude for your constant, warm support and guidance. For AMADA Group, building this long history was only possible with support from all the stakeholders including the shareholders and investors, and I would like to take this opportunity to offer my deepest appreciation to them.
On April 1, 2020, AMADA executed the merger of a subsidiary engaged in the mainstay sheet metal fabrication machine business, the Group's pillar, embarking on a journey as AMADA CO., LTD.
These days, customers are faced with a challenging manufacturing environment, with a serious labor shortage and changes in industrial structure. And it is expected that efforts for work style reform and innovation of production processes will gather pace further going forward. Under these circumstances, AMADA considered it necessary to establish a framework for fulfilling its mission of providing products and services more promptly to anticipate changes in the management climate and meet diverse needs to resolve issues of domestic and overseas customers. We therefore decided to push through with structural reform.
The AMADA Group has established a firm position as a comprehensive manufacturer of metalworking machinery. In order to meet customer needs in a new era, the AMADA Group will shift its emphasis to the development of new processing technologies and techniques with the focus on materials and products generated from materials. The AMADA Group believes that refining application technologies in programs and software for optimizing customers' total production processes will lead to the creation of new value. The AMADA Group will also work on creating business in new fields by applying advanced technologies, such as AI and the IoT, with an eye to the ways of monozukuri in the future. The AMADA Group is committed to continue leading the innovation of monozukuri by practicing "creative and challenging activities" as defined in its management philosophy.
For the business strategy, in addition to the laser business and automation business, we focus on the after-sales business that provides a stable flow of revenue. The laser business is attracting demand as a production technology suitable for variable-mix/variable-volume production. And we strive to expand sales in this business further, utilizing the beam control technology we independently developed ahead of the industry. Moreover, we proactively promote proposals for labor saving and automation to overcome the challenges the on-site people involved in manufacturing (monozukuri) are facing, including retirement of skilled laborers and a sharp rise in labor costs. For the after-sales business, we support the stable operation of machinery with preventive maintenance and remote diagnostics using AI and the IoT, at the same time as contributing to the improvement of operating ratio and processing technologies with the data we have accumulated, and are implementing a transition to a proposal-based business model.
In our regional strategy, we will operate our businesses in North America, where high-speed, high-efficiency, and high-quality machining technology is spreading, in Japan, which is undergoing innovation of monozukuri, and emerging nations including those in ASEAN, which are growing remarkably. Our supply system that supports sales expansion is being put in place, with the operations of plants for sheet metal fabrication machines and peripheral devices, etc., in which we have invested to increase capacity, in places like Japan and North America scheduled to commence shortly. Under the new organizational structure, we will locally develop and manufacture products that respond to customer needs that vary from region to region and expand sales of such products to accelerate our overseas expansion.
AMADA Group could build up all these years of history only because of the support it received from many shareholders, as well as its focus on enhancing corporate value under its corporate philosophy of “Growing Together with Our Customers.” We will continue to strive for sustained growth and optimization of our corporate value by turning the three wheels of "promotion of growth strategy," "Establishment of firm profit structure" and "Efficiency of capital" in a well-balanced manner and taking into consideration the risk posed by the impact of changes in the global external environment.
AMADA Group, looking ahead to its centenary, will propel its growth strategy while actively investing capital, and continue making untiring efforts as a whole group working together. The aim is to keep providing products and solutions worthy of the trust of markets and customers. Please look forward to our future progress, and your continuous support and encouragement would be thoroughly appreciated by us all.