Fastening systems, the literal nuts and bolts of industry, are the most essential part of any manufactured product or construction. While seemingly simple by design, humble-looking fastening systems must perform under the toughest conditions, particularly in the automotive, heavy manufacturing and construction industries, where many companies turn to the high-quality solutions developed by reputed Japanese manufacturer, UNYTITE. We speak with president Jun Hashimoto, who explains how UNYTITE combines tradition, innovation and an appreciation for listening to customer needs to develop innovative fastening systems perfectly fit for purpose.
What is the essence of monozukuri and why is it still desired?
Before we began manufacturing products abroad, we used to make everything here in Japan and then export it. The difficulty with doing this though is that each country has its currency and the exchange rate can make this type of business unprofitable. This is how we began moving closer to manufacturing abroad. Cost performance is one place where Japanese manufacturing struggles against mainly Chinese companies. China has low labor cost performance and so it forces manufacturing in Japan to make the same parts, but more efficiently. In order to do so, more detailed manufacturing, which might be called the “essence of monozukuri” was required. Currently, in China, there are actually high-quality products being manufactured. Our original idea was to produce well-made goods in Japan, but now our goal is to produce and procure materials locally whether that be in China or the United States. Each country has a different currency and way of doing business, so manufacturing everything in Japan does not make sense. However, the key is to keep the “essence of monozukuri” and have Japan as the role model of manufacturing which allows our company to be competitive in many different industries and many different countries.
How do you maintain the same Japanese quality when producing abroad?
To do this, the entire system including the culture and know-how of Japanese production has to be introduced into the new country. When we talk about localizing our production, we have to build up that process and this of course is expensive and time-consuming. However, at the same time it also needs flexibility to match with the local culture and the employees.
What is the role of co-creation at UNYTITE and are you currently looking for partners?
We haven’t contracted partnerships with other companies but we do have really strong partnerships based on customers and suppliers in the market. Having a strong partnership with our customers creates and increases our value as a company trying to make progress by ourselves. R&D partnership is not something very collaborative for us as we are trying to advance our own products by ourselves with our customer and supply base.
What are your main competitive advantages?
Since we are a comprehensive manufacturing company, we deal with various industries including construction, heavy machinery, automotive, etc. It is not particularly sophisticated technology and we have not strayed from long held manufacturing methods. Therefore, our competitive advantage does not rely on just the manufacturing. Our goals are to work with our clients with the demand and their internal issues. We see ourselves as a company that provides “fastening systems”. A traditional nuts and bolts manufacturing company would make just the products, but we like to know the application of our products better, so we can provide customers with a way to reach an efficient fastening system. Sometimes nuts and bolts are not the perfect fastening method for the application. Sometimes welding is the better path to take. In Japan, we often had customers requesting for a more efficient fastening method to reduce labor time. We studied the application and provided a new innovative fastening system without going the traditional method, which was able to reduce labor time with a firmer connection. Each application has a different way of installing its bolts and nuts, and sometimes we find that bolts and nuts are not the best method on its application. That is where we find our role and how we can provide the most unique, comprehensive solution. We don’t believe in just ‘produce and supply’ but we want to bridge the gap between the product and the application they are going to fit.
Do you have any new products to share with our readers?
We really want to share our products with the world, but this is difficult since it can’t be discussed just yet. We are working on really exciting things like solutions for tunneling shields, where we develop a joint system between the concrete segments. We are also interacted in wind turbines and many other construction projects. In the end, customers want to keep costs down and reduce the installation lead time with a sustainable connection.
As part of your strategy to reap the benefits of the growth set to hit your industry, are you looking to increase your client portfolio and the projects you work on?
First, the balance of UNYTITE’s revenue is very important. We never want one industry to dominate 90% of our sales. Construction is, of course, very important to us and will always be around 40% of our sales. The others, like heavy equipment and automobiles, will be around 25% as a way to balance out our sales. Wind power is new to us and has been an exciting addition to our portfolio. The increased use of steel in construction has also helped us because our bolts, nuts and expertise are also needed. Europe has had a long history of using bricks and stone to build but with the pressure of natural disasters and a changing environment, steel has started to take center stage. This balance between many fields is what keeps us relevant and adaptable.
Are there any other industries you are interested in working in?
Construction is something we want to have bigger sales in. We want to keep up a steady and relevant position in the construction industry. We plan to do this by keeping a good reputation in the industry and making sure that the existing customers are provided with high-quality products. Building a good reputation builds the UNYTITE’s image, which will eventually expand to other countries’ construction industries.
What is your mid-term plan for growth?
Our goal is to reach $500 million in sales as a whole UNYTITE Group. This was our goal since before the Lehman shock and we have been unable to reach this goal due to a series of shocks, like COVID, that have set us back. We don’t want to become too big though, there is a benefit in being low profile. We are in a niche market so we desire the reputation of being the undoubted go-to player.
What is UNYTITE’s international strategy?
This depends on each market, the local demands, the situation, everything. For example, India looked like an attractive market and a great place for our business. We were excited to go analyze the situation on the ground, but upon arriving, we found the standard of living to be so different than Japan’s, so even if business thrives there, we saw that it will take more time to make the decision to expand there. The European market also looks attractive because of their approach towards construction. There are many companies in Europe with high technology, so finding our place might look very difficult, but with a different concept and approach we think we can develop a business in Europe. We are very positive minded about the international market, but it’s a step-by-step process.
If we return in two years, what would you like to tell us, what are your dreams for the company and what would you have accomplished by then?
Our company goal is to satisfy our customers’ needs and make them happy with our products and service. In order to do so, our employees will have to step up, be creative, and sometimes go beyond their norm to achieve our customers’ requirements. When we hear that our customers are satisfied or even see our products used in our customers’ application, our employees will also feel satisfied and be happy with the contribution they have made through their work. This is where the circle of happiness begins and it will also bring happiness to the company. It will also bring growth to our employees and the company, which will make UNYTITE strive even more. My dream is that this cycle continues to run more in UNYTITE and create more happiness and satisfaction to our customers and our employees, which will eventually end up bringing happiness and growth to the company and also being a big role in the society.
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