THK: BOOSTING GROWTH CAPACITY THROUGH AI AND ROBOTICS
Akihiro Teramachi, Chief Executive Officer and President of THK Co., Ltd, is looking to increase his company’s growth capacity by leveraging Artificial Intelligence (AI) and robotics in the face of a shrinking labor market.
THK, the company that pioneered the Linear Motion Guide mechanism, has also relocated its head office to strengthen group-wide cooperation, improve operational efficiency, and enhance business continuity planning. In addition, the company is investing in Japan, China and Vietnam to maximize production in response to soaring demand driven by the rise of the Internet of Things (IoT), the automobile industry, and also as a result of the automation of production facilities.
“We have our hands full just keeping up with demand,” says Teramachi. “In addition to the spread of IoT, semiconductor-related investment is expanding as a result of the increase in electric vehicles and advances in self-driving technologies. We are also seeing increased overall demand for our products given the steady growth in investment related to the automation of production facilities against a backdrop of labor shortages.”
Brave New World
Teramachi has triggered a major change in the company’s business style driven by AI, robotics and IoT as the third strategic pillar for THK. The challenge is to develop products that match changing needs, and to simultaneously consider sales-based uses and other applications.
And yet, Teramachi is wary of over-reliance on AI and robotics. “If we allow robots to penetrate society in their existing format, they will not be in a position to purchase goods or services, leading to shrinking consumption, smaller markets, and an atrophied economy. In addition, humans would lose their position in the workplace. We must avoid this state of affairs,” he says.
“Looking ahead, humans must actively trust their work to AI and robotics, and focus their efforts on high-value-added creative work in other areas where this is not possible, such as anticipating needs that others cannot see. The 10,000-plus employees of the THK Group may be forced to alter the way they perform their jobs,” Teramachi says.
With robots gaining the ability to do tasks currently performed by mid-income class workers, Teramachi sees a high potential for the workplace to polarize, between low-salary labor hired at costs that undercut robotics, and high-income workers who need to be able to constantly think on their feet. “We need to develop human resources capable of qualifying for this high-income group at THK, even while society becomes polarized,” he says.
Changing Minds
Education, training and self-awareness are vital in this process, but one hurdle is that the global education system continues to revolve around the idea that humans are irreplaceable. Teramachi believes it is essential for people to be able to adapt to changes in society and the environment, and that we must develop an education system that supports this.
“The good thing about the Japanese is that they are a close-knit, homogenous and dutiful society, which is extremely useful when it comes to ensuring quality and safety. On the other hand, these qualities can also impede the launching of, and reactions to, change. If the Japanese education system can be steered towards providing pupils with a sense of independence and self-respect, along with a healthy appreciation for change while maintaining its other positive points, then there is a good chance it can develop students capable of guiding global society in a better direction,” Teramachi says.
Akihiro Teramachi graduated from Keio University in 1971 and joined THK Co., Ltd. in 1975. He became a Director in 1982 and Vice President in 1994, before taking over as CEO in 1997.
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