THK TO GROW CORE BUSINESSES DESPITE UNCERTAIN GLOBAL ECONOMIC OUTLOOK
Like its illustrious past, the future is looking bright for THK, where President and CEO Akihiro Teramachi sees the increasing shift to industrial automation as an opportunity to boost the fortunes of the company that pioneered the Linear Motion Guide. “I see major opportunities ahead,” he says.
THK was an early adopter of Artificial Intelligence (AI), the Internet of Things (IoT), and robotics, and Teramachi expects the company to rely increasingly on non-human input in its manufacturing operations. He anticipates a growing lean to IoT amid the ongoing transition to 5G, and the company expects increased orders from the makers of a variety of electrical components, including semiconductors and sensors.
However, US-China tensions cloud the future, and harbor the potential to damage the global economy.
“We are now seeing significant impact from the US-China trade war. In particular, China is already beginning to postpone investment activity, and I feel that the effect of this is beginning to have repercussions in Europe and Japan as well,” he says. “Looking ahead, determining whether this economic war continues and, if so, for how long, will be a major challenge. We must pay close attention to developments.”
With a view to staying ahead of the pack, Teramachi and his staff are forging ahead with the commercialization of OMNI edge, and operational trials are due to begin in February 2019. OMNI edge is a new predictive application that brings together the THK Sensing System—a technology for quantifying damage and the lubrication status of the Linear Motion Guide—with edge computing to facilitate the simple creation of IoT networks and safe and secure data gathering.
“OMNI edge will provide our clients with new, unprecedented services, and help drive our company toward further growth,” says Teramachi.
The use of AI can reap huge benefits, but increasingly intelligent robots may soon emerge that are capable of disrupting the existing master-servant relationship between humans and machines. Teramachi urges his staff to hone their skills to keep up.
“Humans must acquire the skills necessary to be able to control robots, AI, and computers, otherwise they run the risk of being displaced by them,” he says.
At the same time, Teramachi maintains a positive outlook for his company and, in February 2018, THK adopted a five-year management target that aims for consolidated sales of 500 billion yen (US$4.4 billion), and an operating profit of 100 billion yen (US$881 million). The sales breakdown in the period to the end of December 2022 is expected to see the industrial machinery business account for 350 billion yen (US$3.1 billion), and the automotive and transportation business expand to 150 billion yen (US$1.3 billion).
“The order cycle and work-related cycle from order to delivery in the transport equipment business is approximately four years, meaning our current sales activities are aimed at delivery in 2022. In that sense, we have a target that is, to some extent, within our sights,” Teramachi says. “As the IoT era strides firmly forth, the industrial equipment business will develop new products and services such as OMNI edge, and we will add these new business areas to our existing lineups to achieve further growth.”
Ultimately, while it might not be plain sailing in the short term, Teramachi is taking a mid- to long-term stance, and looking to navigate his company toward calmer, more profitable waters in the future.