THK Rises to Meet Industry's Demand for Prediction Detection Devices
Global automation giant announces transition to a manufacturing and innovative services company.
Since 1971, THK has set the standard for innovation in factory automation technologies and processes with its pioneering Linear Motion (LM) Guide technology. Today, THK is leading the way with solutions bolstered by AI and IoT applications that give manufacturers a heads-up on potential breakdowns while generating constructive feedback for THK engineers, which they then apply to improve products.
Omni Solutions
Two THK digital offerings making headways are Omni THK, a customer communication platform that adds value to the purchasing process, and OMNIedge, an IoT platform that can predict faults in components and automatically minimize malfunctions without human intervention. These are working to transform THK into a "manufacturing and innovative services company."
"We want to make it easier for machinery developers to make their products," Akihiro Teramachi, CEO and President of THK says. "Automotive-related makers are asking us to install the system in their factories worldwide, and OMNIedge lets us provide a variety of services directly to the people who actually use the products, in addition to the machinery and equipment manufacturers who have been our main customers in the past."
Global Expansion
The demands of THK's business compelled the adoption of a local procurement system for each region worldwide. "We are responding to the need for a system that can supply materials in a decentralized manner," explains Teramachi. "The logistics system has been disrupted, making it difficult for goods to flow and, in many areas, lockdowns have interrupted shipments, resulting in shortages of goods."
With more than 60% of THK's sales coming from overseas markets, the company is working to improve the quality and reliability of products produced everywhere it operates—with positive results soon expected in Vietnam and India.
New Businesses
THK technology is also being expanded to fields close to consumer goods, including automobiles, medical equipment, aircraft and service robots, plus for risk reduction from natural disasters and climate change. Seismic isolation, damping equipment and renewable energy-related products are a growth sector.
"These systems leverage our core products, including LM Guides, and reflect THK reliability, experience, creativity and technological expertise," says Teramachi. They can stabilize entire structures in the event of an earthquake, protect valuable art and cultural assets and provide quality control at the micro level in the manufacturing of semiconductors.
Exceeding Expectations
THK's transition to a manufacturing and innovative services company is having a positive effect on the bottom line. Medium- to long-term environmentrelated investments have helped meet the needs of increased semiconductor-related demand, accelerated automation and robotization and the growing popularity of electric vehicles.
"We have been working since FY2022 with an eye toward the five-year period ending in FY2026," explains Teramachi. "The entire company is working to achieve our targets of 500 billion yen (US$3.87 billion) in consolidated net sales, 100 billion yen (US$773.30 million) in operating income, 17% Return on Equity and 590 yen (US$4.56) in Earnings Per Share."
“We are responding to the need for a system that can supply materials in a decentralized manner.”