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Providing the tools to increase efficiency and productivity for international manufacturers.

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Interview - July 30, 2019

In this interview for The Worlfdolio, Mr. Shigemasa Yanagawa, President of Cominix, discusses how his company is adapting to Industry 4.0 and delivers a unique insight into his company’s history and competitive advantages.

 

SHIGEMASA YANAGAWA PRESIDENT OF COMINIX CO., LTD.
SHIGEMASA YANAGAWA | PRESIDENT OF COMINIX CO., LTD.

In recent years, we have seen regional manufacturers emulate certain aspects of Japanese production, but at a cheaper cost. Despite this tough competition, Japanese makers have remained market leaders in specialized fields. How do you explain Japan’s ability to maintain its dominant market-share?

Decades ago, Japan imported the technology and know-how of overseas economies.   At that time, Japanese labor was cheaper than The United States or Europe. However, through strenuous research, we were able to further develop these technologies and surpass our global competitors.

More recently, other countries have developed their production capabilities by “simply” copying what other counties manufacture. Their comparatively cheaper labor is a strong competitive advantage. However, their approach is less proactive, and even though they are ameliorating their capacity to produce similar products to those from the west and to Japan, we have yet to see if they will be able to continue their development any further.

I believe that Japan’s strongest competitive advantages is the know-how and experience that it has accumulated through the years. Unlike a product, knowledge is impossible to replicate, and other countries still rely on our technology.

 

What is your role in the Japanese manufacturing industry?

We are a specialized trading house. As such, our role is to provide the market with the greatest variety of tools and machinery, and deliver the relevant information to make best use of our products. In recent years, we have become increasingly present in e-commerce, and we now serve as a middleman between domestic and oversea corporations. Thanks to our expertise, we are able to provide an extensive amount of information both to international and domestic clients. This knowledge allows us to understand what Japanese companies, from large conglomerates to SMEs, require in order to better serve them. I believe that supporting SMEs with the tools to increase their efficiency is our responsibility.

At COMINIX, our mission is to introduce unique solutions to the market from anywhere in the world. As such, more than half of our products come from Germany, Switzerland and The United States.

 

As a gateway between Japan and the rest of the world, how do you ensure that your company remains up to date with international trends?

We regularly participate in international exhibitions. We recently attended such event in the USA and Germany. Being present in these large-scale exposition allows us to remain in contact with other players from the industry, and we are always watching out for new emerging players with whom we can collaborate.

 

Your company was established in 1944. Could you walk us through the key milestones in your history and the evolution of your philosophy in this time?

The company was established in Osaka, just after WW2 by my uncle-in-law. In 1954, we became a distributor for Sumitomo Denki (Sumitomo Electric). It was not until 2002 that I took the role of president within the company.

Around 30 years before this I had already set my sight internationally and regularly travelled overseas, specially to the US. At the time, the exchange rate was favorable to us and we could sustain a profitable business model from it. We began by buying high quality, long life expectancy tools and kept them in stock for later distribution.

 

Your company specializes in enhancing your customer’s productivity. Could you tell us more about how you help them accomplish this?

In the machine-tool industry, efficiency is closely intertwined with the quality of one’s components. The amount of time it takes to process a single unit can be dramatically decreased by leveraging on the quality of the tool, or the machine. At COMINIX, our mission is to provide technologically advanced items to our clients in order to increase their efficiency, reliability and productivity.

 

You mentioned in your message that you would like to focus on expanding in to more business fields. Could you tell us more about this strategy?

There are several fields we are looking into expanding. With the advance of Industry 4.0, Robotics is playing an ever increasing role in production lines. As such, we would like to expand our portfolio in this business. Furthermore, we recently began introducing industrial “metalworking coolants” or “lubricants” from the USA. With the rise of 5G technology and the ever-increasing amount of data available, we believe that high-speed transmission optical fiber will be on the rise, and would like to play our part in introducing it. At last, we have also pinned down LCD manufacturing technologies.

 

What is your international strategy to help your company continue growing in the future?

We are currently present in 9 countries throughout the world, namely, China, Thailand, the Philippines, Indonesia, Vietnam, India, Mexico, America and Mongolia. Thanks to our facilities, we are able to remain in close contact with local market trends. Furthermore, we can provide our clients with our expertise wherever they are. In the future, we hope to introduce new products and penetrate new markets.

 

You became president in 2002. One day you will step down and someone else will take the role of president. What would you like your legacy to be when this happens?

I have a clear objective for my legacy: make COMINIX a company that cherishes each and every employee. I would like every member of our team to feel the desire to work hard. I want our community to be one that welcomes every individual and allows them to grow towards a prosperous future. This company has grown thanks to the dedication, motivation and professionalism of its employees. Our workforce is our greatest strength and to be successful in the future, we must nurture and inspire our human assets.

 

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