Text Sizesmallmediumlarge Japanese
Download PDF
Interview with President and CEO12345678910

Q1.Upon becoming president, you announced a new mid-range management plan with the target year of FY2015. Please tell us how you are perceiving future market conditions and basic policies based on this perception.

Chinese and Indian markets, which have driven global demand for construction and mining equipment, are entering an adjustment phase, and thus I donít expect to see dynamic upturn of global demand in two to three years. In the mid to long-range perspective, however, we can anticipate that the supply and demand for commodities will become tighter, as global population continues to grow. We can also expect demand for construction equipment will steadily advance, especially in Strategic Markets, against the backdrop of growing urbanization rates.

While the Japanese yen had remained strong against all major currencies since the so-called Lehman Shock, it has come out of this temporary phase of "super appreciation" and has recently entered a depreciation phase. Instead of alternating between joy and grief over short-term fluctuations, I strongly believe it is important for us to further strengthen our corporate muscle to generate profits under any conditions.

Under the new mid-range management plan, we continue to focus our efforts on the core businesses of construction and mining equipment as well as industry machinery and will propel our operations according to the basic policies below in such a business environment.

  • (1) To prepare for the future expansion of demand, we will sow seeds seamlessly.
  • (2) To become indispensable to our customers, we will improve our understanding of Gemba (workplace) and converge the strengths of our distributors, suppliers and employees.
  • (3) To keep a distance from pricing competition and strengthen relationships with our customers, we will promote our growth strategies to expand business in the value chain by taking full advantage of ICT.

Population of the world (Source: United Nations)

Global population will continue to grow and we expect that demand for commodities will expand in the long-term perspective.

Urbanization rates in the world (Source: United Nations)

Long and mid-range concentration of the population in urban areas should continue, especially in emerging countries, and we project that demand for construction equipment should expand, as it will be needed for infrastructure development, such as road and railway construction, as well as civil engineering and construction.