Hello, everyone.
This is Enta.
The other day, I had the opportunity to speak with someone from a major company that specializes in repairing specialized machinery and selling construction equipment.
As I was listening to various stories, one that made me go, “No way!” was the news about the sale of Hitachi Construction Machinery.
Well, this is something that’s been making headlines in newspapers and such for a while now, but maybe as early as this year??
That seems to be the story, but more importantly, the question is: Who will buy it? There are rumors that a Chinese fund might be the buyer.
No matter what anyone says, it’s inevitable that China—with its massive market—will end up buying these products, but when you think about just how serious it is that Japanese-made goods are gradually being replaced by Chinese ones like this, it’s truly terrifying, isn’t it?
I was reading a business magazine the other day, and it said that Japan’s “Sinicization” is unstoppable.
I just can't help feeling that's really how things are going to turn out...
Also, I hear that engine products (for construction machinery, etc.) will no longer be manufactured in Japan.
At the moment, Isuzu and Hino are still in the market, but I hear it's only a matter of time before Isuzu pulls out.
We don't know what will happen with Hino either.
We are already virtually unable to manufacture power units domestically. (Hydraulic units)
In the future, most engines and hydraulic units for construction machinery will be manufactured overseas.
The reason is that the Japanese market is small, so even if we made just one or two units, the costs would be too high and it wouldn't be worth it.
This will have a pretty significant impact on us; for starters, the purchase price of construction equipment will skyrocket. (It’s already going up at this point, though.)
Since we only operate in the Japanese market, it’s only natural that prices would skyrocket if products priced at global market rates were to enter that market.
What's more, there's no doubt that it will be a real headache if the machine breaks down—repairs will take a long time, and it will be difficult to source replacement parts.
That said, it won’t lead to an immediate, dramatic increase, but what we can do is build up our stock of supplies and accumulate know-how regarding the structure.
We also manufacture tools and parts for our older machinery in-house as much as possible, and we’ve collected a fair number of drawings and other documents.
We don't know what will happen going forward, but we have to be prepared for the worst-case scenario.
And it’s also important to gradually introduce new equipment and get used to it.
It also made me keenly aware of just how much Japan has been shrinking.
See you later
