According to President Suwabe, the reason behind the re-location was the deteriorating condition of the factory in Sekigahara (Fuwa County, Gifu Prefecture) and the serious shortage of human resources due to the depopulation of the surrounding area. “When we tried to recruit younger em-ployees, we received only one application per year and were having a hard time securing human resources. We decided to relocate because we believed that the Sekigahara factory would have limited production capacity in the future, based on a comprehensive assessment.”Ichinomiya City in Aichi Prefecture, where the company has relocated, is known as a commuter town of Nagoya as it is only a 10 to 15-minute train ride from JR Nagoya Station and offers excellent livability. “Ichinomiya City is not only an excellent place to live, but also has a thriving manufactur-ing industry due to its former status as a textile town, and there are technical high schools and vocational schools in the area, creating an environment that can easily attract many people. When we advertised for employees for the open-ing of the new factory, we received as many as 50 applications in one month. We have also received comments from employees who originally worked at the Sekigahara Factory that Ichinomiya is easier to commute to.”President Suwabe is particularly looking forward to the synergistic effects of this integrated production and sales system with the neighboring Fluorocoat Nagoya. Fluorocoat is engaged in fluoropolymer coating processing and already operates under a divisional structure. “By having a sales di-vision in place, we intend to actively promote information exchange with Fluorocoat’s sales members, strengthen-ing interaction. Although Fluorocoat is a group company, it has adopted a completely different production system. We would like to share with each other the experience we have gained and the connections we have developed with the cli-ent companies, which we hope will lead to the acquisition of new business. For our company, an increase in the number of high-volume orders will be a new revenue pillar that will boost our sales immediately. Additionally, if Fluorocoat re-ceives more orders for small-lot production, it will be able to prevent the risk of a drastic reduction in the amount of work due to customer circumstances as a result of focusing on mass production. In addition, integrating sites with our group company also reduces management costs, which is another benefit.” Fluorocoat Nagoya located across the street from the new factoryLarge and small batch furnaces39A new revenue pillar and risk hedgeIn conjunction with the establishment of the new factory, the company reorganized the business body in Tokai from manufacturing-only to a divisional system in which produc-tion and sales (and marketing) are integrated. The name was also changed from Tokai Factory to Tokai Division. Previ-ously, inquiries regarding new orders were handled through the main office, but the new division will be able to provide consistent service from consultation to delivery onsite, en-abling shorter lead times and more direct communication with customers.
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