by Shun Otsuki
President & Editor in Chief KINSAN FASTENER NEWS
The system creation for new product development and sales at Sanko Techno (based in Nagareyama City, Chiba Prefecture) has become strong. President Hideto Horage was interviewed about the company's comprehensive efforts, including collaboration with the group, optimization of logistics systems, and area strategies that understand needs, to provide fastening systems.
The consolidated third-quarter results showed that sales increased by 10.9% compared to the same period last year to 14.986 billion yen, operating profit increased by 19.3% to 1.384 billion yen, and quarterly net profit increased by 20.3% to 970 million yen. In this fiscal year, the fastening business maintained a positive trend for the third consecutive quarter. While the number of anchor bolts for general equipment did not increase, the sales increased due to the steady performance of high value-added anchor bolts for civil engineering.
Products for civil engineering, which the company focuses on, have different specifications depending on users and sites, and many manufacturers require fast and flexible development and production of multiple varieties and small quantities. The company has been expanding its lineup of new civil engineering products through product development by its technical research institute while strengthening its ties with users such as general contractors. Nihon Mechanic (based in Ibaraki Prefecture), which specializes in cutting technology and was grouped with Sanko Techno in 2021, is expected to synergize as a production element supplementing the main production of the same company, which is mainly press production, for the production of civil engineering products.
President Horage expressed confidence that "the synergy created by the model building of producing what we developed in the technical research institute as prototypes at Nihon Mechanic will generate significant value" for the civil engineering products. His idea of optimizing the logistics system aims to create a mechanism where the manufacturer, wholesaler, and user all benefit. As the logistics network of large wholesalers that offer the same products nationwide continues to expand, the role of hardware stores, which have played a close relationship with users instead of manufacturers, has shrunk. To prevent delays in information gathering such as user feedback, manufacturers themselves are required to disseminate information directly to users and capture their requests. In this context, the company has built a strong partnership with wholesalers to ensure ample inventory, while also engaging in information dissemination to help users understand the unique features of their products and grasp the demands of the field.
During the COVID-19 pandemic, they avoided shortages of their products by having wholesalers hold a large inventory. Looking back on that time, President Horage said, "What is important as a manufacturer is not to cause shortages. It is important to create a flow where products that have gone through a proper distribution network can be purchased anywhere," reaffirming the value of a sound distribution system. The key to building a relationship with users is the area strategy. While the consolidation of corporate bases is progressing under the banner of efficiency, the company has been promoting the establishment of bases rooted in the region.
The Hiroshima branch opened last year, and it serves as a model base for the area strategy that integrates engineering and fastening businesses. It is a rare sales base with a high weight of the engineering business, which takes on construction work, throughout the country. The engineering business digs up needs, such as problems on the site, and the fastening business uses this information to develop and manufacture products at the company's headquarters, and further sell them in the region. Regarding the area strategy, President Horage said, "We develop and manufacture based on local information. It is a strategy to integrate this flow. The strategy of focusing on local areas may seem to go against the times at first glance, but it is an initiative to find value together with the region, by pleasing the locals. This is a true contribution to society, and it is also applicable to SDGs."
The company is focusing not only on the civil engineering market but also on the traditional market of the construction industry, with an eye on its growth. The civil engineering market continues to focus on reinforcement, repair, and maintenance needs due to public investment in infrastructure structures that have been reviewed for over 50 years, and the company will continue to focus on this field. In addition, as investment begins to shift from public to private, the company expects the need for anchoring during the long-term lifespan of buildings to increase and is preparing for development accordingly. Furthermore, with regard to both civil engineering and architecture, the company is looking to respond to IoT-enabled structures that will emerge in the future, as well as develop systems that use machines and robots for construction. In this context, the role of a technology research institute that can conduct long-term research and development will become increasingly important.
In product development, the sales of the fastening system, which integrates from product sales to construction and which the president, Mr. Horage, calls "selling experiences," will be a strong weapon. The fastening system has been demanded not only for safety but also for high workability. In addition, there is a growing focus on the health of construction workers, and sales of products that consider health are also growing. President Horage says, "Health, safety, and peace of mind are closely related. Our mission is to create products that consider these factors."
