MEET THE COO & PRESIDENT AT HCM GROUP
MEET THE COO & PRESIDENT AT HCM GROUP
In this exclusive interview, Masafumi Senzaki, the President and Chief Operating Officer of the HCM Group, reveals an important mission to Italy, the importance of relationships with partners and customers, and how he sees the future of the construction industry.
In this exclusive interview, Masafumi Senzaki, the President and Chief Operating Officer of the HCM Group, reveals an important mission to Italy, the importance of relationships with partners and customers, and how he sees the future of the construction industry.
When did you join Hitachi Construction Machinery Co., Ltd.?
I joined in 1991 after graduating from university with a Master’s degree in mechanical engineering. I joined production engineering, which focused on manufacturing processes. This division plans factory locations and creates the ideal picture for manufacturing, and it has highly talented personnel, such as future presidential candidates.
After acquiring various specialist skills for manufacturing, welding, painting and assembly, I was assigned to the manufacturing engineering department, which focuses on the entire plant operation. Additionally, I gained experience in accounting and setting up factories. For example, we invested 40 billion Yen [approx. 2,550,000 Euros] in the Hitachinaka-Rinco Works in Japan [which manufactures ultra-large excavators and dump trucks] and 10 billion Yen [approx. 6,370,000 Euros] in the Russian factory.
What was the company like then?
In 1991, the company sales were 300 billion Yen – one-fifth of the current revenue level. The sales ratio of overseas was 20–25%, completely the opposite of what it is now. It can be said our business has grown significantly within 10–15 years. We built production facilities overseas and expanded the role of dealers as well.
Have you spent time in Europe during your career?
I spent 20 years mainly in manufacturing, then I was assigned to sales. In Russia I was the Division Head, managing the entire business in the country.
In 1994, when I was responsible for the parts manufacturing line, I received an interesting mission to relocate to Italy. HCM was planning to buy undercarriage parts from an Italian company. The President at that time told me, ‘You have to go to Italy and buy parts’.
I spent three years there and found two things. The first was about exchange rate currency fluctuations – the Lira was depreciated, like the Yen today. It was cheaper for HCME to buy parts from the Italian company.
Secondly, I found companies in the value chain business making a significant profit from imitation parts. The value chain business enables us to connect with the customer directly, and as the new machine sales business fluctuates, the value chain business complements our business cycle.
As we manufacture products globally, we need a strong structure, which can withstand currency fluctuations. So I would like HCME to have value-added products that are resilient to the currency fluctuations between the Yen and Euro.
“ My mission is to maximise our corporate value, operating the company while balancing SEQDC – safety, environment, quality, delivery and cost – and finally ensuring the happiness and wellbeing of our 26,000 colleagues. We call them Kenkijin.
How has the construction industry changed most over your career?
Construction sites are completely different now compared to 30 years ago! If I were to describe a construction site from the past, they were dangerous and dirty, so not appreciated by many people. Now we are pursuing the wellbeing of operators and workers on site to ensure their health and prosperity, as well as the earth and the cities we live in. I believe everyone is focusing on this around the world.
What are the greatest challenges facing HCM and its customers today?
We must ensure customer safety, and focus on improving life-cycle costs and productivity. That can’t be done by just providing hardware, however. We must ensure the productivity of the worker and contribute to the customer’s prosperity. And that is why we say that we’ll become a solution provider.
How does HCM intend to overcome these challenges?
We need to work together with the customer to resolve their issues. In Japan, there is a saying that the ‘customer is god’, but that’s not true, we need to have an open partnership with them.
At the same time, however, our scope of technology is limited. We need to find new partners that possess the technology we don’t have and have an open relationship with them, too, so they become a member of our team or family group of companies. That’s the strategy for us to grow. This differentiates us from our competitors, who have a closed strategy.
How do you see HCM and the industry ten years from now?
I think the business environment will be more stringent, and the emergence of Chinese manufacturers will be significant, as will electrification. If we become a solution provider to customers, have a good machine population, and a good touchpoint with customers, I’m sure our company will grow in such a situation.
Looking back over your career, what are you most proud of?
During the last 34 years, I have launched some production facilities and have contributed to the performance of the business. But what has impressed me the most is connecting with people. There are 26,000 employees, and I’m sure I have conversed with a quarter of them.
Sharing in success with our employees makes me feel proud. I have fond memories of walking around the production facility in India and listening to people, talking with the employees in Russia – that is a source of my energy and passion.
In January I visited HCME in Amsterdam and talked with employees there – that was also a great experience for me.
I spend many hours and days now standing in mines and construction sites around the world. I haven’t had the same opportunity to do so in Europe but many times I have visited Italian customers. These kinds of touchpoints are very important for me.