Ground Control 14 - Luyckx

InterviewWhat is HCM’s current perception of the European market?HCM is proud that HCME has a long and successful history. Europeis a tough, competitive market, especially with the cost of importinggoods from Japan due to the current strength of the yen. There is awide range of requirements, even between the different applicationsin each country.So, it is important to evaluate our business model with the aimof increasing productivity and profitability. The plan is to increasethe proportion of parts sourced from local suppliers in Europe. Thiswill help to reduce our production costs and exposure to currencyfluctuations.A WORLDOF EXPERIENCEMr Moriaki Kadoya took up his post as the new President and CEO of Hitachi ConstructionMachinery (Europe) NV (HCME) in Amsterdam at the beginning of May. In addition, hisappointment as regional CEO for Europe, Russia, CIS, Middle East, and North, West andCentral Africa is a true reflection of the vast experience he has gained from his previousroles within Hitachi Construction Machinery Co., Ltd. (HCM)Mr Kadoya is no stranger to The Netherlands, having previouslyworked as HCME’s Sales and Marketing General Managerfrom 1992 to 1998. However, his varied career with HCM startedin 1981 after graduating in Economics from Keio University in hisnative Japan.For the first five years, Mr Kadoya worked in the Overseas SalesDepartment, where he gained responsibility for Africa and thenEurope. He moved to the Overseas Cooperation Department in1986, where his experience broadened with the initiation of the Fiat(Europe) and John Deere (USA) joint ventures, as well as setting upoverseas subsidiaries.After returning from his assignment at HCME, Mr Kadoya took onmanagerial roles in the Finance Department and Corporate PlanningOffice up to 2002. The former gave him a firm grasp of the principlesof accountancy, while the latter offered an invaluable insight into thecompany as a whole.His first posts as General Manager were two-year stints in theSupply Chain Management Office – an extension of his previous rolein Corporate Planning – and the Sales Administration Departmentto coordinate HCM’s sales and production processes. Finally,Mr Kadoya returned to sales and marketing for six years in theAmericas Department, where he managed the strategic relationshipbetween Hitachi and John Deere.This firm grounding and international experience will standMr Kadoya in good stead for his new role with HCME. In anexclusive interview, Ground Control asks him about his past career,current priorities and future developments after a busy openingperiod at HCM’s European subsidiary.What do you see as the major developments in the constructionindustry during your career?For the first 20 years, there were no emerging markets in the globalconstruction industry. North America, Japan and Europe accountedfor 70 to 80 per cent of worldwide demand. Now, the Chinese marketis very important and the Korean manufacturers are competitive.Mining has also become a significant industry solution. So, thewhole landscape of the construction industry has changed and the“emerging” territories now account for around 70 per cent of themarket. This is remarkable.Which part of your career have you enjoyed the most?I have experience of strategic planning, finance and sales, butI believe that our business should be based on marketing, becauseit’s all about customers. Sometimes people think that marketingis all about analysis, but the “smell” of the customer ismore important.What is the key to HCM’s marketing approach?Hitachi has to experience the “smell” of the customers by invitingthem to the factory and visiting them on job sites. This is veryimportant and not the sort of marketing activity that is foundin textbooks. Our success in Europe is based on the internationalsales team and Hitachi dealers visiting customers with engineersfrom Japan to research what is required. By listening to theserequests, the number of modifications that have to be made tothe standard machine in each market are minimised and we cancontinuously search for areas of improvement.What do you like most about the Hitachi brand – and why?Hitachi is extremely focused on engineering. So, our engineers arealways interested in listening to the owners and operators of themachines, and the problems they want to solve. This is the key toour brand proposition.What is the current feeling among the dealer network?I have already visited some of the dealers in western Europe undermy HCME role, and found them to be open and honest. Theyall shared some positive comments and constructive criticismswith me.Some of HCME’s dealers have a long history with Hitachi and someare strong family-run businesses. They help to form important corevalues within our company, which are passed on from generationto generation. Hitachi may not be family owned, but that sense of afamily spirit is very important to us.Which countries do you see as emerging nations within yourjurisdiction?The most potential seems to be coming from the Russian and Turkishmarkets. HCME’s European Distribution Centre at Oosterhout is alsodoing well and benefiting from the growth of the mining and generalconstruction sectors in these countries, and the other nations withinthe CIS. In addition, there is much potential in North and West Africa.Why do you feel you are so well suited to your new position?My previous experience in The Netherlands is an obvious advantage,when I worked within the Dutch dealer with responsibility to sellexcavators and wheel loaders. I found this to be an interesting andchallenging role. Prior to that, I had the pleasure of conductingbusiness in Europe. My career has also included mid-termcorporate planning, overseas development projects and turnaroundprogrammes for HCM subsidiaries.What is HCME’s long-term strategy?We have a very diversified business and product range, but are stillheavily focused on excavators. So, we would like to place moreemphasis on the growth of mini excavators and wheel loaders, tobring them closer to the hydraulic excavator business.I would also like to prioritise the Support Chain after-salesprogramme. More machines will stay in Europe for longer – asemerging countries will not accept our advanced specificationmachines – and so we have to take care of them. This incorporatesthe parts requirements for these models, so that they can work evenmore reliably under the toughest of conditions.What is your message to Hitachi customers in Europe?I would like to thank all of our customers for their support and loyalty.Without them, we would not have enjoyed such a long history. HCMis extremely proud of the success of its business in Europe.HCME is celebrating its 40th anniversary in 2012 and we’re hereto stay, so that we can work together with our expanding customerbase. We aim to improve our range of products and services in linewith our customers’ expectations – and that is our commitmentto them.10 Hitachi Construction Machinery (Europe) NVGROUND CONTROL 11