Shindaiwa Strives to Double its Sales in 5 Years

Shindaiwa Inc., hosting its first worldwide distributor meeting, might have expected a few surprises given that many traveled halfway around the world to join in the event. However, no one could have predicted the shivers they would experience as the power equipment manufacturer’s 25th anniversary celebration and global summit was rattled by forces beyond its control.
 
Before the meeting – themed Reaching New Heights – began, attendees became part of history as an earthquake measuring magnitude 6.7 rocked the Big Island of Hawaii where the meeting was held. Officials later said it was the most active day of earthquakes in Hawaii’s history. 

Not to be deterred, the meeting went on with only minor glitches as some distributors were delayed from reaching the event by airline interruptions. Midway through the event, nearly all 200 attendees had arrived.
 
Rather than reflecting on its 25-year history, Shindaiwa Corp. and Shindaiwa Inc. representatives quickly turned the page to the future by unveiling a somewhat daunting plan to double Shindaiwa Inc.'s sales to $250 million in five years. The announcement of its ambitious growth plan comes on the heals of an 80 percent increase in sales over the last three years.

The vast majority of this growth will come from sales of Shindaiwa Inc.’s hand-held products, according to Y. Asamoto, president of parent company Shindaiwa Corp., Hiroshima, Japan.
 
Shindaiwa Corp. will expand production lines and capabilities worldwide to achieve this stated goal. Capacity is expected to be increased 25 percent by January 2007.
 
“Since we compete primarily with globally oriented companies, we are taking steps to improve our overall competitiveness around the world,” Asamoto said through an interpreter. “To help everyone understand our seriousness, we have recently changed our company name from Shin Daiwa Kogyo, Co. Ltd. To Shindaiwa Corp. This will not only be simpler and easier for those in Western markets, it will contribute to improving our brand image.”
 
Some initial changes include the creation of a global management team led by Asamoto and Tom Bunch, president of Shindaiwa Inc., Tualatin, OR, among others; expansion of production lines and current technology; and investment in the semi-professional segment of the outdoor power equipment market.
 
“Quality is our top priority,” Bunch expressed to the distributors. “Using Kaizen management principles, we’ll work to improve our processes and production and eliminate waste.”
 
In addition to increased production capacity, Shindaiwa will boost field assembly and warehousing with new facilities in the United States, Europe and Latin America with the goal of bringing product closer to the market and improving turn-around time.

Facing increased competition from Chinese manufacturers, Bunch notes that while “they’re making hay” with low-level production standards, Shindaiwa Inc. will not be satisfied with the status quo and will continually improve its capabilities to make its products easier to build, buy, sell, use and service.

Shindaiwa chose to build a new production facility in Taiwan rather than China to protect the quality of its products. Noting the continued consolidation of the hand-held marketplace, Bunch says Shindaiwa Inc. will work with its customers to deliver the products the market desires in a fashion that they want.
 
Emphasizing that one size does not fit all, Bunch says that the company will promote its new patented C-4 TechnologyR as well as continue to offer 2-stroke products to its customers.
 
Pro-level products for the semi-professional (upscale consumer) market will constitute a significant percent of the company’s sales in about five years.
 
“There’s a clear difference between the professional and the semi-professional,” Bunch says. “Our goal is not to replace our existing business with low-priced products but to increase our business by addressing new markets.”
 
To keep pace with the evolving buying habits of its customers, Shindaiwa Inc. also introduced a redesigned and expanded Web site (www.shindaiwa.com).