On January 6, the first working day of the year for our company, our President Director delivered a New Year's address.

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6 ^th January 2025

 

New Year’s Message from Uchimura President Director

 

Masanori Uchimura, 　President　Director

 

 

Introduction
First and foremost, Happy New Year to everyone.
In Japan, we had a nine-day holiday for the New Year, and I trust that all of you have enjoyed your time off and have returned to work feeling refreshed and energized. As important as it is to work hard, it is equally vital to rest well. Let us all give our best from today onwards.

 

Meanwhile, during the holiday period, the Construction Machinery Business Division was busy relocating to a new warehouse and implementing a new Warehouse Management System (WMS) at the Komatsu Sales Office. I sincerely appreciate the dedication of those who worked on these tasks during the break. Today marks the first day of operations at the new site. Please ensure a smooth start to avoid causing any inconvenience to our business partners.

 

To our colleagues at UCM's overseas subsidiaries who returned to work on January 2^nd, please allow me to extend my belated New Year’s greetings. These subsidiaries are critical to UCM Group's consolidated revenue. This year, let us continue to work as one team, prioritizing safety and health, and striving for a fulfilling and productive year ahead. Ensuring the safety and well-being of all UCM Group employees remains my greatest wish.

 

Today, I would like to share my outlook for 2025, our management policies, and some requests for all of you.

 

1. Outlook for 2025
Reflecting on 2024, Japan experienced significant events such as the Noto Peninsula earthquake on New Year’s Day, the airplane collision involving JAL and the Coast Guard on January 2, a scorching summer, heavy rainfall in Noto in September, and the establishment of a new government in October. Economically, there were key developments including the end of negative interest rates, yen depreciation, rising prices, wage increases, record highs in the Nikkei stock average, and growing inbound demand.
Globally, geopolitical risks remained high with the ongoing Russia-Ukraine war and instability in the Middle East. Politically, last year was an election year in many countries, leading to changes in government and the rise of minority ruling parties in nations such as Japan, the UK, France, South Korea, Belgium, and Portugal. Meanwhile, leaders in China, Russia, and the U.S. have strengthened their positions, as seen in the re-election of former President Trump in the U.S.
While the global economy showed resilience with subdued inflation and stable growth, it lacked strong momentum.

 

Looking ahead to 2025, much will depend on the actions of the new U.S. administration under former President Trump, which takes office on January 20^th. Decisions on additional tariffs and withdrawal of support for Ukraine could impact the global economy. Domestic policies, including tax reforms focused on cuts, potential withdrawal from the Paris Agreement, and administrative reforms, will influence the U.S. economy, which, in turn, will have significant effects on the global economy and our business environment.
In other regions, strengthened environmental and sustainability regulations in Europe, as well as China’s domestic economic trends, are expected to play pivotal roles. I encourage all of you to stay informed about these developments.

 

The year 2025 will also bring uncertainties, but there is no such thing as a year without change or surprises. What is crucial for businesses is to be prepared for change and unexpected events on a regular basis and to develop the ability to respond appropriately. I have often quoted Darwin’s words in the past, emphasizing that adaptability to change is essential for a company’s survival. Moreover, speed is vital when it comes to responding swiftly to changes. To achieve this, it is important to consistently streamline operations and review tasks, maintaining a lean and efficient organizational structure. I hope you will approach 2025 with this mindset.

 

2. Management Policies

First, performance trends.
Since peaking in the fiscal year ending August 2023, our performance has entered a downward trend. At the same time, inflationary pressures persist, with rising costs in areas such as labor and logistics. To ensure profitability, it is crucial to implement appropriate price adjustments and improve operational efficiency. Expanding new business opportunities will also contribute to performance improvement in the long term, so I encourage you to focus on creating added value and actively pursuing new opportunities.
With eight months remaining in this fiscal year, let us work diligently to achieve our targets.

 

Second, Mid-term Management Plan.
This year marks the final year of our Mid-term Management Plan 2025. I ask that you review its objectives and dedicate yourselves to achieving them in the remaining time. This is a collective effort that involves all employees.
Simultaneously, we are advancing the creation of our next Mid-term Management Plan 2028. Although initial drafting has begun with the former Management Liaison Committee, the scope will expand to involve additional stakeholders as we proceed. I ask for the cooperation of everyone involved.
The Mid-term Plan sets out concrete three-year goals and actions while also reflecting our corporate philosophy and long-term vision. Please approach its creation thoughtfully, incorporating discussions and revisions as needed.

 

Finaly, organizational restructuring.
As announced, we will transition to a new organizational structure this month. The new structure moves from a traditional pyramid model to a matrix model, incorporating both vertical and horizontal management to strengthen the consolidated management of the UCM Group.
In the vertical structure, newly appointed line managers should gather their teams today to share their visions and challenges while fostering communication within their divisions. Continuing line managers and heads of overseas subsidiaries should also conduct meetings to strengthen internal collaboration.

 

In the horizontal structure, newly appointed directors and executive officers will play central roles in the Group’s consolidated management. I expect them to support line managers while actively addressing medium- to long-term management challenges. This restructuring aims to prepare for the next decade of growth, with leadership development and succession planning being key priorities.

 

Another notable initiative is the establishment of the “Junior Board Meeting” comprising young and mid-career employees. I was delighted to see so many applicants, and I have high expectations for the selected members. I encourage them to engage in earnest discussions about our future and present bold proposals to the management team.

 

In summary, this year’s management policies focus on:
A strong commitment to performance, completion of Mid-term Management Plan 2025, drafting of Mid-term Management Plan 2028, Establishing the matrix organization.

 

3. Requests for Everyone
I ask each of you to fully understand the management policies outlined today and to perform your roles with a sense of urgency, giving your utmost effort. Managers and supervisors, please share these policies with your teams and ensure their execution. Additionally, conducting regular performance reviews as employee development is essential to the company’s growth.

 

Another crucial factor is the growth of each individual employee. For our company to continue delivering added value to our customers, it is essential that every employee improves their skills. While the company will enhance its educational support, I encourage all of you to raise your awareness of skill development, set specific goals, and actively participate in various training programs. Additionally, I urge you to make use of regular meetings with your supervisors to assess your progress and strive for further improvement. The practical training program at UCM’s overseas subsidiaries will continue this year as well. I hope that our younger employees take full advantage of this opportunity, achieving even greater growth through their experiences abroad.

 

As we enter 2025, I will continue to energetically focus on managing the company. I encourage all of you to prioritize safety and health, remain mindful of compliance and quality, and work together as a team to achieve success. In closing, I extend my heartfelt wishes for the health and success of all UCM Group employees worldwide and their families.

 

This concludes my New Year’s message.

 

Let us unite as one team, prioritizing safety and health, and striving to make 2025 a productive and fulfilling year.

 

Thank you.