2026 New Year Message from Shibaura Machine's President

ELK GROVE VILLAGE, IL, January 5, 2026

Happy New Year.

My name is Yoshiaki Kai. Last year I was assigned to the United States as President of Shibaura Machine America. I would like to express my sincere gratitude to our customers, partners, and employees for your continued support. Since my arrival, I have met many of you and heard firsthand about your expectations and the challenges you face. Those conversations are an important guide for our current and future initiatives.

2025 was a year of new initiatives for us. We established the Nano Process Division and began sales of precision machine tools in the United States — an area we view as a key growth opportunity. At the same time, for our core existing product lines — injection‑molding machines, die‑casting machines, and machine tools — we have continued to implement measures that improve customer usability and support efficient equipment operation. Concretely, we have strengthened after‑sales services and enhanced our customer portal to create a more user‑friendly and easy‑to‑manage environment. We will continue to prioritize and advance these efforts this year.

Guided by our headquarters’ catchphrase — "We make machines that make things that do not yet exist in this world" — we will continue to support our customers’ value creation through both technology and service. In view of changing global conditions and trade environments, we will further promote local sourcing and diversify supply networks to ensure stable service. We also remain committed to contributing to the communities where we operate through job creation and technical education across North America.

In the year ahead, we will continue to earn your trust through technical excellence and reliable service. We look forward to working with you to create new value together. Thank you for your continued support.

Sincerely,

Yoshiaki Kai
President, Shibaura Machine Company, America

Q & A

Looking back on the business performance and key initiatives in 2025, what achievements are you most proud of?

2025 was a year of challenge and progress. I am particularly proud that we established the Nano Process Division and launched sales of precision machine tools in the U.S. Equally important, we advanced after‑sales enhancements and expanded our customer portal across our core product lines — injection‑molding, die‑casting, and machine tools — improving usability and equipment management for customers. These initiatives have strengthened both our technological and service foundations.

What were the most significant challenges the company faced in 2025, and how were they addressed?

Because we sell products imported from Japan, tariff issues represented a very significant challenge. Trade‑policy uncertainty directly affected costs and lead times, so in the short term we revised pricing and supply plans and strengthened negotiations with customers on price and delivery. For the medium to long term, we accelerated local sourcing and diversified suppliers to reduce exposure to tariff risk. We also reviewed logistics and inventory strategies to increase flexibility in response to tariff changes.

In what ways did our company culture and team performance contribute to success in 2025?

I have observed that SMA is more advanced in IT adoption compared with HQ. This stems from SMA’s ability to quickly capture customer needs and rapidly turn them into products and services. The speed of executing proposals from the field and a strong customer orientation are ingrained in the organization, and that culture has supported new business launches and improvements in after‑sales service. I consider this a very positive culture.

What is your overarching vision for the company in 2026?

2026 is the final year of HQ’s medium‑term management plan. My overarching vision is to ensure that each division achieves its final‑year targets. To do so, we will nurture new businesses such as Nano Process while further advancing systemization and IT enhancements for existing products to raise their added value. By focusing on both technology and service, we will help customers improve productivity and work with full commitment to reach the plan’s goals.

What major strategic initiatives or priorities will the company focus on next year?

Key priorities next year include:

  • Further expanding after‑sales services and the customer portal (remote support, predictive maintenance, UX improvements)
  • Strengthening the Nano Process Division’s business infrastructure (product lineup, sales channels, technical support)
  • Talent development and knowledge transfer (training local engineers and sharing know‑how)
  • Promoting local sourcing and diversifying the supply chain

How do you see technological trends shaping our business strategy in the coming year?

Digital transformation, AI, and smart‑manufacturing technologies are key to both increasing product value and improving service efficiency. Next year we will focus on leveraging operational data for predictive maintenance and optimization, and enhance analytics capabilities within the customer portal to reduce downtime and improve OEE — thereby lowering customers’ total cost of ownership.

How will we enhance our product and service offerings to better meet customer needs?

In addition to improving machine performance, we will strengthen software and service capabilities: improve portal usability, expand remote diagnostics and predictive‑maintenance features, and accelerate routine maintenance and on‑site support.

Are there new markets or sectors that will be a focus for expansion in 2026?

We will prioritize sectors linked to precision machining and nano processes — such as optics, semiconductor, medical devices, and advanced materials — and expand channels into geographically diverse U.S. regions and emerging industries.

What key operational improvements are underway or planned for 2026?

We will standardize maintenance processes integrated with the customer portal, optimize inventory and parts procurement, visualize equipment utilization to improve uptime, and strengthen supplier management — improving responsiveness and cost efficiency.

What steps are being taken to improve internal processes and cross-functional collaboration?

We will strengthen collaboration with our headquarters in Japan more than ever before. Concretely, I will personally act as the liaison with HQ and serve as a central conduit for two‑way information flow. Within SMA, we will actively promote cross‑model information sharing and reinforce a structure where sales, service, and engineering collaborate across product lines. In particular, we view the service organization as a company‑wide priority, and I believe stronger interdepartmental cooperation is essential to address these common challenges.

What leadership principles will guide the company as we move into 2026?

Our leadership principles are integrity, timely decision‑making, and supporting the field. We emphasize transparent decision processes and a mindset of learning from outcomes. While respecting employee autonomy, we will provide prompt support where needed.

What advice or encouragement would you like to convey to all employees for the new year?

Thank you for adapting through many changes last year. This year will again bring challenges and opportunities, and your practical wisdom and teamwork will drive results. Speak up, collaborate, and keep improving. I will continue to stand with you and provide support on the ground.