What is the significance of Hitachi Construction Machinery Americas launching in the Americas?
From the early 1980s to 2002, we worked with John Deere, sending them construction machine kits while they handled distribution for both North and South America. In February 2022, when we parted ways with them, we took over responsibility for construction and mining in the Americas. This marks what we call a "second beginning" for Hitachi, symbolizing our opportunity to strengthen our commitment to these markets.
The new Newnan, Georgia headquarters is a reflection of that commitment. We wanted a regional base that represented our dedication to employees, dealers, and customers alike. It is more than just a building; it is a statement of our long-term intentions in the Americas and an important milestone in our company's evolution.
In addition, you pride yourselves in the new building’s sustainable credentials…
We decided to build the new headquarters on land we already owned, which previously housed our wheel loader factory. Instead of starting from scratch, we repurposed the existing factory and made some modifications. For example, what used to be the parts warehouse is now our training center. This allowed us to reuse what we already had, which is both environmentally friendly and cost-effective. It is all part of our broader commitment to sustainability in our operations.
Demand for your products in the Americas has gone through a tenfold increase. How did you achieve that?
Yes, the growth has been remarkable. Since I joined Hitachi in 2017, there was always a sense that we could reach this level, but none of us expected it to happen so quickly. When we fully took over in 2022, we were blown away by how strong the Hitachi brand remained in North America. This strength was particularly evident in our recruiting efforts—when we started, we had around 40 employees, and now we are at 220. In 2022, a tough job market, we received over 10,000 qualified applicants for just 150 positions.
This response showed us that people in the industry were eager to be part of something new and exciting. Joining Hitachi Construction Machinery Americas felt like joining a startup, and people were drawn to that. It has been a fun and energizing atmosphere as we continue to build a team that shares this vision.
How is Hitachi Construction Machinery Americas incorporating innovation and technology into its machines?
On the product side, one of the most exciting innovations is our push towards decarbonization. Mining is essential for economies, and we recognize the importance of minimizing its environmental impact. We are working on electrifying our equipment and are currently testing a trolley battery truck. This truck is unique because it never stops to charge—it charges on the move using regenerative braking and a trolley system. The result is a more productive truck at a lower cost, and we have partnered with ABB to make this technology possible.
We are also innovating in our handling of data. Unlike some competitors who lock customers into proprietary systems, we are taking an open approach. Our technology allows customers to access and manage data from not only Hitachi machines but also other brands. This open access provides more flexibility and control to customers, especially those managing mixed fleets.
There are two components to that access. The first is ConSite Mine, which focuses on machine-specific technology. The second is Wenco, a partner based in Vancouver, Canada. Wenco works on an open autonomy platform, allowing it to operate with a variety of competitive machines. It is a more innovative concept because it does not just focus on Hitachi machines but includes trucks from other manufacturers. Rather than locking customers into a single ecosystem, enable them to manage their mixed fleets more effectively, which is increasingly what customers want.
What proportion of your equipment is still diesel-run?
I do not have an exact figure, but I can tell you it is still very high. However, I would like to make a distinction here. Some of our competitors are pushing electric solutions because it is fashionable or makes for good press. At Hitachi Construction Machinery Americas, our electric solutions—whether for trucks or excavators—are driven by genuine customer demand. We are focused on providing solutions that meet real-world needs, not just following trends.
Our goal is to make sure we are responding to the needs of the industry, particularly in mining, where sustainability is a key concern. We are working hard to balance that with the practical demands of running a business efficiently.
What is the challenge that your clients in the mining industry talk most about?
It is an interesting balance. On the one hand, everyone is committed to decarbonization and reducing environmental impact, which is always a part of our conversations. On the other hand, our clients need to operate their businesses as efficiently as possible. They want to mine materials at the lowest cost.
So, while sustainability is important, we can’t lose sight of the economic factors. Clients are constantly asking about the total cost of ownership and whether we have the support structure in place to keep their operations running smoothly. It is always a balancing act between doing what is right for the environment and ensuring financial viability.
What is the main challenge you would like to see resolved as the CEO of Hitachi Construction Machinery Americas?
Personally, I often reflect on the environmental challenges we face. As a Canadian, I am very aware of the pressures we have to reduce our environmental impact. But at the same time, we must balance that with the need for a productive, comfortable society. Mining plays a crucial role in that.
When speaking with people outside the industry, it’s easy to feel defensive about mining’s reputation. So, one of the challenges I face, even with our employees, is making sure that we are transparent about the value mining brings while also minimizing the negative impacts. That is an ongoing challenge for me.
How present are you in South America?
In the US and Canada, we have full coverage for mining through dealers who have worked with Hitachi Construction Machinery for over 20 years. In South America, we partner closely with Marubeni. Marubeni handles distribution, and we provide the machines and parts. Together, we have built a solid presence in Chile, Peru, Brazil, and Colombia, ensuring strong dealer networks and infrastructure.
What are your principal objectives as for the next couple of years?
Our plans are not tied to specific numbers or targets but are focused on continual development and improvement. Our short-term goal is to meet and exceed the global standards that Hitachi Construction Machinery has set elsewhere in the world. We are still about two years into this new venture and have a lot of operational challenges to work through as we scale up.
As we enter phase two of our growth, we are looking for ways to differentiate ourselves from competitors and innovate. We expect to test new ideas, and while not everything will work, we are confident that this approach will lead us to solutions that meet our customers’ needs and drive us forward.
