Testing the Market Before Expanding

Testing the Market Before Expanding

SUS Corp. will see how its US distribution network builds sales before constructing a factory.

Moving into the territory of your largest market is not a decision to be made lightly.  “We have spent the last couple of years researching the market,” explains Yasuo Ishida, CEO of SUS Corporation. “By setting up a sales and distributors network in the U.S. it gives us an opportunity to listen to our customers to find out their needs.”

SUS develops and produces machinery, equipment and components for the factory automation, furniture, and architectural industries. The company primarily uses aluminum for its products since it is a reusable and 100% recyclable material.

Started in Japan in 1992, it has expanded, but slowly. While there are four factories located in Japan, there is only one factory outside of the country and that is located in Thailand.  

From a sales perspective the company has a network of eight group companies and 10 global distributors. Active all over Asia, it has found success especially in India and Europe

Even with a strong customer base, including Toyota, Mazda, Nissan and DENSO Corporation, Ishida is treading lightly on opening a U.S factory. “We have to be realistic and make a decision based on actual sales, so the next two years will be crucial.  Our hope is that business is successful enough to warrant a plant in the U.S. “

SUS took the first steps into the U.S. market last month by unveiling its new GreenFrame (GF) at the Automation Technology Expo Midwest conference in Chicago.  The new product, which takes 66% less time to assemble than industry-standard plastic resin coated steel pipes, according to the company is currently being used by Toyota Auto Body.  

 

“I feel that the there is a lot of opportunity with aluminum that has yet to be fully utilized,” Ishida said. “We are exploring a variety of industries that can take advantage of the characteristics of this material.”

One market, in particular, where the company sees growth in in home automation. Building on its success in factory automation the company is developing and providing the structural systems for residential to commercial that appeals to the environmentally-friendly attributes of aluminum. 

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