Yamada Machine Tool (Thailand) (hereafter YMTT) deals in specialized tools such as tooling equipment and marking machines, as well as environmental improvement materials. The company is not only proficient in selling specialized products, but for the past 10 years, the company has also been focusing on business of building automated (FA) systems, steadily increasing their track record. Then, in 2024, YMTT accomplished a project to deliver their largest automated system yet, a massive automatic welding system, in just 4 months—a remarkably short delivery time. This article will cover the full details of the automatic welding system and highlight the strengths of YMTT's FA business.

Background to the Start of Training Equipment Engineer Talent

YMTT began building its FA business about 10 years ago. There was a specific reason for getting into this business.

Around 2012, when the "China Plus One" movement was active in Thailand, various types of equipment engineering companies were fiercely competing in the field of FA. These companies could be categorized into three types: 1) Thai local companies, 2) Japanese SMEs specializing in automation and labor-saving technologies that had expanded into Thailand, and 3) localized Japanese-affiliated companies that had been engaged in the equipment business in Thailand for a long time.

Among these, the localized Japanese-affiliated companies (3), which boasted Japanese quality while offering overwhelmingly low prices and flexible services, attracted the most business. As a result, many of the Japanese SMEs (2) began to withdraw from the market one after another. Since then, the environment for nurturing knowledgeable and experienced equipment technicians has diminished. The localized Japanese-affiliated companies, where demand was concentrated, also faced aging workforces without successors, leading to a noticeable shortage of skilled personnel.

YMTT anticipated such future human resources issues in the FA industry and began training production technology engineers early on.

▲ Example of FA equipment system undertaken by YMTT

Undertaking a Large-scale Automatic Welding System with a Total Length of 100 Meters

In 2023, as manufacturing in Thailand began to revive with the end of the COVID-19 pandemic, YMTT was approached for a large system-building project.

【System Overview】
A welding line for automotive parts (truck frames). A large-scale facility measuring 100 meters in length, equipped with a total of 42 welding robots across 28 processes. Provided a one-stop solution from design review to manufacturing and delivery within four months of the customer's order.

The order was from a Tier 2 company under a world-renowned Japanese automobile manufacturer. The client wanted to install a new welding line identical to the one already operating in Thailand. At the time of the client's planning, there was almost no company in Thailand capable of delivering such a large-scale production facility in such a short time frame of only four months.

A Team of 50 Elite Engineers Was Assembled

Approximately 50 engineers participated in the project. YMTT leveraged the network of equipment engineers it had built in Thailand through its previous FA businesses, bringing together top-class engineers from both Japanese and local Thai backgrounds. Leading this team was YMTT's engineer, Mr. Handa. He shared the following insights on the keys to the project's success.

"The participating engineers were all highly skilled and knowledgeable veterans, but we placed particular emphasis on teamwork over individual technical ability for the project. We set clear goals for the organization, and communicated closely so that each staff member could maintain a positive motivation. The key to our success was that the entire organization approached the project with a broadened perspective,” says Mr. Handa.

The Keys to Success Are Human Resources and Business Continuity

President Yamada emphasizes the need to prepare for the next wave of equipment system demand. "The market is still in a slump at present, but the economy will recover before long. When that happens, there will be a surge in demand for expanding production lines, and the supply of FA engineering services will inevitably struggle to keep up. The key point of this project was that we were able to assemble high-quality equipment engineering personnel in a short period of time by making full use of our unique network. Additionally, the careful selection of projects and the accumulation of achievements in our FA business have been crucial. The equipment business carries high risks, including cash flow challenges. Thus, we have been careful not to take on jobs randomly, but rather have carefully pursued one project at a time, including building relationships of trust with our customers,” says President Yamada.

Furthermore, President Yamada places great importance on "business continuity" in the FA business. The cornerstone of YMTT's business continuity is its trading function, which involves the sale of tools and environmental equipment. This segment of the business is supported by Mr. Uchitani in sales, who plays a crucial role in maintaining the company's stability.

"The expansion of our FA business is predicated on the stability of our core trading business, which involves product sales and provides a solid financial foundation. This is directly linked to the continuity of our FA business, and the existence of the trading business is indispensable. Furthermore, equipment system projects are often long-term, and after-sales support is crucial. For this reason, we always prioritize business continuity to ensure our customers can trust us with their equipment needs," says President Yamada.

Although YMTT is a small-scale business entity, its efforts seem to rival those of large corporations. As Thailand's manufacturing sector aims for a revival post-pandemic, it is entering a new phase. In this context, YMTT's initiative to harness its unique network and human resources to meet future equipment system demands holds unlimited potential.

▲ From the left, President Yamada and Mr. Handa of Yamada Machine Tool (Thailand)

If you are interested in building FA equipment systems such as welding and conveying in Thailand, please feel free to contact us using the form below.