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THK : BOOSTING GROWTH CAPACITY THROUGH AI AND ROBOTICS
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THK : BOOSTING GROWTH CAPACITY THROUGH AI AND ROBOTICS

Akihiro Teramachi , Chief Executive Officer and President of THK Co ., Ltd , is looking to increase his company ’ s growth capacity by leveraging Artificial Intelligence ( AI ) and robotics in the face of a shrinking labor market .
THK , the company that pioneered the Linear Motion Guide mechanism , has also relocated its head office to strengthen group-wide cooperation , improve operational efficiency , and enhance business continuity planning . In addition , the company is investing in Japan ,
Akihiro Teramachi , Chief Executive Officer and President of THK Co ., Ltd .
China and Vietnam to maximize production in response to soaring demand driven by the rise of the Internet of Things ( IoT ), the automobile industry , and also as a result of the automation of production facilities .
“ We have our hands full just keeping up with demand ,” says Teramachi . “ In addition to the spread of IoT , semiconductor-related investment is expanding as a result of the increase in electric vehicles and advances in self-driving technologies . We are also seeing increased overall demand for our products given the steady growth in investment related to the automation of production facilities against a backdrop of labor shortages .”
Brave New World
Teramachi has triggered a major change in the company ’ s business style driven by AI , robotics and IoT as the third strategic pillar for THK . The challenge is to develop products that match changing needs , and to simultaneously consider sales-based uses and other applications .
And yet , Teramachi is wary of over-reliance on AI and robotics . “ If we allow robots to penetrate society in their existing format , they will not be in a position to purchase goods or services , leading to shrinking consumption , smaller markets , and an atrophied economy . In addition , humans would lose their position in the workplace . We must avoid this state of affairs ,” he says .
“ Looking ahead , humans must actively trust their work to AI and robotics , and focus their efforts on high-value-added creative work in other areas where this is not possible , such as anticipating needs that others cannot see . The 10,000-plus employees of the THK Group may be forced to alter the way they perform their jobs ,” Teramachi says .
With robots gaining the ability to do tasks currently performed by mid-income class workers , Teramachi sees a high potential for the workplace to polarize , between low-salary labor hired at costs that undercut robotics , and high-income workers who need to be able to constantly think on their feet . “ We need to develop human resources capable of qualifying for this high-income group at THK , even while society becomes polarized ,” he says .
Changing Minds
Education , training and self-awareness are vital in this process , but one hurdle is that the global education system continues to revolve around the idea that humans are irreplaceable . Teramachi believes it is essential for people to be able to adapt to changes in society and the environment , and that we must develop an education system that supports this .
“ The good thing about the Japanese is that they are a close-knit , homogenous and dutiful society , which is extremely useful when it comes to ensuring quality and safety . On the other hand , these qualities can also impede the launching of , and reactions to , change . If the Japanese education system can be steered towards providing pupils with a sense of independence and self-respect , along with a healthy appreciation for change while maintaining its other positive points , then there is a good chance it can develop students capable of guiding global society in a better direction ,” Teramachi says .
Akihiro Teramachi graduated from Keio University in 1971 and joined THK Co ., Ltd . in 1975 . He became a Director in 1982 and Vice President in 1994 , before taking over as CEO in 1997 .
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