Yumoto Electric Co., Ltd.: How a Small Manufacturer is Driving Innovation and Talent Development Through the Metaverse 

This article was originally published in Japanese by JTUA. You can view the original version here.

Yumoto Electric Co., Ltd., a precision machining company specializing in custom parts, has drawn attention for launching “YUMOTO SPACE FACTORY,” a virtual replica of its Osaka headquarters built inside the metaverse. What inspired this small Japanese manufacturer to step into virtual reality, and what results have followed? We spoke with Hideitsu Yumoto, President and CEO, and Fuka Kondo, the project leader behind the initiative.

Creating New Business Opportunities for Small Manufacturers

Yumoto Electric Co., Ltd. produces custom-machined and 3D-printed parts for rockets, satellites, and industrial equipment. Using advanced CAD/CAM software, the company supplies prototype and precision components to major manufacturers, universities, and research institutions.

When asked what led the company into the metaverse, Yumoto explained, “We saw the metaverse as a new frontier for business opportunities—a virtual market with real potential. Since our production process already depends heavily on digital data and computer-based design, rather than manual craftsmanship, it naturally aligns with the creation of virtual environments. That’s why we decided to take on the challenge of building in the metaverse, to explore new avenues of business growth from our small factory in Osaka.”

Yumoto Electric’s metaverse world, “YUMOTO SPACE FACTORY,” is hosted on VRChat, a social networking platform that leverages virtual reality (VR). In VRChat, users can freely create unique virtual environments (“worlds”) and personalized avatars, interacting with others in shared digital spaces.

According to Fuka Kondo, the project leader, “The key idea behind YUMOTO SPACE FACTORY is to let visitors experience real manufacturing processes while gaining a clear sense of Yumoto Electric’s technical capabilities and potential.”

The virtual experience is divided into two main areas: a realistic factory zone that recreates Yumoto Electric’s Osaka headquarters (see Image 1), and a futuristic space factory zone. Visitors first explore the main factory area, where they can learn about the company’s history, equipment, and materials. From there, they board a virtual rocket that launches them into space, arriving at a factory imagined for the near future.

In the space factory, guests can enjoy the “Lathe Coaster Experience” (see Image 2), one of the most popular attractions. This interactive ride offers the unique perspective of the material being machined rather than the operator, allowing guests to feel what it’s like to be processed at high speed through cutting and grinding.

Kondo notes, “We take pride in this as a one-of-a-kind PR tool in the metaverse, letting people from all over the world experience our manufacturing technology firsthand. We’ve also created a commemorative photo area and a display floor showcasing 3D models of actual parts produced by Yumoto Electric.”

Development of “YUMOTO SPACE FACTORY” began in May 2022 as a fully in-house initiative. A volunteer project team handled everything from planning and design to production and launch. After about a year of development, the world went live in June 2023.

Kondo recalls, “Two years ago, management challenged employees to explore the metaverse. Six volunteers from across departments—Sales, Manufacturing, and Quality Control—stepped forward to take on the project. But we were complete beginners, starting from zero and asking ourselves, ‘What even is the metaverse?’ We spent days immersed in research, each member studying different platforms, tools, and successful examples from other companies, then sharing what we learned.”

Yumoto gave the team full ownership of the project, setting only the broad direction while entrusting daily progress and decisions to the six members led by Kondo, who is in her twenties.

“Our company is relatively young for the industry, with an average employee age of 33,” says Yumoto. “We trusted the passion and potential of our younger staff who volunteered. At the same time, we created an environment that supported their efforts, such as hosting demo sessions so everyone in the company could understand and engage with the project.”

Kondo adds, “Since this project was so different from our usual work, we focused on making it fun and collaborative. We assigned tasks based on each member’s strengths and interests and encouraged open communication. Sharing interesting examples and exploring together built strong teamwork, which I think made the project a success.”

When YUMOTO SPACE FACTORY was unveiled, it drew widespread attention both inside and outside the manufacturing industry. The project was featured in major newspapers and industry publications, significantly boosting the company’s visibility.

“Customers who saw the coverage began to view Yumoto Electric as a company willing to take on new challenges,” says Yumoto. “That increased recognition was a huge win for us. Plus, when we showcased the project on our recruitment page, inquiries went up noticeably compared to previous years. It even helped us attract new talent.”

The metaverse challenge also led to unexpected internal growth.

“Over the course of the year, we saw remarkable development among our employees,” Yumoto reflects. “Team members began applying what they learned from the project to their everyday work, surprising management with their progress. The younger generation, when given freedom and the right environment, can gather knowledge online, enjoy the process, and deliver results far beyond expectations. Ultimately, the most valuable outcome of our metaverse challenge was discovering a new model for developing talent.”

Challenges of the Metaverse, and Why We Pursue It Anyway

Although Yumoto Electric’s venture into the metaverse has delivered new exposure and valuable internal growth, Yumoto acknowledges that achieving tangible business results from the project will take time. “Right now, the computers needed to run the metaverse still lack sufficient performance,” Yumoto explains. “Users experience issues like lag and limited usability. Until communication environments evolve to make metaverse access seamless on smartphones, its full potential remains untapped. Still, we see tremendous opportunity ahead, whether it’s holding global business meetings in virtual spaces or developing new B2C markets online. For an industry like materials processing, where growth through traditional methods is nearing its limit, emerging technologies such as the metaverse offer real potential for transformation. That’s why we believe it’s important to take on the challenge now.”

Kondo shares a similar forward-looking view. “In the future, we hope to conduct company presentations and even job interviews entirely between avatars,” she says.

Rather than chasing short-term profits, Yumoto Electric’s decision to enter the metaverse was guided by curiosity, strategic foresight, and a belief in long-term innovation. Their experience serves as a meaningful example for other small manufacturers exploring how emerging digital technologies can open new frontiers for business growth.

Step Up Your Project with Yumoto Electric

Yumoto Electric delivers high-quality components fast, worldwide. We provide precision machining for a wide range of metals and engineering plastics. We have experience with over 200 materials including metals such as aluminum alloys, stainless steel, molybdenum, and titanium, and engineering plastics including PEEK, PPS, MC Nylon, and POM.

If you’re unsure about material selection or machining methods, we offer complimentary consultations to help optimize your design and production. For any questions, please feel free to contact us.