Turnaround from Crisis to 12 Consecutive Years of Growth

This article was originally published in Japanese by Shachomeikan (President's Dictionary). You can view the original version here.

Yumoto Electric Co., Ltd. brought a small factory back from the brink of collapse after the Lehman Shock and rebuilt it into a thriving business with twelve straight years of growth. The company specializes in custom precision-machined plastic and metal parts, delivering fast turnaround, small-batch orders starting from a single piece. Today, it supports critical manufacturing needs across industries in Japan and overseas. At the helm is President and CEO Hideitsu Yumoto, who once pursued acting before returning home to take on the challenge of transforming his family’s struggling business.

From Aspiring Actor to CEO of the Family Business

[INTERVIEWER] After graduating from high school, what kind of career path did you take?

[YUMOTO] I always felt that the salaryman life wasn’t for me. I loved film and wanted to work in the industry. Scriptwriting and directing felt out of reach, but I had this baseless confidence that acting might be something I could do, so I decided to pursue that.

Since I believed actors needed a wide range of life experience, I spent a year studying English in Australia, then came back to Japan and spent several years in Tokyo going to audition after audition, with no breakthrough. Eventually, I went to the United States. I did have opportunities to appear in independent films there, but seeing myself objectively on camera made me realize I wasn’t cut out to be an actor. Letting go of that dream brought me a deep sense of relief, like a weight had finally been lifted.

[INTERVIEWER] After giving up on becoming an actor, what kind of work did you do?

[YUMOTO] In the U.S., I met someone who was running a business, and I remember thinking, “Entrepreneurs are really cool.” I asked to become his apprentice and started working in Tokyo. Over time, though, I began feeling out of place as a regular employee.

Around that time, my father—who I’d been somewhat estranged from—told me his company was in serious trouble because of the Lehman Shock. I was approaching 30, a major life milestone, and although I wanted to start a business of my own, I didn’t have any concrete ideas. That’s when it occurred to me: “Maybe the company that needs me most is my father’s.” Even if I launched something from scratch someday, I first wanted to test my abilities on an existing business. That’s what led me to join his company.

Driving a V-Shaped Recovery with a Clear Growth Strategy

[INTERVIEWER] What was the atmosphere inside the company at that time?

[YUMOTO] I joined in the middle of the Lehman Shock. There were only about 15 employees, including me, and there was so little work that everyone would sit in a circle talking about baseball to pass the time.

On top of that, everything felt outdated—handwritten pay slips and people cutting documents with scissors instead of using a shredder. Seeing that reality made me realize that without some sort of major change, the company wouldn’t survive. So I started with door-to-door sales and cold calling directly from the shop floor. But relying on old name lists was incredibly inefficient, and I realized we needed a more fundamental shift.

[INTERVIEWER] What specific measures did you take to turn the business around?

[YUMOTO] First, I focused on using the internet to attract new customers. At the time, hardly any manufacturers like us were doing web-based marketing, and I was convinced that strengthening this area would bring in more work. As we expanded and improved our website, inquiries increased, and orders steadily grew.

As new work came in, we started focusing on hiring young talent. I also felt we’d hit a limit if we stayed only in Osaka, so I expanded into Tokyo. I started with business trips to visit customers, and once sales stabilized, we opened a Tokyo sales office. Using our Tokyo success as a springboard, we then moved into overseas markets, establishing a factory in Vietnam.

By advancing customer acquisition, recruitment, and both domestic and overseas expansion in parallel, we achieved a V-shaped recovery.

Talent Strategy and Global Expansion for the Future of Manufacturing

[INTERVIEWER] What do you prioritize in hiring?

[YUMOTO] We focus on hiring young people. They tend to want energetic environments and coworkers close to their age. So we started by hiring young, motivated employees. As their numbers grew and people saw how much they enjoyed their work, even younger generations began taking interest, creating a positive cycle.

We actively incorporate employee feedback and work hard to make the company more attractive. Constantly improving pay, benefits, and work styles is a big reason young people choose us.

[INTERVIEWER] What qualities do you look for when hiring?

[YUMOTO] Honesty. We look for people who are forward-looking, honest, and have a strong sense of responsibility. People like that naturally push themselves to improve. No matter how capable someone is, if they’re not honest, their growth will stall, and if they lack responsibility, they may abandon their work halfway. These may seem basic, but I believe these three qualities are essential.

[INTERVIEWER] Looking ahead, what themes do you particularly want to focus on?

[YUMOTO] We’re focused on three areas: developing new customers, strengthening recruitment, and overseas expansion. To grow further, both new businesses and global reach are essential. As Japan’s population declines and the domestic market shrinks, I believe we need to view the entire planet as our market. We’re currently working on establishing a local subsidiary in the United States and preparing to enter the U.S. market.

Building the Future of Manufacturing in Space and Robotics

[INTERVIEWER] In terms of overseas expansion, what fields will you focus on going forward?

[YUMOTO] All developed countries are facing declining birthrates, and work that people no longer want to do needs to be automated. While AI expands our “brains,” robots are essential for tasks requiring physical labor. As robots become more widespread, I believe demand for the parts that form their skeletons will grow dramatically. Our technology is already being used to build those structures, and going forward, we want to push further into the space industry as well. Ultimately, we want a future where our parts are used everywhere.

[INTERVIEWER] Finally, do you have a message for applicants who are interested in your company?

[YUMOTO] Right now, we’re working to get deeply involved in the space and robotics industries—fields that will define the future. The space industry today feels like the early days of the internet, with massive potential for explosive growth.

Robots, too, will become increasingly common as they take on dangerous work and support industries facing labor shortages. We manufacture the parts that form their skeletons. Someday, our parts may be used in all kinds of applications.

This work has a high level of social impact, and being able to say, “Our company makes the parts used in that product,” is incredibly motivating. If you have the passion to help shape the future of manufacturing, I would love to work with you.

Editor’s Note and Biography

Hideitsu Yumoto's path, from letting go of his acting dream to rebuilding the family business, brings together a wide range of experiences that have helped drive the company’s turnaround. His ability to view himself objectively, his insight into markets, and his entrepreneurial mindset have been major forces behind the company’s V-shaped recovery. With a constant desire to grow and improve, he listens closely to employees and works to create a better workplace, inspiring the young people who will shape the future of manufacturing.

Hideitsu Yumoto was born in Osaka Prefecture in 1978. After graduating from high school, he spent a year studying English in Australia before pursuing acting. He later worked at a gaming machine manufacturer for two years, studied in the United States for a year, and worked at a housing equipment manufacturer for two years before joining Yumoto Electric Co., Ltd. in 2009. He became Head of Corporate Strategy in 2011, Executive Managing Director in 2013, and President and CEO in 2018, a role he continues to hold today.

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.