Tradition and Innovation in Long-Established Companies: Saeko Adachi (SME Management Consultant)|電経新聞

Tradition and Innovation in Long-Established Companies: Saeko Adachi (SME Management Consultant)

Japan boasts an overwhelming number of long-established companies with operations over 100 years old, with roughly half of the world’s total concentrated in Japan. This is attributed to the country’s deeply rooted culture of passing on family businesses to the next generation, and the fact that many companies maintain sound management while balancing tradition and innovation. Furthermore, continuing to do business in the same location for hundreds of years is evidence of close ties to and contributions to the local community. One such company is Magoshichi Kawara Kogyo Co., Ltd., based in Ikaruga Town, Nara Prefecture, near Horyu-ji Temple, famously built by Prince Shotoku. Founded in 1694, it is a truly long-established company with over 330 years of history. While the previous generation focused on roof tile manufacturing, the company now specializes in general roofing work, including roof renovations and re-roofing, as well as interior and exterior renovations and the sale and installation of solar power generation systems. President Yoshihiro Shimizu, the 15th generation president, says, “The fact that we’ve been able to work in the same area, working on the same tiles, for 330 years is proof that each generation has been supported by the local community, and that we ourselves have continued to contribute to the community through our roots.”

The company’s management philosophy is “We contribute to society through the preservation of Japanese architectural culture and technological innovation that makes use of tradition,” and one of its guiding principles is “We will become a company trusted by society and contribute to the development of the local community.” At the heart of this philosophy is the belief that revitalizing the local community and the industry will in turn revitalize the company itself.

Japan’s housing environment has changed dramatically over the past few decades, with roofing materials other than tiles now being widely used. As a result, tile manufacturers’ shipments have reportedly shrunk to one-tenth of their peak. In response to these changes in the external environment, the company has expanded its business beyond tile installation to include general roofing and renovations. It also designs and sells lifestyle products that utilize tile technology, such as coasters and umbrella stands that utilize the water-absorbing properties of tile tiles. They were also one of the first in the industry to use drones for on-site roof inspections and taking photos of completed projects. Being able to adapt to the times and boldly change where necessary is a strength of a long-established company with a long history. At the same time, there are some things that must never be changed. President Shimizu asserts that these are “ethics, thinking, and community involvement.”

Magoshichi Kawara Kogyo, led by President Shimizu, cleans up the nearby riverbed twice a month, and widely disseminates the information on social media. In Japan, the idea that doing good deeds in secret is considered virtuous is deeply rooted. However, President Shimizu is spreading the word about their activities in the hopes of spreading awareness and inspiring more people to do the same. “We’re connected with 1,000 people on social media, and if even just one of them were to take part in this kind of activity, even once a month or once a year, it would help clean up the town, and I hope that this could spread throughout Japan and the world,” he says. Listening to this story, I strongly felt that if many companies were to establish roots in their respective communities and contribute to their local communities, it would lead to the revitalization of Japanese industry.

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