Hi-Lex by Business Enquirer (Internal Use Only Not Downloadable)

Kaizen Chiefs

PROJECT DIRECTED BY

WRITTEN BY

Chiara Salter

Niamh Spence

HI-LEX

Kaizen Chiefs If it’s a moving part in your car, there’s a likelihood that Japanese founded component and systems manufacturer HI-LEX was behind it. Laura Watling speaks to President of American Operations, Brad Semp, to discover what’s on the horizon for this historic company.

ith 50 locations in over 18 countries, HI-LEX has received industry wide recognition for its mechanical control cables, window regulators, door modules and power closure products. As well as providing its expertise to the automotive industry, it supplies to other recreational vehicle manufacturers and medical OEMs. “Our products are known for their superior quality, technological advancements, price-point and delivery,” told Mr Semp, “it’s important too that we stay flexible and always align ourselves with our customer’s needs”. As such, HI-LEX’s value proposition changes to meet its customer’s needs. As a Japanese owned business, Japanese culture underpins its beliefs, particularly “kaizen”. Kaizen, the Japanese word for “improvement,” is a concept referring to business activities that continuously improves its functions from top to toe. It follows the method of “plan, do, check, act”.

Issue 106 · Business Enquirer Magazine

Business Enquirer Magazine · Issue 106

HI-LEX

Car Manufacturing

“For us, kaizen is the continuous development of our corporate culture, product development and innovation, marketing and sales, customer strategy, and managing our multi-generational workforce.” PDCA in action In our now (so-called) post-pandemic world, high on the agenda for the global manufacturer is to find a solution for ‘people’. That may seem like quite an existential quest, so what does President, Mr Semp, mean by that “One of our biggest challenges at the moment is people. We currently have such a varying workforce, spanning four generations,” explained Mr Semp. “Our staff were permanently impacted by COVID, and now, some are seeking more flexibility. It’s our challenge, particularly in the American division of HI-LEX, to find the solution for that”.

People are at the core of what we do, so we need to find a way to host those varying shift patterns whilst maintaining product output.

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With this in mind, Mr Semp has commissioned HI-LEX’s HR team to find a solution for shift scheduling to meet the different wants and needs of its staff. “This could mean integrating staff that want to work a 10 or 12 hour week with those wanting to work upwards of 30 hours. People are at the core of what we do, so we need to find a way to host those varying shift patterns whilst maintaining product output”. And it’s not just on the manufacturing floor where HI-LEX is experiencing a generational shift. In January 2021, 44 year old Taro Teraura took over the chairmanship of the business from his father, who himself had been at the company for over 40 years.

Issue 106 · Business Enquirer Magazine

Car Manufacturing

HI-LEX

The ATF Way ATF is family. We’re a family business built on entrepreneurial passion and team spirit. Our core values are represented by the ATF Way. It’s engrained in our culture and serves as a daily reminder of how to treat our customers and each other. Founded in 1946 and based in the stockyards of Chicago’s west side, ATF began as a supplier of surplus World War II military fasteners. From this humble beginning, our company has grown and transformed into a global manufacturer of precision cold-formed and machined components and assemblies. ATF is known throughout the industry for our automotive expertise. We develop and manufacture engineered fasteners, components and assemblies used in a variety of automotive applications. Our niche market products can be found throughout the vehicle’s interior, door systems, seating, chassis safety and underhood systems.

Balancing the dynamic For its automotive clients, HI-LEX produces over 10 million window regulators annually. Semi-automated and automated assembly lines allow HI-LEX to provide cost advantages whilst maintaining superior products. In addition, it produces power lift gate systems in steel and plastic and single or dual power, to meet its customers’ individual needs. At the core of the business is the design and manufacture of control cables. The company actively engages in R & D on these products to continually improve performance and driver experience.

Issue 106 · Business Enquirer Magazine

Despite its legacy, HI-LEX faced many of the same challenges as other businesses during the pandemic. Although HI-LEX is finding supply chain issues are now fading and normality resuming, it is starting to see price hikes from suppliers in the marketplace. “This is a challenge we’re facing as a tier one supplier. To an extent, we have to accept and absorb the price increases we are seeing.” Here is where we see HI-LEX’s Japanese business culture come to the fore. “Part of our cultural belief is that the customer is always right. We now need to find a balance between trying to support our customers whilst also being financially savvy”.

Business Enquirer Magazine · Issue 106

HI-LEX

Car Manufacturing Increasing the value proposition During Mr Semp’s 20 years at the business he has held many roles. Prior to heading up the American operations he spent four years leading the European operations of the HI-LEX.

set up a global team “ toWe’ve study sustainability in our

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market, work on policies, investigate green materials, and innovate.

“Sustainability in the industry is very much led by the European community,” said Mr Semp, “my time there means I can bring a unique view point to the American operations.” Some of HI-LEX’s key customers are at the forefront of bringing sustainability to the automotive industry, such as Volvo and BMW. It is crucial, then, that HI-LEX matches the demands. “We’ve set up a global team to study sustainability in our market, work on policies, investigate green materials, and innovate”. From carbon footprint to global footprint During its 76 years, HI-LEX has grown its global footprint by following its customers around the world. Thanks to its relationship with Honda, HI-LEX became the first Japanese components supplier in the US. Since then, it has established footholds in North America, Brazil, Spain, Germany, Russia and many regions in the Asia Pacific. “Rather than expanding further afield, at the moment we’re focussed on optimising our current footprint,” said Mr Semp. “That’s not to say we don’t see opportunity there. Areas of North Africa and the Middle East are interesting for us, as well as expanding further into South America” he concluded. www.hi-lex.com

Issue 106 · Business Enquirer Magazine

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