Affiliate Of Toyota Finds A Home In Shrewsbury
PHOTO/Emily Micucci
Mikhail Tan, a graduate of Worcester Polytechnic Institute, with one of Toyoda's machines at its new tech center in Shrewsbury.
PHOTO/EMILY Micucci
Olive McRae of Toyoda Machinery: “Everything was perfect” in Shrewsbury for opening a tech center in the town.
About a year-and-a-half ago, executives at Chicago-based Toyoda Machinery USA determined it was time to make their entrance into New England, a region home to a healthy population of machine shops that historically had access to Toyoda's high-end machines through distributors. The point of entry would be a tech center and showroom.
There, Toyoda, a member of the Japanese holding company Toyota Group., which also owns Toyota Motor, could provide support to customers and showcase its machines, which make custom tools for precision manufacturers serving a variety of industries.
But where to locate? Olive McRae, who was hired by the company around the same time to represent New England as district sales manager, was charged with finding the answer to this question. She decided on Shrewsbury because it's geographically at the center of New England.
After viewing 50 industrial spaces, Toyoda signed a lease at the Hills Farm Industrial Park on Hartford Turnpike, owned by Polito Development Corp. With 5,000 square feet, an ample shop area and a large loading door, McRae knew she had found the right spot.
“Everything was perfect for this,” McRae said during an interview at her office last month.
Machines, which cost between six and seven figures depending on the model, were installed last week. Toyoda hopes area manufacturers will be lured in to see how the different models will streamline and improve production at their shops and ultimately decide to buy them. The company hired Mikhail Tan, a Worcester Polytechnic graduate, as its regional service technician. Tan, who is based in Shrewsbury, will provide demonstrations for potential customers, proving to them that the machines can manufacture their parts to order.
“The tech center is really the hub of the communications strategy,” McRae said.
Toyoda plans to have an open house at the Shrewsbury tech center but has yet to announce a date. It’s only the second of its kind for Toyoda, which sells machines to clients in the United States, Canada and Latin America. The other is its Upper Midwest Tech Center, in New Brighton, Minn.
Toyoda: Northeast A Manufacturing Stronghold
Siting its second tech center in Shrewsbury speaks to the company's belief in the strength of the manufacturing industry in Massachusetts and the broader Northeast region. For all the obstacles the manufacturing industry has faced, from a lack of training for a new generation of workers to cost pressures that have forced some businesses to move production overseas, McRae said Toyoda “felt that they should be here.”
“It is an area where historically, and even now, there is a lot of manufacturing,” McRae said.
William Gaskin, president of the Ohio-based Precision Metalforming Association, which represents the industry in North America, said Toyoda is moving into New England just as the manufacturing industry is gaining a second wind. He said some production is coming back to the U.S. because the weakening dollar, as well as a growing tendency toward automation, has made it the nation more cost-competitive.
In New England, Gaskin said the production of high-tech equipment for industries like aerospace and defense has buoyed the manufacturing industry in particular.
“While New England may not have the level of manufacturing it did 20 years ago ... it's still strong,” Gaskin said, adding that Toyoda's Shrewsbury tech center is a clear sign that the company recognizes that fact.
A machine company that opens a regional center is sending a clear message, and Gaskin said clients will appreciate it.
“I think this just reflects their desire to have a major facility in New England where they can serve that market and not have to ship from Chicago,” Gaskin said. “They probably should have done it sooner.”
Today, Customization Rules
A shift in the demands of their own customers is also prompting precision metal shops to consider investing in the kinds of machines Toyoda sells. So says Rick Cobiski, who co-founded C&C Metals Engineering, Inc. of West Boylston with Anthony Conklin 26 years ago.
The marketplace is more creative and technical than it was 15 years ago, according to Cobiski, who sells large parts to customers in the aerospace, military and power-generation sectors. Cobiski is currently in the market for a machine that can create the kinds of complex parts those customers need and he’s close to purchasing a Toyoda machine through McRae for about $1 million.
In the past, he's relied on Toyoda's competitor, Mazak, for machine needs.
“We were looking for something a little bit more creative than just an out-of-the-box machine,” Cobiski said.
The fact that Toyoda is opening a tech center in Shrewsbury is crucial to Cobiski's decision to buy, because service support is right in his company’s backyard.
“Would you buy a million-dollar machine if you only had support in Chicago?” Cobiski said.
But Toyoda Marketing Manager Kara Giacobazzi said in a statement that a brick-and-mortar location isn't required for Toyoda to adequately service its customers in various regions.
"Toyoda’s support department employs nearly 50 field service technicians throughout the U.S., Canada, and Latin America. Although Toyoda is headquartered in Chicago, Ill., these technicians live in the respective areas they serve to better accommodate customer needs," Giacobazzi wrote.
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