Dental Tribune U.S. Edition

A12 INDUSTRY NEWS Dental Tribune U.S. Edition | January 2013 Ad Handpiece manufacturer NSK aims for global leadership It is no secret that the years since the global financial crisis have not been very kind to companies in Japan. First, the re- cession slowed business investments sig- nificantly down, then the negative effects of last year’s tsunami and the massive de- struction it wrought almost brought the world’s third largest economy to a halt. For NSK, one of the country’s larg- est dental manufacturers, troubles in the home market are its least concern because the company conducts most of its business elsewhere. According to president and CEO Eiichi Nakanishi, with whom Dental Tribune International re- cently had the opportunity to speak at the company’s headquarters in Tochigi, more than 80 per cent of the company’s revenues are now generated by its opera- tions outside of Japan. In the last three years, NSK has been performing particularly well in mature markets such as Europe and North Amer- ica, where it boosted its presence with the opening of its new headquarters near Chicago last year, despite unfavorable conditions such as high market satura- tion and the ongoing decline of the yen against the dollar. Centralized distribution building market share in Asia and Europe Since 2009, Nakanishi has also seen his company regaining market share in Asia through centralized distribution and af- ter-sales support offered by its new sub- sidiary in Singapore. Another significant contributor has been NSK’s European office in Germany, which accounted for almost one third of the 22.2 billion yen ($278 million) in sales the company reported in 2011. “That is why economic conditions in our home market have little or no impact on our overall business. We really think globally,” Nakanishi explains. According to the 48-year-old, who has run the company since 2000, one of the major reasons for NSK’s strong market position, even in established markets, is its dedication to innovation and quality, combined with the excellent after-sales service it is able to provide to customers in almost every country except North Ko- rea. But this hasn’t always been the case. Long history of quality, growth Founded in the 1930s, the company had a rough start, and operations were com- pletely halted during World War II. The production of dental handpieces re- sumed in 1951, however, the company has grown extensively and now employs more than 700 people in its Japanese of- fices in Tochigi and Tokyo. NSK continues to produce the vast ma- jority of its products’ precision parts in- house, which, according to Nakanishi, is one of the main reasons that dentists now identify the company with high-quality products. “We employ many good engi- neers and marketing people who help us to constantly improve our brand and make it more attractive to dentists,” he says. One of NSK’s recent innovations, launched at last year’s IDS in Cologne, Germany, for example, is the Ti-Max Z series, a durable premium handpiece that is claimed to have the smallest heads and necks in the sector, as well as an excep- tionally low noise level and virtually no vibration. The Surgic Pro surgical micromotor has also received much interest, particularly by dental implant surgeons, and is now distributed alongside systems by major implant manufacturers. NSK asserts it pays close attention to the needs of its customers, a philosophy that has resulted in products such as the S-max pico, which was developed solely for the treatment of patients with smaller mouths, such as children. Core business: Handpieces and small-motor equipment Moving into other markets is conceivable but unlikely to happen anytime soon, Na- kanishi says. Even though his company has begun to enter new areas in the past decade with the launch of instruments such as ultrasonic scalers and polishers, its core business will remain dental hand- pieces and other small-motor equipment. “When it comes to handpieces, we have produced more innovations than our competitors,” he remarks. “Our goal is to become the No. 1 company worldwide in this segment.” By Dental Tribune asia Pacific 80 percent of revenues generated outside Japan From left, Dental Tribune International Publisher and CEO Torsten Oemus meets with NSK CEO Eiichi Nakanishi. NSK produces most of the precision parts for its handpieces in-house, which Nakanishi says is a key reason why dentists identify NSK with high-quality products. Photo/Lutz Hiller, DTI YDC BOOTH NO. 1234