At a press conference held on the 13th in Osaka, Shingo Hanada, president of Kubota, announced a significant pivot in the company’s management strategy, moving away from the traditional focus on expanding scale towards a more concentrated emphasis on profit improvement. Hanada indicated that, while the firm will not engage in layoffs or drastic restructuring, the profitability metrics will take precedence in their mid-term management plan set for 2030. Notably, this plan marks the first time that revenue targets have been omitted, switching the focus to indicators such as a 12% return on equity (ROE).

In recent years, many manufacturing companies have also begun prioritizing profit even in times of operating at a profit, frequently leading to large-scale restructuring efforts. However, Hanada firmly stated that achieving ambitious goals can be accomplished without resorting to aggressive measures such as significant business divestitures or workforce reductions. He emphasized the importance of adapting to market dynamics, particularly in response to increased competition from Asian firms, and acknowledged that past strategies might have been overly aggressive in pursuing market share.

Hanada indicated that as part of their revised strategy, Kubota would reduce promotional measures designed to bolster customer loans, particularly in North America, as a more sustainable means of achieving their profit-focused objectives. This implies a broader industry trend where companies, instead of fiercely competing for market share, might reassess their approaches to ensure long-term viability by prioritizing profitability over mere volume of sales.