 Forklift manufacturing in Columbia began in 1989 |
TCM America Inc is consolidating US manufacturing, parts and distribution activities in South Carolina and discontinuing related operations in its New Jersey and Texas sites.
The forklift factory in Columbia "will temporarily suspend production . . . starting in April", president Kaihei Nishioka says in a letter to TCM America dealer principals in the US. "Let me stress that as the economy and our business become stronger, production in South Carolina will be restarted."
Nishioka attributes the need for changes to "current business conditions and a slow economy" and expresses confidence in TCM's ability to supply dealers with equipment without delays. A TCM dealer tells Forkliftaction.com News that the TCM facility in Columbia has an inventory of about 600 forklifts.
"In the event you order a forklift with a particular specification that is not in our inventory, the machine will be produced in our (Shiga) manufacturing plant in (Chokoji-cho) Japan" without any impact on delivery time, Nishioka says in his 19 February letter. Parent firm TCM Corp is based in Tokyo.
TCM forklifts entered the US market from Japan in 1965. Forklift manufacturing in Columbia began in 1989 in a 165,000 square foot (14,850 sqm) factory. TCM continues to import forklifts with large lifting capacities from the Shiga factory. For now, the principal TCM America office is in Swedesboro, New Jersey.
The TCM moves follow on other recent US forklift industry adjustments such as those involving Komatsu Forklift USA LLC
(Forkliftaction.com News #445) and Jungheinrich Lift Truck Corp
(Forkliftaction.com News #423).
Internally on 4 January, TCM announced plans to close the Houston division in Texas from 29 January. The division's parts shipping operation was idled, and it is expected that TCM will implement a Houston layoff involving about 20 staff by 31 March.
The New Jersey site now employs about 15 people, expects to cease operations on31 March and begin relocation of the principal office and other activities to South Carolina during April.
TCM America owns distribution rights in all 50 states after transitioning from reliance on independent Japan-based firms Mitsui & Co and Itochu Corp.
The machinery distribution unit of trading company Mitsui led the way in US distribution of TCM forklifts and covered 26 states as of 1991. A Swedesboro-based TCM America marketing unit assumed the distribution role in that territory from Mitsui in June 2005.
In April 2009, a TCM unit acquired the Houston operation and forklift distribution rights in 24 US states from Itochu's industrial machines business unit, which owned those rights for decades.
Over the years, TCM relied on the Mitsui and Itochu organisations to create distribution programs and work directly with forklift dealers.
Canadian distribution of TCM forklifts is handled through Deval Handling Equipment Inc of Laurent, Quebec.
Beginning in 2006, TCM modified and partially automated its Columbia manufacturing and assembly line and upgraded the lighting system, resulting in significant energy savings.
TCM has a rich history in the materials handling industry. Toyo Umpanki Manufacturing Co Ltd was established in 1949, made Japan's first forklift truck and expanded through trading companies and licensing and technical agreements to achieve a global presence. Toyo Umpanki was renamed TCM Corp in 1999.
Tokyo-based Hitachi Ltd's construction machinery unit became the top shareholder of TCM Corp in 2003.
An observer estimates that the reduction in experienced managers and seasoned employees may trim TCM America's skill-set and presence to something akin to its level in the mid-1980s. TCM declined to address those concerns.
Nishioka's letter to TCM dealers implores: "Please do your best to increase sales, and let us try harder together to expand our business."