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Most Innovative Companies #5: Toshiba International Corp.

Mon, 01/13/2014 - 12:21pm

This week, we'll be counting down the last five of what we consider to be the most innovative industrial companies covered in-depth by Manufacturing.net and its sister publications throughout 2013.

Coming in at #5 is Toshiba International Corporation, one that many would not associate with American production. But Toshiba International Corporation (TIC) is a Toshiba America Inc. Group Company, a wholly owned subsidiary of Toshiba Corporation, and is headquartered in Houston, Texas with 1,200 people. With 100 employees, they're able to produce 13,000 Ford hybrid motors annually, which came about after growing supply changes and pressures encouraged American manufacturing.

Many don’t think of Toshiba as an American-made brand, especially when it comes to the U.S. automotive market. And for quite some time, that was true. Since 2003, Toshiba had manufactured hybrid electric vehicle (HEV) motors for Ford Motor Company at its Japan facility. But in 2011, under the weight of supply chain pressures and growing currency risks, Toshiba Industrial Corporation began manufacturing motors for Ford’s hybrid vehicles in Houston, TX. The U.S. HEV plant today produces 130,000 motors annually and employs over 100 American workers.

Planning Ahead

A wholly-owned subsidiary of Toshiba America Inc., Toshiba International Corporation (TIC) already had facilities in Houston, making it a “prime location,” says Matthew Bates, HEV plant manager. Other locations were considered, but TIC ultimately chose Houston for a variety of reasons. “Houston has one of the most talented and productive work forces in the country, and its strong economy and low cost of living helps businesses attract and retain top talent from across the country,” explains Bates. “This current environment makes Houston an ideal place for future business growth.”

While some American auto buyers are ‘buying American,’ TIC and Ford were also looking at the supply chain and examining risks when deciding whether to shift HEV production to the U.S.

Explains Kristina Adamski, Ford Manufacturing and Purchasing communications manager, “Ford’s strategy is to source from where we build. In this case, Toshiba had a footprint in Houston and it was faster for them to utilize their existing facility than to build a new plant. U.S. production of the hybrid motors and generators allows Ford a cost savings on logistics and helps with currency risk.”

Read the rest of the article here.


See the rest of Manufacturing.net's Most Innovative Industrial Companies For 2013.

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