Makita

Basic Information

Stock Code
6586
Industry
Machinery
Category Detail
Manufacturing Machinery & Electrical Equipment
Prefecture
Aichi Prefecture
Establishment Year
December 1938
Listing Year
August 1962
Official Website
https://www.makita.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Okuma, OSG, Daijet Industrial, Asahi Diamond Industrial, DMG MORI, Fuji Seiko, A-One Precision, Nissin Tool, Estic, Nakamura Superhard, Fuji Dice, Union Tool, Shimano

Overview

Makita is a leading power tool company established in 1938, holding approximately 25% of the global market share and boasting strong global competitiveness.

Current Situation

Makita achieved consolidated sales of 608.3 billion yen and operating profit of 88.4 billion yen in the fiscal year ended March 2021, with products sold in over 100 countries worldwide. In the power tools sector, it holds approximately 60% market share in Japan and the world's second-largest market share. Main products span power tools, gardening equipment, pneumatic tools, and more, with manufacturing bases centered in Okazaki City, Aichi Prefecture, and expanded overseas. Since 2013, it has partnered with Sharp in a business alliance to strengthen its product lineup. It maintains an extremely sound financial position with debt-free operations and has established a high-profit structure with an operating profit margin exceeding 10% for over 10 years. It also focuses on enhancing customer service, such as a global short-term repair system. In recent years, while facing criticism over continuing operations in Russia, it is strengthening after-sales service and overseas market development for long-term growth.

Trivia

Interesting Facts

  • Launched Japan's first electric planer in 1958
  • Power tool global share is No. 2 after Black & Decker
  • "Makita Drill Technique" influenced US guitarists
  • Debt-free company exemplifying Nagoya-style management
  • Provides 3-day repair service worldwide
  • Conducted first overseas funding via CDR method in 1976
  • Diversifies products through capital and business alliance with Sharp
  • Introduces latest equipment in many domestic and overseas factories
  • Pioneered overseas expansion from the 1970s
  • Expanding agricultural machinery line after subsidiary absorption
  • Maintains stable employment with minimal layoffs
  • Direct sales channels in over 50 countries via multinational base network
  • Battery technology for cordless tools leads the industry
  • Engages in community contributions through cooperation with local medical institutions
  • Employed Giorgetto Giugiaro for product design

Hidden Connections

  • US rock band MR. BIG's guitarist adapted Makita drill for guitar technique
  • Strong access to international capital markets via overseas listings from 1970s
  • Regional close-knit management with ties to Nagoya Railroad chairman and executives
  • Former subsidiary's firefighting and disaster prevention business succeeded by IHI Agritechno
  • Alliance with Sharp targets synergies in home appliances and power tools
  • Operates over 30 subsidiaries domestically and overseas for diversified business
  • Builds tight sales and service networks with construction and manufacturing firms worldwide
  • Long-term active community contributions in home prefecture Aichi

Future Outlook

Growth Drivers

  • Expansion of global power tool demand
  • High functionalization of cordless products
  • Energy-saving product development for environmental regulations
  • Growth in IoT and smart tool markets
  • Sales channel expansion in emerging overseas markets
  • Increasing demand for high value-added products
  • Enhanced integration of B2B and B2C services
  • Rise in sustainable management and societal demands
  • Strengthened market leadership through technological innovation
  • Rapid response to diversifying customer needs

Strategic Goals

  • Maintain and expand to over 30% global power tool market share
  • Complete eco-ification and energy-saving compliance for all product lines
  • Expand global direct sales network to over 100 countries
  • Maintain industry lead through rechargeable battery innovation
  • Further advance and globalize 3-day repair system
  • Practicalize smart tools integrating AI and IoT technologies
  • Achieve over 50% sustainable material usage ratio
  • Expand product variations for diverse customer segments
  • Continuously strengthen community-rooted corporate activities
  • Sustain profitability and debt-free operations

Business Segments

Construction and Housing Works

Overview
Supplies high-performance power tools and related equipment for construction sites.
Competitiveness
Product lineup balancing durability and work efficiency
Customers
  • Construction companies
  • Carpentry shops
  • Carpenters
  • Housing manufacturers
  • Remodeling contractors
Products
  • Cordless Impact Driver
  • Cordless Circular Saw
  • Air Nailer
  • Laser Distance Meter

Manufacturing and Factory Equipment

Overview
Provides tools supporting processing and assembly in manufacturing sites.
Competitiveness
Superior product design in precision and safety
Customers
  • Manufacturers
  • Processing factories
  • Industrial goods retailers
  • Equipment maintenance companies
Products
  • Electric Grinder
  • Air Tools
  • Precision Drill
  • Metal Processing Tools

Gardening and Landscaping

Overview
Battery tools and machinery for gardening and farming.
Competitiveness
Lightweight equipment with long runtime
Customers
  • Landscaping companies
  • Tree service providers
  • Farmers
  • Gardening shops
Products
  • Cordless Lawn Mower
  • Hedge Trimmer
  • Grass Collector
  • Gardening Battery

Wholesale and Sales Agents

Overview
Product supply through extensive sales networks.
Competitiveness
Strong brand power and sales support system
Customers
  • Machine tool wholesalers
  • Building materials retailers
  • Home centers
  • Online shops
Products
  • Full Power Tool Product Lineup
  • Rechargeable Batteries
  • Accessories

Disaster Prevention and Firefighting Equipment

Overview
Provides specialized equipment for disaster prevention and firefighting (including past operations).
Competitiveness
Reliable firefighting product lineup
Customers
  • Fire brigades
  • Disaster prevention equipment providers
  • Local governments
Products
  • Disaster Pumps
  • Firefighting Equipment
  • Emergency Generators

OEM and Manufacturing Contracts

Overview
Contract manufacturing of parts and products for other brands.
Competitiveness
High-quality manufacturing technology and stable supply
Customers
  • Domestic and overseas manufacturers
  • Brand companies
  • Technology development companies
Products
  • Battery Manufacturing
  • Tool Parts Processing
  • Electronic Components

Technology Development and Research Institutions

Overview
Produces prototypes and research equipment for next-generation technology development.
Competitiveness
Extensive development experience and external collaboration
Customers
  • Universities
  • Research institutes
  • Development ventures
Products
  • Prototype Tools
  • New Material Testing Machines
  • IoT-Linked Devices

Agricultural Machinery Wholesale

Overview
Wholesale sales and support for agricultural machinery.
Competitiveness
Support system closely tied to farming sites
Customers
  • Agricultural machinery retailers
  • Agricultural cooperatives
  • Agricultural corporations
Products
  • Tillers
  • Farm Machinery
  • Agricultural Batteries

Construction Machinery Rental

Overview
Rental services for tools and machinery at construction sites.
Competitiveness
Rapid response via nationwide network
Customers
  • Construction companies
  • Construction management firms
Products
  • Power Tool Rental
  • Generator Rental
  • Construction Machinery Battery Supply

After-Sales Service and Maintenance

Overview
Rapid service provision including 3-day repair system domestically and overseas.
Competitiveness
High customer satisfaction response system
Customers
  • General consumers
  • Corporate customers
  • Sales agents
Products
  • Repair Services
  • Parts Supply
  • Technical Support

Electronic Control System Development

Overview
R&D of electronic control technology for power tools.
Competitiveness
In-house optimized development technology
Customers
  • Internal development teams
  • Collaborative partners
Products
  • Charging Control Systems
  • IoT Devices
  • Sensors

Overseas Base Operations

Overview
Market development with directly operated sales bases in over 50 countries worldwide.
Competitiveness
Local-focused sales and service expansion
Customers
  • Overseas sales companies
  • Local customers
Products
  • Local Manufacturing Tools
  • Sales Support
  • Logistics Management

Competitive Advantage

Strengths

  • Approximately 25% global power tool market share
  • High product quality and durability
  • Debt-free operations and high-profit structure
  • Global sales base expansion
  • Comprehensive customer service
  • Diverse product lineup
  • Development capabilities backed by technology
  • Long-standing trust and track record in the industry
  • Rapid 3-day repair system worldwide
  • Strong brand recognition
  • High overseas sales ratio
  • Stable employee employment
  • Business alliance with Sharp
  • Advanced lithium-ion battery technology
  • Sustainable management structure

Competitive Advantages

  • Domestic leader with approximately 60% Japan market share
  • Maintains No. 2 global power tool market share
  • Extensive overseas manufacturing and sales network
  • Technological strength in high-performance battery-equipped products
  • High financial soundness from debt-free operations
  • Stability of long-term profitable management
  • Comprehensive and rapid after-sales service network
  • Manufacturing technology for diverse power tools
  • Brand recognition and trust in overseas markets
  • Innovative development in cordless tool market
  • Promotion of environmentally friendly products
  • Product customization and local responsiveness
  • In-house strategic R&D bases
  • Synergy effects from strategic capital alliances
  • Broad understanding of global customer needs

Threats

  • Price pressure from intense international competition
  • Profit impact from exchange rate fluctuations
  • Raw material price rise risks
  • International trade friction and tariff issues
  • Low-price attacks from emerging market products
  • Geopolitical risks and supply chain disruptions
  • Demand for rapid response to technological innovation
  • Cost increases from stricter environmental regulations
  • Social criticism over continued Russia operations
  • Intensifying talent acquisition competition
  • Global logistics disruption risks
  • Competitor technology catch-up and IP risks

Innovations

2024: Expansion of 40Vmax Cordless Power Tools

Overview
Develops and deploys high-output 40Vmax series to provide industry-leading performance.
Impact
Contributes to enhanced product strength and market share growth

2023: Introduction of Smart Tool Linkage System

Overview
Develops operation management system for cordless tools using IoT technology.
Impact
Supports site work efficiency and failure prevention

2022: High-Density and Long-Life Battery Technology

Overview
Significantly improves performance with new materials in lithium-ion batteries.
Impact
Achieves extended runtime and cost reductions

2021: Eco-Design and Recycling Promotion Technology

Overview
Advances designs to reduce environmental impact and improve recyclability.
Impact
Improves product environmental compatibility

2020: Lightweight Technology Development for Cordless String Trimmers

Overview
Achieves lightweight design for women and elderly using new materials and engineering.
Impact
Contributes to market expansion

Sustainability

  • Maintaining stable management through debt-free operations
  • Promoting product designs to reduce environmental impact
  • Factory operations incorporating renewable energy
  • Reducing waste and strengthening recycling
  • Advancing community contribution activities
  • Improving work environment and employee satisfaction
  • Enhancing supply chain transparency
  • Thorough compliance with global environmental regulations
  • Product longevity and enhanced repair systems
  • Establishing sustainable procurement policies
  • Active introduction of energy-saving technologies
  • Internal systems to promote women's active roles