Forum Engineering

Basic Information

Stock Code
7088
Industry
Services
Category Detail
Recruitment & Staffing Services
Prefecture
Tokyo
Establishment Year
April 1981
Listing Year
March 2020
Official Website
https://www.forumeng.co.jp/
TSE Information
TSE Information
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Overview

Forum Engineering is a mid-sized service company founded in 1981, specializing in technical worker dispatch, with a focus on permanent dispatch that offers high expertise and stable employment.

Current Situation

Forum Engineering recorded net sales of approximately 34.6 billion yen, operating profit of approximately 6.4 billion yen, and net profit of approximately 4.2 billion yen for the fiscal year ended March 2019, achieving stable earnings. Its main business is dispatching workers, primarily mechanical and electrical engineers, through specific worker dispatch to stabilize employment. Dispatch fields cover a wide range including automotive-related, electrical/electronics and precision instruments, and machinery-related, meeting diverse needs. It has introduced its unique 'TechnoArtist' system to enhance personnel expertise, along with defined contribution pension plans and a health insurance association, providing comprehensive welfare benefits. It also operates a noodle-making business and some restaurants, but the mainstay of revenue is the staffing business. It listed on the Tokyo Stock Exchange in March 2020, strengthening its capital base to pursue business expansion. It engages in social support for the disabled, enhancing organizational structure and talent development for sustainable growth. Moving forward, it aims to grow by stably supplying technical talent and deepening close collaboration with client companies.

Trivia

Interesting Facts

  • 'TechnoArtist' is a registered trademark title of the company.
  • Noodle product 'Forum Men' is generally not for sale.
  • There is a past incident where withdrawal of dismissal notice for disabled workers led to union formation.
  • Relatively new listed company that achieved Tokyo Prime listing in March 2020.
  • Rare dispatch company operating ramen shops and diversifying into noodle business.
  • Average standard monthly remuneration is publicly stated at approximately 178,000 yen.
  • Established in 1981 with over 40 years of history.
  • Head office located in central Tokyo's Minato Ward, Toranomon.
  • Main business is dispatching engineers to major domestic automotive and precision equipment industries.
  • Features distinctive employee welfare system with social insurance association.
  • Focuses on disabled employment support and collaboration with welfare businesses.
  • Also offers job change support services providing career support for workers.
  • High welfare benefits contribute to improved employee retention.
  • High-profit structure with operating margin of about 19% in FY2019 settlement.
  • Established specialized position in technical fields within worker dispatch industry.

Hidden Connections

  • In worker dispatch business, competes with and has high relevance to peer Copro Holdings.
  • Forms unique social contribution model through integration of disabled support and labor dispatch.
  • Noodle business, despite different industry from dispatch, contributes to brand image improvement.
  • Contributes to regional community formation starting from ramen store operations in Taito Ward, Tokyo.
  • Tokyo Prime listing improved capital market evaluation and strengthened business foundation.
  • Efforts exceeding industry standards in safety, health, and welfare systems are highly evaluated.
  • Synergy with job change support strengthens career formation support for in-house dispatched engineers.
  • Maintains ongoing transaction relationships with some major manufacturers, achieving stable talent supply.

Future Outlook

Growth Drivers

  • Increasing importance of engineer supply amid aging society.
  • Expansion of demand for expertise and permanent dispatch in technical dispatch field.
  • New market creation from government disabled employment promotion policies.
  • Increasing need for advanced engineers due to manufacturing DX.
  • Growing demand for talent services amid activated job change market.
  • Maintenance of high access convenience to central Tokyo.
  • Advancement of diversification strategy through synergy with related industries.
  • Improved employee satisfaction and retention through enriched welfare.
  • Innovation aimed at building sustainable working environment.
  • Regional branding and customer base expansion in noodle and dining businesses.
  • Social recognition improvement through environmentally adaptive business operations.
  • Securing market trust and strengthening capital procurement as listed company.

Strategic Goals

  • Expand domestic share in specific engineer dispatch business and achieve market dominance.
  • Improve social recognition through expansion of disabled support business.
  • Create workplace environment achieving over 90% employee retention rate.
  • Advanced talent matching system utilizing DX.
  • Nationwide brand expansion of noodle and dining businesses for diversification.
  • Active ESG対応 for sustainable corporate management.
  • Enrichment of employee education programs and expertise enhancement.
  • Strengthen fundraising capability leveraging listed company trust.
  • Expand social contribution activities through strengthened local community collaboration.
  • Medium- to long-term growth strategy aiming for annual sales over 50 billion yen.

Business Segments

Engineer Dispatch Service

Overview
Mainly provides engineer dispatch, talent introduction, and job change support centered on permanent dispatch of mechanical and electrical engineers.
Competitiveness
Stable employment through specific dispatch and highly specialized talent
Customers
  • Automobile manufacturers
  • Electrical and electronics manufacturers
  • Precision equipment manufacturers
  • Machinery manufacturers
  • IT companies
  • Manufacturing production line management departments
Products
  • Specific Worker Dispatch (Permanent Dispatch)
  • Worker Dispatch Service
  • Engineer Talent Introduction
  • Job Change Support Service

Disabled Welfare-Related Services

Overview
Provides employment support and related services in the disabled welfare field.
Competitiveness
Differentiation through integration of welfare and dispatch businesses
Customers
  • Disabled support facilities
  • Local governments
  • Related companies
Products
  • Disabled Welfare Business
  • Employment Support Service

Competitive Advantage

Strengths

  • Dispatch service specialized in technical experts
  • Stable employment system through permanent dispatch
  • Capability to cover wide manufacturing sectors
  • Engineer training and 'TechnoArtist' title system
  • Comprehensive welfare benefits and health insurance association
  • Excellent access with head office in central Tokyo
  • Experience operating job change support services
  • Strong capital base as a listed company
  • Social contribution activities including disabled support
  • Transaction record with diverse major companies
  • Over 20 years of stable business track record
  • Legal credibility from corporate number registration
  • Presence of experienced management team
  • Business development aligned with industry trends
  • Risk-diversified business operations

Competitive Advantages

  • Focus on specific worker dispatch enables stable talent securing
  • Abundant know-how and track record specialized in technical fields
  • Brand power from unique engineer title 'TechnoArtist'
  • Improved stability through business diversification into noodle making
  • High trust from investors as Tokyo Prime listed company
  • Thick layer of engineers corresponding to wide industries' manufacturing sites
  • Success in retaining excellent talent through enriched welfare system
  • Progress in building long-term transaction relationships with client companies
  • Promotion of disabled employment and acquisition of social recognition
  • Firm mid-tier position in domestic engineer dispatch market
  • Synergy effects from collaboration with job change support services
  • Business infrastructure responding to talent shortages in manufacturing
  • Brand recognition through local restaurant operations
  • Sound finances and high profit margins
  • Systematic employee education and career advancement support

Threats

  • Strengthening regulatory impact on dispatch business
  • Intensifying talent acquisition competition and hiring difficulties
  • Slowdown in manufacturing due to COVID-19 etc.
  • Economic fluctuation risks in worker dispatch market
  • Aggressive business expansion by major competitors
  • Concerns over skill mismatches due to technological innovations
  • Demands for review of dispatch forms from work style reforms
  • Strengthened administrative guidance on disabled employment
  • Decline in dispatch demand from client companies during recession
  • Decline in competitiveness from delayed digitalization response
  • Profitability concerns in noodle and restaurant businesses
  • Market environment changes from global competition

Innovations

2020: Tokyo Prime Market Listing

Overview
Achieved new listing on Tokyo Prime Market in March 2020, strengthening capital base.
Impact
Improved financial stability and secured funds for business expansion.

2021: TechnoArtist System Enhancement

Overview
Improved certification system to enhance engineers' expertise and brand value.
Impact
Contributed to improved retention rate and corporate image.

2022: Staffing Management System Renewal

Overview
Introduced worker dispatch management system utilizing latest IT technology.
Impact
Improved matching efficiency for dispatched workers and increased customer satisfaction.

2023: Disabled Employment Support Program Launch

Overview
Launched new support program to aid workplace retention for the disabled.
Impact
Improved employment continuation rate and gained social recognition.

2024: Noodle Business Brand Strengthening

Overview
Enhanced recognition of ramen business through new product development and store expansion.
Impact
Contributed to sales growth in dining sector and advancement of diversification strategy.

Sustainability

  • Complete social insurance and enriched welfare for specific dispatched workers
  • Promotion of disabled employment activities
  • Employee health management through health insurance association operations
  • Introduction and expansion of defined contribution pension system
  • Cultural contributions to local community through noodle product provision
  • Talent quality improvement through employee education
  • Continuous efforts to improve working environment
  • Strengthened safety and health management system
  • Business efficiency improvement through digitalization promotion
  • Thorough compliance adherence
  • Workplace environment fostering diversity respect
  • Employment creation through collaboration with local community