Sugimoto Shoji

Basic Information

Stock Code
9932
Industry
Wholesale Industry
Category Detail
Building Materials, Electrical Equipment & Metal Wholesalers
Prefecture
Osaka Prefecture
Establishment Year
January 1938
Listing Year
November 1992
Official Website
https://www.sugi-net.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
MARUWA, UMC Ele, Tirado, NAITO, Torque, Trusco Nakayama, Uematsu Shokai

Overview

Sugimoto Shoji is a machinery and tools specialist wholesaler founded in 1938 and based in Osaka Prefecture, stably supplying a wide range of industrial machinery centered on high-precision measuring instruments to the domestic market.

Current Situation

Sugimoto Shoji recorded consolidated sales of approximately ¥49.5 billion and operating profit of approximately ¥2.4 billion for the fiscal year ending March 2025, continuing its debt-free operations. Its main machinery and tools wholesaling business has strengths in precision measuring instruments and pneumatic/hydraulic devices, with transactions centered on mid-sized domestic companies. In recent years, it has worked to enhance service capabilities through expanded hiring of science and engineering talent and sales base expansion. In 2023, it acquired naming rights for the Maishima baseball stadium, focusing on regional contributions. Following the overtime allowance claim issue, it is advancing compliance strengthening and employee welfare improvements. While overseas transactions are limited, its strategies include securing domestic market superiority and enhancing technical proposal capabilities. Moving forward, it aims for sustainable growth by focusing on DX utilization for business efficiency and new customer development.

Trivia

Interesting Facts

  • History traces back to Sugimoto Shiro Shoten founded in 1921.
  • Actively hiring science and engineering graduates since 2013.
  • Experience of Section 1 listing on both Osaka and Tokyo Stock Exchanges.
  • Acquired naming rights for Maishima Buffaloes Stadium, focusing on regional contributions.
  • Maintained debt-free operations for many years, possessing stable financial base.
  • Established employee recognition program to actively commend outstanding performers.
  • Features compliance system encouraging whistleblowing from employees.
  • Specializes in wholesaling machine tools for machining over many years.
  • Focusing on labor-saving equipment to support factory automation.
  • Attracted attention due to overtime pay claim lawsuit.
  • Affiliate company Sugimoto Co., Ltd. exists in Amagasaki City, Hyogo Prefecture.
  • Mainly domestic company transactions, with limited overseas dealings.
  • Long-established company with over 90 years of history.
  • Headquarters located in Nishi-ku, Osaka City.
  • Mid-sized wholesaler strong in precision measuring instrument sales.

Hidden Connections

  • Builds strong transaction relationships with local Osaka manufacturing industry, supporting regional industries.
  • Contributes to regional sports promotion through naming rights acquisition for Maishima Buffaloes Stadium.
  • Movement toward transformation into a technical trading company through strengthened engineering hires.
  • Debt-free operations contribute to improved credit with clients.
  • Supports extension of customer product lifespan through tool repair and calibration services.
  • Overtime allowance claim issue became a catalyst for labor environment improvements.
  • Expanded sales base in Amagasaki City, Hyogo Prefecture through collaboration with affiliates.
  • Contributes to overall industry improvement through numerous mid-sized manufacturing clients.

Future Outlook

Growth Drivers

  • Continued demand for high-quality machine tools from domestic manufacturing.
  • Sales expansion from accelerated adoption of labor-saving and automation equipment.
  • Technical proposal enhancement through engineering talent hiring.
  • Brand recognition improvement through regional contribution activities.
  • Sales efficiency and service enhancement through DX promotion.
  • Employee satisfaction improvement through work style reforms.
  • Customer retention through tool repair and calibration services.
  • Demand for equipment renewal and maintenance from mid-sized manufacturing.
  • New customer development through diversified sales channels.
  • Development of high value-added products and services.
  • Strengthened handling of environmentally responsive products.
  • Continuation of sustainable debt-free operations.

Strategic Goals

  • Achieve stable improvement in operating profit margin.
  • Expand market share in machine tools and labor-saving equipment sector.
  • Achieve over 50% engineering employee ratio to strengthen technical capabilities.
  • Achieve over 90% DX adoption rate for business efficiency improvement.
  • Strengthen ties with local community to enhance brand power.
  • Expand provision of tool repair and calibration services.
  • Diversify customer touchpoints through sales channel expansion.
  • Promote sustainability activities company-wide.
  • Expand transactions in new markets (medical, environmental equipment, etc.).
  • Continue debt-free operations and increase equity ratio.

Business Segments

Machinery and Tools Wholesaling for Manufacturing

Overview
Specializes in wholesaling high-precision machine tools and labor-saving equipment supporting manufacturing processes.
Competitiveness
Possesses strong transaction base and technical proposal capabilities with numerous mid-sized domestic companies.
Customers
  • Automotive Parts Manufacturers
  • Electronics Manufacturers
  • Industrial Machinery Manufacturers
  • Precision Equipment Manufacturers
  • Food Machinery Manufacturers
Products
  • Precision Measuring Instruments
  • Industrial Machining Tools
  • Pneumatic and Hydraulic Equipment
  • Industrial Piping Parts
  • Labor-Saving Machinery

Machinery and Tools Supply for Construction and Civil Engineering

Overview
Stably supplies machine tools and related materials to construction and civil engineering sites while promoting safety measures.
Competitiveness
Reliability from long industry track record and rapid delivery system.
Customers
  • Construction Companies
  • Civil Engineering Companies
  • Equipment Contractors
Products
  • Work Tools
  • Piping Equipment
  • Safety Gear

Maintenance and Repair Equipment Sales

Overview
Provides essential tools and inspection equipment for factory and equipment maintenance and inspections.
Competitiveness
Service system responsive to on-site maintenance needs.
Customers
  • Equipment Maintenance Companies
  • Factory Maintenance Departments
Products
  • Repair Tools
  • Calibration Measuring Instruments
  • Work Improvement Equipment

Piping Equipment Wholesaling

Overview
Specializes in wholesaling industrial pneumatic and hydraulic piping materials and related parts.
Competitiveness
Stable supply of high-quality components and technical advice.
Customers
  • Piping Contractors
  • Equipment Installation Companies
Products
  • Pneumatic Piping Components
  • Hydraulic Piping Components
  • Valves

Industrial Labor-Saving Equipment Sales

Overview
Wholesales labor-saving equipment to support factory production efficiency.
Competitiveness
Optimal proposals through customization.
Customers
  • Factory Automation Companies
  • Industrial Machinery Manufacturers
Products
  • Automatic Conveyors
  • Robot Arms
  • Labor-Saving Systems

Work Safety Supplies Supply

Overview
Provides protective gear and safety supplies necessary for securing safety at work sites.
Competitiveness
Wide product assortment and rapid delivery system.
Customers
  • Manufacturing Sites
  • Construction Sites
Products
  • Safety Helmets
  • Protective Glasses
  • Safety Gloves

Tool Repair and Calibration Services

Overview
Provides tool repair and precision equipment calibration services.
Competitiveness
Rapid response contributing to improved factory uptime.
Customers
  • Manufacturing Industry
  • Inspection Agencies
Products
  • Tool Repairs
  • Calibration Services

Competitive Advantage

Strengths

  • Strong in sales of high-precision measuring instruments
  • Sound financial base with debt-free operations
  • Stable transaction base with domestic mid-sized companies
  • Wide range of machine tool products
  • Comprehensive customer service system
  • Long years of industry experience and trust
  • Regionally focused sales operations
  • Active hiring of engineering talent
  • Strengthened compliance adherence
  • Comprehensive repair and calibration services
  • Efficient logistics network
  • Deployment of own-brand products
  • One-stop solution provision
  • Expansion of sales bases
  • High technical proposal capabilities

Competitive Advantages

  • Established firm position as a specialist wholesaler of high-precision machine tools for the domestic market
  • Achieves stable growth with reduced financial risk through debt-free operations
  • Provides specialized knowledge and technical support focused on precision measuring instruments
  • Builds trust through prompt and close customer response
  • Advances technical capabilities and service quality improvement through increased engineering hires
  • Flexible response to customer needs with abundant product lineup
  • Maintains rapid delivery system through regionally focused sales strategy
  • Supports long-term use of customer equipment through tool repair and calibration services
  • Strengthened regional brand power by acquiring naming rights for Maishima Buffaloes Stadium
  • Enhanced corporate credibility through improved compliance awareness following overtime allowance claim issue
  • Diversifies revenue base by providing products to multiple industries

Threats

  • Risk of demand contraction due to reduced equipment investment by domestic manufacturing
  • Intensified price competition from major trading company competitors
  • Exchange rate fluctuation risk from reliance on overseas product procurement
  • Adaptation challenges to diversifying machine specifications from factory automation progress
  • Intensified competition for talent acquisition in labor market
  • Increased compliance costs from strengthened environmental regulations
  • Growth slowdown risk accompanying domestic market contraction
  • Competitive edge decline from delayed digitalization
  • Corporate image deterioration risk from scandal recurrence
  • Loss of competitive superiority from delayed investment in new technologies
  • Profit pressure from rising raw material prices
  • Risk of client company bankruptcies

Innovations

2023: Introduction of Digital Sales System

Overview
Introduced digital tools for sales support to improve customer response efficiency.
Impact
15% improvement in sales efficiency, enhanced customer satisfaction

2023: Acquisition of Naming Rights for Maishima Buffaloes Stadium

Overview
Acquired naming rights for Maishima baseball stadium to contribute to the community and enhance brand recognition.
Impact
Improved brand recognition in the region

2022: Launch of Engineering Talent Hiring Strengthening Program

Overview
Launched active hiring and training program for engineering talent to enhance technical capabilities.
Impact
Strengthened technical support system, improved product knowledge

2021: Overhaul of Tool Repair and Calibration Service System

Overview
Expanded repair and calibration services to support long-term use of customer equipment.
Impact
Improved customer retention rate, increased service revenue

2020: Digitalization of Product Inventory Management System

Overview
Introduced IoT technology to inventory management for efficiency and prevention of shipping errors.
Impact
20% improvement in inventory turnover rate

Sustainability

  • Sports support activities for local community
  • Workplace environment improvement and employee satisfaction enhancement
  • Environmental burden reduction through waste minimization
  • Promotion of remote work environment setup
  • Labor accident reduction through thorough safety training
  • Sound financial management through debt-free operations
  • Product supply optimization for resource efficiency improvement
  • Deployment of environmentally responsive products through collaboration with clients
  • Expansion of energy-saving equipment introductions
  • Establishment of highly transparent compliance system
  • Promotion of comprehensive risk management system
  • Talent hiring and development respecting diversity