Shenming’s 15th Anniversary Message | Looking Back on the Past, Reflecting on the Future (Part II)

　　Over the next 15 years, our company’s growth will be heavily influenced by Doosan’s development and the cooperative relationship between the two companies.

　　Then, what will our company’s future development actually look like?

 

　　Over the next 15 years, our company’s growth will largely hinge on the development of Doosan Machine Tools and the collaborative relationship between the two companies.

　　So, what should our company’s future development look like?

 

　　To date, the company’s growth has been driven by collaboration with customers that maintain a competitive edge in traditional industries. The automotive sector—led by engines—the process machinery industry centered on hydraulic equipment, the energy sector focused on oil pipelines, and the aerospace industry, including turbine blades, are among the company’s key customer segments. However, the future will be different. The rapid advancement of new technologies is already shaking the foundations of traditional industries.

 

　　To date, the company’s growth has been driven by collaboration with competitive customers across traditional industries, including the automotive sector—particularly engine manufacturers—the construction machinery industry serving hydraulic components, the energy sector focused on oil pipelines, and key clients in aerospace applications such as turbine blades.

 

　　Electric vehicles and autonomous‑driving technologies are shaking the foundations of the automotive industry. The situation remains fluid, and the future is uncertain. It is fairly well known that there was once an era of electric cars, more than a century ago. Yet what sealed their decline at the time was the advent of the electric starter. With the starter, starting the engine became effortless, and that tipped the balance. No matter how advanced a technology may be, it cannot succeed without economic viability—and even then, electric cars were expensive. Likewise, the feasibility of autonomous‑driving technology remains highly questionable.

 

　　Electric vehicles and autonomous driving technologies are reshaping the future landscape of the automotive industry. Yet the environment remains volatile, and the outlook is fraught with uncertainty. As is well known, there was once an era of electric cars roughly a century ago. However, the technology that ultimately brought that era to an end was the invention of the engine starter, which made it far easier to start a car. This underscores a fundamental truth: no matter how advanced a technology may be, it will struggle to succeed without robust market support. Even so, the price of electric vehicles remains stubbornly high, while the feasibility of fully autonomous driving technology continues to be called into question.

 

　　However, as environmental issues such as climate change have emerged as pressing global concerns, fossil-fuel-powered vehicles are on the decline. Consequently, demand for machine tools used in powertrain components—such as engines and transmissions—is bound to fall, while demand for multi-axis machining centers for lightweight parts, motors, and battery‑related components is expected to rise.

 

　　However, as environmental issues such as climate change have come to the forefront, fossil-fuel-powered vehicles are on the decline. Consequently, demand for machine tools used in engine and transmission manufacturing is bound to fall, while demand for multi-axis machine tools—particularly for lightweight components, electric motors, and batteries—is set to rise.

 

　　If the automotive industry undergoes a full-scale restructuring centered on electric vehicles, demand for new machine tools could surge. Automotive OEMs will grow in size, and the division of labor among suppliers will become more pronounced. Under such circumstances, demand for machine tools will shift toward high-volume applications. Ultimately, this could pose a serious challenge for small and medium-sized machine tool manufacturers.

 

　　If the automotive industry undergoes a full-scale shift toward electric vehicles, demand for new machine tools could surge. Vehicle manufacturers are likely to grow in size, while the division of labor among component suppliers will become more pronounced. Under these circumstances, demand for machine tools will be driven primarily by overall market needs. Consequently, small and medium-sized machine tool manufacturers may face a formidable challenge.

 

　　Personally, I believe that the technological advances in electric vehicles and autonomous driving are more likely to be adopted first in sectors other than passenger cars. Examples include industrial applications such as electric aircraft, electric mobility solutions, and construction sites, where charging and movement within defined spaces can be safer and more efficient.

 

　　 In my view, electric vehicles and autonomous driving technologies are likely to be first deployed in sectors other than passenger cars—such as electric aircraft, urban air mobility, and construction sites—because charging and operation within defined spaces are safer and more efficient.

 

　　Electricity, by itself, has limitations in generating powerful forces and therefore cannot be universally applied to industrial equipment across diverse environments. In this sector, there is unlikely to be any abrupt shift in demand for machine tools.

 

　　However, due to its inherent limitations, electricity cannot be universally applied to industrial equipment in all environments. In this regard, the demand for machine tools is unlikely to change significantly.

 

　　The aerospace industry is a sector in which the company must accelerate customer acquisition. The sustained growth in aviation demand is an undeniable trend. Furthermore, the potential emergence of new modes of transportation and the pursuit of commercial space travel are also driving the industry’s advancement. In addition to traditional applications in lightweight structural machining and 5-axis machine tool utilization, demand for large‑scale structural machining equipment is expected to rise as well.

 

　　The aerospace industry is a key sector where the company must accelerate customer acquisition. The sustained growth in aviation demand is an unstoppable trend. Moreover, emerging transportation modes and the burgeoning commercial space‑travel sector will further drive industry expansion. In addition to conventional machining of lightweight structural components and five‑axis applications, demand for equipment capable of processing large‑scale structures is also set to rise.

 

　　Another area that deserves our attention is the advancement of robotics. In particular, the emergence of robots capable of collaborating with humans is anticipated. While industrial robots are currently employed in factories in fixed configurations or limited motion patterns, it is only a matter of time before human‑like robots—designed to work alongside human operators or even replace them—make their debut. Such robots do not need to perform highly precise movements or exert great force; they simply follow predetermined paths and assist with machine operations.

 

　　Another area of concern is the advancement of robotics, particularly the emergence of robots capable of collaborating with humans. Currently, industrial robots operate in factories according to fixed routines or predefined motion patterns; in the future, we will see robots that can work alongside humans or even replace manual tasks. These robots will not require precise motion profiles nor exert excessive force—users simply need to guide them along predetermined paths to participate in machine operations.

 

　　Our company will proactively respond by embracing shifts in customer demand and formulating preemptive strategies. After all, change is an opportunity for a new leap forward.

 

　　Our company will proactively address evolving customer needs and respond through the development of proactive strategies. Only by embracing change can we seize opportunities for a new leap forward.

 

　　As the company grows, strengthening the organization’s internal capabilities will also become a critical challenge.

 

　　As the company grows, strengthening the organization’s internal capabilities will also be a key priority.

 

　　As the scale of the business expands, we will secure funding at an appropriate level, reduce financing costs, and strengthen our financial capabilities, including cash flow management.

 

　　As the business scales, it is essential to ensure sufficient operating capital, reduce financial costs, and strengthen cash flow management.

 

　　Establishing a business plan that takes the operating environment into account and strengthening execution capabilities are also critical components.

 

　　Strengthening the ability to formulate and implement work plans that take into account the business environment is also an important aspect.

 

　　A systematic approach to corporate management must also be further strengthened. We will pursue cost reduction, productivity enhancement, continuous improvement in quality and service, and innovative efforts to secure and sustain a competitive edge.

 

　　Management practices should also be strengthened. We need to undertake innovative efforts to reduce costs, boost productivity, and continuously enhance quality and service, thereby securing a competitive edge.

 

　　Over the past 15 years, the business environment surrounding our company has undergone significant upheaval and major shifts. Even now, we are navigating an emergency situation caused by the COVID‑19 pandemic, and such challenges will continue to arise in the future. It is precisely during difficult times that a company’s true capabilities are revealed. By fostering collaboration with our customers and strengthening partnerships with business allies, including Doosan, we will overcome these challenges and achieve sustained growth.

 

　　Over the past 15 years, the business environment surrounding our company has undergone significant changes. We are currently facing an extraordinary situation due to the coronavirus, and similar circumstances may arise in the future. It is precisely during times of adversity that a company’s true strength is most clearly revealed. By collaborating closely with our customers and standing united with our business partners, including Doosan Machine Tools, we will overcome these challenges and continue to pursue steady, sustainable growth.

 

 

Beijing Smart technology Co.,ltd.

General Manager Park Bo-seon