SOCIETY 2022.04.26

"A breath of fresh air in the scaffolding industry" Providing both materials and know-how - The future ASNOVA STATION aims for

ASNOVA STATION is a new business that allows ASNOVA scaffolding materials to be rented from partner companies even in areas where there are no ASNOVA sales office or equipment center. This business was proposed by the president and designed by the Business Planning Department, and is currently being steadily prepared for launch in the fiscal year ending March 2023, led by Sendai Sales Office Hiroki Nakamura. What kind of business is ASNOVA STATION, and what impact can it have on the scaffolding industry? Mr. Nakamura and Mr. Kazuya Shibayama of the Business Planning Department, who works alongside him, shared their outlook.

INDEX

PROIFILE

Hiroki Nakamura: Sales Department, Sendai Sales Office. Joined ASNOVA in 2016. Joined as a salesperson at Sendai Sales Office launch period. Rental and sales of wedge binding type scaffold mainly in the Tohoku region. Also serves as the manager of "ASNOVA STATION" using the "ASNOVA Challenge System."
Kazuya Shibayama: Business Planning Department. Joined ASNOVA in 2021. Works mainly on new businesses and marketing strategies.

Kazuya Shibayama (left) and Hiroki Nakamura (right)

It all started with reducing the time and costs for scaffolding contractors

Did the idea for ASNOVA STATION come from the president?

Nakamura: Yes, I think the president was sympathetic to our challenges from the beginning. I am in charge of the Tohoku area at Sendai Sales Office, and I feel the difference between rural areas and the Tokyo metropolitan area and other areas including Kansai. While scaffolding materials are needed all over the country, both in cities and rural areas, the current situation is that the area in which ASNOVA operates its business has not yet spread across the country.

Shibayama: There are construction companies, but the rental companies necessary to procure scaffolding materials are mainly located in major cities, and the environment for procuring scaffolding materials by rental is still not in place in rural areas. Even our customers, such as those in Niigata Prefecture who do not have equipment center nearby, have to travel all the way to Sendai to pick up the materials, but I think the time and cost of procurement is tough for scaffolding companies. The idea started from ASNOVA wanting to reduce the burden on such scaffolding companies by expanding its rental service to rural areas.

What can be achieved through the ASNOVA STATION project?

Nakamura: If equipment can be procured quickly, scaffolding contractors will be able to handle more work, which will lead to revitalization of the industry.

In addition, because the craftsmen who set up scaffolding on site are doing physically demanding work, they can only demonstrate their true potential by the age of around 40. I think that expanding the possibilities for their second careers is not necessarily a bad thing for the region, society, and companies.

In the metropolitan area, there may be employment options that suit your age and career, but in rural areas, it is not easy to find a new job. By participating in the rental business, employment can be created not on the side of the organization but on the side of the renter, and I think that it may be possible to provide a place for the craftsmen who have been working hard on the site until now to be active again.

Shibayama: I think that the ASNOVA STATION business will encourage new companies that have not been in the scaffolding industry to enter the industry. This will bring a breath of fresh air to the scaffolding industry. There have been some voices within the industry saying they want to try rentals, so I hope that this business will be a good opportunity for them.

Nakamura: The rental business seems like it would be easy to get into, but it's not. Especially with scaffolding, the initial costs are quite high, so even if you're interested, it's hard to take the plunge.

Your company is trying to start a business that will bring a new wind to the scaffolding industry. I think that this is where ASNOVA's unique strengths lie.

Nakamura: I think our greatest strength is the total amount of scaffolding materials we own. There are other companies in the same business, but in terms of the amount of scaffolding materials, I think we probably have the most among companies that specialize in the rental business of wedge binding type scaffold. If we can solve local issues by sharing the materials instead of using them only for our company, I think everyone will be happy.

Shibayama: Also, since this service itself started with the idea of "spreading scaffolding rentals throughout Japan," we have set the barrier to entry for our partners quite low. Rental fees are only charged for what our partners rent out, so if our partners are not in operation, we do not bill them. In that sense, we have created a scheme with extremely low investment risk.

Until now, I think that many scaffolding companies have not been very conscious of their own equipment utilization rate. In our case, since we are in the rental business, we are very conscious of the utilization rate of our equipment. By sharing the know-how on stabilizing utilization rates that we have cultivated in the rental business for about 10 years, we can help our partners to operate their rental business successfully, which is something that only we can do, and I think it will be beneficial for our partners as well.

The goal is 50 cases in three years! Aiming to spread scaffolding rental business nationwide

How far along is the project now?

Nakamura: The outline of the business, such as the arrangements for rental, is in place, so I'd say it's about 70% complete. The remaining 30% is completely uncharted territory, such as writing contracts. It's an area we can't move forward with on our own without the input of people with knowledge.

Shibayama: Also, because our partners will be using the ASNOVA name, we need to consider how to avoid the risk of damaging our brand and what the flow will be if something does happen. We have created a rough draft to some extent, but we need to verify whether the flow will work properly after the business is actually launched.

Also, we won't know until we launch whether our partners' income and expenditure plans will go according to plan. There are still a lot of issues to be addressed before and after the launch, so I think there is still a lot to be done. In fact, it seems like the post-launch period will be even more difficult.

Nakamura: That's right. I think there will be many areas that need to be revised as we actually put it into operation. Also, from the perspective of the operational team, one of the issues we will be facing in the future is identifying partner companies. While we want to increase the number of partners, the decisions made at the time of contracting will affect future risks and quality control of services, so we need to select our partners carefully, with the basic premise that they will empathize with our company's philosophy.

On the other hand, what kind of reactions have you received from potential partner companies?

Nakamura: Thanks to you, it's going very well. The response and impression from companies regarding this service has not been bad at all. However, there are regional differences. There are many contractors around big cities, and of course there is a lot of work, so the response is good, but for example, in the Tohoku region, people are physically unable to move around during the winter due to snow. When you consider the risks during that period, there are some aspects that make people hesitant to use the service.

At the moment, we are in talks with six or seven companies as partners, but we would like to increase this number in the future. The person in charge is hoping to reach 50 companies in the next three years, as there are 47 prefectures in the country (laughs). As the president often says, the ideal situation is to be able to rent scaffolding in any area at any time, just like a convenience store.

Expanding Japan's scaffolding to the world, and eventually expanding overseas

What changes or visions do you see in society as a result of the spread of ASNOVA STATION?

Shibayama: Actually, we are now planning to open a center overseas. The quality of scaffolding in Japan is quite high, but the high quality is not yet that widespread overseas, and in some areas the dangerous scaffolding is still being used. In order to deliver Japan's safe and high quality scaffolding to the world, we think it would be better to have another partner open a store overseas in the form of a station, rather than us opening a store overseas. I think this way we can provide value faster and support people in need faster.

First, I want to expand ASNOVA STATION domestically, build good relationships with all of our partners, and once we have established sound operations, I would like to expand overseas. Therefore, we cannot afford to fail in Japan (laughs).

Nakamura: To that end, I want to achieve my goal of 50 cases in Japan. If it spreads that much, it will raise public awareness and attract more young people. If the industry becomes more popular, I think we can make a small contribution to society, whether in Japan or overseas.

Do you have any personal goals or visions?

Nakamura: Even if we have more partners in the future, both in Japan and overseas, I want to maintain a relationship where we can communicate well and exchange opinions. If we can get new partners from different industries, I think we can create more attractive services than just ASNOVA STATION.

Shibayama: We are also planning to set up a solid backup system, including training and regular visits. We plan to visit our partners at least once every one or two months to check inventory, provide sales support to restore appropriate operating rates, and support smooth operations by supplying materials if operating rates are high. This will reassure those who are hesitant because they have never done a rental business before.

Nakamura: Yes, so if you are interested in ASNOVA STATION or are considering becoming a partner, please look forward to the launch of the service. We look forward to hearing from you!