Navigating challenges and empowering CNC users in South East Asia

By: Kathryn Gerardino-Elagio

In a recent interview with Wai Yip Lee, General Manager of Hurco (S.E Asia) Pte Ltd, the focus was on the evolving landscape of manufacturing and the strategic initiatives undertaken to address emerging challenges. Wai Yip shed light on the company's vision and commitment to enhancing customer support, particularly in key territories such as Thailand, Vietnam, and Indonesia. He also provides insights into the company's flagship product, the VMX30UDi simultaneous 5-axis machining center, and sheds light on how Hurco is navigating challenges and empowering CNC users in South East Asia (SEA).

Emphasising Product Excellence

Wai Yip highlights the enduring success of the VMX30UDi, a 5-axis machining center tailored for medium-sized components, which has garnered substantial popularity over its decade-long presence in the market. He details the recent enhancements, particularly the introduction of a new inline spindle with Thermal Stability package, elevating the machine's maximum speed to an impressive 15,000 rpm. This improvement, aims to meet the demands of customers prioritising superior surface finish quality of precision parts.

“The improved VMX30UDi simultaneous 5-axis machining center is specifically crafted for medium-sized 5-axis components across various materials range. This machine has garnered substantial popularity among our customer base as the trunnion table set-up is easy to understand, and can handle a good range of parts up to 400mm in diameter with minimal interference.”

Challenges in a Competitive Landscape

Wai Yip candidly discusses the challenges posed by the global economic slowdown and heightened competition in the entry-level segment, with a focus on contenders from Chinese and Japanese machine tool builders. The interview sheds light on how this influx has created a densely populated marketplace, impacting profit margins across the industry.

“The primary obstacle we currently encounter pertains to the diminished size of the market and heightened competition from diverse players. Specifically, within the entry-level segment, notable contenders include Chinese machine tool builders who have significantly improved their offerings. Concurrently, Japanese players have continued to expand their machine offerings with their own entry-level machines.”

He added, “This influx has resulted in a densely populated marketplace, where numerous suppliers are vying for a share of a considerably smaller market pie. The heightened competition has led to a compression of profit margins across the market.”

Commitment to CNC Control and User Experience

Hurco's commitment to maintaining consistency is underscored by its emphasis on the strength of the WinMax® control. Wai Yip elaborates on the company's approach to enhancing the user experience by introducing innovative technologies like 3D Solid Model programming for multi-axis parts. In a post-pandemic scenario, where workforce shortages prevail globally, the significance of a smart and user-friendly control system becomes even more pronounced.

“At Hurco, our steadfast approach revolves around maintaining consistency, particularly in emphasizing the strength of our CNC control, the WinMax® control. Beyond its user-friendly and powerful attributes, we are placing increased emphasis on enhancing the overall user experience. Our goal is to continuously deliver added value to end-users by introducing innovative technologies, such as 3D Solid Model programming for multi-sided parts.”

Trends Post-Pandemic and Sustainable Manufacturing

The interview explores the post-pandemic landscape, highlighting the trend of in-shoring as customers relocate parts production to their own countries. Wai Yip discusses the implications on the supply chain and Hurco's solutions to empower end-users in establishing their machine shops for enhanced research and development capabilities. Additionally, he delves into the company's sustainable manufacturing initiatives, focusing on reducing electrical consumption and optimising the machining process itself.

“Considering the post-pandemic scenario, where the available workforce has significantly decreased globally, skills shortages have become a pervasive challenge. Regardless of the country, there is a noticeable lack of available skills, presenting a major constraint in every market. Recognising this, the importance of a smart and user-friendly control system has become even more pronounced, addressing a crucial need in the industry.”

“Hurco has taken proactive steps to enhance our control systems, aiding end-users in reducing both setup and machining times. The rationale is clear – if a job can be completed in a shorter timeframe, it directly contributes to a reduction in electrical consumption. We have incorporated features such as auto shut down, where the machining center can autonomously power down after completing a part, thereby conserving electricity.”

“Moreover, the integration of technologies like MTConnect and Ethernet connectivity enables remote control of the machine, facilitating automation. This not only streamlines day-to-day operations but also significantly reduces the overall electrical consumption that a machine shop would typically incur with manual setups. In essence, Hurco is committed to a holistic approach, addressing both the machinery itself and the operational processes to promote sustainability in manufacturing.”

Expansion and Commitment in SEA

Wai Yip Lee outlines Hurco's strategic plans for fortifying sales channels and service support in SEA, with a focus on key territories such as Thailand, Vietnam, and Indonesia. He details the company's commitment to establishing technical centers in collaboration with partners in these regions, aiming to provide dedicated service and application centers that strengthen relationships.

“In the current market scenario, our focus at Hurco is geared towards fortifying our sales channels and service support, particularly in terms of application support, across key territories in SEA, including Thailand, Vietnam, and Indonesia. Our vision entails building upon our existing core strengths and establishing technical centers in these regions.”

“Although we initially had plans for these technical centers a couple of years ago, the onset of the pandemic prompted us to temporarily suspend these initiatives. However, our commitment remains unwavering, and we are determined to resume and advance these plans. Working collaboratively with our partners in these crucial territories, our aim is to set up dedicated service and application centers. This strategic move ensures that we can consistently serve our end-users, providing essential assistance with their machining needs in these countries. By enhancing our local presence and support infrastructure, we seek to strengthen our relationships with customers and contribute to the growth of manufacturing capabilities in the SEA market.”

Empowering CNC Users

Wai Yip emphasizes Hurco's primary focus on empowering new and existing CNC users in SEA. He discusses the challenges faced by new users, especially those transitioning from 3 to 5-axis machining, and highlights the growing demand from existing CNC users seeking to upgrade their capabilities. The interview explores how Hurco aims to make a substantial impact by offering tailored solutions, support, and expertise to navigate the complexities of machining in the region.

“In this dynamic landscape, we observe a noteworthy influx of new users, often from larger established companies aiming to bring their jobs in-house. Recognising the challenges, they face in setting up their machine shops, we are dedicated to providing comprehensive assistance. Moreover, there is a growing demand from existing CNC users who aspire to transform their machine shops by upgrading to 5-axis capabilities.”

“These opportunities represent a pivotal area where Hurco (S.E Asia) aims to make a substantial impact. By offering tailored solutions, support, and expertise, we intend to empower both new and existing CNC users in navigating the complexities of establishing or upgrading their machining capabilities. Our commitment is to be a strategic partner, facilitating the growth and success of businesses in SEA.”

Conclusion

Wai Yip Lee concludes the interview by reinforcing Hurco (S.E Asia)'s commitment to being a strategic partner for its customers. He invites collaboration, encouraging customers to reach out with specific part requirements. With a collaborative approach, leveraging expertise, and understanding unique requirements, Hurco aims to provide tailored solutions that optimise the manufacturing process, ensuring the successful realisation of its customers' goals SEA.