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Takayoshi Hanagata serves as the Chairman of Canon Virginia Inc. Hear firsthand from Mr. Hanagata about his experiences with Canon over the past 42 years and the international company’s commitment to its business in the Commonwealth of Virginia.
You started working for Canon in 1968, helping to introduce the world’s first portable calculator and have held many roles since then, including President and CEO of Canon Virginia Inc. for seven years. What is your role now?
I am Chairman of Canon Virginia Inc. Part of my job is to build a relationship within this community and also a relationship with the other Canon group companies, including Canon USA, our parent company, which is located in Lake Success, N.Y.
I have another title: I am Chairman of Canon U.S. Life Sciences, located in Baltimore, a company in the medical field. For almost five years, we have been working to develop new technology for the medical industry.
What are your current priorities?
Research and development is a high priority. I was asked by our headquarters in Japan to start R&D for automation, because we are investing in automation machines here in Virginia.
Why the focus on automation?
Around the year 2000, many manufacturing jobs in the U.S. shifted to Southeast Asia. Canon was no exception, so we decided to change our style of production here in Virginia. The Asian manufacturing style is about many people assembling things. Sometimes a factory can have 5,000 people, which is OK because labor is cheap.
But, of course, the labor cost in the USA is higher, so we must focus on more efficient operations. That’s why we are studying automation. If we are successful in developing automated lines, we will be able to move production to Virginia that might otherwise go to another country. This type of manufacturing also requires a highly skilled technician.
So you’re providing training to Canon workers to get the skills they need.
Yes. We started an onsite workforce development center in 2008 to train our employees. We worked with the Virginia Community College System (VCCS), as well as local and regional community colleges, and they bring college instructors to our facility.
We offer various classes, depending on the employee and where they’re going to work. Someone in the toner cartridge production might take more technical classes, such as, electronics, robotics, how to read a blueprint, mathematics and so on. The camera technicians might go through a basic camera class or soldering. Many employees earn certificates or associate degrees.
Tell me about the company’s philosophy and why Canon is a good place to work.
The philosophy is Kyosei. To most, this word means ‘living and working together for the common good,’ but our definition is broader: At Canon, it means ‘All people, regardless of race, religion or culture, harmoniously living and working together into the future.’ That sums up our approach to business and to life as well. We’re living and working together for the common good. Kyosei has been in place for many, many years and it really works. I believe our employees understand and live out this concept every day.
How has Canon Virginia changed in the past few years?
We were an assembly plant. We put copiers together; we put printers together. But with the shift in that kind of business to Southeast Asia, we were pushed to reinvent our business model. We have seen much success with our new model.
We were able to expand. We have a new 700,000 square foot high-tech building to make toner cartridges here in the U.S. We also have reverse manufacturing services for cameras, copiers and printers. This means an operation that reuses products and materials. This can include remanufacturing or refurbishing the item for resale or taking apart to reuse or recycling parts.
And we are selling contract manufacturing services. If you need something assembled, we can do it. We can even make the parts.
We’re getting more orders, and that now accounts for about 15 percent of our business.
How does the Virginia Economic Development Partnership help you?
They have the knowledge to help us expand our operations. They are also working very closely with us to help further develop our R&D efforts. They show us how to grow an idea. We have a very close relationship.
What makes Virginia a good place to do business?
My impression is that Virginia is one of best places to manufacture products. The workforce is stable and is loyal. For example, the retired military is a good labor pool for us.
In addition, we have a good transportation network, with the port, rail, three airports and the interstates.
Canon has many global locations, but no other factory is supported locally as much as in Virginia. Canon Virginia is the poster child for Canon in terms of a factory’s relationship with state and local communities.
Hear more from Canon Virginia’s Chairman Takayoshi Hanagata
Since 1985, Canon Virginia, Inc. has been an important branch of one of the world’s best-known companies. Approximately 1,900 employees work in a 1 million-square-foot, state-of-the-art facility in Newport News.
Canon Virginia’s Chairman Takayoshi Hanagata has overseen a shift in the business away from assembly toward high-tech manufacturing of toner cartridges and other Canon accessories. They’ve also begun reverse- manufacturing services for Canon products, contract manufacturing for other companies and reverse-logistics contracts.
Mr. Hanagata promotes Canon’s core philosophy of Kyosei. “It’s living and working together with the company,” he says.
He also stresses kaizen, or continual improvement, as Canon Virginia continues to successfully adapt to changing market conditions.
During this harsh economic downturn, Canon Virginia has been one of the area’s bright spots, expanding and hiring new staff. The company invests in its employees by offering intensive training in the latest high-tech fields.
Virginia is a great place to do business, says Mr. Hanagata. “The company will celebrate our 25th anniversary later this year.
“Canon had looked for a good place to build a factory, and I believe they made a good decision. The reason they chose Virginia was that it was easy to get better employees, and there were many higher education facilities. The retired military continues to be a good work force.”
Mr. Hanagata credits the Virginia Economic Development Partnership for much of the company’s success. “They have the knowledge to help us as we expand our research and development,” he adds. “They help us recruit qualified people. We can grow ideas in Virginia.”
May 6, 2010
Richmond Westin
The Virginia International Investors Forum (VAIIF), established exclusively for Virginia’s internationally owned companies, by the Virginia Economic Development Partnership (VEDP) provides an informative program that allows you to exchange information with key industry and government leaders.
This Forum provides you the opportunity to ask leading executives questions about their future business strategy, the national economic outlook, view of financial markets and Virginia experience.
The 2010 VAIIF, hosted by Secretary of Commerce and Trade, Jim Cheng, is tailored specifically to the needs and concerns of international company executives.
2010 speakers include Jeffrey Lacker, President of the Richmond Federal Reserve Bank, Jacques Besnainou, President of AREVA Inc., Robert F. Bruner, Dean of the UVA Darden Graduate School of Business and Governor Bob McDonnell (invited).
The Forum will be held on May 6, 2010, at the Richmond Westin. Thanks to the support of our corporate sponsors, there is no cost to register for this event. To learn more about this informative event and to register your attendance, please visit the Forum website at www.vaiif.org
By: Elliot Norman
Welcome to Virginia! We are open for business and invite international investment, including participation in energy, information technology, and other high-tech projects funded by the U.S. Stimulus Act (American Recovery and Reinvestment Act of 2009).
You will find that U.S. immigration procedures encourage the opening of international offices and the expansion of business operations to the U.S. However, you do need to know the rules of the game to avoid delays, particularly when transferring key personnel.
Below are explanations of several popular visa programs, including suggestions that take into account the recent emphasis on security when applying for a work visa or just making a short business trip.
- The popular Visa Waiver Program (VWP) is used for visits up to ninety (90) days without having to apply for a visa. Citizens of many European and Asian countries can use the VWP for business activities such as market research, meeting with customers, negotiating contracts or viewing possible sites for new investment.
Formalities matter when using the VWP. To meet security requirements, you must register with the Electronic System for Travel Authorization (ESTA) electronically at https://esta.cbp.dhs.gov before boarding your flight. Your passport must fully comply with VWP requirements and cannot expire in less than six (6) months of your travel dates. You will need a copy of your planned itinerary, your round-trip airline ticket and will need to disclose fully, when asked at the arriving airport, that you are here for business, not tourism. If you have any questions about the procedures or to determine if your country participates in this program, consult the website of your local U.S. Consulate. The U.S. Consulate in Paris website has further information on the Visa Waiver Program at http://france.usembassy.gov/niv_waiver_program.html.
- If your country does not participate in the VWP, you will have to apply for a B-1/B-2 visa to visit the United States. Beginning January 2010, many U.S. Consulates require completion of the new, electronic Form DS-160 when applying for a visa. The DS-160 replaces the Forms DS 156 and DS 157, used for many years by travel agents in your home country.
- Due to security issues, do not assume you will receive your visa on the day of your interview. The Visa is usually mailed to you courier service within three (3) days of your interview after a security or name check. For these reasons, do not book your flights until you have your visa in hand.
- If you are setting up operations in the United States for the first time, take advantage of the L-1 visa for new office. This special visa is particularly useful for small and medium-size companies who are not making a large investment. It requires only the establishment of a U.S. bank account, the signing of an office lease, a business plan showing how the U.S. office will generate revenues to support the operations, and proof that the U.S. office is a subsidiary or affiliate of the international parent organization. The L-1 visa can be used to transfer a manager or an employee who has specialized knowledge of your business processes, provided they have been employed in a managerial/executive position or a position requiring specialized knowledge within your company for at least one (1) year.
- There are a number of E-1/E-2 trade and investment visas available for qualifying citizens of many foreign countries. The E-2 can avoid the delays and larger capital requirements associated with the EB-5 Green Card program. An immigration advisor can determine if your business qualifies and whether the use of this program makes sense for your company.
- To speed up visa issuance and eliminate many government fees, qualifying companies can utilize the Blanket L-1 and Accelerated or Expedited E-1/E-2 Visa programs. These programs allow certain companies to apply for visas directly at the U.S. Consulate without first filing any paperwork or paying fees to U.S. Citizenship and Immigration Services in the United States. This program is limited to nationals of qualifying treaty countries. For the list of countries that meet the criteria of the E-1 or E-2 Visa program, go to http://www.usadiversitylottery.com/us-visa/e1-e2-visa/.
- Finally, the U.S. Department of State has recently revised its J-1 program to create two classifications of exchange workers: trainees and interns. Many foreign companies use the J-1 program to provide opportunities to recent graduates in order for them to gain productive experience from 12 to 18 months within their U.S. operations. The J-1 can be an attractive, low-cost alternative to using H-1B and L-1B visas and is not subject to annual quotas.
With proper planning, you will find that the U.S. immigration program can help your business transfer global talent for your U.S. operations. For more information on available visa choices and how to comply with immigration procedures, visit the U.S. website at http://usimmigrationsupport.org/, or see our website at www.williamsmullen.com/immigration where you can register to receive a monthly immigration update.
Eliot Norman is a partner with Williams Mullen in its International Practice Group. Since 1986, he has advised international companies on establishing operations in Virginia, working closely with the Virginia Economic Development Partnership. Williams Mullen has seven (7) offices in Virginia and is one of Virginia’s largest law firms.
Eliot Norman
Williams Mullen
1021 E. Cary St. Suite 1700
Richmond, VA 23219
804.783.6482
enorman@williamsmullen.com
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