Today we visited Honda Power Equipment Manufacturing Inc. in Swepsonville, NC. Incorporated in 1983, HPE is a company centered around their “respect for the individual” and the 3 joys of buying, selling, and creating. Although the company has a heavier presence in Ohio and North Carolina, they are located in a variety of states as well as in China, Thailand, France, and Japan. Honda mass produces motors for products like lawnmowers, leaf blowers, and pressure washers. As we toured through the facility, we were able to get a closer look at the die casting and machining, plastic injection molding, and assembly departments to see how all are essential components of the company and to the making of a functional, high-quality engine.
Honda Power Equipment’s company principle and mission is to maintain a global viewpoint and supply products of the highest quality at a reasonable price for worldwide satisfaction. Honda buys their engine parts for about as much as they sell them for ($100). They value equality of all employees and even employ a company uniform to ensure that no one looks or has to feel less important. Organization and meeting a particular quota are also important to HPE as not following the plan can lead to unhappy customers and a potential loss of profit.
HPE’s customer base branches out to any individual buying a specific power tool with a Honda motor. Home Depot is their largest customer to whom they supply engines and lawnmowers, but because so many gadgets require engines, they also sell to companies that make airplanes, jets, motorcycles, and even go-carts. They also have a major presence in the water pressure industry. Coincidentally, because Honda produces cars and jets as well, they end up providing supplies to many of their competitors. However, this seems not have had any kind of negative impact.
The customers of Honda value an engine that is both durable and high quality. If you ask the owner of a Honda why they bought their car, chances are they will tell you its because it is reasonably priced and reliable. Honda knows that they have a name brand product and stay consistent with their customer’s expectations. Their customers also value their importance and convenience because they know that if something does malfunction, Honda will go out of their way to fix the issue and savor their brand name.
The results show that there is no gap between what Honda guarantees and what they provide. For 9 years in a row, they have been ranked by Consumer Report as having the #1 lawnmower recently the “best buy” as well. David showed us a picture of what the facility looked like when they bought it compared to what it is now and it shows that they have virtually built it from the ground up. HPE in Swepsonville has built more than 20 million engines and is on its way to manufacturing 2 million.
Honda Power Equipment’s plan is to continue to produce new and appealing products to their customer base while also keeping prices low and competing in their market. We saw that soon they will be manufacturing snow blowers. Since lawnmowers are not as big of a necessity to some and there is a seasonal demand for them, Honda strives to find a way to make them more futuristic and user friendly. David had mentioned that the ultimate goal is to manufacture robotic lawnmowers that require minimal human interaction. Although he is not as much informed as some executives in the company, he assured us that Honda is the first to research and develop breakthrough technology.
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