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ORANGE COUNTY VOICES / TAKASHI (TACHI) KIUCHI : Teamwork Can Carry Us Through the Crossroads

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<i> These are excerpts from a talk given last week at the Orange County Economic Outlook Conference by Takashi (Tachi) Kiuchi, chairman and CEO of Mitsubishi Electronics America Inc. in Cypress</i>

Orange County is at a crossroads, where the past, present and future merge. While I am often asked to provide the perspective of the Asian business community, I can speak only for my company. For Mitsubishi Electronics, this “crossroads” prompts three questions: “What brought us here?” “Why do we stay in Orange County?” and “What will keep us here?”

When we first came to the U.S. in 1969, our initial focus was on importing and exporting, so transportation was essential. The West Coast was our choice because of its proximity to the Pacific Rim and easy access to seaports and airports. At that time our offices were in Compton.

In the ‘70s, we wanted our manufacturing to be closer to our market, so in 1977, we planned our first U.S. manufacturing facility. That’s when Orange County became appealing because we needed to find a home for our employees.

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Orange County was very receptive. Our neighbors helped make us part of the community. Real estate costs were low and we could come to work on open roads. Most important, we could send our children to good schools. In 1986, we moved our U.S. headquarters to Cypress. The region was booming, and everyone was optimistic about the future.

Fast forward to 1992. Unemployment, high taxes, traffic, crime and excessive regulations are driving away businesses and high-quality employees who flee California for lower taxes, cheaper land, less congested freeways, and better schools.

This is why Orange County is at a crossroads, and why I’m often asked if it would be more productive to move out of this area. What keeps us here?

The main reason we’re committed to this region is people. The work force is diverse and dynamic, and the region’s high-technology base produces quality workers ready to meet tomorrow’s challenges. The area has a large supplier base for manufacturing and remains one of the largest consumer markets. There is a wide range of other resources, from scientific laboratories to financial institutions.

Despite these qualities, many predict the business climate will decline, driving away both manufacturing and skilled workers.

So what will make us stay? There are of course business concerns, such as increasing our local engineering and manufacturing. By boosting the local content of our products, we move closer to our market, so we can meet its changing demands. This makes us stronger and more committed to the region.

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For the county, the question is more complicated, but the answer is as simple as one word: teamwork . One of my personal mottoes is “Say it, do it.” Talking about problems is important, but we’ve got to do something--together.

At our company, we have an internship for disabled students. By bringing young people into our workplaces, we can provide them with necessary skills to succeed in today’s business world.

How can Japanese and American companies work together to help Orange County? An important first step is to look beyond the terms Japanese and American . We are all part of the community. I am working to break down the walls that separate our two cultures, and I hope others will try to do the same.

Another of my beliefs is that the line separating good and bad, fortunate and unfortunate, is paper thin. The same is true for Orange County. We are experiencing some hard times, but by joining together, we can break through that paper thin wall. That is why Mitsubishi Electronics is here to stay.

Orange County is at the crossroads. If we take the wrong fork in the road today and ignore our social problems, we are sacrificing our tomorrow. However, if we work together, the crossroads will simply be one junction on a long, healthy and profitable journey into the future.

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