It’s easy to confuse Mitsubishi Electric US Inc. with Mitsubishi Motors North America Inc.
Even though both companies have the same stylish logo, are domestic units of larger Tokyo-based multinational companies that share the Mitsubishi name, and are based in Cypress—less than a mile apart—they are separate entities.
To make it more confusing, Mitsubishi Electric sells electric motors to a variety of automakers like Honda, General Motors and yes, Mitsubishi Motors.
“They are a customer,” said Mike Corbo, chief operating officer of Mitsubishi Electric US “We’re not related to Mitsubishi Motors.
“We work hard from a marketing perspective to explain who Mitsubishi Electric is.”
The two companies used to be together when Mitsubishi, which began in 1870, became a giant conglomerate and then was split apart after World War II. Nowadays, Mitsubishi Motors is famous for making cars, reporting $20.6 billion in sales last year, while Mitsubishi Electric is far less known even though it generated twice that amount, $40.7 billion in fiscal 2019.
Mitsubishi Electric US markets, distributes, installs and maintains the company’s cooling and heating products, elevators and escalators, large LCD digital signage monitors, industrial printers and semiconductor devices, among other products.
Mitsubishi Electric’s revenue mostly comes from Japan and the rest of Asia; the U.S. represents a relatively small 9% of companywide sales.
That’s about to change.
Corbo, who has worked at Mitsubishi Electric since 1986, a year ago was appointed to a newly created role of chief operating officer at the U.S. division. He’s the highest non-Japanese executive running Mitsubishi Electric US operations. Erik Zommers, who joined the elevator unit in 1989, was promoted to take over Corbo’s prior position as general manager of the elevator and escalator division.
“The promotion of these two dedicated individuals aligns with our focus on strategic business development and innovation,” Keijiro Hora, chief executive of Mitsubishi Electric US and the company’s top representative to the Americas’ region, said in a statement.
Employees, ROI
Corbo oversees six divisions with about 1,600 employees at 38 Mitsubishi Electric locations in the U.S. The Cypress location, which includes three buildings totaling 150,000 square feet, employs about 239 in a variety of distribution, engineering, operations, marketing, administrative and other positions.
The parent company has announced a goal to reach $50 billion in annual sales with an 8% return on investment. Currently, Corbo said his unit has less than an 8% return.
On a consolidated basis, his unit generates about $1.3 billion in annual sales and has posted annual double-digit growth since 2010, he said.
“I believe we can get to $2.5 billion by 2025,” Corbo said.
The doubling of revenue signals that the Japanese headquarters believes the U.S. is the place to grow.
Hence, the company is seeking to expand its Cypress workforce by as much as 5% in the coming years while nationally it will increase 7%, mostly in its elevator/escalator business, as well as new business initiatives like the satellite business.
Corbo, who lives in Mission Viejo, last month launched a Space & Sensing Systems division to expand sales of the company’s global satellite products in the U.S. and Canadian markets.
The parent company has participated in the production of more than 500 Japanese and international satellites as the prime contractor or a major subcontractor.
Corbo noted there are many potential customers in nearby Huntington Beach such as Boeing Co. and deep-pocketed newcomer Rocket Lab.
“It’s exciting to have a new division,” Corbo said. “The satellite business, communications, mobile mapping business is becoming more critical, driven by the technology around us. It’s a connected world and the satellite business is providing a lot of that.”
HVAC, Elevators
Born and raised in Toledo, Ohio, Corbo graduated from Ohio University. He began his career at Mitsubishi Electric US’s elevator and escalator division, which competes with the industry’s biggest players such as Otis Elevator Co. and Schindler Elevator Corp. Corbo in 1999 took over that unit, which is now the second largest that he oversees.
The largest domestic unit is its heating and cooling systems, which last year entered a joint venture with Ingersoll-Rand PLC (NYSE:IR) called Mitsubishi Electric Trane HVAC US.
Its third-largest unit sells semiconductors that are used for cellphones, air conditioners, washing machines and medical equipment, among other devices.
Corbo said the coming fifth-generation wireless devices will “create a lot of opportunities.”
“We are not a one-dimensional type company. We have many offerings,” he said. “The HVAC, elevators and semiconductor divisions are all growing at double digit rates.”
The company is de-emphasizing solar products, since prices have fallen too much, he said.
“That business is slowing,” Corbo said. “It has become very commoditized over time.”
California Bull
Corbo knows well the U.S. commercial building trends, product innovation and future outlooks. He also understands the California market, having headed the elevator unit’s San Francisco office and is involved in the reshaping of downtown Los Angeles.
His unit has installed escalators at the South Coast Plaza shopping center and elevators at several of Irvine’s newest high-rises, which are owned by the Irvine Co., one of Mitsubishi Electric’s biggest U.S. customers.
He expects the economy to keep rising.
“We still remain bullish on the outlook in
California.
“We have so much potential for expansion that we can continue to grow even in a slowing market.”
