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The Rise of Union Tech: Reaching the Ambitious UT100 Target

In a bold declaration made in December 2021, Union Tech Inc., based in Shibuya, Tokyo, set a remarkable target to achieve a revenue of 10 billion yen by the year 2025. With a mission to 'Build a new standard,' the company is dedicated to providing one-stop interior design, planning, and construction services for offices, commercial spaces, and residential buildings. Fast forward to 2025, and Union Tech not only achieved this ambitious goal but exceeded its previous sales records with a final revenue reaching 10 billion yen.

How It All Began

The turning point for Union Tech came after facing significant challenges during the COVID-19 pandemic. The company underwent a strategic split to focus on its core operations and invested 2.5 billion yen in enhancing its IT capabilities. However, the aftermath left the company in a 'burned field' state, requiring a complete turnaround strategy.

Recovery and Growth

By the latter half of 2021, Union Tech began its recovery journey. The company worked diligently to revive its balance sheet and cash flow, leading to a V-shaped recovery within just six months. Taking a calculated risk, Union Tech boldly proclaimed the UT100 target, signaling its aggressive commitment to growth despite having only 3.2 billion yen in revenue at the start of 2022.

Achievement of the Target

As of mid-2024, Union Tech celebrated remarkable growth, achieving a revenue of 6.2 billion yen. However, to meet the ultimate goal of 10 billion yen by year-end 2025, the company needed to achieve over 150% growth in a short span. Yet, the persistence and strategic focus from the teams paid off, and by the end of 2025, Union Tech officially confirmed its success in achieving this significant milestone.

Key Changes from 2021 to 2025

The journey from announcing the UT100 target to actual achievement involved several strategic changes and adaptations. With a personnel limit of 100 employees, Union Tech concentrated on:

• - Focusing on high-value projects
• - Leveraging past accomplishments to build trust
• - Expanding into new, high-value areas
• - Enhancing the value proposition of its proposals

The company adopted a lean but skilled workforce philosophy, aiming to establish the highest salary standards in the industry. This approach has fueled human investment and benefits, distinguishing Union Tech from its competitors.

Operational Efficiency

To maintain growth momentum, Union Tech has also focused on integrating technology and systems into its operations, maximizing individual and team productivity. This strategy centers on increasing value-added output and efficiency across all facets of the company.

Organizational Development

Concurrent with rapid growth, Union Tech has invested significantly in talent development and organizational growth. This has fostered meaningful improvement in work satisfaction and growth opportunities, leading to quantifiable accomplishments like a staggering 178% wage increase and a reduction in employee turnover rates from over 40% to approximately 10%.

Looking Forward: The Future Beyond 10 Billion Yen

The lessons learned and assets acquired during the journey to reach the UT100 target will continue to fuel Union Tech's future growth. Rather than merely focusing on revenue targets, the team is dedicated to strengthening its operational framework, termed the 'Operating System (OS).' With this foundation, they aim to improve the success rates of existing businesses, new ventures, and collaborations with group companies – all referred to as 'Applications.'

Union Tech is poised to initiate its mid-term growth strategy, titled 'UT101,' which aims to develop 101 business managers capable of steering the company further into the future.

Contribution to the Community

In addition to its business successes, Union Tech has engaged in numerous initiatives supporting local communities, particularly in areas related to digital transformation and economic recovery. Collaborations with government entities have facilitated the sharing of knowledge and expertise to benefit other businesses.

About Union Tech Inc.

Founded in June 2000, Union Tech specializes in interior finishing works, branding, design, and construction for office and retail spaces. With over 10,000 completed projects, the company has successfully branched out into multiple sectors while harnessing digital knowledge to streamline its operations. Under the leadership of President Yusuke Okawa, Union Tech strives to continue redefining industry standards while achieving its ambitious goals.

Visit their corporate site and learn about their various services for office design, beauty and medical clinic design, luxury residences, and more.