IHI Strategy and Business Model

Executive Overview

IHI, formally IHI Corporation, is a Japanese heavy-industrial group whose roots date to 1853 and whose headquarters are in Tokyo. The company operates across four main arenas: energy and environmental systems, social infrastructure, industrial systems and general-purpose machinery, and aero engines, space, and defense. That mix makes IHI less a single-product manufacturer than a portfolio of engineering businesses serving governments, utilities, industrial customers, and the global aerospace supply chain. In FY2024, IHI reported revenue of $1.50T. Public management materials point to a strategy built around portfolio discipline, higher-value lifecycle revenue, and selective bets on structurally important themes such as decarbonization, aviation propulsion, and Japanese defense demand. In practice, that means trying to reduce exposure to low-return project work while building businesses where certification, safety, installed base, and long product lives can support better economics. Japan remains the core manufacturing and customer base, but IHI also has meaningful international exposure through aerospace programs, overseas project work, and industrial-equipment sales and service networks.

IHI at a Glance

Logo
Common name	IHI
Full legal name	IHI Corporation
Headquarters	Koto-ku, Tokyo, Japan
Ownership	Public company
Ticker	7013
Exchange	TYO - Tokyo Stock Exchange
Market Cap	#N/A
Revenue (FY2024)	$1.50T
Founding / major historical milestones	Founded in 1853 as Ishikawajima Shipyard; merged with Harima Shipbuilding in 1960 to form Ishikawajima-Harima Heavy Industries; renamed IHI Corporation in 2007.
Industry or industries	Heavy industrials, aerospace & defense, energy equipment, social infrastructure, industrial machinery
Key products or services	Aero engines and components, defense and space systems, energy and environmental equipment, industrial machinery, social infrastructure, maintenance and lifecycle services
Geographic footprint	Japan-centered engineering and manufacturing base with sales, service, and project activity across the Americas, Europe, China, Southeast Asia, and other international markets
Business segments as officially reported	Resources, Energy and Environment; Social Infrastructure; Industrial Systems and General-Purpose Machinery; Aero Engine, Space and Defense
Company website	https://www.ihi.co.jp/en/

1. What Is the Strategy of IHI?

1. 1a. What is the winning aspiration of IHI?

   IHI’s public strategy materials frame the company’s purpose around solving social and industrial problems through engineering. In practical business terms, the company appears to define winning as building a more profitable and resilient portfolio focused on areas where its technology, certifications, and installed base matter: decarbonization-related energy systems, aero engines, defense, and critical infrastructure. Recent messaging has also emphasized improving earnings quality, cash generation, and capital efficiency after volatility in some project businesses and civil aero engine programs. That matters because IHI is not trying to be the biggest player in every heavy-industry niche; it is trying to become a better business in selected niches where technical barriers and lifecycle revenue can support stronger returns.

2. 1b. Where does IHI play?

   IHI plays in safety-critical, engineering-intensive markets rather than mass-market manufacturing. Its chosen fields include energy and environmental equipment, social infrastructure, industrial machinery, and aero engine, space, and defense systems. Geographically, Japan is the center of gravity for engineering, manufacturing, public-sector demand, and infrastructure work. Internationally, IHI plays where it has either technology positions in global aerospace programs, industrial-equipment distribution and service opportunities, or a credible role in overseas energy and infrastructure projects. Its customers are largely governments, utilities, industrial operators, OEMs, and large enterprises rather than consumers.

3. 1c. How does IHI plan to win?

   IHI’s apparent recipe for winning is differentiation through engineering depth, long product lives, and lifecycle support. In civil aerospace, the model is to occupy valuable positions in major engine programs and benefit over time from production, spare parts, and service economics. In energy transition, the company is trying to turn decarbonization themes such as ammonia handling and combustion into integrated offerings rather than isolated components. In defense and public infrastructure, trust, reliability, domestic presence, and compliance can be as important as headline price. Just as important, management has signaled a need to compete more selectively, with tighter screening of large projects so that IHI takes risk where its technical edge justifies the return.

4. 1d. What capabilities must IHI have in place?

   To execute that strategy, IHI needs a specific set of capabilities: advanced mechanical and systems engineering; high-precision manufacturing; materials and combustion know-how; project management for long-cycle contracts; aerospace-grade quality assurance; partner and consortium management; field service and lifecycle support; and procurement of specialized components and long-lead materials. It also needs commercial capabilities that are easy to underestimate in heavy industry, especially bid discipline, contract-risk review, government-account management, and the ability to translate R&D into bankable customer solutions.

5. 1e. What management systems does IHI require?

   IHI needs management systems that fit a portfolio of long-cycle industrial businesses: rigorous gate reviews for large bids, strong project controls, quality and safety systems, capital-allocation discipline, and segment-level accountability. Public materials also suggest the importance of portfolio management, not just operating execution. That means using return thresholds, cash metrics, and strategic-fit reviews to decide where to invest, where to restructure, and where to pull back. Given the financial impact that aerospace program issues can have, early-warning systems for technical, supply-chain, and contract risk are especially important.

2. What Are the Current Strategic Initiatives of IHI?

IHI’s current initiatives are best understood as a mix of growth programs and corrective actions. Public disclosures point to the following priorities.

Portfolio transformation and profitability discipline

IHI has been signaling a sharper focus on business quality rather than headline scale. The practical implication is tighter screening of projects, more attention to return on capital, and portfolio reallocation toward businesses with stronger technology advantages and recurring service potential. This is important for a group with exposure to project-based work, where a few poorly priced or poorly executed contracts can erode profitability.

Civil aero engine recovery and lifecycle expansion

One of the most visible current issues is IHI’s exposure to civil aero engine programs, including the Pratt & Whitney geared turbofan ecosystem. The fleet inspection and powder-metal related issues disclosed in that program created significant cost and earnings pressure across the value chain. For IHI, the strategic task is twofold: manage the near-term operational and financial impact, while preserving the long-term value of its installed-base and aftermarket positions in civil propulsion.

Ammonia and broader decarbonization value chains

IHI has publicly highlighted ammonia as a priority theme in its decarbonization strategy. That includes work related to combustion technology, fuel receiving and storage systems, handling infrastructure, and adjacent equipment that could support lower-carbon power and industrial systems. This matters strategically because it gives IHI a chance to combine its engineering background with an emerging energy-transition theme where infrastructure, equipment, and systems integration all matter.

Defense and space expansion

Japan’s rising defense spending creates a structural demand tailwind for domestic suppliers with propulsion, machinery, and defense-system capabilities. IHI’s aerospace and defense positioning gives it an opportunity to capture more of that spend, especially in areas where domestic capacity, security clearance, and long-standing customer relationships matter. Space-related work also fits this theme, though it is generally more program-specific and less predictable than broad industrial demand.

Service and lifecycle revenue growth

Across several businesses, IHI is trying to shift the earnings mix toward maintenance, repairs, parts, upgrades, and other lifecycle services. This is strategically attractive because service revenue is usually less cyclical than original equipment, tends to carry better margins when tied to an installed base, and deepens customer relationships. For IHI, this theme appears especially relevant in aerospace, rotating machinery, transport systems, and infrastructure maintenance.

Execution, quality, and supply-chain resilience

For a company with long-cycle manufacturing and project work, operational reliability is itself a strategic initiative. Public context around aerospace program disruptions and broad industrial supply-chain tightness makes it clear that procurement resilience, quality assurance, schedule control, and traceability are not back-office issues. They directly affect margin, customer trust, and the company’s ability to scale high-priority businesses.

3. What Is the Business Model of IHI?

What customers actually buy

Customers buy a mix of large engineered products, critical components, integrated systems, and lifecycle services. Depending on the segment, that can mean propulsion modules and engine components, industrial machinery, infrastructure systems, energy and environmental equipment, or long-term maintenance and support. In many cases, the customer is paying not just for hardware but for certified performance, reliability, and engineering accountability.

What portion of the model appears recurring or repeat-driven versus one-time

IHI is not a subscription business. Its economics are a blend of one-time and repeat-driven revenue. Original equipment sales, infrastructure projects, and certain plant or systems contracts are largely one-time or milestone-based. By contrast, spare parts, maintenance, repairs, retrofits, service contracts, and follow-on orders from existing platforms are repeat-driven. Aerospace is especially important here: long program lives can turn an initial program position into years of aftermarket opportunity, even if the original equipment cycle is volatile.

How pricing power works, if at all

Pricing power is uneven across the portfolio. It is strongest where IHI provides certified, safety-critical, technically difficult products with high switching costs or limited qualified alternatives. It is weaker in highly competitive project bidding, standard equipment markets, or contracts where the customer can readily compare multiple suppliers. That is one reason portfolio mix matters so much: the company’s best economics usually come from differentiated technology and lifecycle support, not from commoditized project volume.

Why the business mix matters

A portfolio tilted toward aerospace, defense, and service can support better margins and more durable relationships than a portfolio tilted toward low-margin turnkey work. The tradeoff is that some of the higher-value businesses also have longer development cycles, certification complexity, and program concentration risk. For IHI, the central strategic question is not just how much revenue it has, but how much of that revenue comes from recurring, differentiated, lower-volatility sources.

What drives gross margin, operating margin, and cash generation

Gross margin is driven by segment mix, procurement cost, manufacturing efficiency, warranty and quality costs, and the company’s ability to execute projects without overruns. Operating margin depends additionally on fixed-cost absorption, engineering expense, and corporate overhead. Cash generation can swing significantly because of working capital in long-cycle contracts, inventory for specialized components, milestone payments, receivables collection, and the timing of customer acceptance. In project businesses, reported earnings and cash flow do not always move together.

Revenue model

IHI’s revenue model is primarily contract-based and equipment-based rather than subscription-based. It includes direct product sales, project milestones, government contracts, partner-program revenue, and aftermarket parts and services. In some aerospace activities, economics can also be shaped by long-term program structures and partnership arrangements, which makes revenue visibility different from a typical stand-alone product sale.

4. What Products and/or Services Does IHI Sell?

From a strategy standpoint, the most important offerings are not necessarily the broadest by catalog count. Aerospace and defense are especially important because they are hard to replicate and can produce long-duration revenue streams. Energy-transition products, especially ammonia-related solutions, are strategically important because management has highlighted them as a future growth theme. More traditional infrastructure and machinery businesses remain important, but their value increasingly depends on disciplined project selection and service attachment.

5. What Are the Key Competitors or Peers of IHI?

Because IHI spans multiple industrial markets, it does not have a single universal competitor. The most useful approach is to look at the closest peers by segment and business model.

In some areas, especially defense and domestic infrastructure, competition is narrower and shaped by government procurement, certifications, and local relationships rather than open global competition. In other areas, such as energy systems and aerospace, IHI competes in much broader international ecosystems.

6. What Is the Marketing Strategy of IHI?

IHI’s marketing strategy is primarily technical, relationship-driven, and account-based. This is not a consumer-brand company where mass media advertising drives demand. Instead, demand creation typically comes from credibility with engineers, procurement teams, ministries, utilities, OEMs, and infrastructure owners.

• Reference-led marketing: Past projects, installed equipment, certification history, and performance records matter more than brand campaigns.
• Account and tender support: Marketing is closely tied to sales proposals, bid qualification, product documentation, trade events, and customer-specific technical engagement.
• Thought leadership in strategic themes: In areas such as ammonia and decarbonization, public communication also serves to position IHI as a credible industrial partner in an emerging market.
• Lifecycle marketing: For installed equipment, the relevant “marketing” often means maintenance offers, retrofit proposals, performance upgrades, and service relationship management.

Brand still matters, but mainly as a trust signal. In IHI’s markets, marketing is usually a supporting capability to technical sales and program capture rather than a standalone source of competitive advantage.

7. What Are the Key Customer Segments of IHI?

IHI is diversified, but not evenly diversified. Japan-related public and industrial demand matters heavily, while aerospace exposes the company to a more global and concentrated customer set. That combination gives IHI both stability and complexity.

8. What Is the Sales Model of IHI?

IHI’s sales model varies by business, but it is overwhelmingly a direct, enterprise-grade go-to-market model rather than a retail or self-service one.

• Direct large-account selling: Energy, infrastructure, and defense products are generally sold through direct sales teams, bidding processes, and long customer-development cycles.
• Tender and proposal-led capture: Many contracts depend on formal bids, technical compliance, and project-specific commercial negotiation.
• Program and partner sales in aerospace: In civil propulsion, sales often occur through long-term program relationships and ecosystem partnerships rather than simple spot transactions.
• Channel and OEM routes for selected machinery: Some general-purpose products and industrial components reach end customers through OEM relationships, regional distributors, or specialized dealers.
• Installed-base aftermarket selling: Follow-on service, retrofits, parts, and upgrades are sold against equipment already in operation.

This channel structure affects economics. Direct selling improves customization and customer intimacy, but it also requires long sales cycles and heavy engineering support. Tender-led work can pressure pricing. Aerospace partnerships create deep barriers to entry but can concentrate customer risk. For consultants, that mix creates opportunities in bid excellence, channel design, key-account strategy, and service-sales acceleration.

9. In What Geographies Does IHI Operate?

IHI operates globally, but its footprint is best described as Japan-centered with selective international reach.

Japan

Japan is the company’s headquarters location, the core of its engineering and manufacturing base, and a major source of demand in defense, infrastructure, and industrial equipment. For many of IHI’s businesses, Japan is not just a home market; it is the operational center where key design, quality, and program-control decisions are made.

North America and Europe

These regions matter disproportionately for aerospace relationships, industrial sales, and technical collaboration. They are important not only as customer markets but also as part of the global propulsion and industrial supply chain in which IHI participates.

China and Southeast Asia

IHI has long had business activity across Asia outside Japan, including sales, service, and manufacturing-related operations in selected markets. These regions matter for industrial systems, machinery demand, and regional project opportunities.

Other project markets

Depending on business conditions, IHI also participates in opportunities in markets such as India, the Middle East, and other international project geographies, often through local subsidiaries, partners, or project-specific structures.

Overall, IHI is internationally active, but it is not geographically balanced in the way a global consumer multinational might be. Its highest-value engineering capabilities and many of its most sensitive customer relationships remain concentrated in Japan.

10. Who Are the Owners of IHI?

IHI is a publicly listed Japanese company. Based on its latest annual-report disclosures, ownership is dispersed rather than controlled by a single shareholder. The largest holders have included major Japanese trust banks and custodians, such as The Master Trust Bank of Japan and Custody Bank of Japan, along with other domestic institutional investors. IHI is not known to have a controlling shareholder, and it is not government-owned.

11. How Is IHI Organized?

At a practical level, IHI is organized as a diversified industrial group with corporate oversight and four main reportable operating segments:

• Resources, Energy and Environment
• Social Infrastructure
• Industrial Systems and General-Purpose Machinery
• Aero Engine, Space and Defense

The parent company provides group-level governance, capital allocation, risk management, and shared corporate functions, while operating activity is carried out through business units, subsidiaries, and affiliates. That structure matters because IHI is not managed as a single factory with one product line. It is a portfolio company whose businesses differ materially in customer base, contract structure, capital intensity, and risk. Aerospace also involves partnership and program structures that are economically important even when the legal reporting line sits inside a segment.

12. How Does IHI Operate?

Day to day, IHI operates as an engineering, manufacturing, project-execution, and lifecycle-service company. The value-creation process typically looks like this:

1. Opportunity selection and bid shaping: Identify customer needs, define scope, estimate risk, and decide whether the project or product opportunity fits target returns.
2. Engineering and design: Convert customer or program requirements into certifiable, manufacturable equipment or systems.
3. Procurement and manufacturing: Source specialized materials and components, fabricate at group facilities or approved suppliers, and run strict quality checks.
4. Installation, delivery, or program integration: Depending on the business, this may mean shipping a product, erecting heavy infrastructure on site, or integrating a component into a broader aerospace platform.
5. Maintenance and lifecycle support: Sell parts, repairs, inspections, retrofits, and performance upgrades over the operating life of the asset.

The main operational complexities are long lead times, project-specific engineering, aerospace traceability and certification, large-item logistics, and the financial sensitivity of fixed-price or milestone-based contracts. For IHI, operational excellence is not just about factory efficiency; it is also about contract discipline, quality control, and the ability to manage risk over multi-year programs.

13. What Are the Growth Opportunities for IHI?

The most attractive opportunities are the ones that combine structural demand with IHI’s technical barriers to entry. The biggest limiting factor is not usually market size; it is whether IHI can execute with enough quality and financial discipline to convert those opportunities into durable returns.

14. What Is the History of IHI?

• 1853: The company traces its origins to Ishikawajima Shipyard, giving it one of the longest industrial histories among major Japanese manufacturers.
• 20th century expansion: The business broadened far beyond shipbuilding into heavy machinery, industrial equipment, infrastructure, and propulsion-related fields.
• 1960: Ishikawajima merged with Harima Shipbuilding, creating Ishikawajima-Harima Heavy Industries, a major postwar Japanese heavy-industrial group.
• Later portfolio evolution: Over time, IHI reshaped its portfolio away from a narrow shipbuilding identity toward a broader mix of industrial systems, aerospace, infrastructure, and energy-related businesses.
• 2007: The company simplified its name to IHI Corporation, reflecting the fact that it had become much more than a traditional heavy-shipbuilding business.
• Recent era: Strategy has increasingly centered on aerospace, defense, lifecycle services, and decarbonization themes such as ammonia, while management has also had to address the profitability and risk-management challenges that come with long-cycle industrial programs.

15. What Are the Key Suppliers to IHI?

IHI does not publicly publish a simple ranked supplier list across the group, which is typical for a diversified industrial company. What matters strategically is the type of supplier base it depends on.

• Specialty metals and materials suppliers: Aerospace and high-temperature equipment require nickel-based alloys, titanium, forgings, castings, and other tightly specified materials.
• Precision component suppliers: Bearings, seals, machined parts, control hardware, sensors, and certified subassemblies are critical in propulsion and industrial machinery.
• Fabrication and construction subcontractors: Large infrastructure and plant-related work often relies on capable outside fabricators, site contractors, and installation partners.
• Electrical and control-system vendors: Industrial systems increasingly depend on power electronics, instrumentation, software controls, and monitoring systems.
• Logistics, inspection, and testing partners: Heavy equipment transport, non-destructive testing, and quality certification are essential in long-cycle manufacturing.

Supplier structure matters because qualification cycles are long, especially in aerospace, and because cost inflation or a single bottleneck can impair both delivery schedules and margins. For IHI, supplier quality and resilience are more strategically important than simply having the lowest purchase price.

16. How Does the Supply Chain of IHI Function?

IHI’s supply chain is complex because its products are large, engineered, and often customized. The model varies by business, but several patterns recur.

• Long-lead sourcing: Critical materials and specialized components are often ordered far in advance, especially for aerospace and energy systems.
• Multi-tier manufacturing: Some parts are made internally, while others come from approved specialist suppliers or group companies.
• Project-linked logistics: Infrastructure and plant systems may require heavy transport, on-site assembly, commissioning, and coordination with civil works.
• Traceability and certification: In aerospace and defense, documentation, inspection, and quality traceability are mandatory, not optional.
• Lifecycle parts support: Supply chain design does not end at shipment; IHI also needs spare-parts availability and field-service support over long operating lives.

Supply-chain performance is strategically important because IHI’s businesses are highly sensitive to schedule slips, material shortages, and quality failures. A late casting, an unqualified supplier, or weak inventory planning can cascade into customer penalties, margin erosion, and reputational damage.

17. What Are the Key Assets of IHI?

IHI is an asset-heavy company, but its most important assets are not only physical plants. They also include program positions, engineering know-how, and installed-base relationships.

• Manufacturing and engineering sites: Japan-based works, factories, and technical centers underpin production, assembly, testing, and development.
• Installed base: Equipment already in operation creates opportunities for maintenance, parts, upgrades, and customer retention.
• Aerospace program positions: Certified roles in engine programs are valuable assets because they are hard to win and can last for decades.
• Intellectual property and process know-how: Combustion technology, materials expertise, machinery design, and systems integration capabilities are core competitive assets.
• Certifications and customer approvals: In aerospace, defense, and public infrastructure, qualification itself is a barrier to entry.
• Service and field-support capabilities: The ability to maintain and upgrade assets in the field adds economic value beyond the original sale.

Asset intensity raises barriers to entry, but it also increases the importance of capital allocation. Returns depend not just on owning heavy assets, but on using them in businesses where margins and cash conversion justify the capital tied up.

18. What Is the Technology Strategy of IHI?

Technology is central to IHI’s competitiveness. The company’s strategy is not to be a broad software platform or a commodity fabricator; it is to own and advance critical technologies in fields where customers value reliability, safety, and performance over simple lowest-cost sourcing.

On the customer-facing side, that includes propulsion technologies, combustion and energy systems, industrial machinery, and decarbonization-enabling infrastructure such as ammonia-related solutions. On the internal side, technology strategy also includes digital engineering, simulation, manufacturing automation, and equipment monitoring, all of which help reduce defects and improve lifecycle support.

The real strategic test is whether IHI can translate technical depth into economic advantage. In heavy industry, good engineering alone is not enough. The company has to turn technology into differentiated products, serviceable installed bases, and better project outcomes.

19. What Is the R&D Strategy of IHI?

IHI’s R&D strategy appears to be focused on applied industrial innovation rather than purely theoretical research. The company invests in technologies that can support future product platforms, strengthen current program positions, or open new markets in decarbonization and advanced propulsion.

• Energy-transition R&D: Ammonia-related combustion, handling, and infrastructure technologies are among the most visible public themes.
• Aerospace propulsion and materials: Engine-component design, thermal performance, durability, and certified manufacturing processes remain important.
• Defense and space technologies: Program-driven development in propulsion and related systems supports national-security and space applications.
• Industrial machinery improvement: Efficiency, durability, automation, and monitoring features can improve the installed-base value proposition.

For IHI, R&D is most valuable when it leads to products that are difficult to copy and easy to support over long service lives. It is also likely to be collaborative: in businesses like energy transition, aerospace, and defense, development often happens alongside customers, government programs, and industrial partners.

20. What Is the Finance Strategy of IHI?

IHI’s finance strategy is best understood as supporting a portfolio upgrade. Public management messaging has emphasized profitability, cash generation, and capital efficiency rather than revenue growth at any cost. That is a sensible stance for a company exposed to long-cycle projects and aerospace-program volatility.

• Restore earnings quality: Reduce the impact of low-return or poorly controlled contracts and strengthen the mix toward higher-value businesses.
• Protect liquidity and cash flow: Working capital discipline matters because project businesses can consume cash long before customer acceptance.
• Allocate capital selectively: Prioritize investment in areas such as aerospace, defense, service, and decarbonization technologies where barriers to entry are higher.
• Use portfolio management as a financial tool: Improve returns through restructuring, tighter bid discipline, and possible redeployment away from weaker businesses.
• Balance shareholder returns with resilience: As with many industrial firms, dividends and capital returns need to be weighed against earnings recovery and investment needs.

For investors and operators alike, the key financial question is whether IHI can convert its technical strengths into steadier margins and stronger cash conversion. That is ultimately what determines whether portfolio transformation creates value.

21. How Companies Like IHI Leverage Independent Consultants through Umbrex

Umbrex has built a global community of more than 8,000 independent management consultants based in more than 50 countries. These consultants are alumni of McKinsey, Bain, BCG, and other top consulting firms. Companies like IHI use Umbrex when they want the training and pattern recognition of top-tier consulting talent but do not need a full consulting team with the associated overhead. Umbrex consultants work across Strategy, Operations, Organization, Marketing, Sales, Finance, Technology, ERP, and AI. For a company with IHI’s portfolio and current priorities, the most relevant projects are usually highly targeted and execution-oriented.

• Portfolio strategy review: Evaluate which businesses deserve more capital, which need restructuring, and where project-risk-adjusted returns are too low.
• Civil aerospace recovery PMO: Support leadership with scenario planning, margin bridge analysis, and cross-functional coordination around engine-program disruption and aftermarket recovery.
• Ammonia value-chain growth strategy: Size target markets, prioritize geographies, map partners, and define market-entry plays for fuel handling, storage, and related infrastructure.
• Defense growth operating model: Redesign bid processes, capacity plans, supplier readiness, and program governance for rising Japanese defense demand.
• Service business acceleration: Improve installed-base segmentation, aftermarket pricing, spare-parts availability, and field-service productivity across industrial and infrastructure businesses.
• Procurement and supply-chain resilience program: Identify bottlenecks in specialty materials, dual-source critical parts, and redesign planning for long-lead components.
• Project-risk governance redesign: Strengthen bid/no-bid rules, contract review, milestone control, and early-warning dashboards for complex infrastructure or plant-related work.
• Working-capital and cash improvement: Improve inventory policies, receivables collection, milestone billing, and cash forecasting for long-cycle contracts.
• ERP and program-control modernization: Create better margin visibility across contracts, factories, and business units through targeted systems and data-model improvements.
• International channel and market strategy: Refine distributor models, OEM partnerships, and regional go-to-market plans for industrial systems and general-purpose machinery.