In the mid -term management plan for FY2017-2019, CONNECT TOGETHER 2019, we focused our efforts on providing new solutions that exceed customer expectations throughout the entire life cycle of construction machinery. Specifically, we strengthened our value chain business targeting machines operating around the world, including parts and services, used machines, rentals, parts remanufacturing, and finance to stabilize our profit structure. As a result, the sales composition ratio of the value chain business has grown from 35% to 41%, greatly contributing to the growth of sales and profits.
In order to further enhance this value chain business, it is essential to build an organization that can more quickly respond to customer requests, and improve manufacturing structure appropriate for the era, and optimize the supply chain. Therefore, we have worked to rebuild our global system, drastically revised the business structure of our bases around the world, including Japan, and strove to improve management efficiency, in conjunction with strengthening the value chain business. As of the end of FY2019, the reorganization of overseas factories and the consolidation of bases are almost complete. Currently, we are working on the reorganization of development and manufacturing bases in Japan. Moreover, we have further enhanced governance of quality assurance by placing the Corporate Quality Assurance Group Division, which had been under development and production departments, under the direct control of the president. Through these efforts, we aim to improve our profit level and establish a development and manufacturing system that adapts to changes in the market environment.
In the environment with/after COVID-19, the demand for new machinery is estimated to decrease due to uncertainty about the world economy. Therefore, customers will require multiple choices in terms of machinery procurement and usage. In particular, rentals that enable procurement of the best suited machinery during a construction period at a reasonable price and high quality used machinery that have been properly maintained are expected to become more popular in the market than ever before. Given this, our value chain business is expected to see even greater growth in its presence. Therefore, in the future, we would like to further increase the sales composition ratio of the value chain business, with the support service ConSite® powered by the latest ICT technology to be the primary focus. We firmly believe expanding solutions that transcend the framework of construction machinery manufacturers with digital transformation, which will be the next driver of growth for the Group. On the topic of organizational restructuring, we will continue to consolidate development and production departments, actualize integrated production from parts to finished products, and aim to establish a more efficient and robust organizational structure.