ABB Reaps Benefit of North American Investments
The trend of positive growth news from industrial automation suppliers continued this week with significant growth reported by ABB at its annual Automation & Power World event. At the event, held in Orlando, Enrique Santacana, CEO for ABBâs North America region, reported that ABBâs U.S. revenues rose 26 percent to a record $6.7 billion in 2012. He said this growth resulted from its recent acquisitions and âstrong organic growthâ from industrial clients.
Recent U.S. acquisitions made by ABB that most significantly contributed to the companyâs growth include: Ventyx, a utility and energy software provider; Baldor Electric, a supplier of industrial motors and generators; and Thomas & Betts, a manufacturer of low-voltage electric equipment. According to ABB, Thomas & Betts alone added about $1 billion to ABBâs 2012 U.S. revenues.
Organic order growth was reported to have reached 12 percent in 2012 as U.S. industrial customers ordered more products like robots, instruments, motors and low-voltage products to increase productivity and energy efficiency. Other order growth came from utilities increasing investments in new high-voltage transmission lines to upgrade the power grids and adding smart-grid solutions to offer new services and integrate enterprise with operational data.
ABB has reportedly invested $10 billion in the U.S. over the last three years and more than doubled its revenues since 2007 from $3.1 billion. During this period the U.S. work force grew to nearly 20,000 from 8,700. For North America as a whole, including Canada and Mexico, revenues also more than doubled in the last five years to $8.5 billion and the number of employees rose to more than 27,000 from 11,300.
Santacana said that the focus on North America represents a shift for ABB away from centralized manufacturing and toward âregional customization.â
âWeâre moving from an era of mass production to mass customization,â he said. âSpeed of delivery is taking a more prominent role. This affects pricing and runs counter to the long-distance production strategiesâ recently used by numerous western companies by offshoring production to Asia.
One facet of this shift for ABB can be seen in the companyâs investment in local production via the opening of a $100-million power-line cable factory near Charlotte, N.C. Santacana also noted that the companyâs investments in Mexico were not simply driven by a low-cost labor motive. âMexico is no longer just about low cost labor. Itâs about their engineering talent and locationâ in terms of an export strategy as part of the companyâs regional customization focus.
ABB was also recently cited by MIT for being one of its 50 most disruptive companies. ABB made the list for its development of a high voltage DC circuit breaker designed to advance the use of renewable energy. Read more about ABBâs mention in this MIT report as well as learn about the other automation and manufacturing companies that made MITâs most disruptive list.
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