Focus on North America
CEO Joe Hogan reaffirms ABB's strategy
ABB CEO Joe Hogan opened Day 2 of Automation & Power World with a message that should be self-evident by now: ABB is serious about North America.
With $12 billion invested in the region over the past three years, primarily in the acquisitions of Ventyx, Baldor and Thomas & Betts, the company today boasts a portfolio that is more balanced than ever before. That applies in terms of the businesses as well as the geography.
Hogan also delivered a message of optimism. Despite the ongoing shenanigans in the US Congress, he argued, there is much to be positive about in the US economy.
This view was supported by remarks made by North America Region Manager Enrique Santacana just before Hogan took the stage. A slide entitled “headwinds and tailwinds” outlined several positive trends in the North America market: a housing recovery, growth in manufacturing, and an energy boom that is a “game changer” for US-based businesses
What’s important to note, Santacana pointed out, is that the growth trends are all within ABB’s “sweet spot,” (a point illustrated in literal terms with an animated golf club). Specifically, the company is well positioned to benefit from investments being made in and because of the sectors noted above. The fact that ABB has a much larger presence in North America than it did just a few years ago only accentuates the potential.
In one sense, though, this is really nothing new for the company. As Hogan noted in his remarks, ABB has long looked for growth beyond its original domestic markets of Switzerland and Sweden as a matter of necessity. Now, this has translated into looking beyond Europe to Asia and more recently, North America. Despite a short-term outlook that holds considerable downside potential (largely political in nature), the long-term view is decidedly upbeat.