America’s manufacturing sector was once considered to be a major contributor in the country’s GDP. Once contributing to 25% of the GDP in the 1950s currently produces half that percentage factoring inflation and other variables. At such a time, UTC was widely tipped to be a dominant force courtesy of its unique ability to develop advanced jet engines for both commercial and military aircraft. Alternatively, the company is also responsible for the developing the best escalators and elevators worldwide. The company’s remarkable success stems from diversifying in various sectors stretching to providing refrigerators, air-conditioning units and assembling more helicopters than any other U.S enterprise.
Unknown to most people, much of the company’s success stems the leadership at the helm with more emphasis on its Chairman and CEO, Louis Chenevert. Mr. Chenevert is credited with various accomplishments that directly contributed to UTC’s growth. Since his appointment in 1993, UTC has witnessed unprecedented success coupled by significant gains in the market. While at the helm, UTC has experienced a dramatic rise in share prices from $37 to $117.
Secrets Behind the Success
UTC’s impressive financial performance wouldn’t have been possible without the immense contribution of its highly dedicated team of engineers. As such, the company has profited from shifting its aerospace engineers from the production site to Connecticut, where there were much more needed. Alternatively, UTC also capitalized on its latest partnership with Goodrich and Otis to effectively dominate the market. The former provided a one-stop shopping platform for airframe integrators such as Embraer and Bombardier.
Otis on the other hand, provided a climate and control setup for the establishment of integrated solutions for infrastructure and commercial projects worldwide. More importantly, UTC is on-course to reaping maximum profits based on its sustainable product-life cycle in which revenues are generated from the dissemination of final products and the manufacture of new products. More prominent is UTC latest acquisition of International Aero Engines which provides an extended market life for the company.