Bosch’s new Core 18V 6.3Ah battery uses several breakthrough technologies to create a battery that runs longer and delivers more power, giving users a corded tool performance from a cordless tool. Even though the battery is interchangeable with their current 18V battery, it has a bigger, better cell with more lithium ion. The 15% increase in size deliver 80% more power. A $20 million laser welding machine and the use of copper instead of cheaper metals makes the cells much more efficient so the battery stays cooler and the user gets more power, according to a recent feature in Tools of the Trade. The report also noted that Bosch has promised more innovations will be forthcoming in 2018.
Robert Bosch plans to recruit more than 20,000 specialists and executives in the technical and commercial fields this year, with nearly half of all jobs relating in some way to software and coming up with solutions for the Internet of Things (IoT). New hires will also be made for manufacturing. Nearly 20,000 engineers at Bosch already deal with software. Many of them work at the Bosch Center for Artificial Intelligence. Bosch is using a flexible working model in many locations in order to allow associates to fully develop their creativity. Innovative solutions include working from home, working part time and job-sharing. Associates also can continue their development by switching units or functions or taking on special tasks. Team members come from all continents to become part of an eight-week “disruption discovery” team that is charged with coming up with ideas for new business models even if they make current models obsolete.
Robert Bosch plans to develop solutions for all aspects of the Internet of Things (IoT) in China, and will also invest in more new plants in the country as China pushes for more consumption. Among other ventures is a new power tools plant planned for Chengdu and a thermotechnology joint venture with Guangdong Vanward New Electric Co. Bosch plans to develop connected mobility, smart city and smart home products with long-term potential.
STANLEY BLACK & DECKER
From the Raymond James Institutional Investors Conference, where SB&D was represented by CFO Don Allan:
The company is heavily weighted to Tools & Storage, which accounts for approximately $7.5 billion of their $11.5 billion in revenue.
The Stanley Fulfillment System is the operating system that allows them to have outsized, capital-efficient organic growth and drive their business both organically and through M&A.
Their long term objectives are 4% to 6% organic growth and 10% to 12% revenue growth, with working capital turns in excess of ten. They ended 2016 with 10.6 times working capital turns.
They described their brand structure as first tier premium brands including DeWalt, Stanley and Black & Decker, and second tier brands including Porter-Cable, Bostitch and Mac Tools.
The newly acquired Newell Tool business has brands Irwin and Lenox; they did not indicate the tier these brands would fit into.
They think there are great revenue synergy opportunities with Newell Tools. NTs revenue today is primarily generated in five countries around the world, so they see a big emerging market opportunity and more opportunities in Europe.
The Accessories business has a nice manufacturing footprint that will allow them to basically double their existing Accessories business.
They can probably cross-brand different products and accessories with brands like DeWalt and Stanley and sell them around the world.
They will probably build a U.S. plant that will focus on manufacturing the Craftsman brand, which today is manufactured outside the U.S.
They expect to grow the Craftsman business ten fold over the next ten years, because while the brand is iconic, it is very hard to find unless you go to a Sears store. They consider Craftsman a very unexploited opportunity. There is also a question of what ultimately will happen to Sears, which as everyone knows is really struggling.
They think FlexVolt will account for $200 million in revenue this year.
The acquisition of Newell and Craftsman and sale of Best Mechanical Locks increases their exposure to home centers and big box retail. They ideally would like to be the consolidator within Tools to the extent the law will allow. While they had wanted to deemphasize their exposure to home centers and big box, the two opportunities that arose were too good to pass up.
The Stanley-Craftsman deal has closed. SB&D CEO James Loree reiterated that Stanley will honor the Craftsman warranty, invest in the brand and provide more information on distribution plans when those plans are developed. They intend to focus on quality, innovation and U.S. manufacturing, with the goal of rapidly increasing sales through new channels. Sears will continue sourcing, marketing and selling Craftsman-branded products in their stores, independent of SB&D.
Fiscal 2016 revenue rose 8.8% to $5.5 billion from $5 billion in 2015. Adjusted for foreign currency, revenue was up 9.8%. TTI said it was the seventh consecutive year of record high revenue.
TTI’s largest business, Power Equipment, had sales growth of 12.6% to $4.5 billion, accounting for 81.6% of total sales. Ryobi delivered double-digit growth. The Milwaukee business has strong forward momentum.
TTI plans to launch more than 50 products this year that target infrastructure building, according to CEO Joe Galli. Galli went on to say that they can move very quickly if President Trump rolls out protectionist trade policies against China, because they have kept five U.S. factories open in order to allow them to respond to political changes and opportunities.
Trimble is collaborating with DAQRI to integrate the DAQRI Smart Helmet with Trimble’s mixed-reality application suite to enable outdoor and on-site support for the Architecture, Engineering, Construction and Operations and Natural Resources segments. The move is part of Trimble’s Mixed-Reality Pilot Program. Live demonstrations will be showcased at ConExpo 2017 in Las Vegas. Mixed reality allows customers to interact with digital content in the context of the physical environment. The DAQRI Smart Helmet is designed to work in enterprise settings and display real-time information based on the user’s surroundings.
Trimble acquired Oy Silvadata Ab, a Finland-based provider of cloud-based data, collaboration and workflow automation services.
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