Robert Bosch expects sales to increase between 3% and 5% this year after the full acquisition of two joint ventures led the company to record-high sales in 2015. Bosch expects the growth to come from a combination of innovative products and innovative services. In North America, the Bosch Group employs some 31,000 associates, and in business year 2015 generated consolidated sales of $14 billion.
Bosch intends to provide service solutions for every aspect of connecting products on the Internet of Things (ioT) from personal vehicles to entire cities. In the world of connected industry, also known as Industry 4.0, Bosch benefits from the practical experience gained from applying smart technology in 250 of their own plants.
In 2016, about 50 Bosch applications will be running on Bosch’s proprietary IoT cloud. Half of Bosch’s products are already Internet capable. In the future they will sell not only products but services for them. The networking of Bosch’s own plants will generate cost savings of 1 billion euros and additional sales of about the same. Bosch has invested more than 400 million euros in startups.
STANLEY BLACK & DECKER
From the Electrical Products Group Conference, where SB&D was represented by CEO John Lundgren:
Global Tools & Storage, Power Tools & Accessories and Hand Tools & Storage account for about two-thirds of their revenue. Geographically, the U.S. accounts for a little more than half of their revenue; that percentage has grown with the strong U.S. dollar.
Security is a good business to be in during recessionary times; about 18% of their revenue comes from Security. Security is a countercyclical business that is helped by commercial construction.
They’ve made 100 acquisitions in the past 15 years.
They are doing about $500 million in online business, primarily through Amazon, but also through some of their big customers such as Home Depot and Lowe’s, which together now account for 5% to 6% of SB&D’s online revenue.
The dedicated teams in Global Tools & Storage and other divisions are tasked with coming up with breakthrough innovations that will contribute at least $100 million in revenue. There is plenty of room for mergers and acquisitions in Global Tools & Storage. They look at how their business model might be disrupted, and how they can beat someone else at that game.
They do upwards of $1 billion in business with their two largest retail partners (Home Depot and Lowe’s) and the growth of their online business is something that they believe they have to balance very carefully and make sure their retailers know they won’t allow them to be disadvantaged in ecommerce. Lundgren went on to note that neither retailers nor manufacturers own the end user.
They have an objective of producing at least 50% of what they sell in a country in the country itself.
SB&D told the media that they have a pipeline full of potential targets for merger or acquisition and are back at work after a self-imposed two-year hiatus. CEO John Lundgren said that he sees potential for dealmaking in the Tools and Storage business. Despite SB&D’s number one market share in the tool industry, the company has only a 17% global market share, with ample room to consolidate globally. Industrials are also another area of emphasis.
SB&D is partnering with the STEMIE Coalition. STEMIE hosted the National Invention Convention and Entrepreneurship Expo (NICEE) at the U.S. Patent office in Virginia. It was the first national competition for students to display their problem solving and critical thinking skills through products that they have invented or companies they have launched. The inaugural event hosted 265 K-12 students from all over the country. Products ranged from a Braille keyboard that clips onto an iPad to a device that senses a dog’s stress levels and treats the stress with aromatherapy and music. SB&D says they are looking forward to the NICEE growing, and thinks it will increase the dedication to STEM education nationally.
Newell Brands is moving their corporate headquarters from Atlanta, Georgia to Hoboken, New Jersey. The State of New Jersey offered NB $27 million in tax incentives to make the move.
Newell Brands is moving global creative work for some of their most visible brands from BBH New York to J. Walter Thompson New York, according to Adweek. Among the brands moving are Irwin and Lenox. NB already moved global PR responsibilities from BBH to WPP’s Cohn & Wolfe unit. In 2015 Newell Rubbermaid spent $91.6 million on measured media; when BBH first won the business, Newell Rubbermaid spent about $265 million worldwide.
Newell Brands hired Tiffany’s CFO Ralph Nicoletti to replace current CFO John Stipancich, who is leaving the company.
Sales for fiscal 2015 rose 6% to a record U.S. $5.0 billion. Sales adjusted for foreign currency grew 10.5%. Power Equipment sales grew 11.8% to U.S. $4.0 billion, accounting for 78.8% of total sales. The Milwaukee business grew 23.7% adjusted for foreign currency.
Trimble is partnering with the University of Cambridge to collaborate on research to advance technology development in the engineering and construction industry. Trimble will work closely with the Laing O’Rourke Centre’s Construction Information Technology Laboratory (CIT). CIT is a state of the art facility with a mission to solve complex engineering problems and automate difficult construction tasks by developing decision support tools. The overall goals is to develop accessible and intuitive technologies that can drive increased collaboration for the Design-Build-Operate (DBO) lifecycle of buildings and infrastructure. The construction sector is rapidly transforming as a result of the revolution in digital engineering.
Hexagon’s sales increased 2% in the first quarter compared to last year, below the 3.8% increase expected by analysts. The company expects sales to improve further over the remainder of the year.
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