In an exclusive interview, David Farr talks of societal pressures, stakeholders' concerns and portfolio optimization in his quest to keep brand Emerson competitive.
I cover commodities, mostly oil & gas, often debunking risk premiums.As 'Industry 4.0' or the digitally empowered fourth industrial revolution brings profound changes to the global economy, Emerson Electric , a signature industrial sector player is juggling its own unique operating challenges whilst keeping its stakeholders pretty happy.
"I don’t brag; it's a team effort in an evolving operating climate. I'm not your archetypal corporate mandarin but a change manager, who first and foremost thinks of strategies and operating models to keep Emerson relevant in the digital age. Companies that survive and stay relevant have strategic and management processes to adapt and alter their course to what matters for customers, industry and society.
From the buyout of Textron Tools and Test to the sale of Nidec, every move happened to achieve two key objectives – making automation and digital solutions the mainstay of the business and ensuring that a competitive advantage is maintained in"every segment" Emerson operates in. Emerson valued Aventics at about 1.5 times the $425 million in revenue it generated in 2018, and while it is not of Rockwell's scale, the parent company is expected to mold it more effectively to its headline agenda.
Farr discusses challenges faced by the industrials complex at IHS Markit's CERAWeek conference in Houston, Texas, U.S., on March 13, 2019. "But it really goes back to a fundamental process that's built into Emerson. We are always trying to challenge ourselves on threats and opportunities. I am in a very short line of Emerson CEOs who stepped in and made sweeping headline changes. My predecessor did it, I am doing it, and I sure hope my successor does it too.
The biggest of the Asian markets – China – has been a familiar place for the Emerson CEO for over four decades."I predicted 12 years ago that a Chinese transition to a more service oriented economy was closer than we think. It's what is happening at the moment. India's economy is less mature and therefore growing faster given the phenomenal work done by Prime Minister Narendra Modi despite political constraints. We are expanding in both.
"What I actually watch is our performance in the industrial peer group and the S&P500 – not the absolute dollar performance but the relative performance, to make sure that we are being properly valued relative to peers. When talking to shareholders, it all bottles down to communicating the value preposition that Emerson brings to the table and why investors should own it.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
England need to learn how to change changeAfter Saturday's incredible 38-all draw with Scotland Eddie Jones said he h...
Read more »
Not too late to get 'real change' to Brexit deal: Britain's JohnsonFormer British Foreign Minister Boris Johnson said on Sunday it was not too late...
Read more »
Facebook Says Outage Is ResolvedFacebook blamed one of its longest-ever outages on a change to its servers, saying the daylong disruption to its core app, Instagram and WhatsApp was resolved.
Read more »
Here's How Young People Around The World Are Going On Strike To Protest A Lack Of Action On Climate ChangeHundreds of thousands of school students across the world are today expected to skip class and take to the streets to demand politicians take action to tackle climate change.
Read more »
Thousands Of Australian Kids Have Rallied For Action On Climate ChangeAustralian students turned out for the Global Climate Strike.
Read more »
This artificial leaf wants to help fight climate changeCarbon dioxide is the main greenhouse gas released by humans through things like electricity, transportation and steel production. Researchers are trying to use artificial leaves to reduce these emissions.
Read more »