Company type | Public |
---|---|
Industry | Electrical equipment |
Predecessor | Emerson Electric Manufacturing Co. |
Founded | September 24, 1890 |
Founder | John W. Emerson |
Headquarters | Ferguson, Missouri, U.S. |
Key people |
|
Products |
|
Revenue | US$15.17 billion (2023) |
US$2.161 billion (2023) | |
US$13.22 billion (2023) | |
Total assets | US$42.75 billion (2023) |
Total equity | US$20.69 billion (2023) |
Number of employees | c. 67,000 (2023) |
Divisions | List of business platforms |
Website | emerson |
Footnotes /references [1] |
Emerson Electric Co. is an American multinational corporation headquartered in Ferguson, Missouri. [2] [3] [4] The Fortune 500 company delivers a range of engineering services, manufactures industrial automation equipment, climate control systems, and precision measurement instruments, and provides software engineering solutions for industrial, commercial, and consumer markets. [5] [6] [7]
Operating in over 150 countries, [8] Emerson supports a broad range of industries, including oil and gas, power generation, chemicals, water treatment, and heating, ventilation, and air conditioning systems, as well as aerospace and defense solutions. [9]
In recent years, Emerson has expanded its portfolio through strategic acquisitions and investments in digital transformation technologies.The company's focus on automation, data analytics, and artificial intelligence has positioned it as a leader in industrial solutions, helping businesses improve operational efficiency and sustainability. [10] Emerson's digital platforms, such as Plantweb and DeltaV, are now widely adopted across industries to enable real-time monitoring, predictive maintenance, and enhanced decision-making processes. [11] [12]
Emerson deeply integrates software engineering into its operations, with a focus on automation and the industrial internet of things. [13] The company's platforms, such as the Plantweb Digital Ecosystem, DeltaV, and Ovation, are developed to improve operational efficiency across multiple industries. These platforms integrate technologies like artificial intelligence, real-time data analytics, machine learning, and predictive maintenance to enhance performance and optimize asset management in sectors including power generation and water utilities. [14]
In addition to its commitment to technological advancements, Emerson has prioritized sustainability and corporate social responsibility. The company is actively pursuing goals related to energy efficiency, emissions reduction, and community development, making strides toward carbon neutrality in its operations. [15]
Emerson was established 1890 in St. Louis, Missouri, as Emerson Electric Manufacturing Co. by Civil War Union veteran John Wesley Emerson to manufacture electric motors using a patent owned by the Scottish-born brothers Charles and Alexander Meston. In 1892, it became the first to sell electric fans in the United States. [16] It quickly expanded its product line to include electric sewing machines, electric dental drills, and power tools. [17]
During World War II, under the leadership of Stuart Symington, [18] Emerson became the world's largest manufacturer of airplane armament. [19] Emerson ranked 52nd among United States corporations in the value of World War II military production contracts. [20]
In 1954, W.R. "Buck" Persons was named company president. Under his leadership, Emerson diversified its business by acquiring 36 companies. When he retired in 1973, the company had 82 plants, 31,000 employees, and $800 million in sales.
In 1962, it acquired the United States Electrical Manufacturing Company as the U.S. Electrical Motors Division, including the brand U.S. Motors. [21] In 1968, it acquired the InSinkErator company. [22]
Charles F. Knight served as CEO from 1973 to 2000, and was chairman from 1974 to 2004. His tenure marked the development of a rigorous planning process, new product and technology development, acquisitions and joint ventures, and international growth. David Farr succeeded him as chairman, and was also the CEO until 2021. [23]
On December 15, 1999, Emerson Electric reached an agreement to acquire Jordan Industries Inc.'s telecommunications equipment division for a total of $440 million, a strategic move aimed at strengthening its position in the rapidly growing telecommunications sector at the time. [24]
In 2010, Emerson sold its U.S. Motors brand to Nidec Corporation, marking a significant shift in Emerson’s focus towards more advanced technology-driven industries. [21]
On July 26, 2011, Emerson publicly announced its decision to establish its Latin American regional headquarters in Sunrise, Florida, as part of its strategy to expand its footprint in the region and better serve its growing customer base in Latin America. [25]
On December 1, 2016, Platinum Equity acquired Emerson’s Network Power division for more than $4 billion, rebranding the business as Vertiv. This acquisition encompassed several well-known brands, including ASCO, Chloride, Liebert, NetSure, and Trellis, significantly enhancing Platinum Equity’s portfolio in the critical infrastructure technology sector. [26]
In July 2018, Emerson completed the acquisition of Textron Tools and Test Businesses for a total of $810 million, which included brands such as Greenlee, Klauke, HD Electric, and Sherman + Reilly. This acquisition further expanded Emerson’s offerings in the professional tools and test equipment market, adding valuable assets to its business. [27]
On April 1, 2020, Emerson strengthened its presence in the hydropower control systems industry by acquiring the American Governor Company, a provider of technologies used to control hydroelectric turbines. This acquisition was aimed at boosting Emerson’s capabilities in renewable energy sectors. [28]
In October 2022, Emerson reached a significant deal to sell a 55 percent controlling interest in its climate technologies business to private equity firm Blackstone Inc. for $14 billion, including debt. This sale represented a decision by Emerson to pivot towards higher-growth areas such as automation, while also benefiting from Blackstone’s expertise in scaling businesses. [29] [30]
Following a nearly year-long negotiation, in April 2023, Emerson finalized an agreement to acquire National Instruments in an all-cash transaction valued at $8.2 billion. This acquisition was designed to enhance Emerson’s automation technology capabilities, adding advanced testing and measurement technologies to its product portfolio and enabling further innovation in its industrial automation business. [31] [32]
Emerson has undergone significant leadership transitions and strategic shifts since its founding in 1890. Key leadership in the mid-20th century includes W.R. Persons, who focused on diversification and expansion from 1954 to 1973, [33] followed by Charles Knight, under whom Emerson pursued aggressive acquisitions and global growth between 1973 and 2000. David Farr, who served as CEO from 2000 to 2021, continued to expand the company's reach into international markets and advanced technology sectors. [34] Jim Turley is the current Chair of the Board, [35] and Lal Karsanbhai serves as CEO. [36]
Emerson operates through two primary business units: Automation Solutions and Commercial & Residential Solutions. [37] [38] Its Automation Solutions division focuses on process automation and digital transformation, providing software and engineering services to industries like oil and gas, power generation, and pharmaceuticals. [39] The Commercial & Residential Solutions unit focuses on climate technologies and residential products, including heating, ventilation, and air conditioning systems, tools, and compressors. [40]
In 2008 (using data from 2005), researchers at the University of Massachusetts Amherst identified Emerson as the 97th largest corporate producer of air pollution in the United States, down from its previous rank of 56th. Major pollutants indicated by the study include nickel compounds, manganese, diisocyanate, and lead. [41]
Since then, Emerson has made strides in reducing its environmental footprint. According to its 2023 sustainability report, the company achieved a 52% reduction in Scope 1 and Scope 2 greenhouse gas emissions intensity compared to 2021 levels. [42] Additionally, Emerson procures 49% of its electricity from renewable sources and has set long-term goals for further emissions reductions. In recognition of these efforts, Emerson was named the 2023 Energy Star Partner of the Year for energy management. [43]
Emerson provides advanced process automation, control systems, and software solutions critical to industries such as oil and gas, power generation, chemicals, pharmaceuticals, and water treatment. The company's Plantweb Digital Ecosystem integrates advanced sensing technologies, analytics software, and industrial internet of things solutions to optimize manufacturing processes. [44] Emerson's automation solutions also include predictive maintenance technologies, remote monitoring, and control systems that leverage artificial intelligence, machine learning, and edge computing for enhanced performance. [45] Key products include:
Emerson is a leader in heating, ventilation, and air conditioning and refrigeration technologies through its Copeland brand, [46] known for its compressors and related technologies that improve energy efficiency. Other notable brands and products in this segment include:
Emerson Electric also plays a significant role in the aerospace and defense industry, producing high-performance avionics equipment. [47] [48] The AN/APQ series of radar systems, which provide advanced targeting and navigation capabilities for military aircraft, are key products in this segment. Notable products include:
On December 22, 2014, Emerson announced the acquisition of Scotland-based Cascade Technologies Ltd., expanding their gas-analysis portfolio with laser-based measurement analyzers and systems for enhanced industrial emissions monitoring, production efficiencies, and regulatory compliance. [49] Other main Emerson acquisitions and brands include:
On October 2, 2006, Emerson filed suit in federal court against NBC regarding a scene that appeared in the pilot episode of the network's TV series Heroes . The scene depicted Claire Bennet reaching into an active garbage disposal, severely injuring her hand. Emerson's suit claims the scene "casts the disposer in an unsavory light, irreparably tarnishing the product" by suggesting that serious injuries will result "in the event consumers were to accidentally insert their hand into one." [58]
Emerson asked for a ruling barring future broadcasts of the pilot and to block NBC from using any Emerson trademarks in the future.
On February 23, 2007, the case was dropped. NBC Universal and Emerson Electric settled the lawsuit outside of court. [59]
ABB Ltd is a Swiss multinational electrical engineering corporation headquartered in Zurich, Switzerland. Owing to its history, it is dual-listed on the SIX Swiss Exchange in Zurich and the Nasdaq Nordic exchange in Stockholm, Sweden, in addition to OTC Markets Group's pink sheets in the United States. It was ranked 340th in the Fortune Global 500 list of 2020 and has been a global Fortune 500 company for 24 years.
Robert Bosch GmbH, commonly known as Bosch, is a German multinational engineering and technology company headquartered in Gerlingen, Baden-Württemberg, Germany. The company was founded by Robert Bosch in Stuttgart in 1886. Bosch is 94% owned by the Robert Bosch Stiftung, a charitable institution. Although the charity is funded by owning the vast majority of shares, it has no voting rights and is involved in health and social causes unrelated to Bosch's business.
Cooper Industries was an American worldwide electrical products manufacturer headquartered in Houston, Texas. Founded in 1833, the company had seven operating divisions including Bussmann electrical and electronic fuses; Crouse-Hinds and CEAG explosion-proof electrical equipment; Halo and Metalux lighting fixtures; and Kyle and McGraw-Edison power systems products.
Synopsys, Inc. is an American electronic design automation (EDA) company headquartered in Sunnyvale, California, that focuses on silicon design and verification, silicon intellectual property and software security and quality. Synopsys supplies tools and services to the semiconductor design and manufacturing industry. Products include tools for logic synthesis and physical design of integrated circuits, simulators for development, and debugging environments that assist in the design of the logic for chips and computer systems. As of 2023, the company is a component of the Nasdaq-100 and S&P 500 indices.
National Instruments Corporation, doing business as NI, is an American multinational company with international operation. Headquartered in Austin, Texas, it is a producer of automated test equipment and virtual instrumentation software. Common applications include data acquisition, instrument control and machine vision. Since October 2023, NI operates as Emerson Electric's test and measurement business unit after getting acquired.
Invensys Limited was a multinational engineering and information technology company headquartered in London, United Kingdom. At its height, the company had offices in more than 50 countries and its products were sold in around 180 countries.
Yokogawa Electric Corporation is a Japanese multinational electrical engineering and software company, with businesses based on its measurement, control, and information technologies.
General Electric Automation and Controls division combines what was formerly known as GE Intelligent Platforms and Alstom's Power Automation and Controls. In 2019, GE Intelligent Platforms was acquired by Emerson Electric and is now part of Emerson's Discrete Automation business unit.
WEG S.A. is a Brazilian company operating worldwide in the electric engineering, power and automation technology areas, headquartered in Jaraguá do Sul, Brazil. The company produces electric motors, generators, alternators, transformers, turbines, BESS, drives, coatings, and provides industrial automation services, among other products and integrated solutions related to electric systems.
Platinum Equity, LLC is an American private equity investment firm founded by Tom Gores in 1995, headquartered in Beverly Hills, California. The firm focuses on leveraged buyout investments of established companies in the U.S., Europe and Asia.
Cadence Design Systems, Inc. is an American multinational technology and computational software company. Headquartered in San Jose, California, Cadence was formed in 1988 through the merger of SDA Systems and ECAD. Initially specialized in electronic design automation (EDA) software for the semiconductor industry, currently the company makes software and hardware for designing products such as integrated circuits, systems on chips (SoCs), printed circuit boards, and pharmaceutical drugs, also licensing intellectual property for the electronics, aerospace, defense and automotive industries, among others.
Avocent Corporation was an information-technology products manufacturer headquartered in Huntsville, Alabama. Avocent formed in 2000 from the merger of the world's two largest manufacturers of KVM equipment, Apex and Cybex Computer Products Corporation. As of August 2006, the company employed more than 1,800 people worldwide.
Liebert Corporation was a global manufacturer of power, precision cooling and infrastructure management systems for mainframe computer, server racks, and critical process systems headquartered in Westerville, Ohio. Founded in 1965, the company employed more than 1,800 people across 12 manufacturing plants worldwide. Since 2016, Liebert has been a subsidiary of Vertiv.
Automatic Systems International, Inc. (ASI), or Open Systems International (OSI) is an automation software company headquartered in Medina, Minnesota, with international offices in Canada, Colombia, Spain, India, Dubai, Australia, Singapore, and China. Founded in 1992, OSI is privately held and employee-owned. The company's systems are used for the real-time management and optimization of production, transport, and delivery networks for utilities in the electric, oil and gas, transportation, and water industries. The company's core real-time OT platform has been successfully implemented at more than 550 installations worldwide.
GE Oil & Gas was the division of General Electric that owned its investments in the petroleum industry. In July 2017, this division was merged with Baker Hughes.
Nidec Industrial Solutions is an Italian multinational company based in Milan, that designs and manufactures rotating electrical machines, Power electronics and industrial automation. It was founded in 2012 with the acquisition of Ansaldo Sistemi Industriali by Nidec Corporation. Working in electrical engineering, designs and manufactures of electric motors and generators, power electronics and control systems and automation for industrial applications, Nidec Industrial Solutions was founded in 2012 when Nidec, a Japanese multinational corporation listed on the TYO: 6594 and NYSE: NJ, NJ and ON TOPIX 100 Component and Nikkei, acquired Ansaldo Sistemi Industriali (ASI). ASI, an industrial branch of the Ansaldo Group, was privatized in 2000. Its markets include petrochemical, energy, steel, marine and industrial automation.
Vertiv is an American multinational provider of critical infrastructure and services for data centers, communication networks, and commercial and industrial environments.
GE Digital is a subsidiary of American energy conglomerate GE Vernova. Headquartered in San Ramon, California, the company provides software and industrial internet of things (IIoT) services to industrial companies.
Delta Electronics, Inc. is a Taiwanese electronics manufacturing company. Its headquarters are in Neihu, Taipei. It is known for its DC industrial and computer fans, data center rectifiers and switching power supplies. The company operates approximately 200 facilities worldwide, including manufacturing, sales, and R&D centers.
Turntide Technologies (Turntide) is a U.S.-based business designs and manufactures best-in-class electric motors, power electronics, energy storage, and thermal equipment for anything that moves–on the road, off the road, on rails, and on the water. With breakthrough innovations like its axial flux motors, the company is setting a new standard for electric vehicles and equipment of all sizes. Turntide's systems-level approach delivers electric power solutions across a wide range of industries. Leading the practical shift toward global electrification, the team helps original equipment manufacturers (OEMs) deliver top- and bottom-line value by expanding their product lines to include electric vehicles. Turntide's technology is ideal for construction, agriculture, commercial vehicles, industrial, premium automotive, light vehicles, rail, and marine. It maintains operations in the U.S., Canada, the U.K., and India.