Exercising Caution

Siemens’ CEO says company will approach 2017 carefully

Siemens’ CEO has said the company will take a cautious approach to its deals in the upcoming calendar year.

Although it is unclear yet what effects this could have on the industrial electric motor market, the open statement reflects a larger trend, and the company has such a wide influence that it is worth keeping an ear to.

In the interview with Bloomberg, which took place Saturday in Singapore, company CEO Joe Kaeser indicated much of the reasoning behind this is geopolitical. It isn’t hard to determine what the specifics are even if they aren’t mentioned (possibly Brexit, a tumultuous United States election process, and precarious circumstances throughout Europe involving refugees and national security), but Kaesar referenced the “geopolitical environment, which gives a lot of uncertainty to our customers about investing into the future. If people don’t invest into new manufacturing, renewable energy, new health-care technology — these are our revenues and our bookings.” He did specifically list concerns of populism, migration, climate change and the impact of the so-called Internet of things. If you question the on-the-ground effect geopolitical factors can have on manufacturing, here’s an example from as recently as Tuesday.

Kaesar has a luxury other CEOs don’t in being conservative. One can note Siemens’ recent business transactions and reasonably deduce the company is satisfied with its current assets, and essentially sittin’ pretty. In the last two years alone, they have acquired the following assets and pioneered or contributed to the following projects:

-Acquired Rolls-Royce Energy’s gas turbine and compressor business, December 2014

-Acquired Dresser-Rand, June 2015

-Acquired simulation software supplier CD-adapco, April 2016

-Merged wind power businesses with Gamesa, June 2016

-Founded its own startup division, June 2016

-Opened new headquarters in Munich, June 2016

-Pioneered electric-motor powered airbus project, July 2016

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Trackbacks/Pingbacks

  1. Sie Change | Electrical Apparatus Magazine - July 13, 2017

    […] CEO Joe Kaeser announced in the fall of 2016 that the company would harbor a cautious approach in the coming year. So much for […]

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