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Emerson Electric

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Emerson Electric Co.
Company typePublic
IndustryElectrical equipment
PredecessorEmerson Electric Manufacturing Co.
FoundedSeptember 24, 1890;134 years ago(1890-09-24)
FounderJohn W. Emerson
HeadquartersFerguson, Missouri,U.S.
Key people
Products
  • Process control systems
  • Climate technologies
  • Power technologies
  • Industrial automation
  • Electric motors
  • Storage systems
  • Professional tools
RevenueIncreaseUS$15.17billion(2023)
IncreaseUS$2.161 billion (2023)
IncreaseUS$13.22 billion (2023)
Total assetsIncreaseUS$42.75 billion (2023)
Total equityIncreaseUS$20.69 billion (2023)
Number of employees
c. 67,000(2023)
DivisionsList of business platforms
Websiteemerson.com
Footnotes / references
[1]
Emerson Electric office inMarkham, Ontario

Emerson Electric Co.is an Americanmultinational corporationheadquartered inFerguson, Missouri.[2][3][4]TheFortune 500company 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, includingoil and gas,power generation,chemicals,water treatment,andheating, ventilation, and air conditioningsystems, as well asaerospaceanddefensesolutions.[9]

In recent years, Emerson has expanded its portfolio through strategic acquisitions and investments indigital transformation technologies.The company's focus onautomation,data analytics,andartificial intelligencehas 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]

Operations

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Emerson deeply integratessoftware engineeringinto its operations, with a focus onautomationand theindustrial 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 likeartificial intelligence,real-time data analytics,machine learning,andpredictive maintenanceto enhance performance and optimizeasset managementin sectors includingpower generationandwater utilities.[14]

In addition to its commitment to technological advancements, Emerson has prioritized sustainability andcorporate social responsibility.The company is actively pursuing goals related toenergy efficiency,emissions reduction,andcommunity development,making strides towardcarbon neutralityin its operations.[15]

History

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Emerson was established 1890 inSt. Louis,Missouri, as Emerson Electric Manufacturing Co. byCivil WarUnion veteranJohn Wesley Emersonto manufactureelectric motorsusing apatentowned by the Scottish-born brothers Charles and Alexander Meston. In 1892, it became the first to sellelectric fansin the United States.[16]It quickly expanded its product line to include electricsewing machines,electric dental drills,andpower tools.[17]

Emerson Electric News Flashes, WWII

DuringWorld War II,under the leadership ofStuart 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 itsbusinessby 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 theInSinkEratorcompany.[22]

Charles F. Knightserved 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 Farrsucceeded 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 toNidec 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 inSunrise, 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 Equityacquired Emerson’s Network Power division for more than $4 billion, rebranding the business asVertiv.This acquisition encompassed several well-known brands, includingASCO,Chloride,Liebert,NetSure, and Trellis, significantly enhancingPlatinum Equity’s portfolio in the critical infrastructure technology sector.[26]

In July 2018, Emerson completed the acquisition ofTextronTools and Test Businesses for a total of $810 million, which included brands such asGreenlee,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 controlhydroelectric 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 firmBlackstone 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 acquireNational Instrumentsin an all-cash transaction valued at $8.2 billion. This acquisition was designed to enhance Emerson’s automation technology capabilities, adding advancedtesting and measurement technologiesto its product portfolio and enabling further innovation in its industrial automation business.[31][32]

Corporate

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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 byCharles 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 Turleyis 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 onprocess automationanddigital transformation,providing software and engineering services to industries likeoil and gas,power generation,andpharmaceuticals.[39]The Commercial & Residential Solutions unit focuses onclimate technologiesand residential products, includingheating, ventilation, and air conditioningsystems, tools, andcompressors.[40]

Environmental records

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In 2008 (using data from 2005), researchers at theUniversity of Massachusetts Amherstidentified Emerson as the 97th largest corporate producer ofair pollution in the United States,down from its previous rank of 56th. Majorpollutantsindicated by the study includenickelcompounds,manganese,diisocyanate,andlead.[41]

Since then, Emerson has made strides in reducing itsenvironmental footprint.According to its 2023 sustainability report, the company achieved a 52% reduction in Scope 1 and Scope 2greenhouse gas emissionsintensity 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 2023Energy StarPartner of the Year for energy management.[43]

Products

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Automation Solutions

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Emerson provides advancedprocess 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 leverageartificial intelligence,machine learning,andedge computingfor enhanced performance.[45]Key products include:

Commercial & Residential Solutions

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Emerson is a leader inheating, ventilation, and air conditioningandrefrigerationtechnologies 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:

Aerospace and Defense Solutions

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Emerson Electric also plays a significant role in theaerospaceanddefense industry,producing high-performanceavionicsequipment.[47][48]The AN/APQ series ofradarsystems, which provide advanced targeting and navigation capabilities formilitary aircraft,are key products in this segment. Notable products include:

Corporate relationships

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Emerson's brands acquisitions

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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:

  • Advanced Protection Technologies
  • AgileOps
  • AMS Suite
  • American Governor Company
  • Aperture
  • APM Automation Solutions
  • Alco Controls
  • Appleton Group (formerly EGS Electrical Group)
  • Artesyn (spun off on Jan 2014)
  • ASCO International (sold toSchneider Electricin 2017)
  • ASCO Numatics
  • Astec(spun off on Jan 2014)
  • Aventics
  • Avocent
  • Avtron Loadbank
  • Bettis
  • Branson
  • Bristol Babcock
  • Cascade Technologies Ltd
  • Chloride Group
  • Chromalox(sold toJPMorgan Partnersin 2003)[50]
  • Closet Maid (sold toGriffon Corpin late 2017)
  • Control Products
  • Control Techniques (sold toNidecin early 2017)
  • Cooper-Atkins
  • Copeland (sold toBlackstonein early 2023)
  • CSI Technologies
  • DeltaV
  • Dixell
  • Electronic Navigation Industries
  • Enardo LLC
  • Energy Systems
  • Firetrol
  • Fisher Regulators
  • Fisher Valves & Instruments
  • Flexim[51]
  • Fusite
  • GeoFields
  • Greenlee
  • Groveley Detection Ltd
  • InSinkErator(sold toWhirlpool Corporationin 2022)
  • Intelligent Store
  • Islatrol
  • Knurr (a business of Vertiv now)
  • Leroy-Somer(sold toNidecin early 2017)
  • Liebert (a business of Vertiv now)
  • METCO
  • Metro (InterMetro Industries)
  • Micro Motion
  • Mimic
  • Mobrey
  • National Instruments
  • Open Systems International(pending sale late 2020)[52]
  • Ovation
  • Paine Electronics
  • Paradig
  • Penberthy
  • Pentair Valves & Controls
  • Permasense
  • Plantweb Optics
  • Power Transmission Solutions
  • Progea Group
  • ProSys, Inc.[53]
  • ProTeam
  • Pryne & Co., Inc.[54]
  • Ridgid(Ridge Tool Company)
  • Rosemount
  • Rosemount Analytical
  • Roxar
  • Saab Marine Electronics
  • Sensi (Part of Copeland)[55]
  • Spence and Nicholson
  • SSB Wind Systems (sold toNidecin early 2017)
  • Surge Protection
  • Syncade
  • TopWorx
  • Tescom
  • Therm-O-Disc
  • Universal Western Electric Co. (1960)[56]
  • Verdant[57]
  • Vilter
  • White-Rodgers
  • WORKSHOP
  • Zedi

Controversies

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NBCHeroeslawsuit

[edit]

On October 2, 2006, Emerson filed suit in federal court againstNBCregarding a scene that appeared in the pilot episode of the network's TV seriesHeroes.The scene depictedClaire Bennetreaching 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]

References

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  1. ^"US SEC: 2023 Form 10-K Emerson Electric Co".U.S. Securities and Exchange Commission.November 13, 2023.RetrievedNovember 14,2023.
  2. ^"Contact Us"ArchivedNovember 21, 2008, at theWayback Machine.Emerson Electric Company. Retrieved August 18, 2009.
  3. ^Edwards, Greg."$60 million in data centers coming online at Emerson".St. Louis Business Journal.August 29, 2008. Retrieved August 18, 2009.
  4. ^"Ferguson city, Missouri"[permanent dead link].U.S. Census Bureau.Retrieved August 18, 2009.
  5. ^"David Farr"ArchivedAugust 30, 2010, at theWayback Machine
  6. ^"Edward L. Monser".Emerson. Archived fromthe originalon August 5, 2018.RetrievedMay 5,2017.
  7. ^"Subsidiaries and affiliates of Emmerson Electric Company".SEC.September 30, 2018.RetrievedNovember 25,2020.
  8. ^"Emerson - ION Treasury customer success story".ION.RetrievedSeptember 21,2024.
  9. ^Ellison, James (September 22, 2024)."What Kind of Company is Emerson Electric".blinksandbuttons.net.RetrievedSeptember 23,2024.
  10. ^MarketScreener (November 10, 2023)."Emerson's New Edge Solution Democratizes Operational Data for Faster Digital Transformation - MarketScreener".www.marketscreener.com.RetrievedSeptember 27,2024.
  11. ^"Delta V Control System Overview".SlideShare.April 2, 2011.RetrievedSeptember 27,2024.
  12. ^"DSM uses Emerson's PlantWeb® digital plant architecture to cut maintenance time in half".www.chemeurope.com.RetrievedSeptember 27,2024.
  13. ^Ganguli, Shinjini (October 7, 2021)."Emerson Electric working on deal with software firm Aspen Tech - Bloomberg News".Reuters.RetrievedSeptember 25,2024.{{cite news}}:CS1 maint: url-status (link)
  14. ^"Emerson's New Ovation 4.0 To Deliver Software-Defined, AI-Ready Automation Platform For Power And Water Industries".www.wateronline.com.RetrievedSeptember 23,2024.
  15. ^Kersey, Amy (July 10, 2024)."Emerson Finds Energy in Sustainability".NAM.RetrievedSeptember 23,2024.
  16. ^"A Brief History of Fans".www.fancollectors.org.RetrievedSeptember 22,2024.
  17. ^"Emerson Electric Co. | Encyclopedia.com".www.encyclopedia.com.RetrievedSeptember 23,2024.
  18. ^"Emerson Net Income, Sales Set New Peaks: Reflect Demand for Plane Turrets".Chicago Daily Tribune.Vol. CIV, no. 13 (Final ed.). Chicago, Illinois. January 15, 1945. p. 20 – via Newspapers.com.
  19. ^"Emerson Electric Company | Science Museum Group Collection".collection.sciencemuseumgroup.org.uk.RetrievedSeptember 23,2024.
  20. ^Peck, Merton J.&Scherer, Frederic M.The Weapons Acquisition Process: An Economic Analysis(1962)Harvard Business Schoolp.619
  21. ^ab"History – U.S. Motors".Nidec Motor Corporation.
  22. ^Gomes, Nathan (August 8, 2022)."Whirlpool to buy InSinkErator for $3 billion to beef up kitchen presence".Reuters.RetrievedSeptember 24,2024.{{cite news}}:CS1 maint: url-status (link)
  23. ^"Emerson Electric".Knowledge.RetrievedSeptember 22,2024.
  24. ^"Emerson Electric Moves to Expand in Telecom Gear".Archived fromthe originalon September 10, 2013.
  25. ^"Emerson jobs: 21 to start, 75 by 2015"ArchivedSeptember 8, 2012, at theWayback Machine.Sun Sentinel
  26. ^"Emerson Network Power Rebrands as Vertiv, Appoints New CEO".BusinessWire.com.December 1, 2016.RetrievedAugust 28,2020.
  27. ^"Textron Completes Sale of Tools & Test Businesses to Emerson".finance.yahoo.com.RetrievedDecember 21,2018.
  28. ^Ellichipuram, Umesh (April 3, 2020)."Emerson buys hydroelectric turbine controls company American Governor".Power Technology.RetrievedSeptember 23,2024.
  29. ^Cooper, Laura; Gottfried, Miriam (October 31, 2022)."Blackstone, Emerson Electric Strike $14 Billion Buyout Deal".The Wall Street Journal.
  30. ^"Emerson selling climate technologies in $14B deal".Associated Press.October 31, 2022.
  31. ^Gomes, Nathan (April 12, 2023)."Emerson Electric to buy NI for $8.2 bln to deepen automation push".Reuters.
  32. ^Merrilees, Annika (April 12, 2023)."Emerson succeeds in hostile bid, reaches $8.2 billion deal to buy National Instruments".St. Louis Post-Dispatch.
  33. ^Johnston, David Cay (November 24, 1999)."Wallace Persons, 90, Executive; Led Growth of Emerson Electric".The New York Times.
  34. ^Barker, Jacob (February 2, 2021)."Emerson's David Farr, candid and outspoken, to retire. 'He tended to get out in front'".StlToday.com.RetrievedMarch 10,2021.
  35. ^"Company Leadership – James S. Turley".Northrop Grumman.RetrievedSeptember 22,2024.
  36. ^Edwards, Mike (February 24, 2021)."Emerson announces new chief executive officer Lal Karsanbhai - CPECNCPECN".www.cpecn.com.RetrievedSeptember 24,2024.
  37. ^"About Emerson".Emerson US.
  38. ^"Surestore Storage".Saturday, April 24, 2021
  39. ^"Emerson Accelerates Digital Transformation of Oil and Gas Industry With Cloud-Hosted Software Suite on Microsoft Azure".JPT.September 20, 2019.RetrievedSeptember 23,2024.
  40. ^antaranews.com (June 11, 2021)."Emerson marks 100 years of air conditioning and refrigeration innovation through its Copeland™ technology".Antara News.RetrievedSeptember 23,2024.
  41. ^PERI: HomeArchivedMarch 8, 2010, at theWayback Machine
  42. ^"Emerson – Emerson Releases 2023 Sustainability Report – EMR Online AG".June 12, 2024.RetrievedSeptember 23,2024.
  43. ^Kersey, Amy (July 10, 2024)."Emerson Finds Energy in Sustainability".NAM.RetrievedSeptember 23,2024.
  44. ^Greenfield, David (November 16, 2022)."Emerson's Plantweb Incorporates AspenTech Software to Expand Automation Capabilities".Automation World.RetrievedSeptember 23,2024.{{cite web}}:CS1 maint: url-status (link)
  45. ^Tidwell, Joshua (June 22, 2024)."Emerson Announces NI Product Advancements With AI Tools".Control.com.RetrievedSeptember 23,2024.{{cite news}}:CS1 maint: url-status (link)
  46. ^McIver, Terry (June 5, 2023)."Emerson Now Under the Copeland Name".Contracting Business.RetrievedSeptember 23,2024.
  47. ^"Aerospace / Defense Pressure & Temperature Measurement Solutions | Emerson US".www.emerson.com.RetrievedSeptember 23,2024.
  48. ^"Emerson's Test and Measurement business, formerly NI is aiming to solidify its leadership in the Test & Measurement market".Electronics Maker.June 18, 2024.RetrievedSeptember 23,2024.
  49. ^"Automation Solutions".Emerson US.
  50. ^"StackPath".January 2003.
  51. ^"Emerson Expands Automation Leadership With Agreement to Acquire Flexim".August 16, 2023.RetrievedSeptember 21,2023.
  52. ^"Emerson Expands Commitment to Advanced Software Solutions with Agreement to Purchase Open Systems International, Inc"(Press release). August 27, 2020.RetrievedOctober 2,2020.
  53. ^"Emerson Completes Acquisition of ProSys, Inc. | Emerson".Archived fromthe originalon September 11, 2018.RetrievedSeptember 11,2018.
  54. ^"Pryne to Become Emerson Unit".Los Angeles Times.March 20, 1957. p. 71.RetrievedOctober 23,2020.
  55. ^"Sensi Thermostats".Sensi US.
  56. ^"The Fountain Valley News June 1, 1962 — Colorado Historic Newspapers Collection".
  57. ^"Emerson Acquires Verdant, a Leading Energy Management Company in Hospitality".Bloomberg News.March 11, 2020.
  58. ^La Monica, Paul (October 18, 2006)."'Heroes' lawsuit against NBC by Emerson draws readers' ire. - Oct. 18, 2006 ".money.cnn.com.RetrievedSeptember 22,2024.
  59. ^Goetzl, David (February 23, 2007)."Emerson Drops Product Placement Case Against NBC".MediaDailyNews.RetrievedJune 27,2017.
[edit]
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