Whats Happening In The Mechanical Engineering World

Blog 2
A Review
Erik Weber

As stated in my previous entry, innovation plays a part in shaping the success of a country.  In my mind, you are either moving forward or backwards in today’s world.  There is a constant need for advancements in every aspect of our technically driven lives.  Not only does a country need to be focused on innovative, creative, and inventive ideas, but every business that makes up a country is responsible to do its part as well.  We are all familiar with the phrase that you are only as strong as your weakest link. 

This entry will focus on one company, in my biased mind, that has done its part, and perhaps more, in contributing to the advancement of the United States of America.  This would be United Technologies Corporation or UTC for short.  Some of you may be familiar with UTC, it’s an international, $65 billion, 200,000 plus employees strong empire that has a footprint in numerous industries.  As listed at http://www.utc.com/Our-Businesses/Pages/At-A-Glance.aspx it can be seen that UTC divvies up into 5 main categories: Aerospace Systems, Pratt & Whitney, Otis, Sikorsky, and Climate, controls and security.  One interesting fact, the escalators at the Fargo Scheels are Otis brand.  Also, UTC products were incorporated in the Apollo 11 moon landing.  There isn’t enough space in this blog to completely define United Technologies, however there is a list of some of the companies owned by UTC at http://www.utc.com/Our-Businesses/Pages/Our-Products-And-Brands.aspx. 

In recent news, UTC made a deal with Lockheed Martin Corp. to sell its Sikorsky aircraft business.  If the deal goes through as planned by the end of this year or in the first quarter of 2016, Lockheed will make the purchase for $9 billion.  UTC president and chief executive, Gregory Hayes, said this deal will allow UTC to better focus on high technology systems, services to aerospace and building industry clients.¹ I believe this will be a good choice. 

I have been offered the opportunity to do a co-op at UTC Aerospace Systems in Jamestown, ND.  So I started looking into UTC, at first glance, Sikorsky stuck out as their most unique brand and although it’s awesome to own a helicopter line, I think it makes sense to sell Sikorsky.  If the goes through, I think it will help UTC focus even more on the vast array of products they already produce.  But if the deal goes south, well, then, I can say I work for a company that makes awesome stuff! 

Another recent news article stated that UTC is issuing a share repurchase or stock buyback in an attempt to help raise share prices.² Basically, they are investing in themselves to help climb out of a 20% drop in share prices.  This drop is due to a multitude of things, Otis sales are down in China, Europe has been stagnant financially, cost of new engine production has risen, and there has been trouble with Pratt & Whitney engine production at a new logistical center in New Hampshire.² All this negativity can cause an uneasiness, but Otis sales are up 47% from last year in America due to a new deal with Hudson Yards.² In my opinion, these struggles reflect our current economy.  Perhaps people are still climbing out of our recent recession.  Only the future will tell what will happen, but for my sake and 200,000 other employees, I hope UTC continues to provide high technology systems and services.

Resources: 

¹http://www.charlotteobserver.com/news/business/article27899632.html 
²http://www.wsj.com/articles/united-technologies-unveils-12-billion-buyback-1445343580