Once again, Control and ARC Advisory Group present our Top 50 list of Automation Suppliers. We have not changed our rubric for several years now, so you can compare results year-on-year for the past few years. Our considerations are spelled out in the sidebar, "How We Do It."
The list is organized into two categories: Worldwide and North America. The Worldwide data includes the North America numbers. Some companies can be seen to have very large Worldwide presences, but very small North American footprints, and the opposite is, of course, true as well.
The Ups and Downs
As shown in the charts, there has been some movement in positions, but none in the rankings of the top three: Siemens, ABB and Emerson are tops worldwide; Emerson, Rockwell and ABB lead the pack in North America. Globally, Rockwell and Schneider traded places since last year, as did Honeywell and Danaher; and in North America, Schneider and Danaher traded slots while Cameron moved up from 10th to eighth.
At the end of the global list, there are several companies that moved to the Honorable Mention section from the main list. This is not because their sales have decreased, because most of them had sizeable increases. In fact, most of the change came with the addition of companies new to the Top 50 Worldwide list. Additions this year include Festo (21) and Harting (39), as well as the large conglomerate centered on Eaton's acquisition of Cooper (37). Magnetrol, after several years on the Honorable Mention list, makes the Top 50 for North America at number 50.
There were many acquisitions in the past 12 months. Some of these are defining, like the acquisition of vMonitor by Rockwell. This puts Rockwell deeply in wellhead monitoring in the oil patch, and gives Rockwell a suite of essential sensors in both a proprietary wireless protocol and WirelessHART. Another defining acquisition was the purchase, just after the Schneider acquisition of Invensys was announced, by Invensys of Indusoft. This gives Invensys a slice of the controller market below the typical Wonderware HMI application set. The majors in the automation industry are filling out their portfolios with "sideways" acquisitions.
But it isn't just the majors. For example, Advantech, the powerhouse from Taiwan and Greater China that is 28th on the Worldwide list and 25th on the North America list, purchased GPEG, a British intelligent display manufacturer. This gives Advantech a smart display capability it didn't have for industrial automation, but also a strong foothold in the gaming industry. Product synergy can be wonderful.
Schneider and Invensys
In what could prove to be a resurgence in consolidation among the major automation vendors, Schneider Electric will be completing its acquisition of Invensys sometime early in the new year. The charts in this article do not reflect this acquisition, but simply adding the revenue of both companies together comes to more than $8 billion, worldwide, which may move the combined company up a slot or two in the rankings. This is the first acquisition of a major automation company by another major in quite some time.
In the past, such acquisitions have foundered on the reality—or even the perception—that there is too much overlap and not enough new capability. In this case, as Schneider CEO Jean-Pascal Tricoire noted in an interview with CNN, there is very little overlap and many potential synergies.
Whether the acquisition delivers its anticipated benefits remains to be seen. Some Invensys executives, led by CEO Mike Caliel and software boss Ravi Gopinath, believe with Tricoire that the synergies will count more than any integration casualties and reorganizations will cost the combined organization.
Invensys has a huge installed base and long history, and has been engaged in an extensive and expensive revamp of its hardware and software offerings for the past five or six years. Much of this R&D effort has just come to fruition, for example, with the recent release of the Foxboro Evo combined control and safety system. Invensys also can point to a stable of industry-leading solutions through its Wonderware and Triconex brands, as well as industry-leading instrumentation, simulation and training, asset management and advanced process control capabilities. These complementary capabilities, together with new customers and distribution channels, represent clear growth possibilities for a combined company.