U.S. Market Leadership Is Key to Siemens Growth

July 22, 2008
Understanding the Needs of the Customers

“We understand customer needs,” said Dennis Sadlowski, CEO of Siemens Energy & Automation, on the reasons for Siemens’ growing success in the North American industrial market. “We use our channels and our customers to help us ‘Think Customer.’ That’s our culture. We are in the business of making our customers more productive and more competitive.”

Sadlowski addressed a cadre of international journalists gathered to mark the U.S. debut of the company’s exiderdome traveling expo. “We have 10,000 employees in the U.S. and an additional 2,000 in Mexico. We’re based in Alpharetta, Georgia, with 160 sales and support locations in North America. We have eight R&D facilities, and we go to market with more than 3,000 distributors. We provide solutions,” he said, “in industrial automation, drive technologies, industrial solutions, building automation and mobility.”

“Our customers’ success begets our success.” Siemens E&A President and CEO Dennis Sadlowski discussed the company’s growth plans in North America, where revenues already have doubled since 2004.
“Our focus on our customers is a self-sustaining business model,” Sadlowski said. “Their success becomes our success.” In addition to the powerful technology platforms of Totally Integrated Automation and Totally Integrated Power, Sadlowski said, Siemens has established vertical industry centers of competence in automobile/aerospace, oil and gas, food and beverage, and chemical and pharmaceutical sectors.

He talked about success stories such as Cornhusker Ethanol in Lexington, Neb., which is typical, he said, of ethanol plants in the U.S. “Using fieldbus and integrated asset management,” he said, “we have been successful in automating 60% to 70% of all ethanol plants in the U.S.”  “We have one of the largest fieldbus DCS implementations in the United States at a major chemical company,” he added.

And while many auto manufacturers are scaling back, he noted, Siemens production technology has enabled the construction of a major new production line at BMW in Spartanburg, S.C. Other success stories Sadlowski discussed included Sencorp in Hyannis, Mass., and the KUKA flexible assembly project.

“Our growth is clear,” Sadlowski said. “From 2004 to 2005, we grew 7.5% in percent of sales. From 2005 to 2006, we grew 47%, and from 2006 to 2007, we grew 23%.” Some of that growth came from acquisitions like Flender, US Filter, UGS and Robicon, all bringing new markets and technologies to integrate into the Siemens product portfolio.

“Our vision is market leadership,” Sadlowski declared. “By 2010 to 2012, we expect to be the global leader in our core markets of factory automation, process automation, power distribution and solutions and services in North America.”