I want to talk about the UTC break up today I actually think it's an
incredible incredible way for UTC to really refocus and focus on design in
the design of their businesses so first and foremost what would happen right
they acquired Rockwell Collins this now makes UTC Collins the second largest
player in the aerospace market a market that's growing and a lot less volatile
than the other markets so that the upside potential for me for an investor
is really really large if you think about the long game and I think
businesses today need to focus a lot more in the long game than the short
game you know whether it's the design of the business or the model B Corp
whatever you are understanding your long term vision your long term gain that's
how you're gonna get the market on board the people on board and the
possibilities on board and I really really like that so for me I'm thinking
long game here not short term I'm not a Wall Street trader right so
I'm gonna hold on to UTC for a long time especially with the Collins thing so
what this does is creates focus and I think the leadership team being focused
now on individual business units allows them to really laser in on their growth
and their focus for market share domination and as a leader being able to
sort of chase all these different rabbits you're not gonna catch any but
being able to focus and laser in that's how you're gonna win so when I think a
lot about Otis right Otis has a lot of upside potential connected elevators
connected world connected possibilities as they start to continue to transform
their ability to evolve into new business models with what IOT can
deliver for them preventative maintenance right some of the things
that we saw in the GE playbook quite some time ago where GE predicts was
really winning right I like where that's going I think about Carrier Carrier
right now kind of an interesting phase for them getting hit pretty hard with
the aluminum tariffs right now with costs a lot of volatility in the housing
market so those ships create a lot of I would
say instability I would say volatility that makes it really difficult to
deliver the same way that aerospace is right now so it's the design of these
systems the business models the people the organizations that create that
opportunity for design transformation or digital transformation depending on
what buzzword you subscribe to you know I think about what that means for
business it means real growth right so UTC used to be dwarfed by GE GE was
multiple times larger from a market value perspective with this merger now
UTC Collins has twice the market value of GE but the transformation costs are
real it's not all upside right the tax hit that they're gonna have to go
through for this is real the information technology and the systems and the
applications and the software the hardware the impact is real right so we
have to pull the band-aid off one way or another to do this and when I think
about this UTC breakup as individual business units I think the sum of all
its parts are gonna be worth more than the conglomerate together I hope I'm
right with this prediction but what I like the most about it is I think it
aligns to where the world is going a more connected world a more focused
world and for UTC now's the time to reset now the time to refocus now is the
time to re-emerge as a new market leader so congratulations to the folks at UTC I
think the UTC Collins merger is a good way of looking at brave leadership by
their CEO and the support from the Board of Directors the possibilities are
really endless for them now for my friends at Pratt & Whitney and the other
individuals that are going to now be you unique business units I'm really excited
for what that means for you as leaders and possibility perspective so thanks
for tuning in.
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