Milwaukee-based executive rockwell automation We expect investment in U.S. manufacturing to continue despite increasing economic uncertainty and headwinds. On the company’s fourth-quarter earnings call, Rockwell Chairman and Chief Executive Officer Blake Morett described the US investment trend as “shoring” rather than “reshoring.” “It means the US will be a much bigger beneficiary of new capital investment, rather than shutting down factories in China and other parts of Asia and returning them to the US,” Moretto said. He noted that companies, including Rockwell, are investing in building redundancy into their supply chains and bringing their products closer to the end consumer. “I don’t think the current economic headwinds are going to make people[say]’You’re kidding, let’s push manufacturing back to the rest of the world and chase lower labor rates’. For the full year, Rockwell reported revenue of $7.76 billion, up 11% from fiscal 2021. However, the company’s net income was $932 million, down slightly from about $1.36 billion last year. The decrease was primarily due to Rockwell’s fair value adjustment of his investment in PTC. On an adjusted basis, net income increased slightly. Rockwell also said that for the year he received $10 billion in orders, up 20% from 2021. Rockwell Automation’s chief financial officer, Nick Gangestad, described the increase as “unprecedented demand” for the company’s products in an interview with BizTimes Milwaukee. Nick Gangestad Credit: Jake Hill Photography Gangestad said the pace of new orders has slowed somewhat from its mid-year peak, but orders continue to outpace sales. “I’m not sure I would characterize it as a change in appetite,” he said of moderation. “I think it’s encouraging that they still have that interest.” guidance to increase annual sales by 11%. One of the factors supporting the company’s outlook is that it has a backlog of about $5 billion toward 2023. These existing orders will account for more than half of annual sales. Under more normal conditions, Rockwell will book about a month of sales early in the year. “We’re trying to be conservative. We’re trying to take into account a lot of moving parts,” Gangestad said. Another factor shaping Rockwell’s guidance this year is the ongoing problems with semiconductors. This is a global issue that affects many industries, including nearly everything Rockwell manufactures. “We’re seeing stabilization and improvement,” said Gangestad of the chip situation, noting that about 18 months ago, suppliers didn’t know what they could or couldn’t ship. Gangestad said Rockwell and its suppliers have worked together to get a better picture of what components suppliers can ship. “It’s not perfect yet,” he said. During Rockwell’s earnings call, Moret emphasized the potential for strength in many of the industries the company serves. Automotive, for example, highlighted continued investment in electric vehicles and batteries. “We continue to see both established brand owners and start-ups need to increase their EV fleet capacity or else they will lose share and be ready to meet rising consumer demand. It will be gone,’ he said. He also pointed to continued investment in warehouse automation. “We don’t expect e-commerce to reaccelerate anytime soon, but we continue to see strong business for retailers looking to be more efficient behind the scenes and in their own warehouses,” he said. Moret said.
