Across the industrial automation landscape, several firms have pursued recent divestitures and spin-offs to streamline and reorient their businesses around growth-focused areas such as Life Sciences, Test & Measurement, and Automation / Industrial Software. Companies like Honeywell, Emerson, Johnson Controls, GE, and Danaher have recently focused on selling off subsidiaries they no longer consider core to their future activities. This strategy allows industrial automation players to raise substantial amounts of capital, fueling acquisitions that align with their strategic objectives (e.g., Emerson’s purchase of NI). Additionally, these moves help strengthen these companies’ balance sheets, enabling them to concentrate R&D spending on areas of high competency and gain a competitive edge.
While most players in the industrial automation space have been highly active, some have been less so and are undergoing strategic changes. For instance, Schneider Electric recently replaced its CEO to accelerate strategy execution across both organic and inorganic opportunities. This shift highlights the critical need for large industrial conglomerates to streamline their businesses around areas with high growth potential and fortify their position within key markets.
