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Refreshing the Market Through Mergers

Santiago Echeveste - Johnson Controls
Vice President and General Manager, Contracting, Systems and Refrigeration, Building Technologies and Solutions

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Wed, 11/01/2017 - 15:49

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Q: What is Johnson Controls’ reasoning behind the merger with Tyco and what challenges will it have to overcome in the next year?

A: Growth. Together, Johnson Controls and Tyco will create a stronger company that will be better positioned for success in the future. The merger will connect comprehensive portfolios of controls, HVAC, fire and security and energy systems to advance unique capabilities in technology and application expertise, including design, installation and value-added services. Johnson Controls and Tyco have complementary branch networks and access to independent channels for global growth, which will help enhance revenue and earnings growth opportunities. The immediate challenge we face will be to make sure we optimize our combined offerings quickly so that customers can take advantage of our newly expanded portfolio. As two very large companies with thousands of products and offerings, it is our top priority to make it easy for our customers to continue doing business with us.

Q: Why have sustainability and energy efficiency become more than just passing trends in Mexico?

A: People have become more conscious about their energy consumption due to the increase in energy prices. New commercial developments are looking to achieve LEED certification, not just for energy efficiency, but because they want to achieve the complete circle of sustainability. At the moment, we are working on the very first “Net Zero” building in Mexico. Net Zero buildings are constructions that have a zeronet energy consumption. It is a significant upcoming trend in the industry. We have joined a consortium of companies, bringing together the expertise of different sectors to be the first to construct a development of this type. Although the construction will have an ecological design and will not use heating and cooling, we are in charge of creating and installing the entire control system that will help coordinate the many other technologies in the building.

Q: How does Johnson Controls illustrate the added value of its solutions and which products have the largest market share?

A: We accompany our clients through the entire lifecycle of a construction. In order for our clients to see the added value of our solutions, we create ROI analyses that demonstrate how they could reduce operational costs drastically. Mexico does not have strong regulations when it comes to energy efficiency. We must first show our customers that there is a strong ROI. The second most difficult part is that one may need to approach them with a financial proposal. We work closely with the Energy Saving Trust (FIDE) to get funding for our customers.

We are seeing an increase in demand for magnetic chillers, as well as for our division of retrofits. This division visits clients with 15-20-year-old buildings and proposes new technology that could make their operations more efficient. As a company, we have decided to make a conscious choice to no longer offer R-22 refrigerant in the Mexican market. Instead, we now are offering more environmentally friendly solutions. Inverters are also gaining a large market share, especially in residential. In contrast to traditional systems, inverters are quieter, have lower operational costs and are far more efficient. As for commercial, Variable Refrigerant Flow (VRF) is becoming more common between developers, decreasing the use of chillers. Buildings Controls is the foundation of Johnson Controls. This is the ability of a building operator to control the building’s settings from lighting, to air conditioning to access on one platform increases efficiency, reducing operating costs and creating healthy environments that promote productivity

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