Ingersoll Rand and Trane Mesh
December 21, 2009
Effective with the reporting fourth quarter 2009 results, Ingersoll Rand’s four business segments will include the Climate Solutions Sector, which includes Trane Commercial Systems, Hussmann and Thermo King businesses; the Industrial Technologies Sector, which includes businesses that provide equipment and services for manufacturing, assembly, process and automobile service operations; the Residential Solutions Sector, which includes residential HVAC and residential security businesses; and the Security Technologies Sector, which includes commercial security businesses.
Mike Lamach, president and chief operating officer of Ingersoll Rand, said, “The formation of the Climate Solutions Sector … and our Residential Solutions Sector are important milestone events in the overall integration of the former Trane business with Ingersoll Rand.”
Lamach, a 20-plus year veteran of the HVAC industry, makes the list of 2009 newsmakers because of the considerable task of orchestrating a major industry acquisition.
“It has been a year and a half since Ingersoll Rand acquired Trane, and even as tough as the economy has been, we couldn’t be any more happy to have them as part of the company. We have been able to invest in new technologies, and breathe some new life into the product lines,” said Lamach.
“These organizational changes are consistent with Ingersoll Rand’s strategy to become a more customer-focused enterprise capable of driving higher organic growth rates into the future.”
With most of 2009 in the rearview mirror, Lamach commented on the future of contracting during an exclusive interview with The NEWS.
Q: What are some of the key issues facing commercial HVAC contractors?
A: The here and now is certainly the economy. Navigating through the economy and general cash flow problems make it very hard to hold onto their talent pool. Additionally, [with] the wave of technology coming into the marketplace … contractors must have continual training in order to keep up with the systems approach to equipment and controls.
Q: What does the future hold for design-build contractors?
A: An opportunity and a risk. The speed that is inherent in the process is an advantage for a design-build contractor. However, much of the stimulus money coming through the market will require a typical plan-and-spec approach; we don’t see a lot of speculative building through most of 2011. It becomes almost imperative for design-build contractors to change their business model in the short run. It is a great model going forward, but the short run may dictate some changes.
Q: How important is the green sustainability movement for commercial contractors and Trane?
A: We think it is one of the megatrends that we must think about as we govern the company.
Particularly in the area of energy efficiency, we have put in place a Center for Energy Efficiency and Sustainability that will drive the company’s internal programs and environmental targets, and partner with leading technology and education institutions. We are finding more ways to enhance the innovation and technology made available to our customers. We think this is a decades-long focus for the company.
Sidebar: 2009 NewsmakersNAME: Mike Lamach
TITLE: President and CEO
COMPANY: Ingersoll Rand
LOCATION: Montvale, N.J.
NOTABLE QUOTE: “These organizational changes are consistent with Ingersoll Rand’s strategy to become a more customer-focused enterprise capable of driving higher organic growth rates into the future.”
Publication date: 12/21/2009