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Johnson Controls CEO Stephen Roell Spearheads Drive Towards Energy Efficiency

By Frances Denmark
February 2010

Keywords: Johnson Controls, Stephen Roell, energy efficiency, green investing, green initiatives, Building Efficiency division, auto industry,


This year, Johnson Controls begins a yearlong commemoration of its 125th anniversary. But the Milwaukee company probably won’t be celebrating one recent, bittersweet milestone: In 2009 its venerable Building Efficiency division, the original thermostat business, again became Johnson’s top revenue generator, supplanting the once-dynamic but lately beleaguered Automotive Experience unit, which sells everything from auto electronics to whole car seats.Founded in 1885 by Wisconsin Natural Sciences professor Warren Johnson, who invented the thermostat, the company diversified into auto supplies in 1978, and by 1993 sales from that burgeoning business had eclipsed those from home and office controls. But with the decline of the U.S. auto industry, Automotive Experience’s revenue has dropped by one third since 2008.Nonetheless, Johnson’s CEO and chairman, Stephen Roell, sees the company’s increased dependence on the Building Efficiency division as more of an opportunity than a liability. “It’s a business that thrives on energy efficiency,” Roell explains....

Comments (3)

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Adam Atwood Feb 18, 2010

The traditional Performance Contracting model can be a dangerous proposition. There are simply no solid guarantees and the building owner is still having to pay millions in capital to make the necessary renovations. Transcend Equity is the NEW way of creating energy efficiencies in commercial buildings. They do this through their MESA agreement (Managed Energy Savings Agreement). A MESA agreement takes Performance Contracting to a whole new level. Transcend Equity invests their own capital into the buildings, there is no risk to the client. They have a great story, check them out.


roy Feb 15, 2010

An auto components manufacturer is a natural fit for the energy gadgets business. They are used to a diverse product line of all kinds of little black boxes, and they are attuned to changes in consumers' energy consumption. I have always thought this kind of company would adapt quickly to this new market. After all, you don't just have to find new energy, you need to manage its consumption more and more efficiently.


Victor Nittolo Feb 12, 2010

Yes, the economy is down, but I think Mr. Roell comment regarding the hybrid, and eventually fully electric vehicles, is too "tail wagging the dog." Oil shouldn't control hybrid advances. Hybrids and Electrics should be thought of independently, a robust industry unto themselves. That was the problem in the '90's when electric ceased because the oil companies wanted it to. And they used pricing and government strategies to try to axe the industry. There should be an independent march towards a fully self-sustaining vehicle with oil competing honestly for their marketshare. The public have caught on to the fact that Electric is very fast, reliable, still untapped, economical and "green." I think Johnson Controls ought to rethink their Business Plan. Thank you.


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