Johnson Controls Is Not Only Best Shareholder Friendly Company

Implications: There is a fierce competition between major OEMs of HVAC.  JCI has positioned itself differently after acuiring York International. Its position strenghtened by offering to an end user a complete package of the equipment and controls. In addition, new, more advanced AC units came out as a product of synergy of advanced chemistry from traditinally strong part of JCI combined with knowledge in mechanical design of York.

Analysis: There are several major OEMs in residential and commercial HVAC, cush as Carrier, Lennox International, Trane (about to become division of Ingersoll Rand) Goodman Global LLC, Johnson Controls. On can add several more names known in the comercial and industrial subsectors of the industry. However, it is very interesting to note, that Johnson Controls positioned itself somehwat different, when it acquired York International, an HVAC equipment manufatcturer. Before the acqusition JCI was noticeably present in the field of building efficiency conrtols and automation; now, actually manfucaturing the mechanical equipment, as well as control systems and software to monitor and operate the complex HVAC equipment,  the company becomes one-stop-shopping for an end user.  Recent contracts awards of JCI in India and China do not come as a huge surprise. Diversification pays off. Synergy between chemical engineering of JCI and mechanical engineering of YI also brings new types of residential air conditionning units that start successfully compete with household names of Lennox, Trane, and Carrier. As a result, JCI may take away some accounts from the Big Three of the residential HVAC.