Fortive is a diversified industrial technology conglomerate known for its portfolio of professional and engineered products, software, and services. Based in Everett, WA, the company operates on a global scale, with a network of businesses in various sectors including test and measurement tools, healthcare technologies, and engineered components. Its strategy of owning and operating a range of companies allows it to leverage synergies across different industries and enhance its market presence through innovative solutions.
With an operating model that emphasizes continuous improvement and sustainable growth, Fortive’s subsidiaries are leaders in their respective fields. The conglomerate prides itself on harnessing advancements in technology and research to drive innovation. This focus on cutting-edge developments, along with a commitment to leadership and management excellence, has positioned Fortive as a significant player in the United States’ industrial segment and beyond.
Key Takeaways
- Fortive owns a diverse array of companies specializing in industrial technologies and professional services.
- Headquartered in Everett, WA, Fortive has a robust market presence and a culture of innovation and sustainability.
- The conglomerate emphasizes strong leadership and strategic research and development to maintain competitive excellence.
Fortive Overview
https://www.youtube.com/watch?v=gRe-6BqErMc&embed=true
Fortive is a diversified industrial technology conglomerate known for its essential technologies that are integral in connected workflow solutions.
History and Origins
Fortive Corporation was founded in 2016 as a spin-off from Danaher Corporation, setting its headquarters in Everett, Washington. It started as a Fortune 500 ‘startup’ with a heritage of industrial innovation stretching back more than a century. Under the leadership of CEO Jim Lico, Fortive has rapidly grown its global footprint to include more than 175 locations across 50 countries.
Core Values and Mission
Fortive’s core values and mission reflect a commitment to creating technology that accelerates progress. The company’s purpose is succinctly put: “Essential technology for the people who accelerate progress”. They focus on high-impact fields such as workplace safety, engineering, and healthcare, positioning themselves as key players with a bold vision of improving lives through advanced industrial technology. These values underpin their financial success, translating to robust revenue and net income figures that underscore their status as an industrial growth leader on the Fortune 500 list.
Leadership and Management
At the helm of Fortive’s robust portfolio of companies are a dynamic executive team and a strategic board of directors, guiding the conglomerate to innovate and excel across various sectors.
Executive Team
Jim Lico serves as the President and CEO, steering Fortive with a keen focus on growth and technological advancement. His leadership reflects in Fortive’s position as a forerunner in industrial technologies. Under his guidance, the executive team including Chuck McLaughlin as Executive Vice President and Kirsten Paust as VP of Fortive’s dynamic business segments work synergistically to uphold the conglomerate’s vision.
Board of Directors
The Board of Directors, where Jonathan Schwarz takes a seat, offers governance and counsel to ensure Fortive’s enduring success. Contributions from seasoned board members like James A. Lico shape the company’s strategic decisions, ensuring sustained growth and value delivery in line with Fortive’s commitment to innovation and sustainability.
Business Segments
Fortive is structured into three primary business segments, each focusing on distinct markets and industries. These segments encompass a range of operating companies that deliver advanced products and services across multiple domains, including manufacturing, healthcare, and technology.
Intelligent Operating Solutions
Within the Intelligent Operating Solutions segment, Fortive’s companies provide state-of-the-art software and services. These solutions enable improved workflow and performance in industries that require precision and reliability. Companies under this segment, such as Gordian, specialize in intelligent construction costing and operations, crucial for industries where accurate estimations and efficient project management are vital.
Precision Technologies
Precision Technologies form the second segment of Fortive’s diverse portfolio. This includes companies like Fluke, known for their industry-leading test and measurement tools crucial in the engineering and manufacturing sectors. High-quality equipment such as liquid, flow, and pressure sensors from Gems Sensors & Controls also fall under this category, demonstrating Fortive’s commitment to engineered precision across its product range.
Advanced Healthcare Solutions
The Advanced Healthcare Solutions segment is dedicated to enhancing the efficiency and quality of healthcare services. It encompasses companies like Censis and Fluke Health Solutions, which provide advanced healthcare test and measurement tools and surgical asset management services. These contributions are essential in supporting the equipment needs of medical professionals and in optimizing patient care delivery.
Through these segments, Fortive continues to impact the essential areas of EPS (Earnings Per Share), with each company contributing to the corporation’s overall financial health and strategic direction. The emphasis on varying industries—spanning from healthcare to manufacturing and technological services—underlines Fortive’s extensive reach and its role in enhancing operational efficiency and innovation.
Financial Performance
Fortive’s financial performance reflects the company’s continuous growth and robust profitability. Both revenue growth and profitability are key metrics that exhibit Fortive’s stability in the market and commitment to delivering value to its shareholders.
Revenue Growth
In the third quarter of 2023, Fortive reported a substantial increase in net earnings, indicating consistent revenue growth over the period. With a figure of $218 million in net earnings, they demonstrated the company’s ability to grow financially. Earlier, the company also showcased a strong financial performance in both the fourth quarter and the full year of 2022, with the fourth quarter alone bringing in $227 million in net earnings from continuing operations.
Profitability
Fortive’s profitability can be examined through various indicators such as profits, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), and stock price. The adjusted net earnings from continuing operations were reported at $313 million in the fourth quarter of 2022, while the third quarter of 2023 showed an increase with adjusted net earnings at $302 million. This consistent profitability has the potential to influence the company’s stock price and market value, reinforcing Fortive’s competitive position.
Innovations and Technologies
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Fortive is at the forefront of creating advanced technologies and solutions, focusing on areas critical to safety and productivity in several industries. They utilize a range of innovative technologies to enhance safety measures and derive actionable insights through analytics and advanced sensors.
Safety Solutions
Fortive’s dedication to safety is exemplified by their subsidiary, Advanced Sterilization Products, which provides state-of-the-art infection prevention. They integrate advanced data technologies to ensure the highest standards of safety in healthcare settings. In transportation technologies, Fortive companies work on enhancing safety through innovative solutions that are applied across various vehicular systems, ensuring the security and well-being of both passengers and operators.
Sensors and Analytics
At the heart of Fortive’s technology are sophisticated sensors and analytics systems. These technologies facilitate monitoring and detection across different parameters, including gas detection, which is crucial in industrial settings. For instance, Anderson-Negele is involved in producing hygienic sensing and processing instrumentation, vital to maintaining standards in food and pharmaceutical production. Analytics play a pivotal role within Fortive’s ecosystem, aiding in the transformation of raw data into actionable data, driving efficiency and innovation across sectors.
Subsidiaries and Brands
Fortive is known for its broad portfolio of subsidiaries and brands that specialize in professional and engineered product solutions across various sectors.
Key Acquisitions
Fortive has strategically expanded its reach through the acquisition of companies that align with its vision. One notable acquisition includes Fluke, a manufacturer of professional electronic test tools, which adds to Fortive’s robust lineup of brands in the tool sector. Another significant move was the acquisition of Accruent, a provider of intelligent solutions for the built environment, for about $2 billion, showcasing Fortive’s commitment to software development in real estate and facility management.
Operating Companies
Fortive owns several operating companies that deliver diverse technology-driven solutions:
- Professional Instruments: These companies are pivotal in delivering precision technology. Tektronix is a prominent example of Fortive’s dedication to this segment, offering innovative measurement solutions.
- Engineered Solutions: Fortive operates in the global power infrastructure through companies like Qualitrol, using data-driven monitoring technologies to enhance efficiency.
Also, under Fortive’s wing are companies such as Invetech and PacSci EMC, providing custom automation for innovative therapies and cutting-edge energetic materials technology, respectively. These entities exhibit Fortive’s investment in future-forward technologies.
Organizational changes have also marked Fortive’s journey. It was part of Danaher until 2016 when it spun off, and in 2020, Fortive announced its intention to transform yet again—it revealed plans to split into two companies, with Vontier emerging as the industrial technology-focused offshoot. This strategic move underscores Fortive’s agile adaptation to the evolving market and its dedication to specialization across its divisions.
Market Presence
Fortive, with its extensive portfolio of operating companies, has established a formidable market presence characterized by a broad global reach and diverse end markets. The conglomerate specializes in professional and engineered products and services that are integral to several high-impact fields.
Global Reach
Fortive operates through 175 locations worldwide, spanning 50 countries. The corporation has crystallized its status as a powerhouse in the industrial technology sector since its inception in 2016. Extending its footprint internationally allows Fortive to capture various market segments and maintain a robust sales volume.
End Markets
The company caters to a wide array of end markets to ensure a diversified revenue stream. Key sectors include workplace safety, engineering, healthcare, and connected workflow solutions. For instance, products from Fluke, a Fortive company, serve professionals in industries requiring precision testing and measurement tools. Assets under the Fortive umbrella, like Advanced Sterilization Products, deliver state-of-the-art infection prevention technologies, indicative of Fortive’s significant influence in healthcare solutions. Each subsidiary company contributes to the strength and volume of Fortive’s sales, showcasing the strategic advantage of their diverse market integration.
Sustainability and Social Responsibility
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Fortive’s commitment to sustainability and social responsibility is evident through its significant endeavors to reduce its environmental impact and its dedication to community engagement. The company focuses on delivering sustainable solutions and maintaining a safe workplace that resonates with its core values and strengths.
Environmental Impact
Fortive recognizes the importance of environmental stewardship and integrates sustainability into its product development. They achieved a milestone with 60% of their revenue being generated from sustainability-enabling products and services. These products are intricately aligned with the United Nations Sustainable Development Goals, which reflects Fortive’s strength in developing solutions that consider both economic and environmental aspects.
- Sustainable Products and Services:
- Over 60% revenue from sustainable offerings
- Alignment with United Nations Sustainable Development Goals
Fortive also monitors its operations closely to enhance energy efficiency and minimize waste, showing a clear indication of their commitment to reducing their environmental footprint.
Community Engagement
The entity strengthens its ties to the local and global community through the Fortive Foundation, which has tripled its contributions since starting in 2020. The foundation supports various causes including STEM education, social justice, community resiliency, and environmental stewardship.
- Fortive Foundation Contributions:
- Support for STEM education
- Support for social justice
- Investments in community resiliency
- Advocacy for environmental stewardship
In addition to philanthropy, Fortive actively promotes workplace safety, ensuring that their employees operate in an environment where their well-being is a priority. This commitment to safety not only reflects their values but also fortifies their reputation as a responsible employer.
Research and Development
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Fortive’s commitment to research and development (R&D) is evident through its robust investment in innovation and keen adaptation to future technology trends. The conglomerate places a significant emphasis on fostering advancement across its subsidiaries, notably in healthcare and software sectors, ensuring a continuous evolution of their offerings.
Investment in Innovation
Fortive dedicates considerable resources to innovation, particularly in developing healthcare and software solutions that drive efficiency and productivity. They emphasize the importance of cutting-edge energetic materials technology at PacSci EMC and further the reach of clinical productivity with tools from Provation. This dedication to healthcare innovation manifests itself in comprehensive, end-to-end clinical workflow solutions that have become essential in modern medical practice.
Future Technology Trends
Fortive doesn’t only react to current demands but also actively shapes the future by aligning with emerging technology trends. They realize the increasing importance of data-driven monitoring and analytics across industries, notably within the global power infrastructure, as evidenced by the technologies developed by Qualitrol. The company’s foresight is clear in its strategic acquisitions and R&D focus, preparing their vast array of companies for the future advancements in their respective fields, while maintaining a user-friendly approach to new tech.
Corporate Culture
https://www.youtube.com/watch?v=wcLvXLtKQwk&embed=true
Fortive takes pride in a corporate culture that harnesses a sense of teamwork among its 17,000-strong workforce, all rooted in core values that emphasize continuous improvement and a commitment to excellence.
Employee Experience
Fortive ensures that the employee experience centers on limitless learning and growth opportunities. They empower their talents across various operating companies to inspire innovation and contribute to a culture that celebrates sharing expertise and knowledge. Through programs and initiatives, Fortive invests in the professional development of their team, reinforcing the strength of their comprehensive network.
Workplace Environment
The workplace environment at Fortive is designed to foster collaboration and drive a performance-oriented culture. Physical and virtual workspaces are curated to enhance productivity and to bridge the gap across teams spread over different time zones. They maintain a dynamic environment that resonates with their guiding values—integrity, innovation, and accountability—to not only elevate employee morale but also ensure a tangible impact on the communities they serve.
Frequently Asked Questions
Fortive Corporation has a diverse portfolio of companies, and readers often seek clarity on its subsidiaries, industries, and relationships. These FAQs aim to provide succinct, accurate information for common queries.
Who are the subsidiaries under Fortive Corporation?
Fortive boasts a range of subsidiaries, including Anderson-Negele, which focuses on hygienic sensing and sanitary process instrumentation, and Gems Sensors & Controls, known for precision-engineered sensors.
What is the main industry that Fluke Corporation operates in?
Fluke Corporation specializes in electronic test and measurement tools and is a key player in that industry.
How is Tektronix related to Fortive?
Tektronix, also known as “Tek,” is a subsidiary of Fortive and is recognized for its test and measurement devices, including oscilloscopes.
Can you list competitors of Fortive in the industrial technology sector?
Competitors of Fortive in the industrial technology sector include giants like Honeywell and Siemens, with overlap in sectors including healthcare and transportation.
How has Fortive evolved since its spin-off from Danaher?
Since its spin-off from Danaher in 2016, Fortive has grown into an independent, diversified industrial technology conglomerate, continually expanding its product and service offerings.
Where does Fortive rank in the Fortune 500 list?
Fortive’s market value and financial growth have been noted, with Fortune listing the company’s key financials and rankings, indicating its presence among significant players in the industry. However, their exact position in the Fortune 500 list fluctuates annually based on revenue and profits.
