Global technology leader in electrification, automation, and motion, ABB, is investing approximately $170M in its US manufacturing, innovation, and distribution operations to accelerate its growth strategy in the country.
ABB's investment not only aims to drive revenue growth but also to foster the creation of highly skilled jobs and promote the transition to cleaner energy.
The US represents ABB's largest market, accounting for 24 percent of the company's yearly revenue. Currently, ABB is committing to expanding its operations in the US by investing in its electrification and automation businesses, catering to the increasing demand from industry-leading customers.
"The United States is critical to ABB's success as a market that will continue to grow and benefit from our product portfolio that enables the transition to a more energy-efficient future," said Björn Rosengren, CEO of ABB. "Currently, 85% of ABB's sales in the US are from products produced locally, which provides customers with a more secure supply chain and keeps good-paying manufacturing jobs in America."
ABB's technology currently has a presence in every sector of the economy, ranging from transportation to utilities to buildings. The recently passed legislation, such as the Inflation Reduction Act, CHIPS Act, and Infrastructure Investment and Jobs Act, provides ABB with the confidence to invest in manufacturing capacity, distribution systems, and technology innovation. These investments enable ABB to bring its products and services closer to customers, thereby enhancing its market position and meeting the growing demand for its solutions.
"The Inflation Reduction Act is triggering investment in clean energy and supporting businesses that can produce technology locally," said Michael Gray, US Country Holding Officer of ABB.
According to recent statistics, the US federal government is projecting that GDP will increase by 2.5% in 2023, with an average of 2% annual growth between 2024-2028. Further, industry experts expect to see growth at an additional rate of 2.3% per year between 2029-2032. Between 2023 and 2040, ABB anticipate investing more than $1 trillion in the US EV market.
Over the past decade, ABB has allocated $14 billion towards expanding its US manufacturing facilities. Currently, the company employs more than 20,000 individuals, working in over 40 sites in the continental US.