A. O. Smith Corporation was founded in the United States in 1874, headquartered in Milwaukee, Wisconsin. It has a history of 139 years, and is a New York stock exchange listed company, code (AOS). This company has a global turnover of $1.94 billion in 2012, and employs approximately 10,900 people in 22 plants spreading over the U.S., Canada, Mexico, China, India, the United Kingdom, the Netherlands, and Turkey. It is one of the world leading manufacturers of water heater and boilers, supplying a diverse mix of residential and commercial terminal markets mainly in the United States with a formidable and growing international influence.
INDUSTRY ECONOMIES
VALUE CHAIN AND COMPANY STRATEGY OF A.O. SMITH CORPORATION
This company manufactures, develops, and supply residential and commercial electrical products and water products all over the globe. In 1936 it entered the water heater production areas.It is comprised of two reporting segments: North America and Rest of World. Both segments mainly supply their respective regions.
NORTH AMERICA
A.O. Smith serves residential and commercial end markets with a wide range of products including: gas, gas tankless, oil and electric water heater; boilers, copper-tube boilers and expansion tanks; commercial solar systems, swimming pool and spa heaters, and related products and parts. Sales in their North America segment increased by $141.3 million (11.0 percent) in 2012 compared with the prior year. Products of Lochinvar brands acquired in August 2011 contributed a 20.5 percent incremental increase in sales of $142.9 million.
REST OF WORLD
A.O Smith entered Asia water heater market primarily in China and India for water heaters to the residential market, with a broad product serving including electric, gas tankless, heat pump and solar units; and for water treatment products such as reverse osmosis units. Sales in their Rest of World segment increased by $8.9 million in 2012 compared