Milwaukee-based manufacturer
Rockwell Automation will spend $2 billion over the next five years making several investments in its existing facilities aimed at improving productivity.
The $2 billion investment will include new digital infrastructure and additional talent, which will allow Rockwell Automation to “grow share” and “expand margins,” company officials said Wednesday.
A portion of the money will also be used for “brick and mortar” investments.
Already, Rockwell Automation has reached its goal of achieving $250 million in year-over-year productivity. Over the last five quarters, the company has achieved $360 million in cost savings.
"I’m proud of how our organization has operationalized our ambitious productivity and continuous improvement targets," said
Blake Moret, CEO of Rockwell Automation, during the company's latest earnings call. "Importantly, we intend to take bold steps to continue our progress."
The United States will be the largest beneficiary of the company’s $2 billion investment, which will help Rockwell drive global growth and reach its margin expansion goals, Moret explained.
The investment will include the implementation of automation to drive plant efficiency, new employees and an “AI first business system,” Moret said.
Rockwell Automation has already spent time making some of these investments at smaller scale.
"We’re encouraged by what we’ve already seen in some of the places within our plants that we’ve done these things, where we’ve digitized, we’ve added additional automation and we’ve used our own simulation tools to improve layout," said Moret. "Typically, we see the results show up in labor, productivity, being able to do more with a finite amount of human resources. We see it in energy consumption. We see it in faster time to confidence. There’s a number of benefits that we’ve seen in our plants."
Representatives from Rockwell Automation declined to share additional details regarding the investment, including its local impact, at this time.
Company officials did say further details regarding the $2 billion investment will be unveiled during a scheduled investor day in November.
Also on Wednesday, the company updated its fiscal 2025 sales growth guidance to a range of -2% to 1%.
"Given the continued trade uncertainty, we think some customers have pulled forward orders from Q4 to Q3 in order to mitigate risk and secure critical components," said
Christian Rothe, CFO at Rockwell Automation.
The company reported a sales increase of 5% during the fiscal third quarter of 2025.
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