Keep pulling the thread on Judy Marks.
Otis's profitability is primarily driven by its service-driven business model, which functions like a recurring subscription service due to regulated maintenance requirements for customers.
The service business at Otis operates with margins exceeding 24%.
Otis considers the modernization of its large installed base of aging elevators to be the next major market opportunity.
China's ongoing urbanization plans aim to move at least 250 million more people from rural farms to urban areas, which is a key long-term growth driver for the elevator market.
The lack of a single global standard and the complexity of varying local regulations create a significant competitive moat for established elevator companies like Otis.
The primary factor limiting growth at Otis is the availability of trained mechanics, not market demand.
Otis has connected one million of its elevators to its IoT platform to gather data for preventive and prognostic maintenance.
In November 2018, the board of United Technologies approved a plan to spin off Otis and Carrier into separate, independent public companies.
While part of United Technologies, Otis's R&D and CapEx spending were both significantly less than 1% of sales, indicating it was being run as a 'cash cow'.
The service business at Otis operates with a margin of over 24%.
Otis moves 2.4 billion people every day across 200 countries.
Otis CEO Judy Marks predicts that the passenger experience in elevators will change significantly in the near future.