Tuesday, July 22, 2008
Kone Quarterly Profit Rises on Asian, European Gains
Net income increased to 98.7 million euros ($157 million), from 82.9 million euros a year earlier, Helsinki-based Kone said today in a statement. Sales advanced 14 percent to 1.14 billion euros.
Revenue gained 25 percent in Asia and 15 percent in Europe, Middle East and Africa, more than compensating for a falling dollar and a North American housing slowdown that has spread to other construction markets. Kone is building lifts for the Marina Bay Sands resort in Singapore, the Shanghai International Finance Center, and the Delhi Metro.
``The results, especially in Europe, Middle East and Africa are encouraging, given all the comments on weak construction markets,'' said Maria Ivek, a Zurich-based Credit Suisse analyst with an ``outperform'' rating on Kone.
Kone closed down 7.2 percent at 22.04 euros in the Finnish capital, mirroring declines at construction companies and building-material suppliers. The company has lost 8 percent this year, giving it a market value of 5.6 billion euros.
Analysts surveyed by Bloomberg predicted a profit of 101 million euros on sales of 1.09 billion euros. Earnings per share rose to 39 cents from 33 cents last year.
Modernization, Maintenance
Kone has approximately 12 percent of the world elevator and escalator market, competing with ThyssenKrupp AG, United Technologies' Otis Elevator Co. unit, Switzerland's Schindler AG and Mitsubishi Elevator Europe BV.
Chief Executive Officer Matti Alahuhta has purchased small maintenance companies, most recently in France and Spain, to expand in maintenance and modernization, which are less cyclical than new equipment sales. Service and revamps accounted for 52 percent of sales in the quarter.
``In the U.S., the commercial segment no longer compensated for the slowdown in the residential segment,'' the company said in the statement. ``In the United Kingdom, the residential market continued to weaken, while the major project market was active.''
New contracts increased 16 percent, boosting the order book to 3.8 billion euros, as the North American real estate slowdown spread from housing to other building. Alahuhta said the company will grow more than 10 percent this year, compared with previous guidance of ``about'' 10 percent.
``It's quite exceptional that they were able to increase new equipment so much, and yet their operating profit is also increasing, said Credit Suisse's Ivek. ``Given that it's generally assumed new equipment has lower margins than service.''
Kone is controlled by Chairman Antti Herlin, who has more than 60 percent of votes according to the company's Web site. Herlin is the fourth generation of owners of Kone.
Monday, July 21, 2008
UTC Has Strong Quarter, Sees Challenges For Pratt
But UTC also said high oil prices and the fragile state of the airline industry pose challenges for its aerospace businesses, especially East Hartford-based Pratt & Whitney.
UTC reported net income of $1.3 billion for the quarter, up 11 percent over the same quarter last year on sales of $15.7 billion, up 13 percent.
Earnings per share were up 14 percent to $1.32, which was 2 cents above the consensus estimate of 16 analysts polled by Thomson Reuters.
Profits after restructuring and other charges were up at five of UTC's six operating units, which make jet engines, helicopters, aircraft parts, elevators, air-conditioning and heating systems and security systems.
"United Technologies put in a strong performance in a tough environment," said Richard Tortoriello, an equity analyst with Standard & Poor's in New York who maintains a "buy" rating on the company's stock.
Otis Elevator Co. and UTC Fire & Security, the relatively new but fast-growing security business, performed especially well in the quarter, with profits at both growing more than 24 percent. Otis sales in Asia, especially China, remain strong.
Only Carrier Corp., which recorded $46 million in restructuring and other charges, failed to increase profits in the quarter. The weak housing market continues to be a problem for the company, the world's largest air-conditioner maker. Commercial refrigerator sales were also weak in some markets, company officials said.
While sales and profits rose for all three of UTC's aerospace units, most dramatically at Stratford-based Sikorsky Aircraft, Pratt's gains were modest due to slackening demand for spare parts and service. Profits at the East Hartford-based jet engine maker grew less than 5 percent on sales growth of 6 percent.
Pratt's main nonmilitary customers — commercial airlines — are taking desperate measures to remain in business in the face of unprecedented fuel prices. Some major airlines have grounded older, fuel-guzzling aircraft, or said they plan to, which means they need fewer spare parts for the engines.
Pratt makes a significant amount of its money on selling spare parts and maintenance and repair services.
"There's no doubt that the aerospace aftermarket is cooling down, and it's going to go down further," Tortoriello said.
Sikorsky delivered 53 large helicopters in the last three months, and UTC executives said the unit would meet its full-year goal of delivering more than 200. Sikorsky's profits were up 28 percent on sales growth of 9 percent.
Hamilton Sundstrand, based in Windsor Locks, had profit growth of 14 percent on sales that were up nearly 18 percent.
Despite "moderation in our commercial aerospace aftermarkets," UTC said it now expects full-year sales of $60 billion and earnings in a range of $4.80 to $4.95 a share, up from $4.65 to $4.85.
"While the challenges in the world's economies we saw at the outset of the year are materializing, especially with higher oil prices impacting the airlines and the U.S. economy generally, we remain confident in our ability to deliver on this increased guidance given the balance across UTC's businesses and the strength in our backlogs," CEO Louis Chenevert said in a statement.
Restructuring costs clipped 6 cents from UTC's per-share earnings, the company said, but the weak dollar offered a foreign currency exchange benefit of 4 cents a share. Rising costs of some metals will force the company to spend more than anticipated on commodities this year.
UTC said it plans to double restructuring spending in 2008 and probably spend more than $2 billion on buying back its own shares, a common tactic for supporting the stock price. The company spent $719 million on share repurchases in the second quarter and more than $1.5 billion in the first half of the year.
Like that of many major aerospace and defense companies, UTC's stock has been trading at or near its low for the year. UTC shares closed at $64.70 Thursday, up almost 6 percent.
Pratt will be a focus of restructuring efforts going forward, UTC executives said in a conference call with Wall Street analysts on Thursday. Executives did not say what they would do, but they said recent restructuring actions elsewhere within UTC had been "primarily people-related."
Pratt officials would not comment Thursday on their restructuring plans.
UTC has eliminated about 2,500 workers in 2008, about 1 percent of its worldwide workforce, executives said. There have been no layoffs in Connecticut.
A representative of Pratt's main union, the International Association of Machinists and Aerospace Workers, said the company had not told him of any plans to cut jobs at Pratt's Connecticut plants.
"If they had any kind of restructuring in mind that would affect our membership, they would normally let us know ahead of time," said James Parent of IAM's District 26.
In 2008 so far, Pratt employment has remained level. A few dozen workers have accepted voluntary buyouts, Parent said, but the company has added people elsewhere. Statewide, Pratt's hourly workforce is just shy of 4,100, Parent said.
However, he added, "every day you read something else about the airline industry. That without a doubt impacts us."
Tuesday, July 15, 2008
Fujitec America will relocate headquarters
The contract is still under negotiation and is expected to be announced next week, said Michele Phelps, marketing director.
Phelps said all 130 employees will move with the company, which manufactures elevators and escalators.
In March, Fujitec sold the 124 acre property where it is headquartered to Cincinnati Bell Technology Solutions for $16 million because the space was too large, Phelps said.
The company will first invest $4 million in renovating the old Borden building on Innovation Way in Mason for its new headquarters. Payroll for these employees, who make an average of $65,000 a year, will amount to $7.1 million. Mason estimated the company will bring $1.2 million worth of new revenue to the local economy.
Moving gives Fujitec the opportunity to modernize its surroundings and have more efficient systems, Phelps said. Fujitec America will continue manufacturing elevator and escalator equipment in New York and larger components overseas.
Fujitec will remain in Lebanon until the end of 2008, she said.
In 2006, in order to meet long term growth opportunities in the industry, Fujitec refocused the Lebanon headquarters on research, development and manufacturing of controllers for elevators and escalators.
In 1983, the facility was originally used to manufacture large scale escalator transit systems, which needed more space and employees. Plans to develop the property never happened, Phelps added.
"Right now Fujitec is the most profitable and stable its been in 30 years. From a financial perspective, there's a lot of overhead at this facility that we've been able to get rid of," Phelps said.
Recently Fujitec announced a regional restructure that allows the company to expand by regionalizing business plans through vice presidents in Eastern, Central and Western regions.
Fujitec America is a division of Fujitec Co., Ltd., founded in Osaka, Japan. Current Dayton maintenance customers include Dayton Board of Education, Maria Joseph Living Care Center, Schuster Towers and Dayton YWCA.
Thursday, July 10, 2008
Kone chosen to supply escalators for new M&S Store in Malvern
In accordance with M&S's plans to make all UK operations carbon neutral by 2012, Kone said that it has equipped the new store with energy-efficient escalators.
According to Kone, the energy-efficient escalators adjust its speed based on usage, increase equipment lifetime and can reduce energy consumption by up to 30%.
In addition to the energy-efficient escalators, the store will have lights with motion sensors, self-closing water taps and other features to save energy and water, Kone said.
Andy Jones, national sales manager of escalators at Kone, said: "Kone has a long and successful relationship with M&S in the UK. We are delighted to be their partner in this new ecological initiative, and with our environmentally friendly technology, we have a great chance to contribute to the new store's carbon-neutral targets."
Tuesday, July 8, 2008
ThyssenKrupp Mobile Escalators to Move Guests of State at Beijing International Airport During and After Olympics
Custom-built in Hamburg, the two escalators have a connecting height of up to 4.90 meters. They are each mounted on a truck which drives them right up to the aircraft. Two different docking heights allow docking with Boeing 747/Airbus A380 as well as Airbus A330/A340 planes. Height differences due to different loading and fuel levels can be offset hydraulically. Gold-colored steps and tinted glass balustrades ensure a fitting reception for special guests. Shipping by barge and container ship from Hamburg to Asia has already begun – the special cargo is expected to arrive in China at the beginning of August.
“The Air China contract was a tricky challenge for our company,” says Wolfgang Stein, managing director of ThyssenKrupp Fahrtreppen. “Normally it’s escalators that move people, but in this case the escalators themselves also have to be mobile – which made things particularly interesting for our engineers. The order gives us the unique opportunity to take part in the Olympic Games with particularly innovative products,” said Stein.
ThyssenKrupp Fahrtreppen is the only company in the world capable of supplying mobile escalators of the required specification: The vehicles are fitted with their own hydraulic units and generators to operate the lift cylinders and escalator drives. Air China can also rely on the experience of the Hamburg-based escalator manufacturers, who have already built 16 such installations for the Middle East and Eastern Europe. This is the first contract for the Asian region.
Besides the mobile escalators ThyssenKrupp Elevator is supplying a further 318 products for the Olympic Games in China: For example, 16 elevators, ten escalators and 90 moving walks have been installed in the new Terminal 3 of Beijing International Airport. Products from ThyssenKrupp Elevator are also in use in the National Conference Centre in Beijing Olympic Park and at further Olympic venues in Beijing and Qingdao.
Monday, July 7, 2008
Schindler announces price increase in Europe
Schindler is to increase Europe-wide the price of all its elevators, escalators, moving
walks and modernisations by approximately six percent (6.0%). The increase, which is
effective immediately, is due to the continuing escalation of fuel prices, and soaring
price increases for commodities and specialty metals, which impact Schindler�s costs for
manufacturing and transportation.
Thursday, July 3, 2008
Sustainability Leader KONE Announces Price Increase
provider of People Flow(TM) Solutions, announced today that they are
increasing pricing in Canada and the United States by approximately five
percent (5%) on select Elevator and Escalator solutions for new construction
and modernization. As with many of our customers, KONE is facing higher
commodity and energy prices.
While KONE understands the concerns for rising cost in building
construction and refurbishment, they continue to focus on delivering solutions
that provide overall life-cycle cost savings for the customer. With KONE's
industry leading Eco-efficient(TM) products and services, customers will see
the benefit from lower energy use, reduced construction material needs and the
elimination of hydraulic oil.
Additionally, KONE takes sustainability within their operations very
seriously. For example, maximizing eco-efficiency through route planning for
the maintenance vehicle fleet drastically reduces fuel consumption. "We're
committed to being a sustainable, green company, and will continue our efforts
to raise productivity and maximize eco-efficiency," says Vance Tang, EVP and
Area Director for KONE Americas. "Our goal is to minimize increased costs for
various commodities and energy and continue to deliver best in class products
and services."
KONE was the first company in the vertical transportation industry to
invent and introduce the innovative Machine Room-Less (MRL) elevator solution.
Since its introduction in 1996, the efficient operation of over 200,000
EcoSpace(TM) and MonoSpace(R) solutions has saved as much energy as produced
by a typical 250 megawatt power plant. The measure of sustainability of the
MRL solution since 1996 is also comparable to saving 2,000,000 barrels of oil
and reducing the CO2 emissions of 100,000 cars.
The price increase will take effect on July 15, 2008.
Saturday, June 28, 2008
Schindler elevator meets need for green products
Thursday, June 26, 2008
Kone Centre will 'most definitely' move forward, developer says
Wednesday, June 25, 2008
Brussels steps up cartel fight with first damages claim
The European Commission has fined Otis of the US, Finland's Kone, Swiss-based Schindler and Germany's ThyssenKrupp a total of €992m ($1.5bn, £784m).
But yesterday the Commission said it was taking the four to court in Belgiumover a claim of financial damage caused by inflated contract prices for its buildings and those of other EU institutions in Brussels and Luxembourg. The multi-million euro contracts covered the installation and maintenance of lifts and escalators from 1995 to 2004.
It is the first time Brussels has sued a cartel on its own behalf in the civil courts and comes as the Commission puts increasing pressure on companies that fix prices.
Fines have risen sharply underguidelines linking them more closely to the size of the market affected and the duration of the abuse. Brussels raised more than €3.3bn in cartel fines last year compared with €390m in 2004 and there is speculation two more blockbuster penaltiesare in the pipeline.
Officials have also been trying to help private victims to win damages. The Commission's competition department this year forwarded proposals to make it easier for groups of consumers to bring proceedings against cartels.
"We are leading by example," Neelie Kroes, competition commissioner, said.
The Commission would not specify the amount of damages it sought, but did hint that the move would not be its last: itis consideringaction against 10 Belgium-based removal companies found guilty of cartel behaviour and fined nearly €33m this year.
Schindler, the only one of the four lift companies to comment yesterday, said that there had been evidence of collusion but that it did not believe that this had resulted in higher prices. "It had no effect," an official claimed.
EU: Elevator firms colluded on prices
The EU's executive said it would seek compensation from Germany's ThyssenKrupp AG, Finland's Kone Corp., Switzerland's Schindler and United Technologies' unit Otis Elevator of the United States for what it said was collusion to raise the cost of elevators in EU buildings in Belgium and Luxembourg.
It put no price tag on the damages it suffered, saying the contracts were too complicated to calculate a figure at this stage.
It said the case it will take to a Belgian commercial court would help identify the total amount overpaid.
''As a result of the anticompetitive behavior of these companies, the EU institutions, and so the European taxpayer, have suffered financially by paying over the odds for the installation and maintenance of lifts and escalators,'' said Siim Kallas, the EU's top administration official.
EU Competition Commissioner Neelie Kroes said EU regulators also wanted to encourage other victims of cartels to seek damages in the national courts. ''We are leading by example,'' she said.
Although cartels are punished by paying fines to EU or national regulators, few customers take cases to win compensation, something the European Commission wants to change, saying private legal action would act as an extra deterrent against potential price-fixing
EU spokeswoman Valerie Rampi said the commission was also thinking of bringing another damages case against Belgian removal companies that regulators fined in March for fixing the price of shipping furniture for diplomats and European Union officials moving to and from Brussels.
EU regulators said they were worried that the elevator cartel could continue to hurt building owners for many years because elevator companies usually carry out maintenance on the equipment they installed.
Cartels push up average prices by between 20 percent and 30 percent, they said.
Kone refused to comment while a Schindler spokesman said the company was waiting for the EU to specify the level of damages.
In February 2007, the EU's antitrust unit fined the companies 992 million euros ($1.3 billion) for running a cartel from 1995 to 2004 to rig bids for public contracts.
Monday, June 23, 2008
OTIS Raises Sales Target
Friday, June 20, 2008
Kone heirs dominate Finnish shareholders' ranking
Two top ten positions are taken up by descendants of Eero Erkko, the founder of Helsingin Sanomat, the country's biggest broadsheet.
According to Arvopaperi's survey, 25 Finns have portfolios worth more than 100 million euros, up from eight five years ago.
Antti Herlin, the chairman of Kone, tops the list with a 1.42-billion-euro portfolio, the only one in the top ten to have risen in value last year.
Monday, June 16, 2008
KONE To Supply Elevators For Netherlands' Biggest Governmental Building
Schindler Announces Price Increase in U.S. and Canada
Schindler U.S. manufacturing facilities for elevators and escalators are located in Gettysburg, PA. and Clinton, NC. Products from these plants are shipped to installations in the U.S. and Canada.
Thursday, June 12, 2008
UTC Role In WTC Project
South Windsor-based UTC Power will provide supplemental power generation for one of New York City's most prominent and emotionally charged construction projects, the redevelopment of the World Trade Center site, company and New York officials said Wednesday.
UTC Power will provide 12 fuel cells for the four main towers planned within the 16-acre trade center site, including the 1,776-foot-tall Freedom Tower, now scheduled for completion in 2012.
The deal, for $10.6 million, would produce the single greatest concentration of power — 4.8 megawatts — generated by UTC fuel cells at one site and one of the biggest fuel cell installations in the world, the parties said.
The company's biggest existing installation — seven 200-kilowatt fuel cells capable of generating 1.4 megawatts — is also in New York state, at a Verizon facility on Long Island. One megawatt is enough power for 800 to 1,000 average homes.
The generating capacity of the fuel cells at the trade center site represents a small fraction of the total power needs of the planned towers. But the use of fuel cells in so prominent a project appears to offer a significant endorsement of the technology, which has struggled to find widespread market acceptance.
The New York Power Authority, which negotiated the trade center deal, is the first announced customer for UTC Power's newest fuel cell unit, which can produce 400 kilowatts of power, twice as much as its predecessor. The new model is not yet in production, but the company is scheduled to deliver the first units for the Freedom Tower next year.
"This is the day you dream about," UTC Power President Jan van Dokkum said in an interview after the announcement. The company expects to announce several other deals soon, he said.
Fuel cells combine hydrogen and oxygen to create electricity, heat and water. The process requires natural gas, but doesn't burn it, and gives off almost no carbon dioxide. The fuel cells will recycle their heat for use in the trade center towers' heating and cooling systems, further reducing demand on the power grid.
Promoted for their ability to generate electric power independent of fossil fuel-burning power plants and without creating hazardous byproducts, fuel cells have yet to spark widespread demand, in part because of their expense.
UTC Power declined to say how much it charges for a complete fuel cell unit. At $10.6 million for the delivery and commissioning of 12 fuel cells, the power authority would pay nearly $900,000 for each.
Since the early 1990s, UTC Power has sold about 270 fuel cells for use in buildings. Some are no longer in service. The company also makes them for use in vehicles, such as city buses.
UTC Power expects that rising energy costs will make fuel cells more attractive and that as production volume increases, prices will come down.
Michael Saltzman, a spokesman for the power authority, was unable to say Wednesday what percentage of the towers' total estimated power need would be met by the fuel cells. He said it was small.
The authority, which provides electricity for use by government agencies in New York City, has long been an advocate of fuel cells as one method of reducing reliance on the electric grid. It has bought them from UTC Power for use in several facilities, mostly small ones, such as wastewater treatment plants, hospitals and the Central Park police station, which relies entirely on a fuel cell for power.
A UTC Power fuel cell unit will soon be installed at the Bronx Zoo's lion house.
The Port Authority of New York and New Jersey is the landlord for the trade center site and is building the Freedom Tower, the first of the towers to rise at the Lower Manhattan site. Developer Larry Silverstein is building three other towers on the site and others in the area.
Otis has contracts to provide at least 87 elevators and two escalators for trade center redevelopment projects, a spokeswoman said. Carrier officials could not be reached for comment Wednesday.
EU wants damages from elevator cartel firms
The headquarters of the European Commission and the EU courts building in Luxembourg were all affected by the cartel. "We are going for damages," said Maximilian Strotmann, a spokesman for EU Administration, Audit and Fraud Commissioner Siim Kallas. "We have a duty ... to seek damages to protect the Commission and the taxpayer."
Kone received a letter from the Commission "in the role of a customer seeking compensation in Belgium from elevator companies relating to the old cartel case," a Kone spokeswoman said.
"We will deal with it as with all potential client demands. We will now investigate its content," Minna Mars said. A Commission source said the Commission is seeking a total of between 1 million and 10 million euros from the companies.
That is a tiny fraction of the fine the Commission imposed against the companies for fixing prices and carving up markets. But the move helps carry out a policy spelt out when the Commission announced the record fines in February, 2007. A Commission spokesman at the time invited companies that suffered from the cartel to pursue damages in national courts and seek to annul and renegotiate long-term service contracts. More broadly, the Commission has been working on new approaches to encourage people and companies injured by cartels to bring private lawsuits.
There are many barriers to such suits in Europe. In United States, law makes it relatively easy to bring suits which require damages to be paid three times over.
In the elevator case, Germany's ThyssenKrupp incurred the highest-ever fine for a single company, 480 million euros. The Commission fined Otis, owned by United Technologies of the United States, 225 million euros. Kone of Finland was fined 142 million euros and Schindler of Switzerland was fined 144 million euros. Mitsubishi Electric Corp of Japan was fined 1.8 million euros for participating in the Dutch portion of the cartel.
The companies had fixed prices, rigged bids and allocated projects to each other in Belgium, Germany, Luxembourg and the Netherlands between 1995 and 2004, the decision said. (Additional reporting by Sami Torma in Helsinki; Editing by Louise Ireland)
Tuesday, June 10, 2008
Schindler acquires stake in Qatar lift company
Renold set for Indian bid
Thursday, June 5, 2008
Finnish Otis workers to stage one-day walkout
Markku Haavisto, the chief shop steward at Otis for the Electrical Workers' Union, told the Finnish News Agency that Otis had shown its unwillingness to negotiate over pay and conditions.
The unions added that emergency calls would continue to be responded to and people freed from malfunctioning lifts in places like hospitals and nursing homes.
United Tech hiking prices at building units -exec
"We're pushing price across most of our businesses on the commercial side and it's actually getting traction," said Greg Hayes, vice president of accounting and finance. "You have to push price when costs go up."
The company's commercial units include Otis and Carrier, which are respectively the world's largest makers of elevators and air conditioners, as well as refrigeration, security and fire-safety systems used in commercial buildings.
The Hartford, Connecticut-based company said on Monday that Carrier would be raising prices by about 6 percent in North America by mid-July.
Hayes said the company was facing higher costs for copper, steel and aluminum as well as higher transportation costs as a result of surging energy prices. Overall materials inflation has outpaced its expectations so far this year, he said.
United Tech also makes jet engines and helicopters. (Reporting by Scott Malone; Editing by Braden Reddall)
Wednesday, June 4, 2008
Anderson man counting on raising profile for new elevator
ANDERSON, Mo. — An Anderson man soon will take a prototype of a cableless elevator he has built to a national stage. Jim Neale, 46, said he spent the past five years honing his prototype and now awaits the Invention and New Product Exposition, set for June 11-14 in Pittsburgh, Pa. This national trade show highlights new products and innovations available to business and industry for manufacturing, licensing or distributing.
“It’s time to put it before the public,” Neale said of his work. Neale’s prototype is an elevator that ascends by climbing a ridged rail instead of relying on a cable to be hauled upward. It’s propelled by a gas-powered motor and hydraulics.
The prototype is small and consists of an enclosed platform with a single seat, although a couple more people could fit onto the platform by standing. The gas-powered motor is started by a pull cord. The driver makes the platform move up and down with a lever next to the seat.
Although the prototype is small, Neale said it is a starting point. The goal is to show that the technology is sound enough that it can be expanded, he said, so that such elevators could be placed inside large structures and would be suitable for rescue operations.
The technology also can be adapted: Diesel or electrical motors could be used. Larger motors could be used for larger platforms, allowing them to travel faster and carry more weight.
“Two pounds or 2,000, it’s all in the engineering,” Neale said. “This is just a working model where we can prove the theory.”
Neale said he is still researching whether the same technology is already in use at structures. He has two patent applications pending.
Potential venues for such an elevator include skyscrapers, transmission towers, oil platform superstructures and microwave towers.
Neale said he embarked on his project in the wake of the Sept. 11 attacks. His hope, he said, was to construct an elevator system that could be used during emergencies by rescue workers or people needing to exit a building.
“I saw the individuals jumping out of the Twin Towers,” Neale said. “I knew there had to be a way to make sure that never happened again.”
In the wake of the Sept. 11 attacks, he started his own company, Vertical Transportation System, to develop the idea.
Neale said he has no background in elevator design, and has spent most of his life as a “common worker and laborer” with stints in construction.
He said it is difficult to say how much time and money he has invested in the development of the prototype. The project has occupied much of his time. Neale said he has relied on support from his wife and a circle of friends.
The upcoming trade show will mark the first time Neale has taken his work public. He is hoping that someone from the elevator manufacturing or mechanical engineering industry who attends the trade show will see his prototype and show an interest in his design. If nothing else, he said, he needs to start exposing his work and gathering feedback. “We are at a point where we need to take the next step,” he said. “The way I understand the process, it takes years.”
Lucky seven?
The prototype that Jim Neale will take to the Invention and New Product Exposition this month in Pittsburgh, Pa., is the seventh he has developed.
Elevator systems sector develops fast: Turkey
With rising quality of life and fast-developing technology, the elevator systems sector has reached a value of 250 million euros. This mainly stems from the fact that elevator systems have now also entered detached houses and villas, after the apartment blocks.
In Turkey, where around 2,000 elevators are sold annually, the percentage of elevator use in residential premises has risen to 15 percent. An indispensable part of new construction projects, the elevator systems sector grew by 12 percent last year, and further growth is expected with the launch of new models that offer easy use. The sector hosts around 1,200 firms operating in production and maintenance, while only five big companies control 20 percent of the sector.
The elevator systems sector goes hand in hand with the construction sector. Thus, the global fluctuations in the real estate sector negatively affect the elevator sector as well, said Baykan Kurtuluş, member of the executive committee of Schindler Türkeli Asansör.
Some 140,000 elevators are in use in Turkey; however only 25 percent of them are controlled by specialists in the field, said Cüneyt Işın, CEO of Kone Türkiye. The technological developments in the sector arise as a result of the new tendencies to make living conditions more comfortable, noted Işın and added that the foremost problem of the sector is to deliver service at optimum conditions.