A century together and still going strong

We are experiencing double-digit growth in our battery business, which is replacement and original equipment.

Our air-conditioning business has probably been the one that was most affected. It has slowed, but there was some growth in the past few months.

But in the prior six to nine months, it looks like there has been a lot of extra inventory out there from the slowdown in building construction.

What is your next big step in China in the years to come?

We plan to open a second global corporate headquarters in Shanghai and scheduled to be completed next year as part of its growth strategy for China and the Asia-Pacific region. The building has received the first-ever Excellence in Design for Greater Efficiency, a green building certification system from IFC-World Bank Group, for an office block in China.

Have you had to readjust your expectations for the Chinese operations for 2016 because of the slowing growth?

We have had to readjust our planning cycle for sure. It has affected the timing of our long-term investments－stretching them out a little more than what we expected. It requires us to be more careful, diligent and more specific. Our plans have to be a lot more robust in an environment that is not growing as rapidly or uniformly across the country.

What is Johnson's biggest achievement in China?

The fact that we have been (manufacturing) there for the past 20 or 30 years and the relationships that we have established in China have been incredibly strong. We don't have a strong consumer brand in China so a lot of people wouldn't know us.

But if you talk to people in the automotive space, building space and people in battery and energy storage controls market, Johnson Controls is a well-known name and we have some fantastic relationships. I feel as local as any multi-industrial can.

That's not a recent accomplishment because that has happened over a long period of time.

How do you get along with your local partners?

I think we have incredible partners across the board. We can always learn, and we are always learning, but I think that partnerships and relationships have been the key to our success.

How is your management team in China divided between Chinese and expats?

Over the past two to four years, we have shifted from being an expat-driven organization to probably more local Chinese than what we have had.

We have been there long enough to be able to grow some of our talent and we have been able to attract some new talent. We have a better mixture and we still have expats and I think we always will.

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