Louis Chenevert – United Technologies Innovator and Pioneer CEO

Louis R. Chenevert is a former CEO of the United Technologies Corporation. He currently serves as an exclusive advisor at Goldman Sachs. He is originally from Canada, and has spent much of his career in manufacturing. Prior to his position at United Technologies Corporation, he served as the President of Pratt & Whitney Corporation, the company which manufactures aircraft engines. United Technologies Corporation is a large conglomerate which manufactures jet engines in addition to operating Otis, the company which makes elevators and escalators. Sikorsky, the helicopter manufacturer, is another division within UTC. UTC makes products aimed specifically for building technology and aerospace, and combines many of their business units together to ensure that the company is able to operate as efficiently as possible.

The company has done many very unique things throughout Mr. Chenevert’s tenure at United Technologies. By moving engineers to Connecticut from other lower-cost destinations, the company was able to focus on serving key defense markets. This was seen as being a very controversial move in the age of globalization.

One area which United Technologies excels in is in timing to the business cycle. They are also easily able to switch between manufacturing for defense and consumer products. During times of war, demand for defense jet engines increases while demand for civilian jet engines decreases. The switch between the two types of engines ensures that the company is able to be innovative and stay afloat. Boom and bust cycles occur, and this switch over represents United Technologies’ response to that cycle to prevent a major bust.

The company has also managed to give up some gains in the present for expected future gains. The goal is long-term gains in profit in supporting the products which they already make. The company continues to service their products, whether they are elevators or any other technologically-advanced product. This ensures a relatively stable income for the company, even as some aspects of their production might phase out over time.

Watch Mr. Chenevert talk here: