Fortune India Talks to Otis CEO About Regional Market Trends

Fortune India published a piece on October 7 in which the author interviewed Otis Chair, President and CEO Judy Marks about market trends and company strategy in areas including North America; Europe, the Middle East and Africa (EMEA); and India. Successfully navigating the 2008 financial crisis and the COVID-19 pandemic, she said, was due to Otis’ service-driven business, which accounts for 60% of company revenue and 90% of profit worldwide, she said. While the service market remains strong globally, demand for new equipment varies depending on location. Factors including interest rates and inflation have affected the U.S. real estate industry, in turn stifling demand for elevators, Marks said. In Europe, Spain and Italy are strong while Germany and France have slowed, she said, adding the Middle East is seeing high demand for new equipment. Business in the U.S., EMEA and the Asia-Pacific — especially in India and Southeast Asia — are emerging steadily, she said. In China, business has shifted from primarily new equipment sales to service. But in India, Marks said, “we have a healthy mix” with new equipment sales dominating but service also playing a major role.