Otis Elevator Co. is a true multinational. The division of United Technologies Corp. UTX-N is based in the United States, it is headed by a Frenchman who previously ran the British operations, and its fastest-growing market is China.
Active in 200 countries around the world, Otis installs thousands of elevators every year and services millions that are already in place. It sold its first elevator in Canada in 1862 and now has them in many major buildings across the country, including the CN tower.
Otis president Didier Michaud-Daniel, who says he is obsessed with making the company more environmentally friendly, was in Toronto recently to launch a new energy-efficient escalator at a green building conference.
What technological breakthroughs have allowed your elevator products to be more green?
The best one is regenerative drive. In the past when [elevator cars] were braking, we had to add [power]. Now we can use the energy which is given off by the braking system and redistribute it to the grid. We are creating energy, like in a hybrid car. It is really a fantastic breakthrough in terms of technology. On our Gen2 brand elevators, we save up to 75 per cent of energy [compared with older elevators].
Also, in the past we had cables [moving the equipment] that we had to lubricate every month. Now we use belts [and] there is no lubrication any more. On escalators the steps were moved with chains, so they needed a lot of lubrication. With a new belt system we don’t need oil any more.
Are there other advances?
We are using LEDs, [which] save 30 per cent of [lighting] energy. And on escalators, we have a power standby system. If there is no passenger on the escalator, the escalator slows down.
We’ve also invented what we call the Compass system. You go in the building you work in and you scan your [security] card. It detects that you work on the 24th floor, and it tells you the elevator that you have to take. You have no button in the elevator. You go directly to your floor. This saves energy because it optimizes traffic.
How have you greened your manufacturing operations?
The factory [we are building] in Chongqing, China, is a LEED gold factory. In Madrid we decided to equip the roof of the factory with solar panels, so 60 per cent of the energy we use in the factory comes from the panels. In Bangalore, India, we have a water recovery system. When it is raining we have big tanks where we collect water and use it inside the factory.
Why are you so concerned about making Otis environmentally friendly?
We are going to leave this planet to our kids, and to the kids of our kids, so we want to be as green as possible. If [environmental policy] comes from the leader, people apply it everywhere. [It has to be in] manufacturing, in products, and in day-to-day behaviour. Also, our customers want energy-efficient products.
How international is Otis?
I don’t think there is any other company which is so global. But our teams are local. All my team here is Canadian. The 9,000 people who are working in China, are Chinese. In Vietnam, they are Vietnamese. It gives a fantastic perspective on the world and how people can work together. On my executive committee there are 16 people and eight nationalities.
Do you get tired of travelling?
I spent 200 days outside the U.S. last year. There is no other way of [managing] a company today. If you are [at head office] in your stronghold, you will not make the right decisions. It is by going and seeing the customers, the suppliers, and the people who are leading the countries, that you make the right decisions.
Why is China so important?
The global escalator and elevator market is 520,000 units per year and China is 350,000 of that. I foresee it growing by 10 per cent [per year] over the next 10 years. In comparison, the market in North America is 12,000 or 13,000 units.
In China we have four brands, and five factories. We have more than 20-per-cent market share, [so] we probably sell 80,000 elevators per year. We are building a new factory in Chongqing in the west part of China. I was there last week [and it has] 32 million inhabitants. There are cranes everywhere. It is unbelievable.
