OTIS WORLDWIDE CORP COM Connecticut Wealth Management LLC holding in Q2 2022 Form 13-F

Otis is a prominent global company specializing in the manufacturing, installation, and servicing of elevators and escalators. With operations in over 200 countries and territories, Otis is divided into two main business segments: New Equipment and Service. In the New Equipment segment, Otis designs, produces, and installs elevators and escalators for a range of building types, including residential, commercial, and infrastructure projects. Their key products comprise the Gen2, Gen3, Gen360, and SkyRise platforms, tailored to meet specific customer needs and building requirements. The company markets these products directly through its sales personnel and also utilizes agents and distributors, particularly in China and other regions.

The Service segment of Otis is dedicated to the maintenance, repair, and modernization of elevator and escalator systems. It manages a substantial portfolio of approximately 2.3 million units worldwide, which includes both Otis equipment and products from other manufacturers. The company operates a vast network of 35,000 service mechanics spread across more than 1,400 branches and offices globally.

Innovation plays a crucial role in Otis's strategy, with significant investments channeled into research and development (R&D) and digital initiatives. The company has established 11 R&D centers and 17 factories around the world. A dedicated team of 1,200 engineers focuses on developing digital technologies, software, user interfaces, and enhancing the user experience.

Operating in a highly competitive industry, Otis faces competition from major companies such as KONE Oyj, Schindler Group, and TK Elevator. The company’s success hinges on its ability to innovate and efficiently deliver products and services. Otis adheres to various government regulations, including environmental standards and export controls, and maintains a robust global supply chain with around 500 key suppliers.

Incorporated in Delaware in 2019 following its separation from United Technologies Corporation, Otis employs approximately 71,000 people globally. The company has implemented comprehensive initiatives to manage commodity price risks and ensure the resilience of its supply chain, conducting regular risk assessments and audits.

Otis is also committed to environmental, social, and governance (ESG) goals, focusing on health and safety, environmental impact, community engagement, and governance. The company has made significant strides in reducing its carbon footprint and adopting sustainable manufacturing practices. Otis promotes diversity, equity, and inclusion through various programs and has established an Inclusion Advisory Group to uphold these values.

The company's talent development program provides extensive training and development opportunities, while its employee engagement program includes regular surveys to gauge staff satisfaction. Otis ensures a safe working environment and offers comprehensive employee benefits, including healthcare, insurance, tuition assistance, and paid time off.

Governance at Otis is overseen by an Executive Committee and a Board of Directors, which are responsible for steering the company’s strategic direction and maintaining accountability to shareholders.