ABB Ltd (ABB) and Honeywell International Inc. (HON) are two prominent players in the industrial machinery space. Switzerland-based ABB manufactures and sells electrification, industrial automation, and robotics and motion products for utilities, industry and transport, and infrastructure customers. It serves automotive, buildings and infrastructure, metals, chemical, data centers, food and beverage, process automation, life sciences, marine and ports, mining, energy, and utility industries. HON is a diversified technology and manufacturing company that provides aerospace products and services, control, sensing, and security technologies for commercial buildings, specialty chemicals, advanced materials, process technology for refining and petrochemicals, and energy-efficient products and solutions.
The industrial sector is going through a tough time due to deepening supply chain disruptions caused by the ongoing Russia-Ukraine war and extended COVID-19 lockdowns in China. However, U.S. industrial production increased 0.9% in March and experts expect the improvement to continue even if at a slower pace. The global industrial machinery market is expected to grow at a 3.5% CAGR by 2027. So, both ABB and HON should benefit.
