Cummins Foreseeing Long-term Growth, Hiring
Columbus, Ind.-based Cummins Inc. needs to add 7,000 engineers within five years, CEO Theodore Solso said Wednesday (Oct. 5) at a Bloomberg Innovation and Jobs Forum in Washington, D.C.
The Indiana Business Journal reported that the maker of diesel and natural gas engines and electric power-generation systems is forecasting a sharp rise in annual sales. Additional reductions in engine pollution and more stringent fuel efficiency rules will dominate engine technology and development for the next 10 years, requiring more engineering resources.
Those engineers will be hired in India, China and Africa as well as in the United States, United Kingdom and Brazil.
The company told analysts last month that its annual sales are forecast to grow by more than 60% and reach $30 billion in 2015. Cummins expects revenue growth to average 14% a year from 2011 to 2015.
Overseas demand and tougher environmental standards for engine emissions are pushing Cummins’ revenues higher, overcoming weak economic growth in several global markets.
“Several of the economies where Cummins operates are clearly weakening,” COO Tom Linebarger told analysts last month. “We really don’t know how deep it will go. We are confident in the long-term profitable growth of the company.”
Company officials said tighter standards for engine exhaust have allowed Cummins to leverage its engineering expertise, particularly in emerging markets where some domestic rivals lack the technical skill to comply with the tougher rules.
The expansion of infrastructure in emerging economies such as South America, China and India is driving demand for Cummins’s engines used in construction equipment, commercial trucks, and power generators.
The company’s engine shipments are also being helped by expanded output of oil, natural gas and mined commodities, executives told analysts.