United Technologies Plans to Hire 35,000 People and Make $15 Billion Investment in U.S. Over Next Five Years

FARMINGTON, Conn., May 23, 2018 /PRNewswire/ -- United Technologies Corp. (NYSE: UTX) today announced plans to hire 35,000 people and make investments of more than $15 billion in research and development (R&D) and capital expenditures (CapEx) in the United States over the next five years (2018-2022). With this announcement, the company also launched a dedicated site to highlight its investments in the U.S.: www.utcinvestingintheusa.com.

"United Technologies is growing globally and growing the fastest in the United States," said Gregory J. Hayes, Chairman & CEO, United Technologies Corporation. "Over the past three years, we have created more jobs in the U.S. than in the rest of the world combined."

"Our investments reflect our core belief that, similar to U.S. economic goals, United Technologies' continued success will be dependent on a highly-skilled workforce, world class manufacturing facilities, and workforce education programs that enable employees to improve their skills and remain competitive in an increasingly digital economy."

The company's investments will create additional capacity to better serve United Technologies' customers in the aerospace and commercial building industries, which are benefitting from the mega-trends of rapid urbanization, a growing middle class, and the growth of commercial air travel.

"We are excited about our significant employment opportunities and investments as more people globally have the buying power and desire to live in cities and to fly commercially, and the expectation of living and working in smart buildings that make modern life possible," said Hayes.

United Technologies is a Net Job Creator

United Technologies is a Fortune 100 company. It employs more than 200,000 people in more than 75 countries developing innovative products and services for the aerospace and commercial building industries. The company is a major U.S. employer with 67,000 employees working in hundreds of sites today, and expects to have 35,000 positions available for U.S. job seekers over the next five years. Although most openings will result from workforce retirements or normal turnover, several thousand positions are expected to be net-new jobs that do not exist today. The openings are expected to be available across all 50 states with the greatest hiring needs in Connecticut, Florida, and Georgia.

Half of United Technologies' hiring is expected to be in production and maintenance roles, which involves the manufacturing, installation and servicing of the company's vast array of products. The other half will be professional and managerial positions with more than one-third filling a wide range of engineering and technology development roles, including many that reflect the company's increased focus on digital innovation.   

United Technologies believes that a diverse workforce produces the best ideas and outcomes for its customers, shareowners and communities around the world. Over the last three years, one-third of the company's new hires in the U.S. were people of color. United Technologies is committed to achieving gender parity in our leadership work force with a near-term goal of women holding at least 30 percent of senior roles.

Commitment to Workforce Training and Education

United Technologies is also committed to preparing its U.S. workforce for the future of work and advanced manufacturing. In contrast to a recent report from Deloitte LLP¹, which said that 54 percent of U.S. companies have no training programs in place designed to build skills for future needs, United Technologies invests today in more than 30 U.S. workforce training programs. These programs include apprenticeships, community college and high school partnerships, digital certificate programs and an industry-leading, company-paid higher education program that has resulted in the award of more than 29,000 degrees to United Technologies' U.S. employees (average company contribution valued at $37,000 per participant).

$15 Billion Investment Will Drive Innovation Efforts

The competitive tax system resulting from U.S. tax reform is encouraging global companies, such as United Technologies, to make long-term investments in innovation in America.

United Technologies anticipates investing $15 billion in R&D and CapEx projects in the U.S. over the next five years. About $9 billion of that investment is expected to go towards R&D that will include initiatives to accelerate the firm's digital strategy.  The strategy is focused on transforming service capabilities, improving the customer experience with intelligent products, driving optimization through smart factory adoption, and developing connected products that enable real-time health monitoring capabilities. It will also include work on next-generation additive manufacturing, artificial intelligence and autonomy, hybrid-electric, cybersecurity and the advancement of high-temperature materials.

The remaining $6 billion is expected to go towards CapEx initiatives that will drive innovation across existing U.S. manufacturing facilities to increase capacity and improve quality and efficiency.

Recent CapEx Investments Include:

• The opening of a new 80,000 square-foot manufacturing and nacelle assembly facility on UTC Aerospace Systems' campus in Foley, Alabama. The new building features a range of innovative manufacturing technologies to maximize operational efficiency and better serve customers.  The company expects to add 260 new jobs at the campus, ultimately increasing the Foley workforce to more than 1,000 employees. (https://www.utcaerospacesystems.com/news-releases/adding-260-jobs-nacelle-facility-foley/)
• A $97 million investment in Pratt & Whitney's AutoAir facility in Lansing, Michigan. The investment, which includes a new 93,000 square-foot facility and advanced manufacturing technologies, will enable the site, which has increased its work force from over 200 to more than 800, to triple its production capacity. (http://www.utc.com/News/PW/Pages/Pratt-Whitneys-New-Fan-Blade-Manufacturing-Facility-Brings-Capacity-Online.aspx)
• A $450 million investment in Pratt & Whitney's facility in Columbus, Georgia. This supported the purchase of automated machinery and equipment upgrades, including a new engine test cell, and the construction of two new buildings, intended to increase the production of parts and maintenance services while also reducing costs for new and existing engine programs. The Georgia facility is expected to hire 500 new employees and has collaborated with Georgia Quick Start to refurbish a Columbus Technical College facility in order to provide world-class advanced technical training designed specifically for Columbus Forge and the Columbus Engine Center. (http://newsroom.pw.utc.com/press-releases?item=122985)
• The opening of the 224,000 square foot, $115 million dollarUTC Center for Intelligent Buildings in Palm Beach Gardens, Florida. This state-of-the-art innovation and technology experience center – designed to the U.S. Green Building Council's LEED® Platinum standards – will house 500 employees and serve as the headquarters for United Technologies' Climate, Controls & Security business, enabling the organization to further innovate for growth. (http://www.utc.com/News/Pages/United-Technologies-Opens-State-of-the-Art-Innovation-Center,-Announces-Plan-to-Create-100-Additional-Jobs.aspx)
• The launch of the United Technologies Digital Accelerator in Brooklyn, New York. This facility is part of a $300 million investment that is expected to create 250 new jobs focused on developing software solutions for UTC's world-class product and service portfolio. (http://www.utc.com/News/News-Center/Pages/Meet-United-Technologies-Digital.aspx)
• An expanded $60 million state-of-the-art United Technologies Research Center (UTRC) "innovation hub" in East Hartford, Connecticut. The hub is home to a $75 million Additive Manufacturing Center of Excellence and a $40 million Engine Compressor Research facility. (http://www.utc.com/News/Pages/UTRC-unveils-new-research-facilities.aspx)

*Note: in addition to its own direct investments in R&D, United Technologies expects to manage an additional $6 billion in R&D efforts in the U.S. over the next five years on behalf of its customers.

Local Communities and Small Businesses to Also Benefit

United Technologies is also an important business partner to thousands of small and medium-sized businesses. Over the next five years, the company is projected to spend about $75 billion with U.S. suppliers, further bolstering local economies and supporting job creation across hundreds of communities. Roughly one-quarter of the spend is projected to be with companies classified as small businesses.²

¹Source: Deloitte LLP's 2018 Global Human Capital Trends Study (https://www2.deloitte.com/insights/us/en/focus/human-capital-trends.html)

²As defined by the U.S. Small Business Administration's guidelines for small businesses

About United Technologies Corporation

United Technologies Corp., based in Farmington, Connecticut, provides high-technology systems and services to the building and aerospace industries.  By combining a passion for science with precision engineering, the company is creating smart, sustainable solutions the world needs. To learn more about UTC, visit the website or follow the company on Twitter: @UTC

Cautionary Statement

This communication contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "confident" and other words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax rates and other measures of financial performance or potential future plans, strategies or transactions of United Technologies or the combined company following United Technologies' pending acquisition of Rockwell Collins, the anticipated benefits of the pending acquisition, including estimated synergies, the expected timing of financing and completion of the transaction and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which United Technologies and Rockwell Collins operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction and in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, the impact of weather conditions and natural disasters and the financial condition of our customers and suppliers; (2) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (3) the scope, nature, impact or timing of acquisition and divestiture or restructuring activity, including the pending acquisition of Rockwell Collins, including among other things integration of acquired businesses into United Technologies' existing businesses and realization of synergies and opportunities for growth and innovation; (4) future timing and levels of indebtedness, including indebtedness expected to be incurred by United Technologies in connection with the pending Rockwell Collins acquisition, and capital spending and research and development spending, including in connection with the pending Rockwell Collins acquisition; (5) future availability of credit and factors that may affect such availability, including credit market conditions and our capital structure; (6) the timing and scope of future repurchases of United Technologies' common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash, including in connection with the proposed acquisition of Rockwell; (7) delays and disruption in delivery of materials and services from suppliers; (8) company and customer-directed cost reduction efforts and restructuring costs and savings and other consequences thereof; (9) new business and investment opportunities; (10) our ability to realize the intended benefits of organizational changes; (11) the anticipated benefits of diversification and balance of operations across product lines, regions and industries; (12) the outcome of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact of the negotiation of collective bargaining agreements and labor disputes; (15) the effect of changes in political conditions in the U.S. and other countries in which United Technologies and Rockwell Collins operate, including the effect of changes in U.S. trade policies or the U.K.'s pending withdrawal from the EU, on general market conditions, global trade policies and currency exchange rates in the near term and beyond; (16) the effect of changes in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory (including among other things import/export) and other laws and regulations in the U.S. and other countries in which United Technologies and Rockwell Collins operate; (17) the ability of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger) and to satisfy the other conditions to the closing of the pending acquisition on a timely basis or at all; (18) the occurrence of events that may give rise to a right of one or both of United Technologies or Rockwell Collins to terminate the merger agreement, including in circumstances that might require Rockwell Collins to pay a termination fee of $695 million to United Technologies or $50 million of expense reimbursement; (19) negative effects of the announcement or the completion of the merger on the market price of United Technologies' and/or Rockwell Collins' common stock and/or on their respective financial performance; (20) risks related to Rockwell Collins and United Technologies being restricted in their operation of their businesses while the merger agreement is in effect; (21) risks relating to the value of the United Technologies' shares to be issued in connection with the pending Rockwell acquisition, significant merger costs and/or unknown liabilities; (22) risks associated with third party contracts containing consent and/or other provisions that may be triggered by the Rockwell merger agreement; (23) risks associated with merger-related litigation or appraisal proceedings; and (24) the ability of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personnel. There can be no assurance that United Technologies' pending acquisition of Rockwell Collins or any other transaction described above will in fact be consummated in the manner described or at all. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see the reports of United Technologies and Rockwell Collins on Forms S-4, 10-K, 10-Q and 8-K filed with or furnished to the SEC from time to time. Any forward-looking statement speaks only as of the date on which it is made, and United Technologies and Rockwell Collins assume no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law. In addition, in connection with the pending Rockwell Collins acquisition, UTC has filed a registration statement, that includes a prospectus from UTC and a proxy statement from Rockwell Collins, which is effective and contains important information about UTC, Rockwell Collins, the transaction and related matters.

View original content:http://www.prnewswire.com/news-releases/united-technologies-plans-to-hire-35-000-people-and-make-15-billion-investment-in-us-over-next-five-years-300653533.html

SOURCE United Technologies Corp.