Lincoln’s technical mix
Lincoln Electric (LECO) is unique in terms of several factors:
- product mix
- technical development
- operations and logistics
- customer relationship
Product mix: Lincoln Electric (LECO) addresses consumers’ process issues with its know-how on equipment and consumables development. Such an integrated approach helps improve the customers’ process productivity.
Technical development: With a constant focus on research and development in the welding space has enabled Lincoln Electric to tap new markets. This further helped LECO to make new and better-quality introductions. These technological innovations helped Lincoln Electric earn a price premium for many of its products and processes.
Operations and logistics: The supply arrangement of Lincoln Electric with FANUC Robotics has helped the company to make progress with high-tech equipment. The products are produced by a robotic arm, power source, wire feeder, and various software packages.
This helped Lincoln Electric to enhance its value-based products by its own competency and unique resources. Since 2004, LECO has invested in building engineering development centers worldwide.
Customer relationships and marketing: Lincoln Electric is in an advantageous position as compared to its peers due to its highly trained technical sales force. The company guarantees cost savings by evaluating its customers’ welding requirements. The company makes product-specific recommendations considering its return on investment projections.
Lincoln Electric (LECO) is a part of the Robo-Stox Global Robotics and Automation Index ETF (ROBO) and accounts for 2.2% of the fund’s total holdings. Investors in this ETF may benefit if LECO continues to exhibit operational excellence in 2016.
Cognex (CGNX), Rockwell Automation (ROK), and ABB Ltd. (ABB) are also amongst the top ten holdings of the fund. They account for 2.2%, 2.1%, and 2.0%, respectively. LECO is also part of the SPDR S&P 500 ETF (SPY).