Miguel Borrega's questions to Otis Worldwide Corp (OTIS) leadership • Q4 2024
Question
Miguel Borrega asked for views on the China modernization market, questioning whether it would eventually face the same intense price competition seen in the New Equipment market.
Answer
Executive Judith Marks believes the dynamics will be different. Modernizing units already in Otis's portfolio offers a higher probability of a sole-source award. While the off-portfolio market will be competitive, she noted that independent service providers in China are not yet focused on modernization, which requires different skills. Otis is also leveraging its scale by producing mod packages in its New Equipment factories to achieve cost efficiencies.