Timken Company SWOT and PESTLE Analysis

Strength

1. Harnessing customers from multiple business domains: The roller bearing has found its use in multiple segments leading to Timken diversifying its client mix. Some of the segments apart from Railways, that the company has clients in are – Food and Beverage, Industrial Equipment and Machinery, Agricultural equipment, Mining, Metals, Construction, Civil Aerospace and Defence. Timken Company has been able to upgrade its product mix and has made its products resilient to heat and other extreme working conditions such as sudden change in load or speed. There are stronger regulations in the food and agricultural segments, something which has been taken care of by the company as well. The use of bearings in defence and aerospace requires the products to be low on maintenance as well be free from wear and tear. Timken Company has been able to rise up to these challenges and such advantages make Timken products the go-to products for such segments.

2. Strong Acquisition strategies to consolidate positions: The Timken Company has a strong acquisition strategy which helps strengthen its expertise and reputation as well as consolidate positions in the geographies that it operates in. In December 2020, the company acquired Aurora Bearing Co., which is a manufacturer of rod ends and spherical plain bearings, thus helping Timken expand its product line. In November 2019, the company acquired BEKA Lubrication, which is a global supplier of automatic lubrication systems. This acquisition made Timken the world’s second largest producer of automatic lubrication systems. In April 2019, the company acquired The Diamond Chain Company, which is a global supplier of high-performance industrial roller chains. This acquisition helped strengthen the company’s distribution channels and expand the product mix. It also helps add manufacturing capabilities in the Asian market as well as consolidate its position amongst the food and beverage, agriculture and construction segments.

The remaining section under "Strengths" is available only in the 'Complete Report' on purchase.

Weakness

Opportunity

Threat

Political

Economic

Social

Technological

Legal

Environmental

1. Move towards reduction in environmental impact due to its operations Companies have realised the environmental impact that their operations have and have started taking active steps to reducing this impact. The Timken Company has also stepped up its efforts to protect the environment by changing its operations and policies to comply with the environmental protection laws. The company has invested in pollution control equipment for all its centres worldwide. All of the manufacturing facilities will have an effective environmental management system (EMS) which follows the ISO 14001 principles. Majority of the Company's bearing manufacturing plants already have the EMS in-place. The company also has a well-established environmental compliance audit program to measure the performance of units against the laws applicable as per the geography. It has also established internal standards for all units worldwide which are in compliance with the international agreements as well as appropriate levels of reserves to cover its environmental expenses.

2. Reduction in single-use plastics: Single-use plastic includes temporary use products such as bags, straws, and bottles. The creation of such plastics involves the use of large quantity of non-renewable fuels. The improper disposal of such fuels leads to land and water pollution which is harmful for the flora and fauna. Companies across the world have realised the importance of reducing the use of single use plastics and switching to alternatives that can either be recycled or which doesn’t cause pollution. The Timken company has also started a global initiative to reduce the use of single-use plastics and has not limited this to their operations but also the operations of their vendors and logistics partners. The package material is going to be replaced by recyclable and biodegradable paper rather than plastics. This initiative aims to reduce 13,550 cubic feet of single-use plastic from entering the U.S. landfills annually

The remaining section under "Environmental" is available only in the 'Complete Report' on purchase.