Rockwell Automation NYSE: ROK executives said customer sentiment remains broadly positive despite inflation, tariffs and trade-policy uncertainty, with manufacturers continuing to prioritize productivity, modernization and automation investments.
Speaking at Morgan Stanley’s 14th Annual Laguna Conference, Chief Executive Officer Blake Moret said North America remains an attractive market for manufacturing investment. While larger capital-spending projects have not yet broadly accelerated, he said Rockwell is seeing modernization activity across its traditional end markets as well as growth tied to data centers.
“The underlying tone from our customers is distinctly positive,” Moret said. He cited low-double-digit growth in automotive during the most recent quarter, high-single-digit growth in home and personal care, and approximately 10% growth in life sciences in the third quarter. He also pointed to spending in warehouse automation, parcel handling and data centers.
Labor constraints support automation demand
Moret said labor scarcity remains a consistent driver of customer interest in automation. With unemployment around 4.1% to 4.2%, he said manufacturers are seeking technology that can help employees improve productivity while addressing difficult-to-fill manufacturing roles.
“Having the right amount of technology for the scarce resources that these manufacturers do have is really important,” Moret said.
He added that data-center customers are focused on speed, modularity and time to value. Rockwell’s technology is increasingly being adopted in those facilities, which Moret said are beginning to resemble factories in their operating requirements.
Still, the CEO said uncertainty surrounding trade discussions, particularly those affecting the United States, Canada and Mexico, is holding back some larger investment decisions. He said reduced volatility in trade policy could help release capital spending, especially in automotive, where supply chains are closely integrated across the three countries.
Tariffs and reshoring
Moret advocated for what he described as a targeted and pragmatic tariff approach rather than broad-based measures. He said tariffs should focus on non-market behavior and overcapacity from non-market economies, while allowing U.S. manufacturers clearer access to relief for critical production inputs.
Despite tariff-related uncertainty, he said companies are generally continuing to pursue their longer-term strategies. Rockwell itself recently announced plans for a new plant near its Wisconsin headquarters, with first products expected from the facility in 2028. Moret said the investment is intended to improve customer service and support margin expansion.
He also said Rockwell is positioned to participate in new capacity projects in industries including semiconductors, life sciences and data centers. The company has experience in semiconductor facility management and control systems, he said, and has expanded capabilities in areas such as chiller optimization, artificial intelligence and wafer transport.
Product portfolio and market-share efforts
Moret said recently released market-share reports indicate Rockwell is taking modest share in important markets, though he acknowledged such reports are lagging indicators. He attributed the company’s positioning to product launches, pricing, engineering support and organizational responsiveness in competitive projects.
Tessa Myers, senior vice president of Intelligent Devices, said recent product introductions have exceeded expectations and are generating wins with both existing and new customers. She said the company’s expanded architecture, including technologies acquired in recent years, is resonating across multiple industry verticals.
The executives highlighted several areas of technology investment:
- Software-defined automation and architecture, including design, engineering, validation and lifecycle-management capabilities.
- Artificial intelligence tools for engineering, production scheduling, operations and predictive maintenance.
- Robotics and intelligent material movement, supported by the acquisitions of OTTO Motors and Clearpath Robotics.
- Manufacturing execution systems, fleet management and connected-worker offerings.
Moret reiterated Rockwell’s long-term top-line target of 6% to 9% compound annual growth through the cycle. He said the company expects 3% to 5% of that growth to come from market growth, including price, with another 1% to 2% from expanding markets and market-share gains.
Margins, supply costs and semiconductors
Rockwell is also focused on margin expansion through product design, direct-material negotiations, pricing, manufacturing efficiency, logistics and reusable intellectual property, according to Moret and Myers. Moret said the company has invested roughly $2 billion in plants, talent and digital infrastructure to support further margin improvement and customer service.
Moret said Rockwell’s headcount remains nearly 10% below its early-2024 peak following workforce reductions in 2024 and early 2025. He said the company intends to add resources with discipline while using artificial intelligence tools to improve internal efficiency.
Addressing semiconductor costs, Moret said Rockwell expects to remain ahead of inflation through pricing, even as memory prices continue rising. The company has long-term supply agreements with some semiconductor suppliers and built inventory ahead of cost increases, he said. Rockwell is not assuming near-term moderation in memory-price inflation, but Moret said availability has not been affected.
Myers added that supply-chain lessons from the recent disruption have improved the company’s ability to qualify alternate components and suppliers, manage vendor relationships and respond to changes in availability and costs.
About Rockwell Automation (NYSE:ROK)
Rockwell Automation, Inc NYSE: ROK is a global provider of industrial automation and digital transformation technologies. The company helps manufacturers and other industrial organizations improve productivity, safety, quality and operational efficiency by connecting control systems, equipment, software and data across production environments.
Its portfolio includes programmable logic controllers, industrial computers, sensors, motor control and drives, motion-control systems, safety equipment, human-machine interfaces and industrial networking technologies.
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