The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Isaac Pino and technology editor/analyst Brenton Flynn discuss topics around the investing world.
In today's edition, Isaac and Brenton focus on one particular product that's poised to drive growth for industrial giant Honeywell. As a supplier to the auto market, Honeywell formerly provided carmakers with low-margin components like spark plugs and antifreeze, but in recent years it has homed in on turbochargers. Honeywell's turbochargers funnel engine exhaust back into the cylinders to enhance power and efficiency. CEO Dave Cote sees this business as a tremendous opportunity as automakers strive to meet higher fuel-efficiency requirements. Watch the video to find out how industrial companies are pursuing higher-margin businesses like turbochargers to drive growth in the decade ahead.
In Honeywell's case, the turbocharger market could quadruple by 2020 in the U.S., but the same growth is likely to be replicated in China as well. Emerging markets are giving new life to established American companies with deep pockets. As these industry titans look abroad for more sales, they aren't starting with a blank slate -- they're bringing their operational excellence to new markets and thriving. To uncover these picks today, we invite you to read a copy of our free report: "3 American Companies Set to Dominate the World." The report won't be available forever, so we invite you to enjoy a free copy today. Click here to get your copy today!
Brenton Flynn owns shares of Chesapeake Energy. Isaac Pino owns shares of General Electric. The Motley Fool owns shares of Chesapeake Energy. Motley Fool newsletter services recommend 3M and Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.