Resideo Chief Executive Mike Nefkens Talks Spinoff, R&D and More
In mid-December, Resideo unveiled plans for a new HQ in Austin, Texas. A customer experience center will showcase smart home products and technologies.
AUSTIN, Texas — Resideo Technologies (NYSE: REZI) recently announced it will establish its new headquarters here, along with a software development center.
Over the summer, Honeywell introduced Resideo as the corporate name of the Honeywell homes product portfolio and ADI Global Distribution businesses.
The state-of-the-art office building in Austin will become the new home for the smart home technology company and approximately 120 of its employees, including most of the company’s executive leadership team, according to the announcement.
The headquarters will feature a new customer experience center, showcasing the latest products and technologies. The facility is planned to open during the first half of 2019. SSI checked in with Resideo President and CEO Mike Nefkens about the spinoff.
How does the spinoff effect R&D for Resideo connected products and technologies going forward?
As an independent business Resideo will benefit from a more targeted focus and ability to invest to meet the needs of our customers, and we’ll continue to make significant investments in R&D. Our portfolio already includes more than 3,000 products, and we have a robust engineering and design team with 1,300 engineers — half dedicated to software and firmware — across 17 global sites, and three dedicated software centers.
We’ll also be setting up a software development center at our new Resideo headquarters in Austin, Texas. Software is key to the connected home, and we’re focused on developing software solutions that customers are willing to pay for. This, in turn, creates recurring revenue and long-term customers for our dealers.
For ADI, post spinoff, is it pretty much all systems go/business as usual or will we see significant changes in the business?
ADI Global Distribution is the partner of choice for 100,000-plus professional installers, and will remain as a stand-alone part of Resideo. ADI distinguishes itself through the customer service and value-add services we provide to the channel, and we’ll continue to drive this with new products and categories, training opportunities, programming and testing, and systems design.
When we think about the connected home and bringing all types of products together, the pro dealer is best positioned for this strategy and ADI is a key enabler to make this happen.
There have been several trade related issues in the news lately, such as trade tensions and tariffs with China and ratification of a new NAFTA agreement. How will this impact Resideo?
I’m optimistic about our growth prospects globally. Because we manufacture close to our customers with 18 sites located mostly in the U.S., Mexico and Europe, we’re in a strong position from a trade standpoint and I don’t expect an impact to our business.
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