Page 12 - 2019 AMETEK Annual Report FINAL

10 An Adaptable Growth Model

An Adaptable The AMETEK Growth Model is adaptable, providing various
Growth Model tools that allow our businesses to deliver strong performance

throughout economic cycles.

Integrating the four growth strategies of As the cornerstone of the AMETEK
Operational Excellence, New Product Growth Model, Operational Excellence
Development, Global and Market is ingrained in our culture. Driving cost,
Expansion, and Strategic Acquisitions efficiency and asset management
— along with a disciplined approach improvements across our operations is
to Cash Generation and Capital part of our DNA.
Deployment — the AMETEK Growth
Model has been proven successful The Operational Excellence tool kit,
through uncertain economic including kaizens, Lean/Six Sigma,
environments. Value Analysis/Value Engineering,
GROWTH MODEL global sourcing and strategic pro-
This model provides our businesses curement, provides the playbook for
the flexibility needed to quickly our businesses to adapt to changing
react to changing conditions. The economic environments. In 2019, our
asset-light nature of our businesses, businesses delivered outstanding
our flexible supply chain and our efficiency improvements across our
global manufacturing footprint allow sales, engineering, sourcing and
our seasoned operating managers to manufacturing capabilities, while
proactively drive efficiency improve- delivering outstanding working capital
ments, leading to strong, consistent performance and record levels of cash
operating performance and cash flow flow.
generation. This cash generation,
2019 Operational in turn, is reinvested in our growth AMETEK’s global footprint, with
operations in 30 countries around the
Excellence Performance initiatives and strategic acquisitions. world, provides the opportunity to
$95m At the core of the AMETEK Growth accelerate growth in new geographies
OpEx Savings Model is our focus on developing world- and adjacent markets. Given our robust
class talent to support each element set of international sales channels and
Operating of the model. Our experienced teams, service capabilities, our businesses can
Margin 60bps our collaborative, performance-driven better serve their global customer base.
Expansion culture and the strength of the AMETEK
Margin 22.8%
Operating Growth Model provide a strategy for
long-term, sustainable success for all of
AMETEK’s stakeholders.

Case Study: Lean Manufacturing
In 2019, AMETEK Nu Instruments received
the Dr. John Lux Operational Excellence
Award for incorporating Lean processes
to reduce the manufacturing cycle time
of their mass spectrometer scientific
instruments for elemental and isotopic
analysis. These changes drove a 40%
reduction in working capital, shortened lead
times for their customers, and improved
sales and profit growth.