AFRICA IS KEY TO GLOBAL GROWTH – CUMMINS CEO

On his recent trip to Africa, Cummins Inc. Chairman and Chief Executive Officer Tom Linebarger hailed the continent as a key region for obtaining measurable and sustainable growth for the company. Addressing more than 200 local employees at the Cummins Southern African Regional Distribution Centre in Johannesburg on 24 March, Linebarger praised the local workforce and the role that they are playing in developing the continent.

“We at Cummins have big dreams for our future in Africa, and our long-term objective is to be one of the strongest and most competitive companies on the continent. We recognise the fact that we have to invest substantially with regards to people, money and time to achieve this objective. Given numerous external challenges, plans do not always run in their intended direction, however this world-class facility is proof that we are committed to a long-term future in Africa, and our local leadership team is advancing this dream,” he said.

The three values at the heart of Cummins’ global strategy

Linebarger, who was in Africa for 5 days as part of his regional business tour, highlighted the three fundamental values that he believes are instrumental to long-term success not only in Africa, but globally. The first value is to create a world that is fair and just. “This does not mean placing everyone in the same position, but rather giving each and every single person the opportunity to achieve their full potential,” Linebarger added.

The second fundamental value, according to Linebarger, is hard work. “My mother worked very hard to ensure that I was always provided for, and that inspired me to do the same. I work hard to ensure that whatever happens, I give my best effort. Even if it’s sometimes not good enough, at least I know I tried my utmost. If I know that I am giving my all, and take pride and ownership in everything that I do, I will succeed.”  

Linebarger cited family as the third core value. “My family means the world to me, and I do everything that I can to provide for them and spend quality time with them. A company that values family, and that treats its employees as one large family, instils a feeling of belonging, which in turn leads to pride of work and loyalty. Having a happy, loyal and productive workforce ultimately leads to growth,” he continued.

Remaining competitive in challenging economic conditions

While these values remain central to Cummins’ strategy, Linebarger admitted that the global economic downturn has had a negative impact on the company on a global scale. “The last couple of years have been challenging for Cummins. We have a large presence in developing countries with commodity-based economies, and the economic slowdown in these regions, and more developed economies, has affected our bottom line.” 

As a result, cost-cutting has become unavoidable. “Some restructuring of the company has taken place, whereby certain entities were combined to improve efficiencies. Our swift and proactive adaptation to these market conditions has minimised the negative impact on employees, and has also placed Cummins in a far stronger position that its competitors. When the markets turn, we will be prepared for growth,” said Linebarger.

Long-term commitment to investment in Africa

Linebarger added that, despite economic challenges, Cummins continues to invest heavily in new product development. “Ongoing investment and product launches ensure that we take a step forward, when many of our competitors are taking a step back. This is clearly evident in the fact that our local market share has grown from 10 percent to 18 percent.”

Linebarger revealed that customer service excellence is more important than ever. “When the market is down, sales consequently slump, and it is essential to provide existing customers with the high standard of service that they deserve. When the markets turn and there is more purchasing power, customers will appreciate those that went the extra mile for them during hard times, and will reward them with future sales.”

This commitment to excellence is enforced by Cummins’ global quality standard. “We want excellence in all that we do. Every region therefore adheres to the same global standard of quality and service. There are no ‘second class’ regions at Cummins, and the state-of-the-art RDC centres in South Africa and Ghana, which are among the most advanced in the world, are testament to the fact that Africa is included in our global standard.”

Despite a number of economic challenges, Africa continues to experience growth, particularly with regards to infrastructural development. Telecommunications upgrades are one of the major growth areas, and Cummins has obtained a number of contracts across the continent to supply back-up generator sets to ensure uninterrupted power supply, thereby resulting in world-class telecommunications service.

Linebarger indicated that, in order to remain front-of-mind for future contracts and tenders in all sectors, Cummins relies upon a dedicated, skilled and professional workforce. “We value people at Cummins, and we are well aware that we cannot achieve our objectives without them. The Africa leadership team is working tirelessly to improve leadership structures by creating, nurturing and developing staff skills, in order to ensure that the leaders of tomorrow are fully prepared to successfully face the challenges that lie ahead of them.”

Leaving a long-lasting legacy through corporate responsibility initiatives

Cummins’ corporate responsibility value calls on the company and its employees to serve and improve the communities in which they live through more than 200 employee-led Community Involvement Teams (CITs) Cummins encourages employees to focus on three global priority areas where they can add knowledge, skills and passion. These are education, environment and social justice/quality of opportunity.

The Every Employee Every Community (EEEC) program provides employees with at least four hours of company time to engage in community service work. Linebarger praised the Africa business unit for its ongoing participation. “Over 70 percent of all local employees have participated in the EEEC program, and in so doing, have changed their communities for the better. I am very proud of this team’s participation in these initiatives.”

Looking to the future, Linebarger noted that he was optimistic that Cummins can attain its dream of becoming one of the largest and most competitive companies in Africa within the next 15 to 20 years. “Although this sounds like the distant future, the reality is that we have to move with urgency in order to achieve our dreams, and to develop opportunities for our families and our shareholders. Despite many obstacles along the way, the Africa team is playing a central role in ensuring that our dream can and will be achieved.”

About Tom Linebarger

Tom Linebarger has been a Cummins employee for more than 20 years. He became the sixth Chairman and CEO of Cummins Inc. in January 2012. Prior to becoming Chairman and CEO, he served as President and COO from 2008 to 2011, Executive Vice President and President, Power Generation Business from 2003 to 2008, Vice President and Chief Financial Officer from 2000 to 2003, and Vice President, Supply Chain Management from 1998 to 2000.

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About Cummins

Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service diesel and natural gas engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems.

Headquartered in Columbus, Indiana, (USA) Cummins currently employs approximately 54,600 people worldwide and serves customers in approximately 190 countries and territories through a network of approximately 600 company-owned and independent distributor locations and approximately 7,200 dealer locations. Cummins earned $1.65 billion on sales of $19.2 billion in 2014.

Cummins South Africa is headquartered in Johannesburg, with branches in Longmeadow, Bloemfontein, Cape Town, Durban and Port Elizabeth.

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