Recently, ABB Ltd. (NYSE: ABB) and Koninklijke Philips N.V (NYSE: PHG) joined forces to provide combined lighting systems and build device control for commercial buildings. This joint effort will reduce the cost of renovation of mid-and-small-sized commercial buildings. Together, the companies intend to offer a solution to control a commercial environment including lighting, blinds, building access and heating, ventilation and air conditioning (HVAC).
ABB being a leading power and automation technology provider and Philips being the global leader in lighting, have complementary solutions that provide a comprehensive package to systems integrators, commercial building owners, facility managers and the people who work in these buildings.
HVAC and lighting comprise about 70% of the energy consumption in commercial buildings; hence with the introduction of building device control, energy efficiency can be enhanced by approximately 30%. Further, modernization by deploying more energy efficient systems represents a significant opportunity for building managers to save on operational costs.
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Additionally, the introduction of the lighting and power solution from ABB and Philips will make it a simpler process to reconfigure spaces. For instance, in a hotel, the solution would enable altering the lighting scene after combining several separate rooms into a large meeting room, just by the click of a button while in a shopping complex, a building manager can simply reconfigure the access, HVAC and lighting when a single unit is split into smaller ones.
Therefore, Philips' LED lighting combined with ABB's controls is expected to generate up to 80% energy savings compared with conventional lighting, while providing high quality light for a comfortable and more productive work environment.
Based in Zurich, Switzerland, ABB is a leader in power and automation technologies that enable utility and industry customers to improve performance, while lowering negative impacts on the environment. Amsterdam-based Philips Electronics is one of the world's largest electronics companies and the biggest in Europe, with sales of €23.3 billion in full year 2013.
ABB currently holds a Zacks Rank #4 (Sell). However, other stocks that are worth considering at the moment are Quanta Services, Inc. (NYSE: PWR) and Enersys Inc. (NYSE: ENS), both carry a Zacks Rank #2 (Buy).
ABB LTD-ADR (NYSE: ABB): Free Stock Analysis Report
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KONINKLIJKE PHL (NYSE: PHG): Free Stock Analysis Report
QUANTA SERVICES (NYSE: PWR): Free Stock Analysis Report
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