Description

ATS was written last year by tim321 at much higher prices. Not much has changed from a LT perspective but the business is now available half off!

ATS and the Adoption of DBS Principles

ATS, a global provider of automation solutions, has drawn inspiration from DBS. ATS’s CEO, Andrew Hider, spent a decade at Danaher and applied many of its principles when he introduced the ATS Business Model (ABM) upon becoming CEO. ABM centers on continuous improvement (Kaizen) and focuses on three key areas: People, Process, and Performance. Like DBS, ABM promotes a customer-first approach and prioritizes performance management, shorter development cycles, and greater production efficiency.

Under Hider’s leadership, ATS stock price increase from US$10 per share in 2018 to a peak of US$48 by 2023, before correcting back to around $26 at present. Despite the drop, ATS remains positioned for long-term growth in an expanding automation industry. The company’s implementation of a DBS-like system within its culture has contributed to its success, driving improvements across several key performance indicators such as revenue growth, EBIT margin, and ROIC.

ATS’s Core Business and Global Footprint

ATS serves as a leading System Integrator and Original Equipment Manufacturer (OEM), offering end-to-end automation solutions across industries like pharmaceuticals, food and beverage, and life sciences. It employs over 7,000 people across more than 65 manufacturing facilities and 85 offices worldwide, giving the company a vast geographic footprint. This scale ensures ATS can respond to client needs in a timely manner, providing a strong competitive advantage.