US Electrical Equipment — PackExpo Takeaways: Automation and Integrated Solution Offerings Supporting LT Demand

We attended PackExpo and met with several of our covered companies, including ROK, DOV, CGNX, MMM, and VLTO, and came away constructive on the continued adoption of automation across packaging/printing markets. Based on our conversations with industry participants, we think the most consistent theme is the growing importance of differentiation through software, data, integrated solutions, new product development, and AI integration, which should enable multis to outgrow the underlying demand environment. The increasing emphasis on building partner ecosystems and offering integrated, solutions-based products (rather than standalone equipment) also continues to gain traction among customers/operators as these solutions can improve productivity, increase uptime, enhance labor efficiency, and lower operational cost, positioning the companies in our coverage to maintain/gain share over time. Cost inflation remains a watch-item, but companies appeared confident in their ability to pass prici