Company Overview

Established in 1904 as a car frame manufacturer, A.O. Smith (AOS) now comprises two units—electric motors and water heaters—and is a leading producer of fan motors, jet pump motors, and hermetic motors used in air conditioners, blowers, furnaces, swimming pools, and hot tubs. The company grew rapidly from its start in the early 20th century and in 1921 introduced an automated assembly line for car frames, which produced a frame every eight seconds and remained the standard for decades. A.O. Smith moved into water heater production in the 1930s and over the course of the 1940s began producing electric motors. The company expanded that side of its business again in 1986 with the purchase of Westinghouse's small motor division. AOS continued its aggressive efforts to move to the top of the electric motor market with its 1998 purchase of General Electric’s motor unit, making it the leading manufacturer of compressor motors for the air conditioner industry. In 2002 AOS acquired water heater company State Industries, nearly doubling the size of its water heater business in the process. In 2003 it purchased China-based Taicang Special Motor, a hermetic electric motors manufacturer, and in April 2006 it shelled out $320 million for GSW, a Canadian water heater supplier. The founding Smith family still holds the company’s reins.

A. O. Smith's sales were roughly split between electrical products and water systems prior to the GSW acquisition in 2006, which tilted the balance to water systems. It sells most of its electrical products to equipment manufacturers, but it also has some aftermarket and distribution sales. Its water systems are sold through wholesale distributors and retail channels.