Ingersoll Rand Inc. (IR): Business Model Canvas [10-2024 Updated]

Ingersoll Rand Inc. (IR) stands at the forefront of industrial innovation, leveraging a robust business model canvas that highlights its strategic approach to delivering high-quality products and services. Through key partnerships and a strong focus on research and development, IR caters to diverse customer segments, including industrial manufacturing and the oil and gas sector. Explore how their comprehensive value propositions, combined with efficient cost structures and multiple revenue streams, position Ingersoll Rand as a leader in the air and fluid technologies market.

Ingersoll Rand Inc. (IR) - Business Model: Key Partnerships

Collaborations with suppliers for raw materials

Ingersoll Rand collaborates with a variety of suppliers to secure essential raw materials for its manufacturing processes. The company emphasizes strategic partnerships with suppliers to enhance supply chain efficiency and mitigate risks associated with raw material fluctuations. In 2024, Ingersoll Rand reported a significant increase in costs attributed to raw materials, reflecting the volatile market conditions.

Partnerships with distributors and OEMs

Ingersoll Rand has established partnerships with numerous distributors and original equipment manufacturers (OEMs) to expand its market reach. As of September 30, 2024, the company generated approximately 36.4% of its consolidated revenues from aftermarket parts and services, amounting to about $1.94 billion. Additionally, it has reported segment revenues for the nine months ended September 30, 2024, of $4.3 billion, with OEM partnerships playing a crucial role in driving sales.

Strategic alliances for technology integration

Strategic alliances are pivotal for Ingersoll Rand's technology integration efforts. In 2024, the company focused on enhancing its product offerings through technology partnerships, which included collaborations with tech firms to innovate and improve product efficiency. These alliances have contributed to a reported increase in Adjusted EBITDA by 14.4% to $1.3 billion for the nine months ending September 30, 2024.

Joint ventures for market expansion

Ingersoll Rand actively engages in joint ventures to facilitate market expansion. The company has pursued joint ventures that allow it to penetrate new geographic markets and diversify its product lines. For instance, in 2023, Ingersoll Rand acquired 10 additional businesses, investing approximately $84 million to enhance its market presence. This strategic move reflects the company's commitment to leveraging joint ventures for sustained growth and innovation.

Partnership Type	Description	Financial Impact (2024)
Suppliers	Collaborations for securing raw materials	Increased costs due to material fluctuations
Distributors/OEMs	Partnerships to expand market reach	36.4% of consolidated revenues from aftermarket parts ($1.94 billion)
Technology Alliances	Strategic partnerships for product innovation	Adjusted EBITDA increase of 14.4% ($1.3 billion)
Joint Ventures	Market expansion through acquisitions	$84 million invested in 2023 for new businesses

Ingersoll Rand Inc. (IR) - Business Model: Key Activities

Manufacturing of air and fluid technologies

Ingersoll Rand Inc. focuses on the manufacturing of a wide range of air and fluid technologies, which includes compressors, pumps, and related equipment. For the nine-month period ended September 30, 2024, the company reported segment revenues of $4,307.1 million, an increase of 4.4% compared to $4,124.0 million in the same period in 2023. The total segment orders for the same period were $4,284.4 million, reflecting a slight increase of 1.0% from $4,241.5 million in 2023.

Metric	2024 (9M)	2023 (9M)	Change (%)
Segment Revenues	$4,307.1 million	$4,124.0 million	4.4%
Segment Orders	$4,284.4 million	$4,241.5 million	1.0%

Research and development for innovative products

Ingersoll Rand places significant emphasis on research and development to drive innovation in its product offerings. The company allocated $277.8 million for amortization of intangible assets during the nine months ended September 30, 2024, which indicates a strong commitment to enhancing its technology and product capabilities.

Aftermarket services and support

Aftermarket services play a crucial role in Ingersoll Rand's business model. For the three-month period ended September 30, 2024, the revenue from aftermarket parts and services constituted 36.8% of total consolidated revenues, up from 36.2% in the same period in 2023. The contribution of aftermarket services reflects a steady growth trend, with a percentage of segment revenues derived from these services recorded at 39.8% for the nine-month period in 2024, compared to 39.5% in 2023.

Metric	2024 (3M)	2023 (3M)
Aftermarket Revenue % of Total	36.8%	36.2%
Aftermarket Revenue % of Segment	39.8%	39.5%

Marketing and sales initiatives

Ingersoll Rand's marketing and sales initiatives are designed to capitalize on market opportunities and drive revenue growth. The company reported total revenues of $1,861.0 million for the three-month period ended September 30, 2024, marking a 7.0% increase from $1,738.9 million in the same period in 2023. This growth is attributed to effective pricing strategies and expansion into new markets.

Metric	2024 (3M)	2023 (3M)	Change (%)
Total Revenues	$1,861.0 million	$1,738.9 million	7.0%

Ingersoll Rand Inc. (IR) - Business Model: Key Resources

Advanced manufacturing facilities

Ingersoll Rand operates several advanced manufacturing facilities globally, which are vital for its production capabilities. As of September 30, 2024, the company reported net property, plant, and equipment of $853.1 million. These facilities are equipped with state-of-the-art technology that enables high-efficiency production processes and quality control, ensuring the delivery of reliable products to customers.

Skilled workforce and engineering talent

The company prides itself on its skilled workforce, which includes over 16,000 employees worldwide. Ingersoll Rand invests significantly in training and development programs, which enhances the engineering talent pool. The company reported a net income of $614.4 million for the nine-month period ended September 30, 2024, reflecting the productivity and expertise of its workforce.

Strong brand portfolio (e.g., Gardner Denver, Nash)

Ingersoll Rand boasts a strong brand portfolio that includes well-established names such as Gardner Denver and Nash. The company's revenues for the nine-month period ended September 30, 2024, reached $5,336.4 million, with a significant portion attributed to these brands. The strength of these brands not only enhances customer loyalty but also provides a competitive edge in various market segments.

Intellectual property and patents

Ingersoll Rand holds a substantial portfolio of intellectual property and patents that protect its innovations and technologies. As of September 30, 2024, the company reported $4,445.8 million in other intangible assets. This intellectual property is crucial for maintaining a competitive advantage, allowing Ingersoll Rand to introduce new products and enhance existing ones, thus driving future growth.

Key Resource	Details	Financial Impact
Advanced Manufacturing Facilities	Global presence with state-of-the-art technology	Net property, plant, and equipment: $853.1 million
Skilled Workforce	Over 16,000 employees with continuous training	Net income: $614.4 million for 9M 2024
Strong Brand Portfolio	Includes Gardner Denver, Nash	Revenues: $5,336.4 million for 9M 2024
Intellectual Property	Extensive patents and trademarks	Intangible assets: $4,445.8 million

Ingersoll Rand Inc. (IR) - Business Model: Value Propositions

High-quality, reliable industrial products

Ingersoll Rand Inc. (IR) offers a diverse array of industrial products designed for high performance and reliability. For the nine months ending September 30, 2024, the company reported segment revenues of $4,307.1 million, representing a 4.4% increase compared to $4,124.0 million for the same period in 2023. The gross profit margin for the same period was 44.1%, indicating the high quality and value of their products.

Comprehensive solutions tailored to customer needs

IR provides comprehensive solutions that are customized to meet specific customer requirements. The company's revenue from aftermarket parts and services accounted for 36.4% of total revenues in the nine months ended September 30, 2024, highlighting the importance of tailored solutions in their business model. Segment orders during this period reached $4,284.4 million, a slight increase of 1.0% from $4,241.5 million in the previous year, demonstrating steady demand for their bespoke solutions.

Innovation in energy efficiency and sustainability

Ingersoll Rand is committed to innovation in energy efficiency and sustainability. The company has invested in developing energy-efficient technologies, which are reflected in their product offerings. The adjusted EBITDA margin for the nine months ended September 30, 2024, increased by 260 basis points to 30.1%, attributed to higher pricing and favorable cost productivity. This focus on sustainability is not only an ethical choice but also a strategic advantage in a market increasingly driven by environmental considerations.

Extensive service and support offerings

IR emphasizes extensive service and support, contributing significantly to customer satisfaction and loyalty. The company reported that 36.4% of its consolidated revenues were derived from aftermarket parts and services, which reflects the strategic importance of ongoing customer support. In the most recent quarter, the segment adjusted EBITDA reached $449.9 million, an increase of 9.5% year-over-year, showcasing the effectiveness of their service offerings.

Metric	2024 Q3	2023 Q3	Change (%)
Segment Revenues	$1,861.0 million	$1,738.9 million	7.0%
Gross Profit Margin	43.8%	42.5%	1.3%
Adjusted EBITDA	$532.7 million	$461.5 million	15.4%
Aftermarket Revenue (% of Total)	36.4%	36.1%	0.3%

Ingersoll Rand Inc. (IR) - Business Model: Customer Relationships

Direct engagement through sales teams

Ingersoll Rand employs a robust sales force to drive customer engagement. The company reported segment orders of $1,021.1 million for the nine months ended September 30, 2024, an increase of 12.1% compared to $910.5 million for the same period in 2023. This growth reflects the effectiveness of their direct sales teams in acquiring new customers and retaining existing ones.

Ongoing technical support and training

The company emphasizes ongoing technical support and training, which is crucial for customer satisfaction and retention. Ingersoll Rand's revenue from aftermarket parts and services amounted to 22.2% of segment revenues for the nine-month period ended September 30, 2024, up from 20.9% in the previous year. This indicates a strong focus on providing continuous support and training to enhance customer relationships.

Customized solutions for specific industries

Ingersoll Rand specializes in providing customized solutions tailored to specific industries, contributing significantly to their revenue. For the nine-month period ended September 30, 2024, segment revenues were $1,029.3 million, a 10.6% increase from $930.7 million in 2023. The company’s ability to deliver tailored solutions has been a key factor in its revenue growth and customer loyalty.

Feedback channels for continuous improvement

Ingersoll Rand actively seeks customer feedback to drive continuous improvement. The company’s net income attributable to Ingersoll Rand Inc. for the nine months ended September 30, 2024, was $608.8 million, reflecting their commitment to addressing customer needs and enhancing service delivery. This feedback mechanism helps the company adapt and innovate, further solidifying customer relationships.

Metric	Q3 2024	Q3 2023	Change (%)
Segment Orders ($ million)	1,021.1	910.5	12.1
Segment Revenues ($ million)	1,029.3	930.7	10.6
Aftermarket Revenue (% of Total)	22.2	20.9	6.2
Net Income ($ million)	608.8	548.9	10.4

Ingersoll Rand Inc. (IR) - Business Model: Channels

Direct sales to large industrial clients

Ingersoll Rand Inc. (IR) has established a robust direct sales channel targeting large industrial clients. For the nine-month period ending September 30, 2024, the company reported segment orders of $1,021.1 million, reflecting a 12.1% increase from $910.5 million in the same period of 2023. This growth is attributed to acquisitions worth $102.8 million (11.3% of the increase) and organic growth of $7.0 million (0.8%). The direct sales model allows Ingersoll Rand to customize solutions and maintain close relationships with key customers, enhancing customer loyalty and retention.

Distribution through global partners

Ingersoll Rand utilizes a network of global partners to expand its market reach. In the nine months ended September 30, 2024, the company reported segment revenues of $4,307.1 million, a 4.4% increase from $4,124.0 million in the same period of 2023. The revenue derived from aftermarket parts and service constituted 39.8% of total segment revenues, indicating the effectiveness of its partner distribution model in providing ongoing support and service.

Online platforms for product information and support

The company has invested significantly in its online platforms, enabling customers to access product information and support. As of September 30, 2024, Ingersoll Rand reported that 36.4% of consolidated revenues were derived from aftermarket parts and services, which are heavily supported by digital channels. This integration of online platforms has facilitated easier customer access to information and services, contributing to a seamless customer experience.

Trade shows and industry exhibitions

Ingersoll Rand actively participates in trade shows and industry exhibitions to showcase its products and innovations. These events are crucial for building brand awareness and generating leads. In the three months ended September 30, 2024, the company reported segment revenues of $1,861.0 million, a 7.0% increase compared to $1,738.9 million in the same period in 2023, indicating the positive impact of such marketing efforts.

Channel Type	Segment Orders ($ million)	Segment Revenues ($ million)	Growth Rate (%)
Direct sales to large industrial clients	1,021.1	1,029.3	12.1
Global partner distribution	N/A	4,307.1	4.4
Online platforms	N/A	1,861.0	7.0
Trade shows and exhibitions	N/A	1,861.0	7.0

Ingersoll Rand Inc. (IR) - Business Model: Customer Segments

Industrial manufacturing companies

Ingersoll Rand serves a broad range of industrial manufacturing companies, providing solutions that enhance productivity and efficiency. In the nine-month period ending September 30, 2024, segment revenues from industrial technologies and services reached $4,307.1 million, a 4.4% increase compared to $4,124.0 million in the same period of 2023.

Segment orders for the same period were $4,284.4 million, reflecting a 1.0% increase compared to $4,241.5 million in 2023.

Oil and gas sector

The oil and gas sector is a significant customer segment for Ingersoll Rand, where it provides specialized equipment and services. In the three-month period ending September 30, 2024, segment revenues from the precision and science technologies reached $393.8 million, a 26.8% increase from $310.5 million in the same period of 2023.

Segment orders during this period were $378.1 million, marking a 30.0% increase over $290.9 million the previous year.

Pharmaceutical and biopharmaceutical industries

Ingersoll Rand's offerings are integral to the pharmaceutical and biopharmaceutical sectors, focusing on compliance and operational efficiency. The segment adjusted EBITDA for precision and science technologies was $118.1 million for the three-month period ending September 30, 2024, an increase of 25.4% from $94.2 million in 2023.

The percentage of revenues derived from aftermarket parts and services in this segment was 21.1% for the three-month period ending September 30, 2024.

Food and beverage producers

Ingersoll Rand caters to food and beverage producers by providing equipment that meets stringent safety and quality standards. The overall revenue from all segments for the nine-month period ending September 30, 2024 was $5,336.4 million, which is a 5.6% increase compared to $5,054.7 million in the previous year.

Segment orders for the nine-month period stood at $1,021.1 million, which was a 12.1% increase from $910.5 million in 2023.

Customer Segment	Segment Orders (2024)	Segment Revenues (2024)	Segment Adjusted EBITDA (2024)	Percentage Increase (2024 vs. 2023)
Industrial Manufacturing	$4,284.4 million	$4,307.1 million	N/A	1.0%
Oil and Gas	$378.1 million	$393.8 million	$118.1 million	30.0% / 26.8%
Pharmaceuticals	N/A	N/A	$118.1 million	25.4%
Food & Beverage	$1,021.1 million	$5,336.4 million	N/A	12.1% / 5.6%

Ingersoll Rand Inc. (IR) - Business Model: Cost Structure

Manufacturing and operational costs

Ingersoll Rand Inc. reported manufacturing and operational costs that are integral to their business model. For the nine-month period ended September 30, 2024, the company incurred:

• Total Segment Revenues: $4,307.1 million
• Gross Profit: $2,354.6 million
• Gross Margin: 44.1%

These figures indicate effective management of production costs while enhancing profitability through operational efficiencies.

Research and development expenses

Research and development (R&D) expenses are crucial for Ingersoll Rand’s innovation strategy. For the nine months ended September 30, 2024, R&D expenses amounted to:

• R&D Expenses: $95 million

This investment reflects a commitment to developing new technologies and improving existing product lines to maintain competitive advantage.

Marketing and sales expenditures

Marketing and sales expenditures for Ingersoll Rand are essential for driving revenue growth. For the nine-month period ended September 30, 2024:

• Selling and Administrative Expenses: $1,012.7 million
• Percentage of Revenues: 19.0%

The increase in selling and administrative expenses was primarily due to the acquisition of new businesses, indicating a strategic focus on expanding market reach.

Administrative and overhead costs

Administrative and overhead costs encompass the general operational expenses of the company. As of September 30, 2024, these costs included:

• Amortization of Intangible Assets: $277.8 million
• Other Operating Expense, Net: $142.8 million
• Interest Expense: $151.4 million

These figures highlight the financial commitments related to maintaining corporate governance and operational infrastructure.

Cost Structure Component	Amount (in millions)
Manufacturing and Operational Costs	$4,307.1
Research and Development Expenses	$95.0
Marketing and Sales Expenditures	$1,012.7
Administrative and Overhead Costs	$151.4 + $277.8 + $142.8

Ingersoll Rand Inc. (IR) - Business Model: Revenue Streams

Sales of industrial equipment and systems

Ingersoll Rand Inc. generates significant revenue from the sale of industrial equipment and systems. For the nine-month period ended September 30, 2024, the total revenue from industrial technologies and services was $4,307.1 million, an increase from $4,124.0 million in the same period of 2023, reflecting a growth of 4.4%.

The breakdown of revenue for the three-month period ending September 30, 2024, shows segment revenues of $1,467.2 million, compared to $1,428.4 million in the same period of 2023, which is a 2.7% increase.

Aftermarket parts and service contracts

Aftermarket parts and services comprise a critical revenue stream for Ingersoll Rand. For the nine-month period ended September 30, 2024, the revenue derived from aftermarket parts and service was approximately 36.4% of total consolidated revenues, which translates to about $1,944.7 million. In the three-month period ending September 30, 2024, aftermarket revenues contributed around 41.0% of segment revenues.

The company reported aftermarket revenues of $684.2 million for the total nine-month period in 2024, up from $629.6 million in 2023, marking a growth of 9.1%.

Licensing of technology and intellectual property

Ingersoll Rand also engages in the licensing of technology and intellectual property, although specific financial figures related to this revenue stream are less frequently disclosed. The company leverages its patents and proprietary technologies to generate additional income, contributing to its overall financial performance. As of September 30, 2024, the licensing revenues are included within broader categories of service revenues, but specific amounts are not detailed in the financial statements.

Revenue from strategic partnerships and collaborations

Revenue from strategic partnerships and collaborations plays a role in Ingersoll Rand's business model. The company has formed alliances that enhance its product offerings and market reach. For example, Ingersoll Rand's collaboration with other manufacturers and service providers has allowed it to expand its service capabilities and product lines, although specific revenue contributions from these partnerships have not been explicitly detailed in the latest financial reports.

Overall, the company reported total revenues of $5,336.4 million for the nine-month period ended September 30, 2024, up from $5,054.7 million in 2023, demonstrating the combined efficacy of its various revenue streams.

Revenue Stream	9-Month Revenue (2024)	9-Month Revenue (2023)	Growth (%)
Sales of Industrial Equipment	$4,307.1 million	$4,124.0 million	4.4%
Aftermarket Parts	$1,944.7 million	$1,822.3 million	6.7%
Licensing Revenue	N/A	N/A	N/A
Strategic Partnerships	N/A	N/A	N/A

Article updated on 8 Nov 2024

Resources:

1. Ingersoll Rand Inc. (IR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ingersoll Rand Inc. (IR)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Ingersoll Rand Inc. (IR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.