Clayton Industries

Executive Summary

Clayton Industries is a company with 70+ years of experience and a history of success. They are currently looking at ways to continue that success in Clayton Europe with the challenges facing Clayton SpA in Italy.

Background (Jammie): In Progress

Clayton Industries, based in Milwaukee, Wisconsin, is an international company specializing in residential and commercial air conditioning systems. Clayton began operation in 1938 by producing window-mounted residential and light-commercial units, expanding in the early 1980’s to the North American commercial sector and the European market.  Entry into Europe was accomplished through acquisitions of four existing companies: Corliss (United Kingdom), Fontaire (Brussels), Control del Clima (Barcelona) and AeroPuro (Brescia). The company then restructured in 1988 forming two separate entities under the corporate headquarters: Clayton North America and Clayton Europe.

Clayton North America consists of operations in the United States and Canada while Clayton Europe oversees operations of the above listed European companies. Clayton Europe’s headquarters is stationed in Brussels with a manager appointed to each country, attempting to achieve strong management for each region. Clayton Europe’s market penetration was slow in the early 1990’s, a trend that continued throughout the decade. By 1998, only 7% of homes in Italy and11% in Spain had air conditioning. Europeans viewed air conditioning as an expensive American luxury, many buildings did not have duct work for central air and although Corlisee and Fontaire performed well in their home markets, Clayton was not a brand preferred by many Europeans. In fact, the compression chillers manufactured by Clayton SpA (Italy) accounted for only 12% of the European market outside of Italy.

In an effort to create a more integrated European organization, Simonne Buis, named president of Clayton Europe in 2001, set regional goals to increase operational...