ABB Shifts Focus to Americas, Eyes $500 Billion US Investment Wave
ZURICH – ABB, the Swiss-Swedish multinational corporation, is increasingly looking to the Americas for future growth, with North and South America now representing the company’s primary investment focus. CEO Morten Wierod explained that the region has experienced the most significant growth in recent years, and that trend is expected to continue. “That’s where the biggest growth has been in recent years, and that trend is continuing,” Wierod said in an interview published online by Finanz und Wirtschaft.
The shift in strategic priority places the Americas ahead of Asia and the Middle East, and significantly above Europe, according to ABB’s internal ranking. This strategic realignment is translating into substantial investment, particularly in the United States and India, both identified as rapidly expanding markets.
In contrast, ABB is taking a more conservative approach to investment in China, where existing production capacity is deemed sufficient, and in Europe, where efforts are concentrated on improving the efficiency of existing facilities rather than building new large-scale factories. Wierod, who has spent his entire career at ABB, emphasized this focus on optimization rather than expansion in these regions.
This announcement follows the release of strong financial results from ABB in late January. The company reported a comparable revenue increase of 7% in fiscal year 2025, reaching $33.2 billion (25.8 billion Swiss francs at current exchange rates). Profitability also improved, with the operating margin rising to 19.0% from 18.2% the previous year, driving a 20% increase in net profit to $4.7 billion.
The strategic shift by ABB reflects a broader trend among large industrial groups to reassess supply chains and investment strategies in light of evolving geopolitical dynamics and varying regional growth rates. Europe, is consistently viewed as less attractive for large-scale investment.
India-US Trade Deal Fuels Optimism
The news of ABB’s strategic shift comes amid a newly announced trade agreement between the United States and India, which is expected to unlock significant investment opportunities. On , White House Press Secretary Karoline Leavitt hailed the deal as a “clear win” for both nations, citing economic, strategic, and geopolitical benefits.
A key component of the agreement is India’s commitment to end purchases of Russian oil and instead increase imports of American energy, with potential sourcing from Venezuela as well. Prime Minister Modi has also committed to $500 billion in investments into the United States, specifically targeting transportation, energy, and agricultural products, according to Leavitt.
“The President struck another great trade deal with India,” Leavitt told reporters on . “India is committed to not only no longer purchasing Russian oil, but buying oil from the United States.”
The Confederation of Indian Industries (CII) has reported that Indian companies have increased investments in the US by 81% since 2020, creating 240% more jobs in the process. More than $40 billion of Indian foreign direct investment (FDI) has flowed into the US in recent years, with a significant portion directed towards the energy and transportation sectors.
The United States is currently India’s third-largest source of FDI, its largest trade partner, and the largest destination for services exports. Bilateral trade between the two countries increased by 7.65% to $128.55 billion in 2022-23.
The India-US trade deal is seen as a significant development, potentially bolstering economic ties and fostering greater collaboration between the two nations. The White House views the agreement as a strategic victory, strengthening its position in the global market and reducing reliance on Russian energy sources.
As of , ABB shares were up approximately 2% in trading, in line with the broader market. The stock has risen 11% since the beginning of 2026, and has seen strong performance over one year (+35%) and five years (+169%).
