Greg Brown, CEO of Motorola Solutions, told CNBC on Thursday that there has never been more demand for the business’ public safety and security products.
Brown stated Motorola’s business is resilient despite worries about a slowing global economy in an interview on “Mad Money” since a significant upgrade cycle is under progress.
“What we do is a need, not a luxury. According to Brown, who has over ten years of experience leading Motorola Solutions, this is the highest demand environment he has ever witnessed. Among its products are surveillance video systems, command centre software, and two-way radios used by the police and fire agencies.
The $1.9 trillion Covid relief measure from the Biden administration, which was passed in 2021 and included funding specifically designated for public safety initiatives, according to Brown, will benefit Motorola Solutions. More generally, Brown informed Jim Cramer that the industry is going through an upgrade cycle for private network radio, which will benefit the company’s operations in the years to come.
They upgrade such radios every seven years. And here in North America, we’re in the first or second inning of a radio refresh; therefore, Motorola is in New York, Chicago, Las Vegas, and L.A., Brown added. “Record backlog and the best demand. The funding is the best, and there is plenty of space to grow given the innovation our company is producing and the acquisitions we’re making, Brown continued.
Motorola Solutions’ stock increased 0.3% on Thursday, closing at $244.17 per share. The stock has increased by more than 180% over the last five years, outpacing the S&P 500 by a wide margin.