West Asia tensions raise costs, but Carrier’s global spread limits impact: CEO Gitlin

Carrier Global has said the ongoing West Asia conflict and rising oil prices have had only a limited impact on its business, with its diversified portfolio helping offset regional disruptions, Chairman and CEO David Gitlin told CNBC-TV18.

Gitlin acknowledged that the conflict has led to higher input costs, particularly through elevated oil prices and increased logistics expenses, alongside rising prices of key raw materials such as copper, steel and aluminium.

“We have seen input costs increase. It’s a combination of oil prices affecting logistics costs and increases in raw materials,” he said, adding that the company has implemented selective price increases to manage margins.

However, demand impact has remained contained. Gitlin said the Middle East accounts for a relatively small portion of Carrier’s overall business, limiting the broader effect on growth.

“The Middle East accounts for about $400 million of our $22 billion global business, so it’s a small share,” he said. “We had targeted strong growth, but it’s been relatively flat, which is still a solid outcome given the circumstances.”

The company’s broader portfolio has helped cushion the impact. Gitlin noted that around 40% of Carrier’s business has delivered double-digit growth for five consecutive years, driven largely by commercial HVAC and aftermarket services.

He added that while some residential segments in markets such as the United States, Europe and China have softened due to higher interest rates, these are cyclical trends and expected to recover.

Carrier has also undergone a strategic transformation in recent years, divesting non-core businesses and sharpening its focus on climate and energy solutions. This repositioning, Gitlin said, has strengthened its resilience to macroeconomic and geopolitical shocks.

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The company, valued at around $60 billion and operating across 160 countries, continues to invest in growth markets such as India, where it is setting up a $100 million manufacturing facility in Sri City.

With global uncertainties persisting, Gitlin indicated that Carrier will continue to focus on operational execution and disciplined pricing, while leveraging its diversified footprint to navigate volatility.