Palo Alto, CA
There’s nothing else to do but get bigger when you score the largest deal in tech-sector history, and HP did just that with its May 2002 acquisition of Compaq Computer Corporation. In the same way that the company climbed from No. 28 to No. 14 on this year’s Fortune 100, so did its sales, from $45.2 billion in 2001 to nearly $56.6 billion in 2002. Square footage got a boost, too. Last year, the company reported 43.9 million square feet of space worldwide. This year it reports 72 million square feet owned or leased worldwide: 20 million devoted to sales and support operations and 52 million encompassing manufacturing plants, R&D facilities, and warehouse and administrative facilities. Investment in new property, plant, and equipment for continuing operations was $1.7 billion in 2002.
[Editors’ Note: Carleton S. (Carly) Fiorina continues to address the merging of two giants and the subsequent challenges of disparate corporate cultures (and a workforce reduction of around 10 percent, due to integration of the two). Outlining how HP slashed billions in expenses and revamped its supply chain, the pitch to its corporate America customers is “consolidate and cut … and we can help you because we’ve done it to ourselves.” HP has a history of innovative facilities practices, and will bear watching as the company’s future directions (and directives) unfold.]