Just wondering, are we too late or is there a chance wind power will help us recover in the long run?
General Electric is looking to offshore wind power as one way to rebuild its earnings, as its traditional business making equipment for gas-fired power plants faces weaker demand because of the shift towards renewable energy sources.
https://www.ft.com/content/c1fb080c-2ab5-11e8-9b4b-bc4b9f08f381
PLAUDED his decision (sorry for the typo)
If GE wanted to profit from offshore it should have invested in it 5-10 years ago, to avoid competitors take too big and advantage. But the brilliant mind of Vic Abate decided to kill any development program because his genius was sure "offshore wind will never be a real product, only interesting for speculative researchers"...
Back then everybody paused his decision.
And one or two years after this brilliant decision we bought Alstom's offshore wind that uses Converteam's generators, they should be our saviours!!!
Digital and Predix are dead already. Actually were upon launch. Try again.
Time to wipe the slate clean. Fess up that there ain't no synergies and it is time to break it all up. D. Joyce is begging for it!
If we all belch at the same time we should find the wind power will overcome anything.
Blame the outsiders. They dinnae ken oor ways.
We at GE transportation in Erie PA used to do wind work but as usual they had to move that were they could get it done cheaper probily outside of the country.
Simple answer, No.
The erosion of services has lots of causes.
Overall there has been a secular decline in gas turbine starts and hours industry wide. Fewer spare parts are needed for the newer turbines. Strike 1.
The newer turbines are designed to last much longer without needing replacement parts. Strike 2.
Third party vendors are moving in on the market to supply the older GT's sold 10-20 years ago, the bubble years. Strike 3.
GE thought that AMW with it's ability to quickly print a part would be a savior but it is NOT the low cost option and has turned out to be a niche source of parts. Yes, there is less of a need to keep an inventory of parts on the shelf but that's a cost thing and not a revenue thing. AMW doesn't make customers order replacement parts nor increase new unit market share.
What's GE's market share in Wind?
So, about your second paragraph,
GE is desperate to get Digital and Predix going but they ran into a real problem... people vs. parts vs. intellectual property. The people needed to do it leave and when they leave then they take their know-how with them. There is nothing to stop them completely reinventing their methods at another place. GE approached digital like it approached past products, i.e. spend money, make a product, sit on its a-- and rake in the bucks. In digital, unless you constantly innovate, all you're doing is training your future competitor, a future third party vendor. There is no "revenue stream". Last in order to constantly innovate the lowest level people have to be put in charge of their own work and GE management finds that idea too far outside its comfort zone.
GE power's management will have to be replaced one way or another. They are too stuck in their ways. It cannot be done from the inside out because GE power's management can't pick their replacement. They don't recognize their own faults. Whatever they pick would only look like themselves. It will have to be done from the outside in and that's been painful for everyone.
all that wind will be blown right up your ar_e
The profit is in Services. Products are just above break even. In any question about GE’s future, consider ongoing revenue which services offer vs. one time that products offer.
The erosion of services by outside 3rd parties is why GE went down the path with Digital and Predix so that a Service like revenue stream could be developed which is harder for 3rd parties to provide.