GE 2005 Annual Report Download - page 16

(16)
Our business environment is characterized by technological innovation and heavy capital investment. To
remain competitive we must maintain emphasis on efficient manufacturing process implementation and devote
significant resources to market and application development. Our competitors include large, technology-driven
suppliers of the same, as well as other functionally similar, materials. Our business is cyclical and is sensitive to
variations in price and to the effects of supply/demand factors on the cost of raw materials such as benzene, cumene
and methanol. Competition is affected by availability of manufacturing capacity and anticipation of new product or
material performance requirements. Our application development, often in association with our existing or potential
customers, and associated technology assistance have added additional market demand. Product and manufacturing
process patents establish barriers to entry in many product lines.
Other
Our Industrial business sells structured products, silicones and high-purity quartzware. Market opportunities are
created by substituting many of these products for other materials, thereby providing our customers with
productivity through improved material performance at lower system costs. We sell these materials to a diverse,
worldwide customer base, mainly manufacturers. Our business has a significant operating presence around the world
and we participate in numerous manufacturing and distribution joint ventures.
We also offer protection and productivity solutions to some of the most pressing issues that industries face:
safe facilities, plant automation and sensing applications in the operating environment. From home to industry to
national security, our technology covers the full spectrum of security solutions, including card access systems, high-
tech video monitoring, intrusion and smoke detection, real estate and property control, and explosives and narcotics
detection. We are an industry leader in the design and manufacture of sensing elements, devices, instruments and
systems that enable customers to monitor, protect, control and ensure the safety of their critical applications. Other
products include precision sensors for temperature flow rate, pressure, humidity, gas, infrared and ultrasonic
applications; high-quality handheld and portable field calibrators; stand-alone measurement instrumentation; and
systems that provide the end-to-end solutions necessary to validate or certify vital commercial and industrial
processes. We deliver automation hardware and software designed to help users reduce costs, increase efficiency
and enhance profitability through a diverse array of capabilities and products, including controllers, embedded
systems, advanced software, motion control, computer numerical controls, operator interfaces, industrial computers,
and lasers.
Our products and services are sold to a diverse worldwide commercial and residential customer base in the
transportation, industrial, pharmaceutical and healthcare markets. Our business environment is characterized by
technological innovation and market growth. Our competitors include technology-driven suppliers of the same, as
well as other functionally equivalent products and services.