GE 2015 Annual Report Download - page 6

more from what I see in individual markets
and hear from customers. Commodity prices
are down significantly, primarily driven by
oversupply. Resource industries and regions
are restructuring. The dollar has strength-
ened, probably for an extended period of
time. This puts pressure on American export-
ers. At the same time, commercial air travel
is at a record high. Healthcare demographics
and access will demand an increase in global
spend. And one-third of the world’s population
still lacks sufficient access to electricity. The
global imperative for enhanced infrastructure
investment has not changed. Growth is avail-
able, but you have to work at it.
What is unique in this cycle is the difficult
relationship between business and govern-
ment, the worst I have ever seen. Technology,
productivity and globalization have been the
driving forces during my business career.
In business, if you don’t lead these chang-
es, you get fired; in politics, if you don’t fight
them, you can’t get elected. As a result, most
government policy is anti-growth. In the U.S.,
we want exports but seem to hate trade and
exporters; globally, governments love small
businesses but then regulate them to death.
And so, we perpetuate a cycle: slow growth,
poor job creation, populism, low productiv-
ity, higher regulation, poor policy and more
slow growth. We now live in a world where
the most promising growth policy is “negative
interest rates.” In the U.S., 2015 was the 10th
consecutive year when GDP growth failed to
reach 3%, a rate that used to be considered
our entitlement.
We don’t try to pick a cycle, or time a market,
or complain about elections. We will always
act to get more out of this economy than
our peers. We believe in “self-help.” We are
aggressively managing our cost structure to
capitalize on deflation. In 2016, we will fund
a record level of restructuring. We have a
very strong balance sheet with excess cash.
Long-Term Investment in China
GE has been in China for 100 years, and is continuing to localize, partner
and go digital with strategic investments in its talent and economy.
22,000 employees
30+ plants
60+ technology labs
34 joint ventures
Near-Term Goals: 10x10
$10B
in revenues $10B in sourcing
Pictured left to right:
Gary Gu, Ming Tu, Diana Tang, Peter Li,
Xiangli Chen, Rachel Duan, Fengming Liu,
Weiming Xiang, Xiang Qian, Dan Yang,
Jing Cheng
4 GE 2015 ANNUAL REPORT