APC 2005 Annual Report Download - page 55

53
People
In 2005, we set up three-year competency plans in
each unit and extended Schneider Electric Universi-
ty’s programs by creating new institutes.
We also expanded the 360-degree feedback approach
to the top 600 managers to enhance their leadership
qualities. Relations with schools and universities in
Eastern Europe, the Middle East, India and China
were strengthened to support our fast growth in
emerging markets.
We also intend to significantly improve our corporate
social responsibility rating between now and 2008. A
new survey has been deployed to provide quarterly
data on trends in ten indicators covering social, envi-
ronmental and societal performance, as well as cor-
porate governance.
Schneider Electric was recognized for its growth and
performance with several awards during the year. We
joined the ranks of the Fortune International 500 in
2005. We also won Frost & Sullivan’s Growth Strategy
Leadership of the Year Award and the European
Enterprise Grand Prize awarded by Enjeux-Les
Echos, HEC and Roland Berger Strategy. Lastly, inter-
national knowledge management consultancy Teleos
listed Schneider Electric among the Most Admired
Knowledge Enterprises in 2005 in recognition of our
knowledge-sharing methodology.
2
Operating
performance
Trends in Schneider Electric’s
core markets
Energy & Infrastructure
The Energy market was shaped by growing uncer-
tainty over supply security and insufficient investment
in electricity generation and distribution infrastructure.
Environmental issues have become a major concern
for the entire industry, both for producers, who want to
limit greenhouse gas emissions, and for consumers,
who want to use energy as efficiently as possible.
Deregulation primarily concerns the European Union
and the Pacific region for the moment; North America
has adopted a wait-and-see attitude on this issue.
Global demand for better quality supply has prompted
regulators and other government agencies to invest
heavily in more effective distribution grids.
The Infrastructure market was lifted by demand from
the oil and gas industry, as oil prices climbed sharply
in 2005. Medium and long-term price projections con-
firm that this trend will continue.
More than ever, drinking water supply and wastewater
treatment are a global challenge and a critical need,
like electricity, in developing countries.
Industry
After experiencing a slowdown in late 2004 and early
2005, the Industry market picked up in the second
quarter around the world, despite higher raw material
and oil prices.
In the United States, the market continued on a strong
growth trend fueled by corporate capital spending,
which has remained firm since the end of 2003.
In Europe, growth accelerated in the second half.
While higher exports were a positive factor for indus-
try in general and OEMs in particular, investment was
spurred by a number of factors, including the euro’s
depreciation against the dollar, sharply higher corpo-
rate earnings, economic and geopolitical stability, low
interest rates and the need to increase productivity in
response to growing competition from emerging mar-
kets and rising energy and raw material costs.
In Asia, the Industry market also picked up steam in
the second half after a slower period in China and
Japan at the beginning of the year. Once again, Asia
was the most vibrant region worldwide in this market.
Buildings
Strong growth in corporate capital spending in 2005
also benefited the non-residential Buildings market
around the world. In the US, demand rose sharply,
particularly for offices and commercial buildings.
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