GE 2011 Annual Report Download - page 8

6% of our revenue. This has impacted
our margins in the short term, but the
bet is paying off.
Technology allows us to win in the
market. GE Aviation and its partners
are the world’s largest producers of
jet engines, and last year received
$23 billion of orders, our biggest year
in history. Together, we will launch
12 new jet engines this decade. This
will result in signifi cant future growth.
Technical strength drives growth.
Based on our industry-leading technol-
ogy, we will install about 40% of the
wind turbines in the U.S. this year. At
Healthcare, we are launching 100 new
products that lower cost, improve
quality and expand access. Over the
next fi ve years, GE will be dedicating
$1 billion to the development of new
cancer solutions. In Transportation, we
are building six new rail platforms that
capitalize on global growth. We have
launched new businesses in solar
energy and power management.
Technology adds value to our acquisi-
tions. In 2007, we acquired Smith’s
Aerospace Group to give us a small
position in aircraft avionics and energy
management. Then our researchers
went to work. We are building solutions
for integrated power management,
distributed engine control and onboard
advanced computing. These technolo-
gies will help our engines be even
more fuel-effi cient, and allow us to
develop more content on the plane. We
are building novel solutions for our
customers and should be in the top tier
of the avionics industry by the end of
the decade.
We have scale advantage in technol-
ogy. We have the fi nancial strength to
make big bets. Our Global Research
Center spreads ideas and lowers risks.
Our technical teams execute complex
projects better than anyone.
We win in growth markets. In 2012,
our growth market revenues will near
$40 billion, expanding by about 15%.
We are a reliable, high-integrity
partner and are actively investing in
our leadership, capability, coverage
and the supply chain.
Operating around the world is not
without its challenges. There is
volatility and risk. But there is also
great opportunity. In the emerging
markets, we’ve added about 1,000
infrastructure salespeople every year
for the last four years. Since 2005,
we have increased our senior leaders
outside the United States by 50%.
We are committed to serve our global
customers better and faster.
Our geographic footprint is diversifi ed.
Latin America will approach $10 billion
in revenue in 2012, and could double
again in a few years. In Russia, we are
building ventures in two important
growth markets: gas power generation
and diagnostic imaging equipment.
In Nigeria, we are building out a com-
prehensive “Company-to-Country”
approach to address infrastructure
challenges; Nigeria should be our next
billion-dollar country. In Saudi Arabia,
we will invest to localize capability,
better serve our customers and help
the government address healthcare
needs for its citizens. We are playing to
win in every corner of the world.
The best global companies are devel-
oping new business models tailored
for growth markets. For instance, in the
next 25 years, 1.5 billion people will
gain access to power, much of it “off”
the electricity grid. This will result in a
$16 trillion power opportunity. Today
we have $5 billion of revenue in distrib-
uted energy, and our revenue should
almost double in the next three years.
Similarly, there are 50,000 locomotives
around the world that are more than
25 years old. Replacing or retrofi tting
those locomotives to be more fuel-
effi cient is a $15 billion opportunity.
GE has deep relationships and operating
advantages in growth markets.
John Rice, our vice chairman, leads the
initiative to win globally. I consider the
development of growth markets to
be the most profound economic change
for this generation of GE leaders. This is
a transition where GE must win.
BUILDING COMPETITIVE
ADVANTAGE
Superior technology
Leadership in growth markets
Services & customer relationships
Margin expansion
Smart capital allocation
6 GE 2011 ANNUAL REPORT