GE Annual Outlook Meeting Notes

Jeff Immelt – CEO

China is not bad for us

“China is not bad for us to be honest with you. I’ve been doing five-year plans for a long time in China. This is the 13th five-year plan. It aligns well with GE’s policies and strategies. And those tend to be the genesis over time of more growth in China.”

Everyone has expected interest rates to go up

“I think everybody has expected interest rates to go up. We’re kind of counting on a stronger dollar world.”

Going to be targeting $1B in cost deflation next year by sourcing from lower cost countries

” we are really upping it a notch on deflation. We’re going to next year targeting about $1 billion of deflation. We are increasing our low cost country sourcing because that is an opportunity, in those economies is to get lower cost on source products. So that’s going to be a key lever that we play. ”

Additional industrial data will lead to productivity improvements

“When I talk about digital industrial, I really talk about it on three levels. I talk about it on the impact of smart machines, more sensors on machines across the board and with IT systems that integrate from GE through customers for the ecosystem. And the benefit of having more sensors and a better integration of IT systems is going to allow for more systems productivity, better productivity for us, better productivity for our customers, level one. Level two is as these sensors and systems generate more data, those data is going to be turn into applications, both hardware and software upgrades. This is going to go to our customers achieving what we call the power of 1%. If you can generate 1% fuel performance on GE’s installed base of jet engines that gives our customers $2 billion to $3 billion of profit every year. Small changes mean a lot. It’s all about the data.”

Wont be a super robust economy, but not a big macro slowdown either

“I certainly don’t think it’s going to be a super robust economy but we don’t see — when we look in orders and stuff like we don’t see a big macro slowdown.”

Internet of things adoption on industrial side will happen slower than on consumer

“this is going to happen slower than what happened on the consumer side, when you think about what happened on the consumer and this is going to be slower but there’s going to be opportunities for industrial companies to play there guys because the knowledge of the assets is more important than the knowledge of the systems”