{"id":1596,"date":"2021-08-31T13:10:42","date_gmt":"2021-08-31T13:10:42","guid":{"rendered":"https:\/\/www.axcontrol.com\/blog\/?p=1596"},"modified":"2021-10-05T19:32:06","modified_gmt":"2021-10-05T19:32:06","slug":"general-electric-still-evolving-after-a-century","status":"publish","type":"post","link":"https:\/\/www.axcontrol.com\/blog\/2021\/general-electric-still-evolving-after-a-century\/31\/08\/","title":{"rendered":"General Electric: Still Evolving After a Century."},"content":{"rendered":"\n
\"General
General Electric Sign on GE Admin building in Schenectady, NY. Image by Chuckthewriter. CC BY-NC-ND 2.0<\/sub><\/figcaption><\/figure>\n\n\n\n

General Electric began in 1892 when several companies merged together, including Thomas Edison’s Lamp Company. The men in charge hoped for lasting success. But it’s unlikely they expected their company would remain one of the largest in the world for over 100 years.<\/p>\n\n\n\n

In 2000, GE was the most profitable company in the world. Yet two decades later, profits have nosedived, as has the value of the company. Why? <\/p>\n\n\n\n

The answer is complex. Read on for some history and explanation.<\/p>\n\n\n\n

History of General Electric: The Foundations <\/h2>\n\n\n\n

GE sprung from the merging of a lamp manufacturer, an electric company, and a railway & motor company. When the Dow Jones Industrial Average was first published in 1896, GE was one of the first companies listed. The company helped industrialize America through the availability of cheap electricity. <\/p>\n\n\n\n\n\n\n\n

Some of this cheap electricity came from water wheel generators and turbines GE sold to different power companies. This includes three 25-cycle 3-phase water wheel generators located at Niagara Falls. Additionally GE turbine generators were used in the Grand Coulee Dam, which opened in 1942. <\/p>\n\n\n\n

Further, this same cheap electricity brought lamps(and light bulbs), washing machines, radios, electric fans, and other electrical devices into the everyday household. GE was the first to mass-produce these appliances, changing the way the American household ran forever. <\/p>\n\n\n\n

\"A
A 1908 General Electric advertising photo shows a woman with an electric lamp. From Library of Congress.<\/figcaption><\/figure><\/div>\n\n\n\n

GE: The War Years<\/h2>\n\n\n\n

Many companies had to innovate during World War II. But GE rose to the test. <\/p>\n\n\n\n

Many of the USA’s radar systems used GE magnetron tubes. The glass-encased tubes, invented a decade earlier, let the company make significant improvements in both radio and X-ray technology. After WWII ended, this same technology led to the development of the microwave oven. <\/p>\n\n\n\n

As World War II waned, GE continued working on its jet engine technology. Their first engine, the GE 1-A, came too late. But only a few years later, GE introduced the J-47 jet engine. This engine would become one of the most popular in history. <\/p>\n\n\n\n

\"GE
Test Stand A, Jet Propulsion Lab Edwards Facility, Edwards Airforce Base. 1945. Rocket engines fired downward so flames directed horizontally into the pit.Sourced from Library of Congress. <\/figcaption><\/figure>\n\n\n\n

Jack Welch and Expansion<\/h2>\n\n\n\n

In 1981, John (Jack) Welch Jr. became the chairman and CEO of General Electric. A former chemical engineer, Jack built GE up from a middling company into a dynamo. He was the most well-known businessman of his era and a sought-after speaker and consultant. <\/p>\n\n\n\n

During Welch’s time as CEO, GE transformed from a $12 billion manufacturing company into a $410 billion giant. During that 20 years, GE had acquired NBC, RCA, and nearly 600 other additions. The company changed management styles and adopted Six Sigma programs for their manufacturing facilities. <\/p>\n\n\n\n

However, Welch left GE just as rising technology stocks changed the playing field. Many have blamed Welch’s extreme expansion of the previous decade for GE’s following problems. <\/p>\n\n\n\n

General Electric: Crisis Years<\/h2>\n\n\n\n

From 2001 until now, GE has suffered consecutive blows. This includes<\/p>\n\n\n\n