Outside Erie

13 Responses to “GE Disputes Findings of Fortune Magazine Article”

1. Jim
   October 14th, 2008 at 3:00 pm

   Read them both, and from my perspective Fortune did an objective analysis of GE. In fact I find it a relatively kind analysis compared with some of what had previously been written about them, or said about them on some of the cable show, or by Jack Welch.

   I differ with Fortune in only one aspect. Jeff Immelt is no Reg Jones or Jack Welch. His statement timing, relative to earnings and corrections illustrate the difference with the two former chairmen.

   Regarding his initial earnings statements, he either didn’t know, or else was trying to concerned reassure investors with less than accurate information. Neither explanation puts him on a par with either of the two predecessors.

   Erie looks only at the manufacturing side of the company, because that is what is here, and fails to take into consideration much, if not most, of the analysis Fortune did regarding the service side, GE Capital, of the business, and the impact it has on everything that is done here.

   Erie’s earnings are not providing the maximum benefit that they could to Erie product lines in enhancing those product lines, marketing efforts, and so on. They have certainly done a good job with their new models, and have built a sizable backlog of orders. (Which I hope remain firm in light of current economic conditions.) But think of what more could have been done if they were not subsidizing the poor performance of GE Capital.

   With Erie’s well known inability to create wealth at the national average, it is concerning to see one of the best paying operations in the region be forced into a situation having to provide long term subsidy to under performing assets somewhere else. Not to mention the effect the loss in shareholder value has had on Erie residents, retirees especially.

2. George Vietze
   October 14th, 2008 at 5:04 pm

   Jeff Immelt is not Jack Welch, and be thankful that Jeff immelt approved a $15 million dollar grant for educating Erie area residents which indicates to me that Jeff Immelt has a long term vision for Erie.
   In my opinion Jack Welch would have insisted upon a short term ROI
   on that $15 million. Jeff Immelt understands Erie and its culture and appreciates the productivity of the Erie work force and is willing to invest long term in the results of GE Transportation. When the Editor of the Financial Times asked Immelt where his best manufacturing site was in the United States, Jeff suggested that he check out Erie, Pa.
   Some people have a long term vision and some people require ROI every quarter. GE will be around a long time and I would rather the CEO have long term plans for Erie and I for one would not be surprised if Erie was on the map for long term water or wind energy by GE.
   Don’t sell Immelt short, he has invested long term in Erie for good reason.

3. julio c reyes
   October 14th, 2008 at 5:36 pm

   Jim alias CRANK or CRANK alias Jim,

   As usual your views seem kind of limited and/or biased. George beat me to the punch in correcting the nonsense.

   As everybody knows I do not invest in the stock market but if I would I would have been buying GE stock right now as a maniac following Warren Buffet’s foot steps.

   GE as far as I am concerned is one of the few prime (premier) companies in the world. They are global expanding everywhere working 24/7 – 365 days a year. They hire the most talented young people they could find anywhere in the best universities in the US and some of them end up in Erie.

   They have anything from wind, solar, to nuclear, entertainment and everything in between and as others they will have to adjust to the financial situation.

   I do strongly agree with George long term is the name of the game only the greedy look for a short term return in their investments.

4. George Vietze
   October 14th, 2008 at 5:58 pm

   Jim, I agree that GE has problems and that their financial business is not in good shape but that aside Jeff Immelt invested in Erie’s long term educational program which leads me to believe that his vision is
   good for the long term outlook in Erie and the purpose of this forum is the long term outlook for the Erie area. Mr. Immelt put his money on the line and invested in Erie and we appreciate that support.

5. Cletus
   October 15th, 2008 at 12:07 am

   A $15 million gift to the Erie School District is a pittance for GE. It indicates nothing about its long-term plans for Erie. They’ve been in Erie how long now, 100 years?… and one $15 million gift to the school district over that time is indicative of the corporation’s long-term commitment to the city? I’m not saying they’re going to close up shop or anything, but come on.

6. bojosmom
   October 15th, 2008 at 3:14 am

   Well, it is a “Damned if you do, Damned if you don’t” situation, eh? While $15 Million may be a pittance for a corporation like General Electric, it is a nice gesture to this community and its educational needs. General Electric, it’s employees and management have given a lot to this community including employment may i remind you.
   Yes, as a stockholding spouse of a GE employee this current situation gives me pause but I would rather have General Electric as my husband’s employer than most any other business in Erie, or the U.S. for that matter.

7. George Vietze
   October 15th, 2008 at 5:08 am

   GE employs over 5,500+ in Erie, Pa, in good paying jobs. $15 MILLION
   dollars from GE and $100 Million from another donor says volumes about our City.

   We do need more companies like GE and my sense is that Erie will attract those companies in the future.

8. Jim
   October 15th, 2008 at 5:49 am

   GE is located in Lawrence Park, not Erie. I wonder if the strapped Iroquois School District would have appreciated some of that $15M from their biggest employer. Seems to me, Iroquois has suffered reductions in tax revenues, as GE had their tax assessments reduced as they moved various divisions out of Erie. A person could make the argument that Iroquois is subsidizing Erie. Lost tax revenue to Iroquois, retained by GE, and then donated to Erie.

   I realize I think differently than most people, but really, how easily are you people bought?

9. Melissa
   October 15th, 2008 at 7:47 am

   GE has a huge presence in local universities and provides a lot of internship opportunities (especially at my Alma Mater, Penn State Behrend). I wouldn’t say they’re exactly stingy with the community…at least not from what I experienced in my tenure as a student in Erie.

10. Dale
    October 15th, 2008 at 8:09 am

    Jim, while I agree that the Iroquois SD would have appreciated some of General Electric’s generosity, I would like to make a point or two.

    1) Lawrence Park is a very small town with a very small school district. I’m sure that GE looked at the numbers of students that would be impacted by their gift. Clearly, the Erie District has a much larger pool, therefore maximizing the value of the donation. The programs will simply be available to a greater number of students.

    2) Lawrence Park has ridden on the coat tails of GE forever, and in the earlier days was a “company town”. That day is gone. Most of those who live in LP do not work at GE, or at least make up a small portion of the workforce there. Most come either the city of Erie or the surrounding residential communities.

    3) Why should GE owe anything to Lawrence Park?

    4) Has anyone from Iroquois ever gone to the leadership at GE with a proposal for special programming and asked for their support?

    I do not live in either LP or Erie, and have never worked at GE, however, I believe that , on a regional level, they placed their funds where it would have maximum benefit for the students, and for the company as well.

11. julio c reyes
    October 15th, 2008 at 9:38 am

    Jim alias CRANK,

    You said:

    “””” I realize I think differently than most people, but really, how easily are you people bought? “”””””

    I agree we definitively think different an example: you post under two different names on this blog and most of us use our real names and identities.

    Going back to this topic in regards to how easily people are bought please do not be mistaken people and businesses around here are rediscovering that it is much better to demand accountability and see the world with a long term perspective.

    Yes, there are many problems around, real state taxation might be one of them as you said, and companies like GE could do a little better. But the fact of the matter is a little bit is better than nothing.

    Either we like it or not we are in this together in a regional basis. GE is not the only company around this area demolishing buildings to avoid paying unnecessary taxes. In fact they are developing a new sport complex on Cherry and 12th after a huge building was demolished there so your argument is bogus.

    I am not really familiar with the detail operation of GE but moving and relocating operations around the world is the name of the game to be competitive these days. To think otherwise and just imagine that all those companies will retain their operations forever in the same place is very naive to say the least.

    Disclaimer: Since the very first day I opened Latinos all kind of GE employees had patronized my business. The big cheeses had brought visitors from out of town to impress them with our food and service. While other workers and employees had brought family and friends to enjoy not only our food but also to receive dancing lessons. Trust me except when some of them use their discount cards like Kiwanis or Fine Dinning every one of them had paid full price for my products and services.

    As usual I appreciate the good tippers even more.

12. Jim
    October 15th, 2008 at 9:53 am

    I do not live in either Lawrence Park or Erie either. I do not work at GE.
    I did serve on a board with a former member of the Iroquois school board for some time however.

    Lawrence Park is a small town, with a relatively small school district that has been adversely affected by GE downsizing, reductions in the taxes paid, resulting in residential tax increases imposed on the residents to make up for the losses.

    The Lawrence Park district includes students from the borough of Wesleyville, which is no hot bed of economic wealth. Many students attending Lawrence Park come from families in the same economic distress as those attending Erie schools.

    While no educational institution will turn down free money, and anyone can make a case for the need for more resources (read that spending) it remains to be seen exactly what the benefit to the Erie School District will be, if any. In the meanwhile, in terms of advertising, GE has already received a sizable return on their investment in terms of their re-branding of their corporate image, into a more left leaning, tree hugging organization. Nothing especially wrong with that. Branding and re-branding efforts go on all the time. But, they are what they are. No more, no less.

    I’d be much more impressed, if GE had tied the money to addressing the Erie brain drain issue, and committed to finding jobs with growth potential for those same kids this money is supposed to be helping.
    I’ve heard so much about the need for a community college, and the fact that as a community we supposedly have this undereducated workforce, yet from my vantage point I still see GE as robbing trained workers from other areas businesses to a much greater extent than I see them working with educational institutions to develop their own highly talented and educated work force. I know of what I speak, the company I work for has lost well trained employees to GE. While that is simple economics at work, I also noted that GE did not have students in the same training programs that provided those workers with those marketable skills.

    Long term, our community has a large vested interest in GE’s success, and being a good community partner. They need to be financially healthy for that to continue. And, we need to think that we are more important to GE than a mechanism for them to milk money for poor performing business ventures someplace else. Long term, the continued under performance of GE as a corporation is not a good thing for Erie. That the threat that under performance can become can be mitigated by a few well publicized dollars to the Erie School District is good for the Erie School District, and good in its own way for GE’s management. But I fail to see how it ties into the overall health of their company, enhances the long term viability of them as an Erie economic driver, or benefits Erie shareholders, especially several GE retirees I know, who are less than enthralled with Jeff Immelt’s management of the company they worked for, and the impact it has had on their retirement.

    I want to see GE succeed. I want to see them profitable. I appreciate what they did for the Erie School District, whatever that turns out to be. But they are still an under performing corporation, in my opinion in need of a management change. And they could have done something to help the municipality they actually reside in.

13. julio c reyes
    October 15th, 2008 at 10:31 am

    Jim alias CRANK

    All major corporations around the world are now “green” in case you have not noticed. Just watch their commercials and press releases for Exxon, Chevron and others.

    Workers have all the right to move to wherever company pays them better. Workers also move when from their perspective the company they work for is poorly managed, their work is not appreciated or worse yet when the company only insist in making obscene profits with complete disregards for employees and clients.

    It is silly to even mention that your company had well trained people and lost them to GE and in the same sentence you said: That is simple economics at work. If I run your company I will find out right away what is the main reason for all those employees going to GE and if it is the pay they receive I will make the necessary adjustments. The adjustments of course are not only money related.

    Coincidentally, I also now several GE retirees that recognize the fact these are troubled times and speak very highly about GE current management. Most of them are confident that better times are coming especially after all the new technology GE is developing there.

    In regards to Lawrence Park they might start considering merging with Erie and starting working at a regional level.