By: Scott Davis

If I thought attending my 15th Powergen trade show in Vegas would either be fun or put me in a good mood, I was wrong.  The show was depressing, similar to the post-bubble show in 2003.  The gas powergen capex and opex markets are mired in a perfect storm of negative events this year and will further freefall unless industry participants take swift action.  GE’s layoff announcements are necessary; we expect Siemens to do the same.  With capacity cuts a key first step, pricing will have to rise next and GE will have to go from industry price destroyer to industry leader.  That’s the key to the turnaround on profits, because volumes will not improve any time soon.  Here’s what we know today…

GE Report Here