Greater Demand Puts Power Suppliers In Growth Mode

ByJack Gee The booming global economy is good news for power-station builders who help provide the world's energy. Manufacturers are making more products, and therefore, need more power and power-generation equipment to run factories. This puts suppliers in a key position for growth. General Electric Co.(GE) and Germany's Siemens, the two largest companies in this sector, are stepping up their search for acquisitions. GE has added 30 newcomers to its power-systems division over the last two years and intends to buy more, according to Bob Nardelli, president of GE's power systems division. Klaus Voges, president of Siemens' power generation business, says his company needs to boost its existing portfolio of companies by a dozen. According to market-analysis provider Datamonitor, GE had the biggest share of orders in 1999 with 32%; Siemens 20%; and the Franco-British electrical engineering company Alstom 17%. Datamonitor says that world sales of generating equipment and related construction were almost US$40 billion last year. Service contracts added another $25 billion.