Welch decision kept local plant in business

The Gazette Aug. 14 front page article, (“Rebuilding Schenectady,”) on the resurgence of downtown Schenectady shows the resilience of the local economy. Let me offer one additional key perspective.

In the 1980s, General Electric had been manufacturing steam turbine-generators for almost 100 years and found itself in a steeply declining business. The very large units manufactured here in Schenectady were things of the past, sort of like dial-up modems today. People talked of net income in the $10 million range.

In 1985, GE consolidated the medium steam turbine-generator business in Lynn, Mass., with the large steam turbine-generator business in Schenectady into one centered in Schenectady.

Bldg. 273 in the Schenectady plant had the capacity to manufacture all the steam turbines and generators one could foresee.

Here is the shocking part. At the time, GE also manufactured medium generators in Durham, NC. Against all expectations, Jack Welch elected to move manufacturing from the union plant in Lynn and the non-union plant in Durham to the union plant in Schenectady.

Welch’s poor reputation is well deserved. But had Welch chosen to move the entire business to Durham, I bet the Schenectady plant would be dark today and the economic benefits over the last 40 years would have been lost to Schenectady.

Jim Fogarty

Niskayuna

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