THE ELECTRICAL POWER GENERATION EQUIPMENT INDUSTRY
The twentieth century witnessed advances in logistics, communications, transportation and other technologies that made it possible for companies to reach international markets at a pace unlike any before in history. By the end of the twentieth century, international marketing was no longer the exclusive realm of the very large corporation; small companies could also market their products and services effectively with the use of the Internet. Increasingly, buyers and sellers were finding each other with considerable ease even when thousands of miles might separate the two physically. This trend toward globalization changed a number of different industries, including the power generation equipment industry. This industry is characterized by high-cost goods that are critical to the development and maintenance of a country's infrastructure, and increasingly, this industry is dependent on global rather than local suppliers. This research considers the electrical power generation equipment industry and the outlook for American companies participating in this market.
For most of the twentieth century, electrical power generation was a regulated industry in the United States as well as in most other countries. Electricity was considered a critical national infrastructure element that could not be left to the private market. Whether run by the state, as in many countries, or by private industry under strict regulation, as in the United States, the era of regulation created a unique operating environment. Generating electricity is an expensive proposition. Hydroelectric power--dams--are costly to build from both a financial and environmental standpoint. Nuclear power plants were popular for a time throughout the world, but have lost most of their appeal in the United States, although they continue to be used elsewhere. Much electricity depends on fossil fuels for generation, as ...