Why GE Might Be About to Get a Surprising Boost

The news that General Electric's (NYSE: GE) fierce rival in renewable energy, Siemens Gamesa (OTC: GCTAF), is replacing its chief executive officer may not really appear to be significant. However, in the context of an industry suffering collapsing margins and soaring costs, anything likely to stabilize the industry must be a plus. Here's why the change could be good news for GE.

The three big players in wind power in the West are GE Renewable Energy, Siemens Gamesa, and Vestas (OTC: VWDRY). Unfortunately, all three had a disappointing 2021, and they seem to be engaged in a "race to negative profit margins."

In a nutshell, all three renewable energy businesses have been caught in a storm of soaring raw material and supply chain costs (notably transportation) while trying to execute on competitively won projects with already small margins.

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Source Fool.com