CLAIM #26326 · GE (GE) · 2024Q4 earnings call · Jan 24, 2025 · due Dec 31, 2025
“But as we work those, I think we sit here fully expecting to be able to deliver better labor productivity in '25 and certainly from there.”
Larry Culp · CEO
In context
“see with our own eyes hasn't fully translated into either better on-time delivery performance or labor productivity for the very reason that you touched on. And I don't want this to sound in any way defensive, the progress that we're making with those material inputs that we referenced in the prepared remarks, the sequential first half, second half, up 26%, coupled with the higher predictability, the higher reliability of those inputs, north of 90% now for the critical suppliers, will enable us to have more predictable, more linear flow through our factories, through our repair shops, such that I think we'll actually do better from a labor productivity. It's hard to quantify how much, if you will, labor lack of productivity comes as a result of our delivery challenges on the inbound side. But as we work those, I think we sit here fully expecting to be able to deliver better labor productivity in '25 and certainly from there. Operator: Our next question comes from Gavin Parsons with UBS. Gavin Parsons: I'd love to just kind of go further into supply chain a little bit. It sounds like it's getting better. You've got the LEAP-1A blade certified, but internal shop visits were still down in the fourth quarter. Just maybe if you could go into where the bottlenecks or the pain points still are and if that's a linear improvement through '25 or if that's a step function at some point on an unlock? Larry Culp: Well, I don't think we have much by way of new news in that regard. The challenge remains as it has with 15 or so critical suppliers that we're working intensely with. I think we mentioned yet again today that we've got well over 500 of our own people embedded in the supply base working to identify and eliminate”
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SEC filings for GE ↗ · Claim quote is verbatim from the 2024Q4 earnings call.