 Despite the huge demand for electrical consumer goods, and large investments in heavy engineering and nuclear power, profits began to fall in the face of competition and internal disorganisation.In 1961, GEC merged with Sir Michael Sobell's company Radio & Allied Industries, and with it emerged the new power behind GEC, Sobell's son-in-law Arnold Weinstock, who became the managing director of GEC in 1963, and moved its headquarters from Kingsway to a new building at 1 Stanhope Gate in Mayfair.Weinstock embarked on a programme to rationalise the entire UK electrical industry, beginning with the internal rejuvenation of GEC.