Major Manufacturing Shift Creates Ripple Effect Across US
GE Appliances has announced a significant boost to American manufacturing, revealing it has awarded more than $150 million in new contracts to domestic suppliers. This move is a direct result of the company's strategic decision to relocate its washer and dryer production from China to its extensive Appliance Park facility in Louisville, Kentucky.
Investment and Job Creation Details
The company is making a substantial $490 million investment to retool a plant for this project, a move that is set to create 800 new jobs. Production for a combination washer/dryer and a line of front-load washers is scheduled to commence in early 2027. This expansion will increase the total footprint dedicated to clothes care production at Appliance Park to the equivalent of 33 football fields.
The new supplier contracts, which range in value from $330,000 to $41 million, span 10 states and cover crucial segments of the supply chain. These include everything from plastics and castings to steel and aluminum. The suppliers themselves range from industrial giants like U.S. Steel to smaller, family-owned enterprises.
With these new agreements, GE Appliances said it is increasing its domestic spending on suppliers by 3.3%. The $150 million-plus figure reflects the annual expenditure on parts, components, and raw materials, with contract values potentially increasing if sales of the appliances grow.
A Broader Commitment to US Manufacturing
Lee Lagomarcino, a GE Appliances vice president, stated in a news release, "When we invest in U.S. manufacturing and our people, it drives growth far beyond our own walls. These new supplier contracts represent what ‘Built for America’ is all about — investing in U.S. manufacturing, creating more American jobs and building opportunity that multiplies."
While the announcement comes amidst a backdrop of US government tariffs aimed at luring factories back to the country, Lagomarcino noted additional benefits. "While tariffs have certainly been a factor, there are also many other benefits such as shorter lead times, reduced transportation costs and the ability to collaborate with your supply chain to ultimately serve our customers better," he explained.
This initiative is the first wave of expected ripple effects from a broader, five-year, $3 billion commitment by GE Appliances to strengthen its US manufacturing, reshore certain production, and create more than 1,000 jobs. The company, a subsidiary of China-based Haier, had previously announced plans in August to shift production of refrigerators, gas ranges, and water heaters out of China and Mexico.
GE Appliances reported that it now spends $4.6 billion with more than 6,500 US suppliers, marking a 69% increase in spending and a 58% rise in its number of suppliers since 2019. The new contracts were awarded to businesses in Kentucky, Tennessee, Indiana, Ohio, Illinois, Pennsylvania, Michigan, Minnesota, Alabama, and California, with Kentucky receiving the largest share at over $40 million.
