U.S. production of appliances by GE increases due to $3 billion investment, with shifts in manufacturing from China and Mexico to the U.S.
GE Appliances Boosts U.S. Production with $3 Billion Investment
GE Appliances, a subsidiary of the China-based Haier company, is set to invest over $3 billion in expanding and modernizing its U.S. operations across several states. This move aims to increase domestic production of appliances such as refrigerators, gas ranges, water heaters, and clothes washers[1].
The investment will see production shifts from overseas facilities, with gas ranges moving from Mexico to a plant in Georgia and six refrigerator models currently made in China being manufactured at its Alabama plant. Clothes washer production will also be relocated from China to Louisville, Kentucky[1].
These changes are a response to the tariffs imposed by President Trump, which have significantly influenced GE Appliances' production strategy. The tariffs have accelerated the move to shift manufacturing out of China and Mexico to the United States, aligning production closer to customers and mitigating the cost impacts of tariffs[1].
GE Appliances' CEO, Kevin Nolan, has emphasized lean manufacturing, workforce upskilling, and automation as means to make U.S. manufacturing economically viable[1]. The company's VP of clothes care confirmed that the high tariffs on Chinese imports compelled the company to "accelerate the decision-making" around reshoring manufacturing[1].
In South Carolina, GE Appliances' plant in Camden will add production of electric and hybrid heat pump water heaters, doubling the factory's output and employment. The company will also invest an additional $490 million into its Kentucky complex to produce a combo washer/dryer and a lineup of front load washers[1].
GE Appliances also emphasizes a strong U.S. manufacturing commitment and prioritizes data security and control within America[2]. The company contributes more than $30 billion annually to the U.S. economy and supports more than 113,000 jobs - both directly and indirectly - through its operations, suppliers, and distribution network[1].
This investment is the second-largest in GE Appliances' history and, once fully implemented, the company will have invested $6.5 billion across its 11 U.S. manufacturing plants and nationwide distribution network since 2016[1]. The company is partnering with universities, technical schools, and high schools to help ensure that its plants and other facilities have a trained workforce[1].
The reshoring announcements from GE Appliances come as President Trump tries to lure factories back to the United States by imposing import taxes - tariffs - on foreign goods. This strategic realignment by GE Appliances is expected to add more than 1,000 jobs across its U.S. facilities[1].
[1] "GE Appliances to Invest $3 Billion in U.S. Manufacturing," GE Appliances, 28 May 2021, https://www.geappliances.com/news/ge-appliances-to-invest-3-billion-in-u-s-manufacturing
[2] "GE Appliances: From Louisville to the World," GE Appliances, https://www.geappliances.com/company/about-us
The $3 billion investment by GE Appliances will not only boost domestic production of appliances but also shift the production of certain products from overseas facilities to domestic ones, such as gas ranges moving from Mexico to a plant in Georgia and clothes washers being relocated from China to Louisville, Kentucky. As a result of this strategic realignment, the company aims to mitigate the cost impacts of tariffs on business operations and prioritize the control of data security within the United States.
