GE Appliances has committed over $150 million in new contracts aimed at U.S.-based suppliers as part of a strategic shift to relocate production from China to Kentucky. The initiative, reported by the Associated Press, includes contracts ranging from $330,000 to $41 million, targeting suppliers for essential materials such as plastics, castings, and aluminum. This move aligns with the company’s broader vision to enhance domestic manufacturing capabilities.
In addition to these contracts, GE Appliances is investing $490 million to upgrade its Appliance Park complex in Louisville, Kentucky. This facility will be retooled to accommodate the production of its combo washer/dryers and front-load washers, which have been manufactured in China until now. The new production line is set to commence operations in early 2027.
Commitment to U.S. Manufacturing
“The investment in U.S. manufacturing and our workforce promotes growth that extends well beyond our company,” stated Lee Lagomarcino, Vice President of GE Appliances, in a news release dated November 20, 2023. He highlighted that these new supplier contracts embody the essence of “Built for America,” emphasizing the creation of American jobs and the expansion of opportunities within the local economy.
The Louisville facility will not only serve as a production hub but will also engage suppliers from ten different states, including Tennessee, Indiana, Ohio, Illinois, and California. This diverse supplier network is expected to enhance the efficiency and sustainability of GE Appliances’ manufacturing operations.
Future Investments in Manufacturing
Looking ahead, GE Appliances has outlined plans to invest over $3 billion over the next five years in U.S. manufacturing. This investment will cover a range of products, including air conditioning units, water heaters, refrigerators, and washer/dryers. This comprehensive approach underscores the company’s commitment to bolstering domestic manufacturing and adapting to shifting global supply chain dynamics.
As GE Appliances moves forward with these initiatives, the company aims to reinforce its position in the U.S. market while contributing to the growth of local economies through job creation and supplier engagement.
