Latest news with #reshoring
Yahoo
2 days ago
- Business
- Yahoo
Why GE Appliances says it's ready to bring 800 jobs back to the U.S.
GE Appliances is accelerating a plan to move production of its washers and dryers from China to the U.S. in order to avoid having to pay President Trump's tariffs. The company, which has long planned to reshore manufacturing to the U.S., said that high levies on imports from Beijing under Mr. Trump have impelled the household appliance maker to "accelerate the decision-making," Lee Lagomarcino, GE Appliances' vice president of clothes care, told CBS MoneyWatch. "Any time we decide to move a factory or redesign a platform, it's an expensive endeavor, so we have to think through the strategy and trajectory of market," Lagomarcino said. "This was the right time to strike on the business opportunity given the environment with tariffs," he added. GE Appliances on Thursday announced it would invest $490 million in a laundry care manufacturing plant in Kentucky, through which the company would create 800 new American jobs. In a statement last week, GE Appliances President and CEO Kevin Nolan said the reshoring effort "aligns with the current economic and policy environment." Once the plant is fully up and running, the company, a Haier subsidiary, will cease manufacturing in China. "That factory will turn off when the factory in Louisville, Kentucky turns on," said Lagomarcino, adding that he expects the Kentucky plant to be operational by early 2027. What jobs is GE creating in the U.S.? The company is looking to fill research and development, engineering and supply chain positions at the Kentucky plant, openings for which it's already started posting on its careers site. "We anticipate a lot of hiring for some skilled trades, and technically advanced manufacturing roles," Lagomarcino said. "Our research and development team leader will need to hire more engineers, and our supply chain leader will have to hire to fill jobs." Why now? The investment in domestic manufacturing comes as a host of U.S. companies announce plans to reshore operations as they face added costs from Mr. Trump's tariff agenda. But the main force behind the production move to Louisville is GE's "zero distance" philosophy of building appliances where they are sold, the company said in the announcement. "U.S. manufacturing allows us to be closer to the consumer and the team that designs and markets the products and is involved in the whole product development lifecycle," said Lagormarcino. "Philosophically, and from a manufacturing and design standpoint, it makes sense." That said, the move makes even more sense with tariff increases in place, according to Lagormarcino. "With tariffs or without tariffs, we think it's a good long-term strategy. But when you add tariffs, they introduce costs to the situation, and it does accelerate those actions," he said. Saving money vs. saving lives Sen. Elissa Slotkin on Trump budget bill specifics Senate puts taxes on solar and wind energy projects in Trump budget bill Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
CBS News
2 days ago
- Business
- CBS News
GE is reshoring 800 jobs to the U.S. Here's why, according to the company.
GE Appliances is accelerating a plan to move production of its washers and dryers from China to the U.S. in order to avoid having to pay President Trump's tariffs, the company announced on Thursday. In a statement last week, GE Appliances President and CEO Kevin Nolan said the reshoring effort "aligns with the current economic and policy environment." The company, which has long planned to reshore manufacturing to the U.S., said that high levies on imports from Beijing under Mr. Trump have impelled the household appliance maker to "accelerate the decision-making," Lee Lagomarcino, GE Appliances' vice president of clothes care told CBS MoneyWatch. "Any time we decide to move a factory, or redesign a platform, it's an expensive endeavor, so we have to think through the strategy and trajectory of market," Lagomarcino said. "This was the right time to strike on the business opportunity given the environment with tariffs," he added. GE Appliances on Thursday announced it would invest $490 million in a laundry care manufacturing plant in Kentucky, through which the company would create 800 new American jobs. Once the plant is fully up and running, the company, a Haier subsidiary, will cease manufacturing in China. "That factory will turn off when the factory in Louisville, Kentucky turns on," said Lagomarcino, adding that he expects the Kentucky plant to be operational by early 2027. What jobs is GE creating in the U.S.? The company is looking to fill research and development, engineering and supply chain positions at the Kentucky plant, openings for which it's already started posting on its careers site. "We anticipate a lot of hiring for some skilled trades, and technically advanced manufacturing roles," Lagomarcino said. "Our research and development team leader will need to hire more engineers, and our supply chain leader will have to hire to fill jobs." Why now? The investment in domestic manufacturing comes as a host of U.S. companies announce plans to reshore operations as they face added costs from Mr. Trump's tariff agenda. But the main force behind the production move to Louisville is GE's "zero distance" philosophy of building appliances where they are sold, the company said in the announcement. "U.S. manufacturing allows us to be closer to the consumer and the team that designs and markets the products and is involved in the whole product development lifecycle," said Lagormarcino. "Philosophically, and from a manufacturing and design standpoint, it makes sense." That said, the move makes even more sense with tariff increases in place, according to Lagormarcino. "With tariffs or without tariffs, we think it's a good long-term strategy. But when you add tariffs, they introduce costs to the situation, and it does accelerate those actions," he said.
Yahoo
3 days ago
- Business
- Yahoo
Why Boosting U.S. Manufacturing Hinges More on Training and Technology Than Tariffs
Today, the American fashion industry imports the vast majority of its goods, but supply chain upheaval and trade uncertainty are convincing more brands to take another look at U.S. manufacturing. As speakers explained during Sourcing Journal's recent webinar, 'Reshoring Reality: Turning Turmoil into Domestic Opportunity,' moderated by senior news and features editor Kate Nishimura, there are a number of benefits to moving production back home. For one, shorter lead times allow companies to be more responsive in their buying, ordering goods that are more apt to sell. Being closer to production also provides better oversight into quality and supports collaboration during product development. More from Sourcing Journal Will Tech Tariffs Slow U.S. Growth? Sportswear Brand Actively Black Reshores Operations to the U.S. as Juneteenth Launch Nears Can Tech Plug the Gaps Between Immigration Policies and Reshoring Aspirations? 'Brands saw during the pandemic how fragile overseas production can be, and onshoring gives them more control, less risk and the ability to diversify where and how their goods are made,' said Betsy Franjola, founder of Hocking Hills Garment Center. Tariffs may be top of mind, but the speakers don't see them as a major driver or incentive toward increasing U.S.-based sourcing and manufacturing. While the stated intent of the duties is partly to boost factory jobs, the current tariff plan put forth by the Trump administration would not have been Reshoring Initiative president Harry Moser's 'first choice' to bring more production stateside. He would rather see a more modest 10 to 15 percent tariff instituted on a long-term basis like 10 years so that companies feel confident making investments. As job creation data shows, the threat of tariffs has actually had the opposite effect. 'So far, the tariffs have clearly slowed down the rate of reshoring,' said Moser. 'Because of all the concerns, the uncertainty, the companies have sort of put the brakes on until they find out what the reality is going to be.' Still, there are companies forging ahead with U.S. production, such as Hocking Hills Garment Center in Southeast Ohio that opened last fall. Although onshoring has its positives, after decades of predominantly offshoring, it is not a simple task to bring factories back stateside. 'Building a new domestic sewing factory from the ground up isn't easy, especially here in the U.S., where we have allowed so much of our manufacturing capacity and our workforce to erode over the decades,' said Franjola. Panelists agreed that talent is a top hurdle. Without a readily available labor force of skilled sewists, individuals must be recruited into the field and then trained. One group that could step in are immigrants from countries with more emphasis on sewing skills. Justin Hershoran, senior solutions architect at Aptean, gave the example of a company in Kentucky that is employing refugees from Haiti. 'We have a huge resource in the country of immigrants—especially undocumented immigrants—many of whom did sewing in their home country before they came here,' said Moser. 'Instead of deporting them, why not set up a system where they can work and make a fair income, and at the end of five years…or 10 years get a citizenship. It would solve two problems at the same time.' Adding another barrier, the U.S. has historically not been very competitive from a cost perspective. Total costs are roughly 50 percent higher than in China, and 10 to 20 percent greater than other developed nations. But as Moser pointed out, FOB cost isn't everything. Instead, the Reshoring Initiative suggests what it calls a Total Cost of Ownership model that takes into account other factors including freight, duties, stockout risk and the cost of inventory. Technology can help on both the training and pricing fronts. By leveraging digitalization, such as automated machines, companies can shorten the learning curve for new operators compared to more manual production equipment like sewing machines. They can also potentially produce more volumes with fewer employees. Technology also makes the work more appealing and engaging—helping to attract new manufacturing talent—and incentivizes productivity. 'Labor is going to be more expensive. But there are so many tools out there, from software to machinery, to help reduce that number,' said Hershoran. With Aptean's Shop Floor Control (SFC) solution, which digitalizes production operations including scheduling, data collection and more, customers have typically seen roughly 15 percent savings. SFC can also integrate with platforms like product life cycle management (PLM) to connect production with planning and design teams. 'It's mission critical to be able to not just know this information as it happens, in real time, but be able to respond to it,' said Hershoran. 'The quicker you can respond, obviously, the quicker you can deal with issues that slow down your production or stop production.' Hocking Hills Garment Center is in the process of integrating Shop Floor Control in its operations to help track progress on projects while also allowing workers to understand how their contributions fit into the bigger picture. 'Integrating tech like Aptean, it's more than streamlining the operations, it really reinforces our mission, which is building a modern people-centered factory that brings American manufacturing back with purpose and being smart about it,' said Franjola. Onshoring won't be a fit for everyone. Per Franjola, it works best for brands seeking out partners to develop 'elevated' products that require craftsmanship, those who value sustainability and ethics and labels that frequently launch new collections. Her advice is to 'start small. Test a capsule or a single style. See the benefits of working domestically,' she said. 'For that white space where flexibility, quality and efficiency meet, I really believe that U.S. manufacturing can be a game changer for brands.' Watch the full webinar on-demand to learn more about: How the industry can overcome historical barriers to reshoring apparel manufacturing What can and can't be produced and sourced domestically Who should be funding training programs, and how colleges can get involved in teaching future factory workers technical skills What the U.S. could learn from other countries to build more self-sufficient manufacturing ecosystems How artificial intelligence and automation could be leveraged in manufacturing What role marketing can play in promoting the Made-in-America brand Watch the webinar here.
Yahoo
6 days ago
- Business
- Yahoo
GE Appliances Doubles Down on U.S. Manufacturing With $490 Million Laundry Plant Investment at Its Global Headquarters in Louisville, Kentucky
Investment will create 800 new jobs and reshore production from China to Kentucky LOUISVILLE, Ky., June 26, 2025--(BUSINESS WIRE)--GE Appliances, a Haier company, today announced a $490 million investment at its Louisville, Kentucky global headquarters and largest manufacturing site to create its most advanced manufacturing plant for production of clothes washers. The project will reshore production of the GE Profile™ UltraFast Combo Washer/Dryer and the GE® and GE Profile™ UltraFresh Front Load Washer line-up from China, creating 800 new, full-time jobs and cementing Kentucky's position as a global hub for advanced appliance manufacturing. This investment positions the company to become the biggest American washer manufacturer, builds on GE Appliances' 10-year, $3.5 billion investment in U.S. manufacturing, and reinforces its position as America's #1 appliance company.1 "We are bringing laundry production to our global headquarters in Louisville because manufacturing in the U.S. is fundamental to our 'zero-distance' business strategy to make appliances as close as possible to our customers and consumers," said Kevin Nolan, president & CEO, GE Appliances. "This decision is our most recent product reshoring and aligns with the current economic and policy environment." "Today's announcement further secures Louisville as the global headquarters of GE Appliances, a Haier company, and brings more world-class, unparalleled appliance manufacturing back to the United States," said Kentucky Gov. Andy Beshear. "This new investment strengthens one of our vital Kentucky assets and underscores our state's reputation as America's destination of choice for advanced manufacturing and job creation." A Model Factory for the Appliance Industry This investment will move production of more than 15 models of front load washers to Building 2 at Appliance Park – bringing the total area of clothes care production to the equivalent of 33 football fields. Next door, Building 1 at Appliance Park produces top load washers and front load dryers. Building 2 will be redesigned as a model factory, showcasing the latest in automation, robotics, and material-handling technologies, including AGVs (Automated Guided Vehicles) and AMRs (Autonomous Mobile Robots). The plant is vertically integrated and will include in-house manufacturing of critical parts such as stainless-steel baskets and cabinets, high-precision metal stamping and forming, and injection-molding and production equipment, delivering products with the quality, craftsmanship and market-leading features consumers have come to expect from products carrying GE Appliances' brands. The new manufacturing lines will open in 2027. Product Highlights That Wow GE Profile™ UltraFast Combo Washer/Dryer – This ventless 2-in-1 laundry appliance washes and dries full-sized loads in the same drum, eliminating the transfer step and delivering a large laundry load ready to wear in about two hours2. In addition to time-saving capabilities, the machine also saves energy with ventless heat pump technology and offers the ultimate installation flexibility — fitting anywhere with a water hookup and 120v plug. This game-changing innovation revolutionized the laundry chore by giving time back to American consumers. GE Profile™ Front Load Washer with UltraFresh™ Vent System+ – This revolutionary washer line-up was thoughtfully engineered to remove the dreaded front load odor, eliminating the need for owners to leave the door open after each load. A three-part solution includes a wider gasket to better drain the water, the UltraFresh Vent System with OdorBlock™ that circulates fresh air to keep the basket dry, and Microban® Antimicrobial Technology built in to help defend against the growth of odor-causing bacteria. "Manufacturing in Louisville puts production closer to our designers, engineers and consumers so that together we can create our most innovative laundry platforms," said Lee Lagomarcino, vice president, clothes care, GE Appliances. "The team has already developed new solutions for American households and can't wait to get started making them. The new full-size capacity products have features that save time and offer unparalleled convenience. We created the full-size washer/dryer combo laundry category, and we intend to maintain our leadership position with consumers." Support from the City and Commonwealth The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved performance-based incentives in support of the project under the Kentucky Business Investment program, workforce training grants through the Kentucky Skills Network and funds to support the modernizing the building. Final amounts will be determined upon GE Appliances meeting job retention and investment targets. "I am thrilled GE Appliances will continue to build the world's best appliances at its global headquarters in Louisville," said Louisville Mayor Craig Greenberg. "This half-billion-dollar investment is a huge deal that will create 800 good, local jobs and secure GE Appliances' growth in Louisville for the next generation." GE Appliances' Economic Impact GE Appliances' work to design, manufacture and service products for consumers across America contributes $30.2 billion to the U.S. economy. GE Appliances' investment of $3 billion in plant and equipment, R&D, new product development and logistics over the previous eight years is greater than any other appliance company in America. These investments have helped double our company, create more than 4,000 new jobs and rippled throughout the U.S. economy to create an additional 98,000 jobs with suppliers, customers and other companies. GE Appliances' 2024 Economic Impact Report for Kentucky shows: $12.8 billion contributed to Kentucky's Gross Domestic Product 8,000 direct Kentucky employees 30,500 additional Kentucky jobs supported through GE Appliances' economic activity $655 million generated in state and local taxes $318 million spent annually with 481 Kentucky suppliers About GE Appliances, a Haier company At GE Appliances, a Haier company, we come together to make good things, for life. Headquartered in Louisville, Kentucky, we are a leading U.S. manufacturer of home appliances with 15,500 team members nationwide. GE Appliances, found in half of all U.S. homes, is proud to be rated America's #1 Appliance Company1, trusted by millions of families nationwide. We manufacture and sell products under the Monogram™, Café™, GE Profile™, GE®, Haier™, and Hotpoint™ brands. Our operations support nearly 98,000 additional American jobs and represent an investment of more than $3.5 billion since 2016. We are deeply committed to the communities where we live and work, passionate about getting closer to our product users to understand their needs and driven by the belief that there's always a better way. To learn more about our company, brands, career opportunities, and impact, visit or connect with us on LinkedIn. 1 OpenBrand Consumer Tracking Survey, Q1 – Q4 2024, Based on Volume of Total Majors/MO/RAC – Retail Units 2 Tested using a 10lb DOE (Department of Energy) or typical mixed load on the Normal Wash + Dry Cycle Eco Dry setting. View source version on Contacts Media Contact: Julie Wood, GE Appliances, a Haier company(502) 741-1557 or julie_wood@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Al Arabiya
6 days ago
- Business
- Al Arabiya
GE Appliances Moves Washing Machine Production From China to Kentucky With $490 Million Investment
GE Appliances announced a nearly half-billion-dollar project Thursday that it says will create 800 new jobs and shift production of clothes washers from China to its massive manufacturing complex in Kentucky. The $490 million investment positions the Kentucky home appliances company to rank as the biggest US manufacturer of washing machines, it said. 'We are bringing laundry production to our global headquarters in Louisville because manufacturing in the US is fundamental to our zero-distance business strategy to make appliances as close as possible to our customers and consumers,' CEO Kevin Nolan said. 'This decision is our most recent product reshoring and aligns with the current economic and policy environment.' The announcement comes as President Donald Trump attempts to lure factories back to the United States by imposing import taxes–tariffs–on foreign goods. He has slapped 10 percent tariffs on imports from most countries and put 30 percent levies on Chinese goods. GE Appliances says nearly all the steel used in its US manufacturing for its appliances comes from American steelmakers. GE Appliances said the project will move production of a combo washer/dryer and a lineup of front load washers from China to the Bluegrass State. In all, production of more than 15 models of front load washers will shift to the company's sprawling Louisville production complex–known as Appliance Park, it said. Once the added production is in place, the total area devoted to clothes care production at the Louisville complex will equal 33 football fields, it said. Kentucky Democratic Gov. Andy Beshear, who has criticized Trump's tariffs, hailed the company's deepening commitment to the state. 'Today's announcement brings more appliance manufacturing back to the United States and solidifies Kentucky and Louisville as the global headquarters of GE Appliances,' the governor said. The redesigned factory will become its most advanced manufacturing plant for clothes washing production, the company said, featuring the latest in automation, robotics and material-handling technologies, including automated guided vehicles and autonomous mobile robots. The new manufacturing lines will open in 2027, the company said. Next door at the complex's Building 1, the company produces top load washers and front load dryers. GE Appliances handles product design and engineering work at its Louisville headquarters but lacks overall production capacity to make all of its products at its US plants. So it contracts with other manufacturers, including in China, for some of its production. The company said its core business strategy is to base production in the United States and the investment announced Thursday is another step toward achieving that goal. 'Manufacturing in Louisville puts production closer to our designers, engineers and consumers so that together we can create our most innovative laundry platforms,' said Lee Lagomarcino, vice president of clothes care at GE Appliances. The $490 million infusion into Appliance Park is the latest round of investments in recent years as part of the company's growth strategy. It builds on the company's previous investments of $3.5 billion in US manufacturing in the past decade, with more than one-third of the amount going to Appliance Park. Appliance Park in Louisville employs about 8,000 workers and is home to five plants that produce washers, dryers, dishwashers and refrigerators, as well as parts and components. GE Appliances also has manufacturing plants in South Carolina, Alabama, Georgia, Tennessee and Connecticut. GE Appliances is a subsidiary of the China-based Haier company.
