GE Appliances plans to relocate the production of refrigerators, gas stoves, and water heaters from China and Mexico to the United States as part of its over $3 billion domestic investment to expand its operations in Kentucky, Georgia, Alabama, Tennessee, and South Carolina.
According to the Associated Press, this investment is the second largest in the history of GE Appliances, expected to create over 1,000 new jobs in the next five years, while also increasing domestic production capacity and modernizing factories in the United States. This move comes as President Trump attempts to attract factories back to the United States by imposing tariffs on foreign goods.
“Our long-term strategy is to produce near our customers,” said company CEO Kevin Nolan, emphasizing that lean manufacturing, employee skill enhancement, and automation make domestic production feasible in the United States.
While most of GE Appliances’ production is already in the U.S., this relocation signifies the company’s commitment to further shifting manufacturing to its domestic factories. The company announced that gas stoves will be produced at a factory in Georgia instead of Mexico, and six refrigerator models currently made in China will be transferred to a factory in Alabama.
GE Appliances announced on Wednesday, August 13, that the first phase of its new investment will begin at factories in five southern states of the U.S. – Kentucky, Alabama, Georgia, Tennessee, and South Carolina.
“We are defining the future of GE Appliances manufacturing through investments in our factories, employees, and communities,” said Nolan. “Over the past decade, no appliance company has invested more in American manufacturing than we have. Our $3 billion five-year plan demonstrates our ongoing commitment to American manufacturing.”
The company stated that its factory in Camden, South Carolina, will increase production of electric water heaters and hybrid heat pump water heaters. Once completed, the factory’s output and employment will double, as it currently manufactures gas water heaters. Electric water heaters and hybrid heat pump water heaters currently produced in China will be transferred to South Carolina.
In Tennessee, the Selmer factory will produce two new air conditioning models.
Governor Andy Beshear of Kentucky stated on Wednesday that this investment demonstrates Kentucky’s ability to provide high-skilled labor and necessary resources for world-class companies.
With the full implementation of the new investment plan, GE Appliances’ total investment in its 11 manufacturing plants in the U.S. and national distribution network since 2016 will reach $6.5 billion.
This latest investment follows GE Appliances’ announcement in June to invest $490 million in its comprehensive facility in Kentucky. The company revealed the relocation of washing machine production from China to its massive manufacturing base in Louisville, including production of more than 15 front-load washing machine models.
At the time, Nolan said, “We are relocating the production of laundry appliances to our global production headquarters in Louisville because domestic production and manufacturing are crucial to our ‘zero distance’ business strategy, aimed at producing appliances as close to our customers and consumers as possible. This is our latest product manufacturing reshoring plan that aligns with the current economic and policy environment.”
While product design and engineering are handled at the Louisville headquarters, not all products are manufactured in the U.S. GE Appliances collaborates with other manufacturers, including those in China, to meet production demands.
The company emphasized that its core business strategy is to have production facilities in the U.S., with investments announced in June and this Wednesday serving as another step towards this goal. GE Appliances is working with universities, technical schools, and high schools to ensure its factories and other facilities have trained labor.
“Infrastructure and tools are important, but they are not enough on their own,” said Bill Good, VP of Supply Chain at GE Appliances. “The revival of American manufacturing will be driven by talent.”
GE Appliances stated that it contributes over $30 billion to the U.S. economy annually and directly or indirectly supports more than 113,000 jobs through operations, suppliers, and distribution networks.