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Diving summary:
- GE Appliances has awarded more than $150 million in contracts with U.S. suppliers to support its new washing machine plant in Louisville, Kentucky, according to a Nov. 20 press release.
- The new contracts include steel, aluminum, plastics, castings, resins, parts and components used to manufacture washers and washer dryers at the facility, which is slated to open all production lines in early 2027.
- US Steel, Jones Plastic and Engineering, and RCM Industries are among the companies receiving new contracts, with GE Appliances now having more than 6,500 US suppliers per release.
GE Appliances raises US supplier costs
The home appliance maker is splitting $150 million in new supplier contracts with domestic companies.
Diving Insights:
GE Appliances is pouring more money into internal resources as it continues to pursue a “zero gap” supply chain strategy.
Earlier this year, the company announced plans to invest more than $3 billion in its U.S. manufacturing operations, adding to the $3.5 billion it has spent since 2016. The latest budget includes a $490 million project to expand laundry production at the Louisville plant.
Beyond growing its supplier base, the company is strengthening supplier collaboration to localize raw materials in the manufacturing process, according to a press release.
“Instead of waiting until designs are finalized, we involve them from the very beginning of development,” said Ashley Eckert, senior sourcing manager for GE Appliances, in the release. “This early collaboration will help us design for manufacturability, shorten production time, improve competitiveness and ultimately provide better products for our customers.”
GE Appliances is also investing heavily in automation and other new technologies to support its “zero gap” approach to its supply chain.
In an interview with Supply Chain Dive earlier this year, the company has already automated many of the processes used to make appliances like stoves and refrigerators, while accelerating end-to-end visibility and material movement, VP of Supply Chain Bill Goode said in an interview with Supply Chain Dive earlier this year.
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