LOUISVILLE, Ky. (AP) — GE Appliances on Thursday touted wide-ranging ripple effects from shifting production from China to Kentucky as it announced more than $150 million in new contracts awarded to U.S.-based suppliers.
The supplier contracts range in value from $330,000 to $41 million, span 10 states and cover crucial segments of the supplier chain for the appliance maker's washer and dryer production — from plastics and castings to steel and aluminum,
the company said. The suppliers range in size from U.S. Steel to family-owned companies.
With the new contracts, GE Appliances said it is increasing domestic spending on suppliers by 3.3%.
The suppliers will support production of a combo washer/dryer and a lineup of front load washers, all of which GE Appliances is moving from China to its sprawling Louisville complex known as Appliance Park. The company says it's investing $490 million to retool a plant for the project, which will create 800 new jobs.
Production is scheduled to begin in early 2027, it said, and will expand the total footprint devoted to clothes care production at Appliance Park to the equivalent of 33 football fields.
“When we invest in U.S. manufacturing and our people, it drives growth far beyond our own walls,” Lee Lagomarcino, a GE Appliances vice president, said Thursday in a news release. “These new supplier contracts represent what ‘Built for America’ is all about — investing in U.S. manufacturing, creating more American jobs and building opportunity that multiplies.”
The announcements come as President Donald Trump attempts to lure factories back to the United States by imposing import taxes — tariffs — on foreign goods. The president recently said the U.S. would lower tariffs implemented earlier this year as punishment on China for its selling of chemicals used to make fentanyl from 20% to 10%. That brings the total combined tariff rate on China down from 57% to 47%.
The $150 million-plus in new supplier contracts reflects the amount GE Appliances will spend each year for shipments of parts, components and raw materials to produce the washers and dryers, it said. Contract values could increase if sales of the washers and dryers grow, the company said.
GE Appliances said it spends $4.6 billion with more than 6,500 U.S. suppliers, a 69% increase in spending and a 58% rise in its number of suppliers since 2019. Its U.S. supply chain has grown for more than a decade, it said.
"While tariffs have certainly been a factor, there are also many other benefits such as shorter lead times, reduced transportation costs and the ability to collaborate with your supply chain to ultimately serve our customers better,” Lagomarcino said.
The new contracts were awarded to businesses in Kentucky, Tennessee, Indiana, Ohio, Illinois, Pennsylvania, Michigan, Minnesota, Alabama and California, GE Appliances said. It awarded more than $40 million in contracts to suppliers in Kentucky, more than in any other state.
The contracts are the first of many expected ripple effects from its broader, five-year, $3 billion commitment to strengthen its U.S. manufacturing, reshore certain production and create more than 1,000 jobs, the company said. GE Appliances announced plans in August to shift production of refrigerators, gas ranges and water heaters out of China and Mexico. The company also has manufacturing plants in South Carolina, Alabama, Georgia, Tennessee and Connecticut. The company is a subsidiary of the China-based Haier company.
