GE Appliances is planning to invest more than $3 billion over the next five years in its U.S. operations, workforce, and communities, the second-largest investment in company history. The investment will expand its air conditioning and water heating portfolio, increase production output across all product lines, and modernize its 11 U.S. manufacturing plants with new automation and capital equipment.
Todd Tomalak, principal, advisory of building products for Zonda, notes the strategic timing of GE Appliances’ investment is notable and will likely align with demand patterns in the appliance sector.
“Appliance demand is soft presently, but we anticipate a larger wave of home improvement to coincide with the operational timing of GE Appliances’ investment—approximately five years ahead,” Tomalak says. “Zonda research suggest levels of home improvement are going through a ‘deferral-rebound’ cycle, which necessarily raises the ceiling of future appliance demand by approximately 2028 to 2030.”
The first phase of investments will begin at GE Appliances plants in Kentucky, Alabama, Georgia, Tennessee, and South Carolina. Upon completion of the five-year plan, GE Appliances will have invested $6.5 billion across its U.S. manufacturing plants and nationwide distribution network since 2016.
“We are defining the future of manufacturing at GE Appliances by investing in our plants, people, and communities,” says Kevin Nolan, president and CEO of GE Appliances. “No other appliance company over the last decade has invested more in U.S. manufacturing than we have, and our $3 billion, five-year plan shows that our commitment to U.S. manufacturing will continue into the future.”
Tomalak notes confidence in industry conditions is improving, enough to warrant an investment the size and scope of GE Appliances’ $3 billion commitment.
“This investment is a high conviction signal that other industry players may view conditions as ‘more stable’ 12 months from now versus initial April fears,” he adds.
As part of the first phase of investment, GE Appliances’ demand-response electric water heater and GeoSpring hybrid heat pump water heater manufacturing will be added to the manufacturer’s Camden, South Carolina plant, doubling its output and employment. The company will add two new air conditioner models to its production capabilities in Selmer, Tennessee and six 22 cubic foot models will be added to its freezer refrigerator plant in Decatur, Alabama.
The first phase will transform the production capabilities at GE Appliances’ plant in LaFayette, Georgia to source gas, electric, new induction ranges, wall ovens, and cooktops. The production of gas ranges in Georgia will replace production that was previously made in Mexico. GE Appliances also will work to begin production of combo washer/dryers and front-load washers in Louisville, Kentucky as part of its $490 million investment at the facility.
“Innovation tied to low mobility is still underway. Geothermal and other categories have longer payback periods, which generally benefit when homeowners stay in their homes for longer periods of time between moves,” Tomalak notes.
As part of the five-year plan, more than 1,000 new jobs are anticipated to be created by GE Appliances’ investments.
“Infrastructure and tools matter, but they are not enough,” says Bill Good, vice president of supply chain for GE Appliances. “America’s manufacturing renaissance will be built by people. That’s why we’re partnering with universities, technical schools, and high schools to develop the next generation of manufacturing leaders.”
