Last September, I covered GE Appliances’s decision to reshore manufacturing of some of their home appliances. It is a great success story: a well-known consumer brand that is bringing production home, both to their own benefit and also to the benefit of customers and employees.
GE Appliances has continued to make investments and earn positive headlines… largely for continuing their reshoring effort and further partnering with suppliers, something that isn’t getting the attention it deserves.
Doubling Down on Domestic Suppliers
GE Appliances is a subsidiary of Haier Smart Home, a Chinese company that bought them from the GE parent in 2016. GE was trying to focus their operations, and the consumer-focused appliance unit didn’t fit into those plans.
Since 2016, the company has invested $3.5 billion in its U.S. manufacturing plants, and recently committed another $3 billion in spending over five years.
GE Appliances came back on my radar screen in November, when they announced a series of new U.S.-based supplier partnerships. That $150 million investment will support GE Appliances’ efforts to handle more domestic production in the United States, with the goal of making appliances in their newly renovated Louisville, Kentucky, plant by early 2027.
Twenty-two suppliers of steel, resin, parts, and components (centered in Kentucky, Tennessee, and Indiana) received contracts that are valued between $330K and $41 million, and they replace suppliers based in Mexico and China.
GE Appliances CEO Kevin Nolan said that the company planned to bring production back to the U.S. before this year’s tariffs took effect, but the disruption caused by them speed up the process.
The state of Kentucky is providing up to $113.5 million in tax incentives for the project, coming interestingly close to the planned $150 million investment. With these new contracts, GE Appliances says spending with U.S.-based suppliers is increasing by 3.3%.
Supplier Collaboration Can Be Transformational
As exciting as the above news is, I think the headlines bury the lede. Yes, it is wonderful that GE Appliances is working with domestic suppliers to help advance their own reshoring efforts, but that is only the beginning.
The bigger news is that they are working to involve suppliers before the design is done, reducing costs and lead times and making the relationships more collaborative.
Ashley Eckert, senior director of sourcing at GE Appliances, spoke to Bloomberg about the benefits of partnering more closely with suppliers. They invited about 40 U.S.-based suppliers to meet with their engineering team over two days in the summer to learn more about planned product designs and bid on opportunities.
Some of those suppliers challenged designs or planned materials based on their experience and capability – a huge opportunity for everyone.
The change in approach extends to digital integration as well. According to Lionel Ramirez, Vice President and Chief Procurement Officer at GE Appliances, who was interviewed by Wiring Harness News, “We’re looking for full digital integration with our suppliers. That includes real-time visibility, early warning systems, dynamic scheduling, and the ability to share CAD data and design feedback.”
GE Appliances is trying to design better products faster, reduce waste, and enable shared success, all while reshoring production. They recognize that they can’t do that without building a strong, healthy ecosystem of domestic suppliers, and they are treating those suppliers like trusted partners.
That’s a type of success that maybe only procurement and supply chain professionals would recognize, but that the economy as a whole will benefit from.