GE Appliances CEO Explains Logic of Reshoring Manufacturing to the US

In this video posted from Bloomberg, GE Appliances’ CEO James Campbell explains the logic, benefits and economic viability of reshoring the manufacturing and production of appliances from low-cost sources back to the US.

There are a multitude of notable observations made by Mr. Campbell here, including:

  • Keeping Engineering/Design/R&D married to Manufacturing is critical.
  • Managing extended supply chains bring with it inherent costs that are needless.
  • Total cost of ownership (“a systems view of costs” as he puts it) is the new mantra for GE’s appliance business.
  • US manufacturing is competitive globally.

Also worthy of note is that these are not the high-tolerance, low-volume products that are assumed to be either more immune to offshoring or first to be repatriated – these are mass-produced products being reshored for practical, sound business reasons. This is Lean personified.

And we’re talkin’ Louisville, Kentucky, yo!

Watch this video now – it may be the most remarkable moment in the shifting of reshoring from a trickle to a trend that I’ve seen the past year. And may be looked back on as THE watershed moment when other US-based manufacturers began to reassess their own supply chain strategies.

Behold, the wonders of manufacturing closer to consumption. Pass this along.

Written by AJ Sweatt