Dive Brief:
- Whirlpool plans to invest $300 million in two of its laundry manufacturing facilities in Ohio, the company announced Wednesday.
- The Michigan-based manufacturer expects the investment to create up to 600 new jobs at its operations in Clyde and Marion, Ohio. The Clyde facility is the largest washing machine plant in the world, according to Whirlpool, and the Marion factory produces dryers.
- The investment will receive financial assistance from economic development agency JobsOhio along with tax credits from the State of Ohio, according to the company.
Dive Insight:
Whirlpool, which says it’s the “only major U.S.-based manufacturer of kitchen and laundry appliances,” is doubling down on a domestic manufacturing approach that dates back to 1911.
About 80% of appliances it sells in the U.S. are built in the country, using components sourced both domestically and internationally. Whirlpool said that figure is three times greater than the average of its major competitors. Plus, 96% of the steel it uses across its portfolio of brands, which also include KitchenAid and Maytag, is sourced within the U.S.
“Whirlpool Corporation’s unwavering commitment to American manufacturing is a cornerstone of our identity,” said CEO Marc Bitzer in a statement.
Whirlpool’s leadership sees the company’s domestic footprint as a competitive advantage, especially in light of recent tariffs. “Our strong U.S.-based manufacturing footprint positions us as net winners of a new tariff and trade policies,” Bitzer said during a Q2 earnings call in July.
The company is not immune to market challenges, though, such as a slowdown in consumer demand and a sluggish housing market affecting appliance sales. Whirlpool laid off 250 workers from an Iowa plant this summer, down from its original plan to lay off 650 employees, along with another 25 workers at its Michigan office this month.
Competitors such as LG and Samsung make most of their appliances for the U.S. market in factories overseas. GE Appliances was sold to China-based Haier in 2016, but the appliance maker is still investing in the U.S. GE Appliances plans to spend more than $3 billion in the U.S. over the next five years to expand its air conditioning and water heating portfolio and install automation at nearly a dozen facilities. The company has been working to move production back to the U.S. from Mexico and China.
These moves by Whirlpool and GE diverge from some other businesses that have paused or halted their domestic manufacturing plans. Shifting global trade policy and tariff uncertainty, coupled with potential upcoming changes to the U.S.-Mexico-Canada Agreement, have led many manufacturers to wait and see what’s next before investing in reshoring. But early signs indicate growing interest in U.S. manufacturing, such as automaker Stellantis’ plans to invest $13 billion over the next four years to increase domestic finished vehicle production.
