Category: HBR Case Study Analysis

  • Chteau Margaux Serving Up the Third Wine

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    In March 2019, GE Appliances announced they were reshoring their entire production line from Mexico to the United States. This was not the first time GE had reshored its products domestically, but it was the first time that GE had done it with such a massive manufacturing operation. This was a significant move for GE because it would significantly cut their dependence on non-existent foreign currency reserves and it would also be a significant move for their market share in the domestic US market. But the move came with some controvers

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    In this case study, we are going to look at GE Appliances and their reshoring manufacturing initiative. Reshoring is the relocation of manufacturing processes back to the United States or Europe after decades of outsourcing. GE Appliances chose to reshored their manufacturing operations. In this case study, we will focus on their specific manufacturing initiative, how it was done, and its impact. The Background of GE Appliances’ Reshoring Manufacturing Initiative GE Appliances

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    In January 2016, GE Appliances announced it would shift their production away from China to the United States to increase competition and make the world’s leading appliances brand more accessible to the consumer in North America. GE Appliances reportedly will spend a minimum of $1 billion over five years to invest in three US factories and improve assembly lines that are currently underutilized. GE was founded in 1892 and is a conglomerate based in New York City with global headquarters in Norwalk, Connecticut. GE

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    GE Appliances announced the company is re-establishing manufacturing operations at its Princeton, New Jersey plant, ending an 18-year layoff of production work and jobs. The company’s president of appliances said the re-location of production activities from Michigan, where the company has a significant presence, is designed to bring about the new production capabilities at the plant. The plant, which is nearing the end of its initial product life, manufactures a variety of electric appliances including refrigerators and washers.