11 August 2009

GE building two new plants in U.S.

General Electric is adding new operations at two of its manufacturing hubs in the U.S.

GE is building a 350-employee plant in Schenectady, N.Y., to make high-density batteries that can help convert locomotives into diesel-electric hybrids. And in Louisville, Ky., it is adding a factory that will employ 420 workers to produce hybrid electric water heaters. They currently make these heaters in China.

The two moves by GE came only after its unions agreed to keep costs down by negotiating concessions, which include a two-tier wage structure.

Jeffrey R. Immelt, GE’s chief executive, said the two new operations are part of his campaign to get corporate America to strengthen and expand manufacturing in the U.S.

“The country has got to get better at exporting for its long-term health,” Immelt said. “The only way you get better at exporting is you have to get better at manufacturing.”

He said the U.S. should aim to have manufacturing jobs represent at least 20% of all jobs, twice today’s percentage. The nation has lost 30% of its factory jobs this decade.

For related information, go to www.isa.org/productivity.