General Electric has moved some of its key appliance-manufacturing work back to the USA, re-opening "Appliance Park," a megafactory in Louisville, KY. The company is finding it cheaper to do some manufacturing in the US relative to China, thanks to spiking oil costs, plummeting natural gas prices in the US, rising Chinese wages, falling US wages, and, most of all, the efficiencies that arise from locating workers next to managers and designers.
The GeoSpring suffered from an advanced-technology version of “IKEA Syndrome.” It was so hard to assemble that no one in the big room wanted to make it. Instead they redesigned it. The team eliminated 1 out of every 5 parts. It cut the cost of the materials by 25 percent. It eliminated the tangle of tubing that couldn’t be easily welded. By considering the workers who would have to put the water heater together—in fact, by having those workers right at the table, looking at the design as it was drawn—the team cut the work hours necessary to assemble the water heater from 10 hours in China to two hours in Louisville.
In the end, says Nolan, not one part was the same.
So a funny thing happened to the GeoSpring on the way from the cheap Chinese factory to the expensive Kentucky factory: The material cost went down. The labor required to make it went down. The quality went up. Even the energy efficiency went up.
GE wasn’t just able to hold the retail sticker to the “China price.” It beat that price by nearly 20 percent. The China-made GeoSpring retailed for $1,599. The Louisville-made GeoSpring retails for $1,299.
The Insourcing Boom [The Atlantic/Charles Fishman]
Larkin Jones is a hardcore Pokemon fan who loses money every year on his annual Pokemon PAX party; he makes up the shortfall from his wages managing a cafe. This year, Pokémon Company International sued him and told him that even though he’d cancelled this year’s party, they’d take everything he had unless he paid […]
With this year’s “ag-gag” law, Wyoming has made it a crime to gather evidence of agricultural wrongdoing, from illegal pollution to animal cruelty, even from public land — and also prohibits regulators from acting on information gathered in violation of the law.
Content-based App Store takedowns aren’t just for drone killing anymore: Apple’s also removed the Ifixit App, which offers you third-party manuals for fixing things you own, including your Apple products.
Power up your gadgets in the most unexpected places with the extremely compact SolarJuice battery pack. SolarJuice charges up at home like your average battery pack, but also lets you add extra juice on-the-go using its built-in solar panel—so you’ll never be left unplugged from the digital world.4.5 Stars on Amazon!Simultaneously charges 2 devices at […]
Hold your camera to higher standards with the brand-new iBlazr 2, the most advanced LED flash to date. Simply attach to your smartphone, tablet, or DSLR camera. Conveniently sized and wireless, this premium flash will let you easily take amazing photos in low light situations. It’s a literal snap to use: simply attach to your […]
Moment of truth: Is “Microsoft Office Expert” on your resume, but not totally accurate? This pay what you want bundle will not only help you brush up on old skills, but teach you advanced techniques that will impress your current and future boss. From intricate Excel formulas to Outlook organization hacks, you’ll not only boost […]