Dive Brief:
- GE Aerospace plans to spend nearly $1 billion on its U.S. manufacturing and supply chain in an effort to strengthen production, the company announced on Wednesday.
- The aviation engine maker will invest $500 million in production and delivery improvements across several manufacturing sites, as well as $100 million for material innovations and another $100 million in supplier investments.
- GE Aerospace also intends to hire around 5,000 U.S. workers to support the investments, including for manufacturing and engineering roles.
Dive Insight:
The funds will assist GE Aerospace in heightening its engine safety, quality and delivery across 16 states, according to the press release.
The projects include expansions, new inspection technology and building upgrades, such as $113 million to add equipment and upgrade Cincinnati-area facilities for producing, testing and assembling commercial and military engines.
26 GE Aerospace facilities are set to receive $554.5M
The investments are part of GE Aerospace’s lean operating strategy, which the defense contractor launched in February 2024. The strategy enables the company to strengthen its components, assembly and safety management system as well as cut costs.
“Investing in manufacturing and innovation is more critical than ever for the future of our industry and the communities where we operate,” Chairman and CEO Larry Culp said in a statement. “We are committed to helping our customers modernize and expand their fleets while scaling technologies that will truly define the future of flight.”
The Boeing engine supplier’s latest investment nearly doubles the $550 million it spent on its U.S. manufacturing and supply chain last year on facility upgrades and suppliers.
The new jobs created by this week’s investment build on the 1,900 engineer and manufacturing employees the company hired last year, according to the release. Last year, the company also established the GE Foundation, its nonprofit that focuses on workforce development, disaster relief and its global college and career readiness Next Engineers program.
Other investments made last year under the company’s lean strategy include more than $1 billion over five years on global maintenance, repair and overhaul facilities.
The company is using the strategy to tackle supply chain hiccups, Culp said in a January earnings call. Material inputs increased 26% across the manufacturer’s priority supplier sites in the first half of 2024, according to a fourth-quarter earnings report.
While the company is encouraged by its progress, the numbers were “lighter than expected,” driven by lower internal shop visit volumes due to material constraints, Culp said in the call.
