New Tariffs On Washing Machines

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mrsalvo

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Whirlpool got a hold of President Trump's ear. Guess they got tired of being dumped on. I had read an article in the news that they were lobbying him to even out the playing field.
I'm wondering how high the tariffs are going to go, guess we'll find out when we walk through Lowe's appliance department.

"For large residential washing machines, tariffs will start at up to 50 percent and phase out after three years."
Whirlpool chairman Jeff Fettig said, “This is a victory for American workers and consumers alike,” Fettig said. “By enforcing our existing trade laws, President Trump has ensured American workers will compete on a level playing field with their foreign counterparts.”

I had read that Whirlpool made over 21 BILLION dollars in 2016. Guess money talks.

This is HUGE though, and will have MAJOR impact on LG & Samsung's ability to distribute at a profit. This impacts Speed Queen and Electrolux as well.
I foresee changes in the future for Samsung & LG. Hmmmm.

www.wgntv.com/2018/01/22/pres-trump-hits-solar-panels-washing-machines-with-tariffs/

Discuss among yourselves. I'll get the popcorn.
 
I'm happy, I'm not going to re-explain what happened to the US TV industry when the us Govt. failed to act on foreign competition like Matsushita(Panasonic). I hope this helps WP to have more money left over for research and development. Best the USA!

*The above is only my personal opinion
 
Until I read this article, I had no idea Whirlpool/Maytag made most of its parts at the same Clyde, Ohio, factory where they are assembled. I did know they previously moved some jobs to Monterrey, Mexico, but later moved some (or most?) back to the U.S.

http://www.toledoblade.com/business/2017/03/19/Huge-Whirlpool-plant-runs-heart-of-Clyde.html

BUSINESS

Huge Whirlpool plant runs heart of Clyde
Washing-machine factory marks 65 years
By Jon Chavez | BLADE BUSINESS WRITER
Published on March 19, 2017 | Updated 1:56 p. m.

CLYDE, Ohio — If every washing machine ever made in this Sandusky County town were placed end-to-end, the line would stretch halfway to the moon or could circle the Earth four and a half times.

“We make 20,000 washers a day, five days a week. One rolls down the line and is shipped about every four seconds,” said Dan O’Brien, the manager who oversees the sprawling 2.4 million-square-foot facility in Clyde.
n1patrioticfrums-7

Washing-machine drums move along the line at the Whirlpool plant in Clyde, Ohio. The plant makes top-loading and front-loading residential washers with various options and price points, plus coin-operated commercial washers.

It is an impressive number to be sure. But not all that surprising considering Whirlpool Corp.’s Clyde facility has long been regarded as the largest washing machine plant in the world.

Such bigness is evident given an inside peek of the sprawling factory that will celebrate 65 years of activity this year. But the plant is nowhere near retirement.

Employing 3,000 workers, it remains a bustling beehive of people, parts, and equipment.

About 100 workers were hired each of the last two years, and plans are to do the same the next two years, replacing retirees and other departures.

Since 1952, when it began churning out machines looking more like clunky droids from Star Wars than the sleek programmable front-load and top-load boxes of today, the Clyde plant has been a major contributor to Benton Harbor, Mich.-based Whirlpool’s $21 billion appliance business.

Whirlpool holds a 65 percent share of the $3.9 billion U.S. washer market, according to market research firm IbisWorld, Last year, 9.6 million washers were shipped in the United States.

The company is a market leader with its Whirlpool, Maytag, and Amana brands, all made in Clyde, said Jim Keppler, vice president of integrated supply chain and quality for Whirlpool.

The Maytag and Whirlpool brands give the company “strong customer loyalty, particularly among traditional consumers who are family oriented and look for reliable and long-lasting products,” according to research firm Euromonitor International.
0319-factbox-whirlpool-indd

Most of what the factory makes is sold in North America. Whirlpool previously has said that about 10 percent of what is made in Clyde is exported to Europe, Australia, Latin America, and Asia.

But the Clyde plant’s significance is much more than wash cycles and spin cycles.

Way of life

Whirlpool has been a way of life in Clyde for five generations of families. The plant has spawned countless marriages, children, and friendships, not to mention a tax base that helps pay for roads and schools and draws business.

“Without Whirlpool being here, Clyde would still be a village and not a city,” said Scott Black, Clyde’s mayor and Whirlpool retiree who spent 41 years working in the plant. Clyde is 45 miles southeast of Toledo.

“My family has four generations in there,” he said. “I met my wife there, and we’re connected to another family through there. Just about everybody who has ever worked there had a dad, a sister, a brother, or a cousin who worked there.

“When you have that kind of connection, that tends to make it more personal. It’s more than a plant.”

Made in Clyde

The plant makes most of its own parts and then assembles them into washers, and thus, it has several “factories within a factory,” said Mr. O’Brien, the Whirlpool manager.

It has a stamping facility, a plastic injection molding facility, a testing area, a training area, warehousing, and two assembly areas, one for front-loading and one for top-loading machines. The stamping area has two 1,500-ton stamping presses that together punch out 20,000 washing machine tops and fronts a day.

A person will walk 3 miles circling around to each minifactory.

The plant has a fleet of 70 autonomous vehicles hauling strings of carts loaded with parts, weaving their way through sections of the complex, passing by a mix of production machines, about 100 robots, and 1,000 shift workers.
n1cylinderguy-5

Washing-machine drums are inspected at the Whirlpool plant in Clyde, Ohio. Employing 3,000 workers, the plant remains a bustling beehive of people, parts, and equipment.

Overhead, 30 miles of conveyors wind their way throughout the plant, passing through wall openings, dipping down to where they’re needed, and floating back up when they’re not needed.

At the trucking bays, dozens of tractor-trailer rigs pull in and out frequently, bringing parts from a network of suppliers that have sprung up around Clyde to meet the plant’s delivery schedule.

In 2010, Whirlpool began what ended up being a $200 million investment in the Clyde plant. Mr. O’Brien said every production line in the plant was moved to locations that made the operation more efficient — and cleaner — than before.

That may have been a key factor in the company’s 2014 decision to move from Monterrey, Mexico, to Clyde the production of commercial front-loader washers, creating 100 jobs.

Mr. Keppler said the Clyde facility “is a leader in laundry manufacturing and will continue to make innovative new products for our North American region there.”

An example of that innovation includes Whirlpool’s new Smart All-In-One Care Washer-Dryer combo introduced in January at the Las Vegas Consumer Electronics Show. It allows one load to be washed and dried in the same machine. The machine is not being made in Clyde yet but is expected to be later.

Types of washers

Overall, the plant makes top-loading and front-loading residential washers with various options and price points, plus coin-operated commercial washers.

Two years ago, the plant began using a flexible production strategy to train workers how to make both front-loaders and top-loaders. Previously they were trained to make one or the other.

The new strategy lets the plant quickly increase or decrease production of either top-loaders or front-loaders, depending on market demand, by shifting workers to what is needed.

That has been important as top loaders have become more popular in the last few years than front-loaders, said Nick Baker, a spokesman for the Association of Home Appliance Manufacturers.

“You had the top load with the agitator, and for a while you had the higher efficiency front-loader in demand because they used less water,” Mr. Baker said. “But now people favor the top loader without the agitator.”

More than half of top-load washers shipped in the United States last year did not have an agitator, he said.

‘Can-do’ attitude

The flex system also has a worker component, as groups of workers rotate jobs every 30 minutes for ergonomic benefits, said Roberto Miller, the plant’s head of operations.

Given the mental strain that comes with a repetitive job, Whirlpool appoints a “spirit leader” for each assembly line who plans activities to keep boredom at bay.

“You’re going to be here 40 hours. What you do for your employees is what makes you successful,” Mr. O’Brien said. “As leaders, our job is to empower [employees] and allow them to be creative.”

Mr. Miller, who has spent 18 years at Whirlpool and been assigned to three other manufacturing plants, said he noticed something special about the Clyde plant.

“They have a strong ‘can-do’ attitude. They’re very approachable, friendly. You see smiles on their faces,” he said. “They always wave, and they are very engaged.”

The attitude, he said, likely stems from the closeness of the Clyde community.

Recently, a 51-year employee retired from the plant. Company officials also just honored two workers for perfect attendance of more than 30 years.

Mr. Black, the Clyde mayor, said the camaraderie and spirit in the plant derives from the relationships outside of it.

“It’s just a thing, and when I worked there it was kind of a joke, but it was true — if you worked there, you never said anything bad about the person next to you, because you were probably related to that person in some way,” Mr. Black said.

He added: “The people are proud to do what they do because they know that the washing machines made in Clyde are the ones used in the whole country, really. That creates it a sense of pride that you’re doing that.”

Contact Jon Chavez at: [email protected] or 419-724-6128.
 
Right Greg,

and the tariff is also on solar panels. Most employment in the solar industry is installation, not manufacture. With solar panel costs increasing, unemployment could rise in the field if the tariff makes solar less than optimal for energy saving.
New solar manufacturing start ups will no doubt need some federal assistance if current domestic makers can't meet demand.
As usual, legislation can have a double edged sword.
I recall the 80's, when our dollar was higher than the Yen, but people were buying Japanese cars anyway because they told me it was worth it because they wouldn't fall apart even though they were more expensive.
Now I don't know the longevity of an LG or Samsung washer opposed to a Whirlpool product, but my sisters LG has outlasted both a post 2000 year Maytag and an earlier Kenmore. The only issue with it is the digital read out for the minutes is now dim.
 
What may happen

Here's what I am thinking

1. Prices will go up do to lack of competition (maybe )

2. LG and Samsung will build factories in the US to circumvent the tariff

3. R&D research will stall in the US ( without competition no reason to differentiate your product.

4. Frigidaire /Electrolux, Haier/GE and Bosch will profit from this because they have factories in the US already.
 
"and the tariff is also on solar panels. Most employment in the solar industry is installation, not manufacture. With solar panel costs increasing, unemployment could rise in the field if the tariff makes solar less than optimal for energy saving."

I skimmed an article somewhere last night about this. Apparently the U.S. solar industry is not amused. Aside from possible layoffs, many domestic manufacturers use imported parts that will fall under this tariff. Therefore prices across the board will rise.

If one were of a suspicious mind, one might think this were a plan to curtail growth of the industry as a whole...
 
Washing machine and solar tariffs are another plan that wasn't well thought out and will have unintended consequences. Creating a trade war isn't productive and other countries may add tariffs on U.S. goods.

R&D will stall without competition as stated above and if solar is more expensive fewer people will install it. There's a lot of labor in solar installation so less work for Americans. A thorough evaluation of department of energy standards allowing washing machines and dishwashers to work better could be more productive. Or focusing on the rollout of solar farms which can be more efficient than rooftop solar and would create vs eliminated jobs.

[this post was last edited: 1/23/2018-12:27]
 
Have to agree with viewpoints here, very well thought out. Concerning solar panels and renewable energy, one viewpoint no one has mentioned is the tariffs are probably a strong push back from king coal and oil industries, sort of a tit for tat. Decades long dormant mines in the Appalachian region have reopened and/or slated to reopen, though I saw on the national news they are having a hard time finding miners with specialized skills willing to fill positions. Who wants black lung disease?
(I think we, as a nation and society, have failed that area of the country in education and opening new manufacturing facilities to alleviate the poverty and ignorance. Now drugs have moved into many of those communities.)
Much coal is exported to China.
I, and I think many here on this board, would be greatly disturbed if power plants in our community switched back to burning coal.

LG is going to have to build a plant, or renovate one, if they want to continue to do business here. But I think prices are going to skyrocket regardless, since parts to build the machines are imported in from abroad. Matt, I couldn't agree more with what you said. Whirlpool, you got what you asked for.

Barry
 
TL over FL?

Line from Whirlpool article:

"That has been important as top loaders have become more popular in the last few years than front-loaders", said Nick Baker, a spokesman for the Association of Home Appliance Manufacturers.

“You had the top load with the agitator, and for a while you had the higher efficiency front-loader in demand because they used less water,” Mr. Baker said. “But now people favor the top loader without the agitator.”

I thought the current trend was in favor of front loaders
 
I'm mixed on this whole thing.
WP certainly is fighting headwinds from overseas machine dumping, and rising material costs. Labor costs are really not a huge factor, no matter how much companies want to cry about it; it's their favorite scapegoat. Employee insurance is the bigger albatross....alas that's for another discussion.

I think this tariff will help in the short run. Appliances are historically cheap as hell. If we equated their prices to 1970s or 80s value, they'd be double price. They were a major investment back in the day.
Not much longer. (Arguably their quality matches this)

In the long run however, SS and LG will be back with vengeance with domestic production. Likely with dirt cheap Southern labor too. As well as heavy subsidies from their home country, so they'll just be "dumping" machines again domestically, skirting the tariffs.

I agree there's a bit of a risk that it will lift the pressures to compete on WP, but that's really no guarantee.
And to say they've not innovated in decades is a pretty short-sighted comment.
In fact, if this community were to rabidly support anything, it would be AGAINST innovation.

Innovation is what led WP from abandoning the belt drive and direct drive platforms. Innovation led to the VMW platform, regardless of how much people here hate it. It was engineering and development through and through. For a company like WP to invent the VMW platform, there was a need for teams of dozens of people in engineering, marketing, manufacturing, sourcing etc. It's not child's play to design a machine that lives in peoples' homes, spinning wet, heavy clothing at hundreds or thousands of rpms, year in and out. Doing it safely.

In addition to that! It was also market forces and self inflicted financial forces (everything is short term stock gain now) that also drive many of these changes. Those cast metal transmissions, and stamped frames, and thick steel drums are very expensive with the rise of material costs. It's labor intensive and environmentally taxing to enamel coat all those drums. The investors are constantly pressuring companies to cut costs, while still maintaining performance.
It's a challenging balancing act.

It was WP innovation that further re-popularized front loaders in the USA after the Neptune rise and fall, with the Duet series. Everyone else followed the Duet. Again, whether you love it or hate it, the Duet is a remarkable, reliable platform for a front load machine at it's price point. First made in Germany and Mexico, and now in Ohio for several years.
That also takes remarkable engineering for years of dependable service. From bearings, belts, baskets, motors....and what many people forget, the follies of shipping these things across nations and oceans. Those trips are insanely tough on products. The hell our smoke alarms have to be tested through, just so they survive shipping, are responsible for adding weeks to our development timeline. I can't imagine what it adds to a washing machine or dryer.
In fact, there was an article I read years ago (wish I could find it) that described the engineering feats and failures and later successes, of bolstering the integrity of the pulley flywheel on the Neptunes, because they were prone to warping in extremely hot shipping conditions with the belt tension. Months of design and materials experimentation went into the final product. JUST so the pulley survives a semi-truck in an Arizona summer drive.
Then there's the issue of harmonics. Spinning and vibrating at those speeds; something must be done to cancel out or ramp quickly past the harmonic resonant frequencies of the appliance, in order to shake itself to pieces. As well as not send all that vibration into your house, at risk of ruining floors, or WORSE, finding the resonant frequency of your laundry room!
And every platform is different. So every new design they come out with, all that work needs to be RE-done.

Against droning on, is WP perfect? No way.
There are legit complaints about some of the products over the years. But they have gotten vastly better. Much to the scorn of my fine cohorts at AW, there are hundreds of thousands of users out there very happy with their wash plate Bravos' and Cabrios. Granted some have premature issues, and some people hate them. But the design mostly works as intended.
I have nagging spin issues on my Maytag Maxima. Something is a little off, but I'm also on a 2nd floor of questionable construction.

If you're going to be Nationalistic about American design and manufacturing, like I used to be. Then you're almost obligated to support WP. And to a lesser extent, GE/Haier KY or Electrolux US. And maybe down the road, LG or Samsung when they open their US plants.
But if lowest price and most features regardless of source is your preference?
Then this tariff is a raw deal.
 
I'm not sure spitting a teaspoon of water on clothes and twirling them around into a knot is innovation, unless one considers innovation making something do it's sole job worse than ever before. 

 

I'm sure not a soul on this site would be against innovation if it meant the machines worked BETTER than previous generations, not WORSE. 
 
Yeah, sure, right

How much y'all wanna bet not one new 'muriKKKan job comes of this?

Prices rise but no new jobs.

Why, yes, those were my self-same objections to those around here screaming that Maytag must not be bought by the Chinese (who promised to keep the factory in place and the employees there, working) but must go to Whirlpool.

Which did exactly what to the workers?

Oh, right, they closed their factory and fired them.

 
 
Innovation

If you mean machines that last less then there predecessors and have a shorter warranty, then I can understand why people would be rabidly resistant to innovation.

Yes I do agree with you that designing anything requires teams of people and lots of time to test and re-test, but the VMW is not anything new. Its design was already in existence 30 years before Whirlpool adopted it their World Washers. The duets are heavily based on European design not their own, and the DW that Whirlpool is building now are again based on European technology decades earlier. Do they add their own twist? Sure and of course. But I hate to say it, Whirlpool hasn't innovated as much as you would like us to believe especially after their DDs.

What was original however was the wig-wag design, as well as most other toploaders like GE, Frigidaire, and Maytag up to the DD design which is like no other anywhere on earth. As was the powerclean module, GE 1200, Whirlpool top filter dryer- all original and unique designs that outperform foreign products in many, many ways.

Sadly the last 25 years has not been R&D or bettering the industry. Its been cheapening once great products to the point of short lived disasters while making cheesy euro clones that would be A LOT better if they were literally the real thing, ie just ship over the same carbon copy used in mainland Europe. Heck we have 20PSIG water, drain lines and 240 volts in our panels- I can improvise.

What Whirlpool needs is an original thought and an original idea. Only then can we outdo the world.
 
Estimates of job losses in the solar installation trade.  Maybe they can line up for 200 jobs at Whirlpool?  (they'll be fighting for a place in that line with those recently laid off at Carrier)

 

However, solar installers and manufacturers of other equipment used to run solar-power systems opposed tariffs, which they said will raise their prices and hurt demand for the renewable energy.

The Solar Energy Industries Association, which represents installation companies, said billions of dollars of solar investment will be delayed or canceled, leading to the loss of 23,000 jobs this year.

Mark Bortman, founder of Exact Solar in Philadelphia, said the prospect of tariffs, since the trade commission recommended them in October, had already caused him to delay hiring and expansion plans.

“Solar is really just starting to take off because it is truly a win-win-win situation” for consumers, workers and the environment, he said. “Tariffs would really be shooting ourselves in the foot.”

 

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