Was Outsourcing a Success Story for GE?

The Motley Fool's industrial analyst, Isaac Pino, recently attended The Atlantic magazine's Manufacturing Summit for insight into the industry and visited General Electric's 30 Rockefeller offices for a closer look at the $250 billion conglomerate. Isaac and Motley Fool Money host Chris Hill weigh in on the company's transformation over the past few years, its game-changing investments in 3-D printing and the industrial Internet, and the opportunity ahead for GE shareholders.

In the following segment, Isaac takes a closer look at the opportunities for a company like GE to return manufacturing operations to the United States. As a case study, GE's Appliance Park facility in Kentucky employed 23,000 workers in 1973, but that figure dwindled to only 1,863 in 2011. However, the Appliance Park story is a long way from over, and the facility is in the midst of a revival that bodes well for manufacturing hubs across the country. Just last March, Jeffrey Immelt asserted in the Harvard Business Review that outsourcing is "quickly becoming mostly outdated as a business model for GE Appliances." Isaac and Chris discuss the drivers behind this "insourcing boom" and why this is a trend that won't go away.


For GE, the recent financial crisis struck a blow, but management took advantage of the market's dip to make strategic bets in energy. If you're a GE investor, you need to understand how these bets could drive this company to become the world's infrastructure leader. At the same time, you need to be aware of the threats to GE's portfolio. To help, we're offering comprehensive coverage for investors in a premium report on General Electric, in which our industrials analyst breaks down GE's multiple businesses. You'll find reasons to buy or sell GE, and you'll receive continuing updates as major events unfold during the year. To get started, click here now.

The article Was Outsourcing a Success Story for GE? originally appeared on Fool.com.

Chris Hill has no position in any stocks mentioned. Isaac Pino, CPA, and The Motley Fool own shares of General Electric. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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