Kickstart: Investing in kitchen appliances

Consumers are continuing to eye investments in their home as they cut back on travel this year, and that is leading to a $62 million investment for GE Appliances at its massive Appliance Park in Louisville, Ky.

Chinese appliance maker Haier, which owns GE Appliances and its 750-acre manufacturing complex, said July 9 that it will also add 260 jobs to produce more washers, dryers, dishwashers and refrigerators. The company will put $42 million into its four-door refrigerators sold under the Profile and Cafe names and $19 milllion to upgrade its dishwasher manufacturing plant.

The announcement didn't get specific about what plastics operations may see new equipment, but it does have in-house plastics to make racks, shelves and liners.

In a news release, GE said that because of the pandemic, "consumers are staying at home more than before and using their appliances more often." Add to that a desire for sanitation settings in washers and dishwashers. GE cited research saying dishwashers are being run more frequently during the pandemic, and the use of high wash temperature cycles are up more than 50 percent; washer and dryer use is up 25 percent, and the sanitization cycle on washers is up 85 percent.

The new money going into appliances is only part of the staycation spending taking place in 2020. There has also been increased interest in suppliers for floors, decks and pools.

While the manufacturing of face shields and masks may not be getting the same attention it was in the spring, the increasing number of cases in the U.S. is leading to a familiar problem: Not enough personal protective equipment.

In a July 9 story, The Washington Post noted that the current demand isn't coming just from front-line hospitals.

"Unlike in March, when efforts focused on getting PPE for major hospitals — especially in New York, Detroit and Chicago — supplies now are desperately needed by primary care offices, nursing homes, prisons and psychiatric and disability facilities. As many states continue to reopen their economies, demand has also surged from the construction industry and other sectors. With soaring demand, prices have skyrocketed."

One Maryland hospital, the Post noted, spent $600,000 on PPE in 2019. This year, it expects to spend $10 million.

When private equity firm The Jordan Co. invested in Anchor Packaging LLC, the St. Louis-based thermoformer saw big opportunities ahead.

"Now we are talking about transformative growth — broadening our geographic reach through additional manufacturing facilities, new and complementary product lines to better serve our customers and new materials to offer our customers," Anchor CEO Jeffrey Wolff said in June 2019 after Jordan purchased an unspecified stake in the company.

Now it's starting to make moves toward that goal, starting by buying Wisconsin-based thermoformer Panoramic Inc. Panoramic's expertise in bakery, vegetable and deli items fits into an open product offering spot Anchor wanted to fill.

It also strengthens what is already a Top 10 thermoformer in North America. Last year, Anchor was No. 9 in Plastics News' ranking of North American thermoformers, with $380 million in sales. Adding Panoramic's $44 million in sales in the region could move it up at least one spot. Of course the next ranking for thermoformers won't be out until early 2021, and a lot could change by then.