General Electric Appliance Park manufacturing

News item from the week of the lecture. Used to illustrate the economics of appliance manufacturing.

On the other hand, we have railroads and shipping, where things are worth about 20 cents a pound to transport. [Tom shows a refrigerator hinge.] This is part of a Sub-Zero refrigerator. Anybody have a Sub-Zero refrigerator at home? Only cost $11,000. Nice refrigerator, keeps the lettuce crisp because it has separate humidity control top and bottom. My son has one — he bought a house that had one. That's the hinge — just plain old carbon steel. You can't spend very much on refrigerators. In fact General Electric just sold Appliance Park — anybody see that in the news earlier this week? Appliance Park, outside of Cincinnati Ohio, is General Electric's huge appliance manufacturing facility — they've had it for 40 or 50 years. They make Sears Kenmore, they make all kinds of brands, but it's all General Electric at that plant. General Electric essentially manufactures for buy by everybody else. So there's a wide range in the value of materials.