Whirlpool Corp.’s finance chief is seeking to offset cost gains caused by a shortage of microchips and plastic, which is forcing the appliance maker to switch over its production lines more frequently.
Benton Harbor, Michigan-based Whirlpool, which manufactures washing machines, KitchenAid mixers and other home appliances, has seen a rush in demand for its products since the beginning of the pandemic. At the same time, the company is facing an exhausted supply of key components, including microchips from China and Taiwan. It is also running low on plastic as a result of a winter storm in Texas, which negatively affected the chemicals industry.
While other industries have responded to the shortages by delaying production-large US car makers, for example, have cut output or idled factory lines amid the lack of chips-Whirlpool is changing over its production lines more often, depending on which parts are available, Chief Financial Officer Jim Peters stated on Wednesday.