Volvo Construction Equipment, John Deere Will Both Expand Production in the U.S.

U.S. gear manufacturing simply obtained a lift as John Deere and Volvo Development Gear introduced main investments of their U.S. operations.

Volvo CE mentioned June 10 it’s increasing crawler excavator manufacturing at websites worldwide with a $261-million funding break up amongst its current amenities in Shippensburg, Pa., Changwon, South Korea and an as-yet-unnamed location in Volvo’s dwelling nation of Sweden.

John Deere guardian Deere & Co. introduced it’ll make investments $20 billion into its U.S. manufacturing operations over the following 10 years on its quarterly earnings name Might 16. The Moline, Sick.-based gear producer mentioned the long-term pledge consists of new factories, together with facility expansions and workforce growth in Kernersville, N.C.

Volvo CE’s Shippensburg operations will add capabilities to provide mid- to large-size excavators, The Shippensburg website will add 4 massive wheel loader fashions to its present wheel loader manufacturing, with manufacturing deliberate to start within the first half of 2026, the corporate mentioned in a press release. Volvo CE mentioned the portion of the $261-million invested at Shippensburg will replace the present house throughout the manufacturing facility to put in meeting strains, combine extra automation applied sciences and practice workers. The corporate didn’t element how a lot of the $261 million will go to the Shippensburg growth. 

“We should reply to rising demand, and we’re excited to increase our amenities to serve our clients higher,” mentioned Melker Jernberg, president of Volvo CE and govt vice chairman of guardian firm Volvo Group. “This funding underscores our dedication to high quality and innovation, permitting us to ship even larger worth.”

Southeast Growth by Deere

Deere detailed in a press assertion the way it plans so as to add a 120,000-sq-ft growth of the corporate’s remanufacturing facility in Springfield, Mo.; construct the aforementioned new excavator manufacturing facility in Kernersville close to its current operations there at the former Deere-Hitachi three way partnership; increase its Greeneville, Tenn. turf gear manufacturing facility; and add new meeting strains for the 9RX high-horsepower tractor in Waterloo, Iowa.

“Our dedication to delivering worth for our clients consists of ongoing funding in superior merchandise, options and manufacturing capabilities,” mentioned John Might, chairman and CEO of John Deere through the quarterly name. “Over the following decade, we are going to proceed to make vital investments in our core U.S. market.”

Neither firm talked about U.S. tariffs on overseas manufacturing as causes for the increase to U.S. manufacturing operations. Jernberg did observe in Volvo CE’s assertion that by increasing manufacturing capabilities in key markets, Volvo CE will cut back dependency on any single website and change into much less reliant on long-distance logistics. The assertion additionally mentioned provide chain dangers might be mitigated by increasing home provider bases
in each the U.S. and South Korea.