Volvo Construction Equipment Expands U.S. Footprint
Volvo Construction Equipment has reached a major milestone: Its Shippensburg, Pennsylvania, facility has produced the company’s first U.S.-built excavators and larger wheel loaders (Service Truck Magazine).
What’s going on: Volvo CE, which said at an August event that it is delivering the first batch of the American-made machines to customers, is expanding its American footprint.
- It recently invested $40 million in expanding its Shippensburg facility to boost “manufacturing capability and workforce skills” and implement operational changes, including building and adding flexible production lines that can produce a range of machine models.
- The first-in-the-U.S. machinery announcement comes about a year after the company said it would localize more of its machine assembly.
Why it’s important: “Volvo CE said the expansion will result in more than 50% of its North American machine supply being produced at the Pennsylvania plant while also reducing customer lead times by more than six weeks.”
- The growth of the Shippensburg site, which employs over 700 people, raises Volvo CE’s North American production offerings to 30 machine models, including compactors, excavators and wheel loaders.
A commitment to growth: The firm has invested more than $1.4 billion (including the recent $40 million) in the facility since 2007.
- That’s when it purchased the site and its road development division from industrial product company Ingersoll Rand. The company established its North American headquarters there in 2012 (Volvo CE).
What else it’s doing: “In addition to increasing production, Volvo CE is working to strengthen its regional supplier network,” according to Service Truck Magazine.
- “The company has announced a goal of increasing business with Pennsylvania-based suppliers by 30% by 2030 and is supporting efforts to attract new suppliers to the area.”
- Volvo CE will produce up to 100 machines a month at Shippensburg, the company said (WGAL).
