JCB San Antonio Factory Hits Overdrive to Outrun Tariffs

JCB is doubling the size of its under-construction San Antonio factory in a strategic move to sidestep the financial impact of new tariffs introduced by President Donald Trump.

The British machinery giant will expand the plant from its original plan of 500,000 square feet to a massive 1 million square feet.

This decision marks a significant shift in the company’s North American strategy as it works to protect its market share in the face of rising import costs.

The $500 million San Antonio factory construction project is expected to create approximately 1,580 jobs, with an average salary of $54,889, according to a 2024 presentation to city officials.

Production at the new site is scheduled to begin next year.

JCB, which makes over 300 types of machines and operates in more than 150 countries, views the new factory as a key hedge against uncertainty from shifting U.S. trade policy.

“In the short term, the imposition of tariffs will have a significant impact on our business,” said JCB CEO Graeme Macdonald. “However, in the medium term, our planned factory in San Antonio will help to mitigate the impact.”

Until production starts in Texas, JCB’s telescopic handlers and aerial work platforms will continue to be manufactured at its facilities in the U.K. and India.

JCB Chairman Anthony Bamford, now in its 80th year and well accustomed to change, said the company views the expansion as both a response to political realities and a renewed commitment to the U.S. market.

“The United States is the largest market for construction equipment in the world, and President Trump has galvanised us into evaluating how we can make products in the USA,” he said.

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“The U.S. has been an important market for JCB since we sold our first machine there in 1964.”

The San Antonio facility will be built on more than 400 acres of land acquired last year, which JCB says also allows room for future product lines. Once complete, the plant will become the company’s second-largest globally, after its headquarters in Staffordshire, U.K.

The firm already has a presence in the U.S. through its manufacturing site in Savannah, Georgia, which has operated for over two decades and employs around 1,000 people.

Globally, JCB employs about 15,000 people across 21 other manufacturing facilities worldwide.

With the new San Antonio facility, JCB is positioning itself to manufacture its Loadall telescopic handlers and aerial access equipment directly in the U.S., strengthening its local supply chain and reducing reliance on imports.

Indeed, CEO Graeme Macdonald recently said President Trump’s recent tariffs have had a “significant impact” on the company in the short term, but the expanded San Antonio factory would help mitigate these effects in the medium term.

“We are thankful that the tariff is only 10%, and we can only hope that the UK Government will conclude negotiations on a trade deal in the coming days and weeks,” he said.

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