John Deere Shifts Excavator Assembly From Japan to US

John Deere is setting up two new facilities in the United States as the agricultural and construction equipment giant moves all excavator manufacturing from Japan.

The OEM will open a distribution centre near Hebron, Indiana, and a new excavator factory in Kernersville, North Carolina, within the next year. The move is part of John Deere’s broader strategy to invest $20 billion in U.S. manufacturing over the next decade.

The $70 million Kernersville factory will expand John Deere’s domestic manufacturing capabilities, using advanced technology to produce excavators previously made in Japan. 

On the other hand, construction has begun on the Hebron distribution centre, whose location was chosen to “streamline operations and ensure timely delivery of equipment,” according to the company.

“This new facility is an investment in customer expectations around world class product support through parts availability for our U.S.-based ag, turf, construction, forestry, mining and turf customers,” said Denver Caldwell, VP of Aftermarket and Customer Support at Deere. 

“Indiana’s strong workforce and central location make it an ideal choice for expansion.”

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John Deere will keep running its main North American parts distribution center in Milan, Illinois, which has been serving customers since 1973 and employs about 1,200 people.

“Our investment in these new facilities underscores John Deere’s dedication to strengthening the backbone of American industry and supporting local economies,” chairman and CEO John May said. 

“We believe in building America, and these projects represent our intent to continue driving innovation and job creation in the United States.”

Industry analysts say John Deere’s move follows a broader trend of manufacturers trying to rely less on overseas production. By moving excavator assembly to the U.S., the company hopes to make its supply chain more efficient and speed up delivery times for North American customers.

The company recently agreed to acquire U.S. construction technology specialist Tenna, strengthening its push into digital tools for contractors managing mixed equipment fleets.

The deal will see Tenna acquired from The Conti Group, with the transaction, whose financial terms have not been disclosed, expected to close this month subject to regulatory approval.

The acquisition, alongside the establishment of the two facilities, demonstrates Deere’s dual focus on modernizing operations and providing contractors with improved visibility and management of their equipment.

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