Volvo Construction Equipment, based in Shippensburg, Pa., announced the roll out of its first American-built excavators and large wheel loaders.
The company recently expanded its U.S. footprint which resulted in more than 50 percent of its North American machine supply being produced at the Shippensburg facility. A total of 11 additional models will be produced there, shortening customer lead times by more than six weeks, the company said.
“What you see today is manufacturing resilience in action: adapting with purpose and speed to increase capacity and build more machines closer to our customers. This achievement advances Volvo CE’s long-term strategy to strengthen stability and flexibility across the North American market while supporting our employees and the regional economy,” Scott Young, head of Volvo CE’s Region North America, said.
During an event to celebrate the equipment’s debut, Volvo leadership joined elected officials, business and industry leaders for an inside look at the manufacturing facility, as well as a look at the company’s efforts to develop a localized supplier base. Volvo CE’s North American product line includes 30 machine models from excavators to wheel loaders to compactors. The company recently invested $40 million into the plant, bringing to $1.4 billion in investment since 2007. The investment is designed to triple its annual output capacity and build workforce skills to support growth and increase digitalization, the company said.
“Volvo CE has taken seriously its commitment to investing in and revitalizing American manufacturing. This facility right here in Shippensburg is not only building world-class construction equipment; it is creating opportunities for families and workers throughout our community. Pennsylvania has always been a strong contributor to our nation’s manufacturing strategy, and this expansion is proof that we will continue to be a leader in its future,” U.S. Rep. John Joyce, M.D., said.
The company said it will continue to build a stronger local supply chain.
“Strong, mutually beneficial supplier relationships have been fundamental to how Volvo CE works with its suppliers for decades. But increasingly, success requires a broader ecosystem — where businesses, economic development organizations and communities work together,” Todd Papple, head of Purchasing Americas, Volvo CE, said.
The company said it hopes to grow its business with Pennsylvania-based suppliers by 30 percent by 2030.