By: Sam Warren, Pro Sports Trending
Source: Houston Chronicle (TNS)
Jun. 6—Agricultural machinery giant John Deere on Friday put to rest online rumors it would freeze its U.S. manufacturing.
In a news release, John Deere also said it would invest $20 billion into U.S. manufacturing over the next 10 years.
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The company says the financial commitment is a “powerful signal” of its long-term devotion to “building and growing right here at home.”
“Our commitment to delivering value for our customers includes ongoing investment in advanced products, solutions, and manufacturing capabilities,” John May, chairman and CEO, said in a statement Friday. “Over the next decade, we will continue to make significant investments in our core U.S. market. This underscores our dedication to innovation and growth while staying cost-competitive in a global market.”
John Deere has more than 30,000 employees in 60 locations across 16 states, according to the company. Among those are an IT/engineering facility in Austin and a regional parts distribution facility in Dallas.
However, the company has been suffering of late. It’s gone through 16 rounds of layoffs in the past year, which it attributes to a struggling farm economy and fewer customer orders. In a February earnings call, the company said it would continue to scale back production after fourth-quarter sales dropped 37% from the same period a year earlier, according to the Des Moines Register.
John Deere has came under scrutiny for moving some of its production to Mexico in 2024, according to the same report. The practice caught the attention of then-presidential candidate Donald Trump, who said he would invoke a 200% tariff on John Deere’s imports if they continued to move production to Mexico. But in a social media post announcing Friday’s investment, the company said it is not moving production across the border.
The company did not say which areas of its manufacturing would receive the influx of funding. Though it’s possible that the company’s two Texas facilities could be receiving a large investment over the next decade.
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