We traveled down to Chattanooga recently to visit Komatsu. While there, we produced this excellent video interview with general manager Steve Olson, and he made a big point about the importance of manufacturing and assembly in the United States.

“We probably give three or 4,000 people tours every year, and it's customers and it's potential customers and it's people that want to know ... not only did I get to buy a machine that was assembled in the United States of America, I got to see where it was made,” said Olson. “So, it's a huge staying power to have a presence in your market.”

It makes sense. Building equipment closer to the customers who buy it can shorten lead times. It usually reduces transportation costs. It can make supply chains more predictable if you connect those supply chains locally (examples below). It can also be a great sales tool, like Olson mentioned. For fleet managers, faster access to machines and parts is especially crucial. Sometimes the dealer and manufacturer infrastructure is more important than the actual brand on the machine, right?

So, I wanted to catch everyone up on some cool manufacturer news that’s been hitting my inbox.

Volvo CE announces new U.S.-built excavators and loaders

Lots of big brands have been announcing facility investments of late with new products rolling off the lines. As an example, Volvo Construction Equipment just hit a local milestone. It announced that more than 50 percent of its North American machine supply was now being produced at its Shippensburg, Pennsylvania, facility. This comes as Volvo CE adds 11 excavator and larger wheel loader models to production in PA. That brings the plant’s production portfolio to 30 excavator, wheel loader, and compactor models. From the press release:

 "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," said Scott Young, Head of Region North America.

Since acquiring the facility in 2007, the company says it has invested more than $1.4 billion in Shippensburg. Volvo CE acquired the site and its road division from Ingersoll Rand in 2007. Over 750 people work there at the moment. Where did this recent investment go?

The company reworked its existing 436,000-square-foot assembly and fabrication footprint. It now has three flexible production lines capable of producing excavators, wheel loaders, and compactors. This press release noted: “The North American site is also pioneering a new ‘utility specialist’ approach for production of large wheel loaders, which require 30% more parts and complexity to build on the same line.” Then, of course, Volvo CE had to train its workforce to implement it all. Employees accumulated more than 180 hours of individual training on-site but also off-site with sister factories in Sweden, Korea, and Brazil. Pretty exotic.

Another cool aspect: Volvo CE partnered with the Franklin County Area Development Corporation, and together they helped support an excavator counterweight supplier's decision to invest more than $1.5 million in a local facility, which will deliver counterweights directly to the Shippensburg plant.

We just saw another version of this in Tennessee

The Volvo CE news feels especially timely because we recently visited another American equipment factory. Komatsu’s Chattanooga Manufacturing Operations (CMO) celebrated its 40th anniversary this summer. The Tennessee plant also rolled out its 60,000th excavator, a PC490LC-11 already sold to contractor D.H. Griffin and painted all-cool blue (see the video above). 

“We build a whole lot of these excavators,” said Olson in the video. “We make about eight of these a day, and we got a variety of models. There's about 15 all in all. We also build an articulated dump truck. So, we provide that to the North America market, whether it be Canada, whether it be the U.S. … We build about 2,500 machines every year.”

Chattanooga is just one component of Komatsu’s North American manufacturing and support strategy. At Conexpo 2026, Komatsu highlighted more than $5 billion in North American manufacturing investments through acquisitions and business expansion during the previous decade. It also cited another $650 million in infrastructure upgrades and modernization projects covering everything — manufacturing, service, parts distribution, remanufacturing, you name it. I remember writing this story on Komatsu bolstering its remanufacturing business right as I started this job.

Recent Komatsu projects include:

• A new 270,000-square-foot parts distribution center in Mesa, Arizona.
• An $80 million, 215,000-square-foot mining sales and service facility in Mesa.
• The acquisition of Kentucky remanufacturing specialist SRC of Lexington.
• Expansion of its Edmonton operation into a 135,000-square-foot parts distribution center, doubling warehouse capacity.

Now Kubota is building more CTLs in Kansas

While Volvo CE was celebrating in Pennsylvania, Kubota was making similar news in Kansas with its compact equipment. Kubota North America has expanded construction equipment production at its Great Plains Mfg. facility in Salina. Remember back in 2016, Kubota bought Great Plains — an attachment maker. It has continued to expand its compact equipment operations in Salina beyond attachments. Now, the first SVL75-3 compact track loader has come off the Kansas production line. The SVL75-3 will share a mixed-model production line with the smaller SVL65-2 track loader.

Kubota calls the SVL75-3 the No. 1-selling compact track loader in the United States, based on EDA/UCC sales data covering new CTLs from Jan. 1, 2021, through Dec. 31, 2025. So, yeah, that should mean a whole lot of CTLs. Cause that segment is hot. From that same press release:

"Kansas is home to a highly skilled workforce and robust manufacturing industry, and the continued investments in our state from global businesses are a testament to that," said U.S. Senator Jerry Moran (R-Kan.). "Kubota's expansion at Great Plains will bring more skilled jobs to Salina and reinforce Kansas as a hub for equipment innovation. I'm pleased by Kubota's decision to grow its presence in Kansas, and I look forward to the positive impact that this expansion will have for our economy and the local community."

The new production is one of many. Kubota has announced more than $300 million in construction equipment infrastructure investments in Salina in recent years. The timeline:

• 2016: Development of construction machinery attachments begins (Great Plains specialized in ag implements at the time).
• 2021: Construction Equipment Research and Development North America opens.
• 2026: Kubota expands CTL production with the SVL75-3.
• Coming next: A new compact construction equipment test center focused specifically on North American machine design and engineering.

Kubota broke ground on that test center earlier this year. It's a $30 million investment covering 57,000 square feet. The facility will let engineers perform durability, reliability, and performance testing designed around simulated construction applications. It all means Salina is becoming way more than an assembly point. Attachments, CTLs, engineering, R&D, testing, why?

North America represents the world's largest compact construction equipment market, according to Kubota.

Who’s next?

We’re seeing lots of investment flowing into North American construction equipment production. When I see that, I see a few things. I see that supply chain matters. I see how lead times matter. I see how American labor matters. I see getting machines and parts closer to customers matters.

Also, I’ve been lucky enough to walk through a lot of equipment plants over the years. It’s impressive to watch the workers and explore the infrastructure. Skilled magicians operate jib cranes with giant pieces of steel. Welders create art. Paint systems just do their crazy thing. Eventually, an excavator, loader, or CTL rolls out the other side. It’s impressive, and we’re seeing more of it in the United States from certain brands.