From Waterloo to Mexico: John Deere To Move Cab Assembly
John Deere will relocate its tractor cab assembly currently in Waterloo, Iowa to Ramos Arizpe, Mexico by 2024.
The decision was driven by labor market dynamics.
"John Deere’s plan to bring new product programs to our operations in Waterloo, Iowa makes it necessary to consolidate the manufacturing of cabs from the Tractor and Cab Assembly Operations (TCAO) to Ramos Component Works in Mexico. The decision to move cab production ensures the company can balance workforce needs within the tight labor market, while also ensuring Waterloo can open up floor space to manufacture new products," the company said in a statement.
The company says this shift in production could effect 250 workers in Waterloo.
"The number of employees affected will depend on where the business is with respect to production volumes, employee attrition over the next two years, and new product program needs," the company said in a statement.
John Deere’s Waterloo Operations includes: engine works, drivetrain operations, foundry, service parts components and tractor cab assembly. Across those functions, John Deere has 3,400 employees, of which are 450 salary positions and 1100 production positions at Waterloo TCAO.
The company has yet to announced the new products mentioned in the statement.
"The new product programs have not yet been released publicly. It is common practice to prepare our business operations ahead of any new product introductions," the company provided in a statement.
Sen. Charles Grassley (R-IA) commented on the news on AgriTalk's Friday Free For All, saying "Well, I wish they weren't doing it, but they already get a lot of their parts for their tractors all over the world anyway and even a lot from Mexico. I don't know how this is different from what they've been doing for the last 20 years but to the extent to which it take jobs. I was told yesterday when we read about this that there was going to be some increase in production in other areas to make up for some of the lost employment, but they didn't say it would made up for 100 percent of it."
Des Moines Register Story here.
