Volvo Construction Equipment Launches First U.S.-Built Excavators and Large Wheel Loaders
Volvo Construction Equipment is accelerating its manufacturing expansion in the United States, with more than half of its North American machine supply now being produced at its Shippensburg, Pennsylvania, facility. The company has begun delivering its first American-built excavators and larger wheel loaders to customers, marking a significant milestone in its strategy to localize production and strengthen its North American supply chain.
The move comes less than a year after Volvo CE announced plans to increase the number of machines assembled locally. As part of the expansion, an additional 11 models will be manufactured at the Shippensburg facility. By producing more equipment closer to customers, Volvo CE expects to reduce machine lead times by more than six weeks.
The company officially marked the manufacturing milestone on August 19 at an event attended by legislators, business representatives, industry leaders, and other stakeholders. Visitors received an inside look at the facility’s manufacturing transformation, as well as Volvo CE’s efforts to develop a stronger regional supplier network.
Scott Young, Head of Region North America at Volvo CE, described the expansion as an important step toward building greater manufacturing resilience.
“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,” Young said. He added that the initiative supports Volvo CE’s long-term strategy of improving stability and flexibility across the North American market while creating benefits for employees and the regional economy.
Expanding the North American Production Portfolio
The latest investment increases Volvo CE’s North American production portfolio to 30 machine models. The lineup includes excavators, wheel loaders, and compactors, providing the company with a broader range of locally manufactured construction equipment.
The expansion follows a $40 million investment in the Shippensburg operation. Since 2007, Volvo CE has invested more than $1.4 billion in its U.S. manufacturing operations.
Those investments have helped the company triple its annual production capacity while also developing workforce capabilities needed to support growth, advanced manufacturing, and increasing digitalization within the construction equipment industry.
The Shippensburg facility has played a central role in Volvo CE’s North American strategy for nearly two decades. Volvo CE acquired the site and its road development division from Ingersoll Rand in 2007. The company subsequently established its North American headquarters at the location in 2012.
Today, the facility employs more than 750 people, making it an important contributor to the local economy and manufacturing workforce in Pennsylvania.
Strengthening American Manufacturing
The expanded production capabilities have also attracted attention from regional and federal leaders who view the investment as an example of continued manufacturing development in the United States.
Congressman John Joyce, M.D., highlighted the company’s investment in the Shippensburg facility and its contribution to the local community.
He said Volvo CE’s commitment to American manufacturing is helping create opportunities for workers and families throughout the region while reinforcing Pennsylvania’s role in the country’s manufacturing strategy.
The increased production of construction equipment in Pennsylvania could also help shorten supply chains and improve responsiveness to changing customer demand. Manufacturing equipment closer to North American customers can provide greater flexibility in production planning and potentially reduce the time required to deliver machines.
Building a Stronger Local Supplier Network
While increasing manufacturing capacity is a major part of Volvo CE’s strategy, the company recognizes that a successful localization effort also depends on developing a strong regional supply chain.
Building a more localized supplier network can be challenging because equipment manufacturers require suppliers that can meet specific technical, quality, production-volume, delivery, and cost requirements. Developing those capabilities can require significant investment from suppliers.
Todd Papple, Head of Purchasing Americas at Volvo CE, said strong relationships with suppliers have been fundamental to the company for decades. However, he noted that the evolving manufacturing environment requires a broader ecosystem involving businesses, economic development organizations, and local communities.
The company is therefore working to create stronger connections between manufacturers, suppliers, and regional economic development organizations.
Pennsylvania Supplier Spending Target
As part of its broader localization strategy, Volvo CE announced an ambition to increase its business with Pennsylvania-based suppliers by 30% by 2030.
Achieving this objective will depend on close collaboration between Volvo CE and suppliers. Local suppliers need confidence that investments in equipment, facilities, technology, and workforce capabilities will support sustainable long-term business opportunities.
The initiative is intended to encourage suppliers to expand their operations while meeting Volvo CE’s technical and production requirements and maintaining competitive costs.
One example of this collaboration involves a global supplier of excavator counterweights. Volvo CE partnered with the Franklin County Area Development Corporation to support the supplier’s decision to establish a regional operation near the Shippensburg manufacturing facility.
The supplier plans to invest more than $1.5 million in a local facility and create jobs. The new operation will manufacture and deliver counterweights directly to Volvo CE’s Shippensburg plant using a just-in-time supply model.
This arrangement can help reduce transportation distances, improve supply reliability, and strengthen the connection between Volvo CE’s manufacturing operation and its supplier base.
Manufacturing Growth Through Public-Private Collaboration
Volvo CE views collaboration between manufacturers, suppliers, economic development organizations, and local communities as an important component of long-term manufacturing growth.
The company’s Shippensburg expansion demonstrates how investment in production capacity can extend beyond the manufacturing facility itself. As production increases, suppliers may also have opportunities to establish or expand regional operations, creating additional jobs and economic activity.
The localization strategy also reflects broader changes across the construction equipment industry. Manufacturers are increasingly focused on supply-chain resilience, production flexibility, shorter delivery times, and closer connections to customers.
With 30 models now included in its North American production portfolio and additional equipment being manufactured in Pennsylvania, Volvo CE is strengthening its position in the U.S. market.
The company’s continued investment in Shippensburg, combined with efforts to expand Pennsylvania-based supplier relationships, is expected to support further manufacturing growth. By increasing local production while developing a stronger regional supply ecosystem, Volvo CE aims to improve customer responsiveness, strengthen supply-chain resilience, and contribute to the long-term growth of American manufacturing.
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