Volvo CE Expands U.S. Equipment Production in Pennsylvania

Volvo Construction Equipment (Volvo CE) is significantly expanding its U.S. footprint, resulting in more than 50% of its North American machine supply being produced at its Shippensburg, Pennsylvania facility. Less than a year after announcing plans to localize more machine assembly, the company is delivering its first American-built excavators and larger wheel loaders to customers. A total of 11 additional models will be produced in Shippensburg, shortening customer lead times by more than six weeks.

The company marked the milestone with an event attended by legislators and business and industry leaders on Aug. 19. They got an inside look at the manufacturing transformation and Volvo CE’s ongoing efforts to develop a localized supplier base.

“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.

The expansion brings Volvo CE’s North American production portfolio to 30 machine models, including excavators, wheel loaders and compactors. With the most recent investment of $40 million, Volvo CE has invested over $1.4 billion since 2007 to triple its annual output capacity and build workforce skills to support growth and increased digitalization. 

Volvo CE acquired the site and its road development division from Ingersoll Rand in 2007 and established its North American headquarters there in 2012. Currently, over 750 people are employed at the location.

“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,” said Congressman John Joyce, M.D.