Deere to Relocate Midsize Skid Steer, CTL Production to Mexico

Me Photo Headshot
Updated Jun 13, 2024
Deere dozer pushing dirt Deere excavator dumpt truck background
John Deere

John Deere plans to move production of midsize skid steers and compact track loaders to Mexico, the company has announced.

The relocation is slated to occur in 2026 from the Dubuque Works plant in Iowa. The U.S. plant will continue to manufacture large skid steers and CTLs, backhoes, dozers, track loaders and knuckle-boom loaders, Deere says.

The company is acquiring land in Ramos, Mexico, for the new plant, which is scheduled to open in 2026. Production of skid steers and CTLs moving to Mexico will begin decreasing at the Dubuque plant in early 2026, according to Deere.

Deere says the relocation is a response to “rising manufacturing costs” and to “improve operational efficiencies.”

“This move adds manufacturing flexibility for John Deere’s Construction & Forestry business by establishing a new, globally competitive manufacturing operation,” a company statement says.

According to the Greater Dubuque Development Corp., the Iowa plant was founded in 1946 and employs 2,800 people.

The relocation from the plant is expected to affect about 225 employees, according to the Telegraph Herald.

The news follows reports that Deere plans to lay off about 120 workers at its Cylinder and Seeding plant in Moline, Illinois.

In Deere’s latest financial report, it showed a 12% decline in global net sales and revenue in the second quarter. The company forecasts a drop in sales across its agricultural, construction and forestry divisions for fiscal 2024 globally and in the U.S.  

Its U.S. construction equipment market is expected to be flat or down 5% this year. (See the chart at the end of this story for more details.)

“Markets continue to be healthy as U.S. government infrastructure spending further increases, investments in manufacturing persist and single-family housing starts improve,” said Josh Rohleder, Deere manager of investor communications, during the Q2 earnings call. “Tailwinds are tempered by declines in commercial real estate and softening rental demand throughout the balance of the year.”

Partner Insights
Information to advance your business from industry suppliers

chart 2024 financial outlook John DeereDeere's financial outlook for fiscal 2024, released with second-quarter financial report.John Deere