Deere & Company has committed $70 million to build a state-of-the-art excavator manufacturing plant in Kernersville, North Carolina. The facility will be the first excavator factory fully designed, developed and produced on U.S. soil, replacing units previously built in Japan. Scheduled to begin operations within the next year, the plant is expected to employ over 150 skilled workers and leverage advanced robotics and precision engineering to increase production capacity by 20% compared with current offshore volumes.

In addition to the North Carolina plant, Deere has broken ground on a distribution center near Hebron, Indiana, investing an undisclosed portion of the overall capital budget. The Indiana site will streamline parts delivery for agricultural, construction, forestry and turf equipment across North America, reducing lead times by an estimated 15%. It is projected to create approximately 150 permanent jobs and benefit from Indiana’s robust logistics infrastructure and central location, enhancing Deere’s aftermarket support capabilities.

Deere is preparing for a projected $1.2 billion tariff hit in fiscal 2026, representing a $600 million increase over the prior year, which management warns will exert ongoing margin pressures. CEO John May has indicated that elevated import levies on steel, aluminum and key components could compress operating margins by up to 150 basis points. The company is exploring cost optimization measures, including localizing production and negotiating supply agreements, to offset tariff-related expenses and maintain profitability targets.

Both facilities are slated to commence operations within 12 months, supporting Deere’s broader initiative to invest $20 billion in U.S. manufacturing over the next decade. Deere will continue running its main North American Parts Distribution Center in Milan, Illinois, which employs roughly 1,200 workers. Collectively, the new sites will add more than 300 jobs, bolstering local economies in North Carolina and Indiana and reinforcing Deere’s commitment to domestic manufacturing and supply chain resilience.