Volvo Construction Equipment Expands U.S. Production at Shippensburg Facility
Excavators and Large Wheel Loaders Coming to Pennsylvania
Volvo Construction Equipment is expanding its manufacturing footprint in North America. The company announced plans to begin producing mid- to large-size crawler excavators and large wheel loaders at its facility in Shippensburg, Pennsylvania. The production boost is part of a $261 million global investment aimed at increasing machine availability, reducing lead times and minimizing logistics risks. From the press release:
“We must respond to growing demand, and we’re excited to expand our facilities to serve our customers better,” said Melker Jernberg, Head of Volvo CE. “This investment underscores our commitment to quality and innovation, allowing us to deliver even greater value.”
Shippensburg to Add Excavator and Loader Lines
Currently, the Shippensburg plant builds soil and asphalt compactors and mid-size wheel loaders. With this new investment, the factory will expand to produce larger wheel loaders and a new line of crawler excavators. Volvo CE plans to be production-ready by the first half of 2026. To make this happen, Volvo will retrofit existing spaces with new assembly lines, automation technologies and employee training programs. The goal is to boost flexibility and resilience across global markets.
Volvo CE’s Global Footprint Strategy
Volvo CE is dividing excavator manufacturing across three locations: the United States, South Korea and Sweden. This global strategy aims to balance production, reduce shipping costs and protect against supply chain disruptions. In North America, the decision means faster deliveries and improved availability for customers. Once online, over 50 percent of Volvo CE machines sold in North America will be built in the United States. From the press release:
“Bringing excavator production to North America and growing the range of wheel loader models built here has always been part of our long-term industrial plan, so it’s exciting to finally share this news with our employees, dealers and customers,” said Scott Young, Head of Region North America. “This increase in production capacity means that over 50% of our North American machine supply can be built here in Shippensburg, resulting in shorter lead times while also creating opportunities for supplier growth.”
Compact Equipment Visited the Site in 2024
We saw this growth trajectory firsthand at Volvo Days in fall 2024. During our visit to Shippensburg, Volvo CE leaders previewed their U.S. production goals and underscored their investment in North American customers. Over the past year, we’ve covered a steady stream of Volvo CE news — from revamped compact wheel loaders to dozer blade upgrades and the ECR40 mini excavator. This latest production expansion signals the company’s long-term commitment to the U.S. market.
$40 Million More Planned for Pennsylvania
On top of its global investment, Volvo CE will spend an additional $40 million locally in Pennsylvania over the next five years. The investment not only supports U.S. customers but also strengthens Volvo’s partnership with the local workforce and supply chain. The Shippensburg site has served as Volvo CE’s North American headquarters since 2012, following the company’s acquisition of the facility from Ingersoll Rand in 2007.
Why This Matters
For compact and mid-size contractors, increased domestic production means shorter wait times and greater access to key machines like crawler excavators and wheel loaders. With U.S. demand for heavy equipment holding strong, Volvo CE’s commitment to manufacturing close to the customer brings real-world advantages to jobsites across North America. Stay tuned for more updates on Volvo CE’s rollout as we continue to follow developments from Shippensburg.
Keith Gribbins is publisher of Compact Equipment.
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