Deere Moves Production to Mexico Amid Tight Labor Market

Deere & Co has had enough of the labor market struggles in the U.S. and is moving some production to Mexico.

Last Thursday, the ag equipment manufacturer said it is relocating cab production from Waterloo, Iowa to a components plant in Ramos Arizpe, Mexico. 

According to Reuters, the company is moving cab production and it could affect some 250 employees. The transfer is scheduled to be finished by 2024. However, according to the Des Moines Register, the total number of employees impacted will depend on production volume and employee attrition over the next two years. 

In a statement, the company said the move will help it "balance workforce needs within the tight labor market" and will also open up space to manufacture new products. Deere hasn't mentioned what the new products might be. 

Late last year, some 10,000 UAW workers at Deere & Co. plants went on a five-week strike, most of them in Iowa. After rejecting two offers, the employees approved a new six-year deal.  According to the Des Moines Register, it was the largest walkout in the state since the Bureau of Labor Statistics began tracking work stoppages in 1991. 

Deere & Co. says the strike wasn't a factor in its decision to move. 

The Waterloo plant has about 1,500 employees and the company has some 6,600 workers across its plants in Iowa.


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