Technology | Summer 2008
Machinery production capacity ramps up — slowly.
Major machinery manufacturers, struggling to keep pace with the strong demand for high-horsepower tractors and combines, are running assembly plants at capacity. But that still isn't enough. Canadian and U.S. farmers wanting a large tractor or combine have to take their place in the queue.
To address its production shortfall, John Deere has announced a major investment in its Waterloo, IA tractor plant. That facility had recently seen a US$140 million redevelopment over six years, and now the company is spending another $90 million on it. "We're not adding to the facility at all," says John Deere spokesman Ken Golden. Instead, the new investment will be in retooling and improving the plant's efficiency. That is expected to boost its capacity by 25 per cent.
Among the planned upgrades is an electro-magnetic painting process that will reduce painting time and create a more durable finish. The Waterloo plant produces John Deere's 7030-, 8030- and 9030-Series tractors for which "we see continuing strong demand," says Golden.
John Deere's major competitor in the high-horsepower tractor market, Case-New Holland (CNH), has also embarked on an expansion project. The Fargo, ND plant, home to the Steiger line and New Holland TJ tractors, will get an upgrade. The company plans to spend US$1.8 million to expand floor space. And a further $8.5 million will be spent on new equipment such as welding robots and an upgraded painting system.
CNH is optimistic about future sales, too. "The market is up significantly over the past two years and we see it maintaining this level," says Erik Olson, Fargo plant manager.
