John Deere is investing $70 million to shift excavator manufacturing from Japan to a new state-of-the-art facility in Kernersville, North Carolina, marking a significant expansion of the company’s U.S. manufacturing footprint.

The move will create more than 150 jobs and positions the Kernersville campus as the home of the only excavator designed, developed, and manufactured entirely in the United States.

The new factory will assume production of future-generation mid-size and compact excavators that were previously built in Japan, with the company planning to launch these new models in March 2026 at the ConExpo trade show in Las Vegas. Kernersville has been a hub for John Deere excavator production since 1988, and the existing factory underwent retooling to accommodate the additional capacity needed for the relocated production.

“We are excited to bring this new facility to our Kernersville campus and to be part of the region’s thriving manufacturing community,” said Ryan Campbell, president of Worldwide Construction and Forestry and Power Systems. The facility will leverage advanced manufacturing technologies to produce industry-leading excavators for the construction market.

Economic Impact and Workforce Development

Workers at the new facility are expected to earn average annual wages exceeding $64,000, according to projections shared when Forsyth County commissioners approved a five-year incentive package valued at $944,006 in May 2024. The Kernersville location, situated off Interstate 40 between Greensboro and Winston-Salem, provides strategic access to the region’s thriving manufacturing community.​

The facility is part of John Deere’s broader commitment to invest $20 billion in American manufacturing over the next decade. Company leadership emphasized that the investment demonstrates confidence in the future of U.S. manufacturing and represents an unwavering commitment to innovation, quality, and economic growth.

Broader Expansion Strategy

In addition to the North Carolina excavator factory, John Deere recently broke ground on a new distribution center near Hebron, Indiana, which is expected to create approximately 150 additional jobs. The Indiana facility will enhance the company’s supply chain capabilities nationwide while complementing the primary North American Parts Distribution Center in Milan, Illinois, which has operated since 1973 and employs 1,200 workers.

The company’s expansion plans also include using American steel in factory builds and expansions, such as a 120,000-square-foot addition in Missouri, an expansion in Greeneville, Tennessee, and assembly of the new 9RX tractor in Waterloo, Iowa. With 30,000 employees and 60 factories across 16 states nationwide, John Deere continues to be a major force in American manufacturing.​

Political Alignment and Manufacturing Renaissance

The White House has embraced John Deere’s announcement as evidence of delivering on promises to revitalize American manufacturing. The Trump administration has emphasized its commitment to bringing thousands of factories back to the United States through tariffs and strategic policy initiatives.​

Founded in 1837 by American blacksmith and inventor John Deere in Grand Detour, Illinois, the company has grown from producing a single steel plow to becoming a global leader in agriculture, construction, forestry, turf, and power systems equipment. The Kernersville facility reflects the company’s ongoing commitment to its roots in American innovation and manufacturing excellence.

SOURCES:

• In exiting Japan, John Deere building $70M factory in North Carolina​

• Deere to Move Excavator Production From Japan to North Carolina (Bloomberg)​

• John Deere Announces Major Expansion with Two New U.S. Facilities​

• Deere moves excavator factory from Japan to North Carolina​

• John Deere Builds New Facilities In North Carolina, Indiana​

• John Deere Further Commits to American Manufacturing with Two New U.S. Facilities​

• John Deere Announces Two New U.S. Facilities, Expands American Manufacturing Footprint​

• John Deere Kernersville | Deere Made Here | Kernersville, NC ​

• Deere to Build New Factory in North Carolina – Assembly Magazine​

• John Deere Announces Major Expansion with Two New U.S. Facilities – Farm Equipment​

Moe Bedard

I am the CEO of Big Equipment Pros. We provide equipment industry news, data, and insights to help professionals make smart decisions and grow their businesses. We also work with equipment vendors and finance professionals to help them attract customers and expand through strategic marketing partnerships.