RALEIGH — President Donald Trump announced last Tuesday that John Deere will invest $70 million to build a new excavator manufacturing facility in Kernersville, shifting production from Japan to North Carolina and creating more than 150 jobs in the Triad.
Trump made the announcement during an economic speech in Iowa, highlighting the project as part of his administration’s broader effort to revive U.S. manufacturing and encourage companies to bring production back from overseas. He described the Kernersville plant as a marker of that strategy.
“This will be the only excavator made entirely in the United States of America,” Trump said.
Trump has repeatedly pointed to manufacturing reshoring as a central economic goal. As of last March, he cited multiple automakers moving production into the U.S. and more than $2 trillion in new business investments announced during his administration. The White House maintains a running tally of companies returning to or expanding operations in the U.S., a list the website says now totals more than $9.6 trillion. That figure includes domestic projects as well as investments tied to foreign governments and companies from countries such as Japan, Qatar, Saudi Arabia and the United Arab Emirates.
For John Deere, the Kernersville expansion redirects a strategic recalibration underway across heavy equipment manufacturing, driven less by politics than by economics. Rising logistical costs, supply chain disruptions and geopolitical uncertainty have pushed manufacturers to reassess where high-value equipment is built and how close it needs to be to customers.
The new facility will produce next-generation excavators and is expected to begin operations within about a year. Production had previously taken place overseas, including in Japan, but John Deere has increasingly signaled that domestic manufacturing offers greater control over inventory, delivery timelines and operational risk.
From a business standpoint, shortening supply chains has become a competitive advantage. Building equipment closer to end markets reduces exposure to shipping delays, port congestion and currency swings — risks that have grown more pronounced since the pandemic and amid ongoing global trade tensions.
Kernersville offers a combination of workforce availability, infrastructure and operating costs that align with those priorities. The Triad’s manufacturing base spans machinery, aerospace components and advanced materials, providing John Deere access to workers with technical production experience while keeping costs lower than in many larger metro areas.
Transportation access also played a role. Kernersville’s proximity to major highways, rail corridors and regional hubs supports outbound distribution across the Southeast and beyond — a key factor for heavy equipment that requires efficient, predictable shipping.
John Deere Chairman and CEO John May said the Kernersville investment fits into a longer-term domestic manufacturing strategy.
“Our investment in these new facilities underscores John Deere’s dedication to strengthening the backbone of American industry and supporting local economies,” May said in a statement. “We believe in building America, and these projects represent our intent to continue driving innovation and job creation in the United States.”
May said the company plans to invest $20 billion in U.S. manufacturing over the next decade, signaling a sustained commitment to domestic production despite higher labor costs compared with some overseas markets.
The Kernersville facility is part of a broader slate of investments. John Deere has also broken ground on a new distribution center in Hebron, Indiana, expected to employ about 150 people and streamline delivery of parts and equipment nationwide. The company will continue operating its primary North American Parts Distribution Center in Milan, Illinois, which opened in 1973 and employs roughly 1,200 workers.
Together, the projects point to a strategy that spreads investment across multiple U.S. sites rather than concentrating operations in a single mega-facility — an approach designed to improve resilience and flexibility.
While the Kernersville project is modest compared with large automotive or semiconductor plants, its economic impact extends beyond direct hiring. Heavy equipment manufacturing jobs typically pay above regional averages and support a network of suppliers, machine shops, maintenance contractors and logistics providers.
For Kernersville, the expansion strengthens the local manufacturing tax base and reinforces the town’s role within a national equipment supply chain. For the Triad more broadly, it adds another data point to the region’s steady manufacturing resurgence.
Strip away the politics, and the business case comes into focus: John Deere is placing capital where it believes it can build efficiently, hire skilled workers and operate with fewer global risks.
