John Deere Co., one of America’s oldest manufacturers, has announced that it is moving some of its operations from Waterloo, Iowa, to Mexico, leaving the jobs of hundreds of Americans in doubt.
The company is reportedly preparing to end tractor operations at its Waterloo cab and welding facility located just north of Cedar Rapids. The tractor operations are set to cease by 2024 after which the manufacturing will be moved to Mexico.
Still, the company told employees at a Wednesday meeting that it is bringing in a different product, and some workers will retain their jobs.
“John Deere’s plan to bring new product programs to our operations in Waterloo, Iowa, makes it necessary to consolidate the manufacturing of cabs from the Tractor and Cab Assembly Operations (TCAO) to Ramos Component Works in Mexico,” the company said in a statement, according to the Waterloo-Cedar Falls Courier newspaper.
John Deere continued, saying that the plan “ensures the company can balance workforce needs within the tight labor market while also ensuring Waterloo can open up floor space to manufacture new products.”
The company could not yet say how many employees will be released once the cab and welding operations are moved to Mexico.
While hopeful that most of the workers will be retained for whatever new — and yet unannounced — product will replace the cab and welding operations, United Auto Workers Local 838 President Tim Frickson was still not very happy that Deere is moving the assembly operations to Mexico.
“We’re not thrilled the assembly is leaving Waterloo. It should be here, and not leaving the United States,” Frickson said.
If the plant ends up shutting down, the loss of jobs will be a serious blow to the small Iowa city.
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“Without attrition, about 250 workers could lose their jobs. The plant employs about 1,500 people, including 1,100 production workers,” the Des Moines Register added.
John Deere is only the latest to move manufacturing to Mexico. Just last year, Ford decided to back out on a deal to manufacture two new electric car models in Ohio and moved the manufacturing to Cuautitlan, Mexico, Electrive reported at the time.
In March, it was also reported that General Motors was investing millions in plants in Mexico and Canada. GM noted that it was planning on adding more CUV manufacturing in Mexico and was increasing its investment in its plant in Ontario, Canada, for electric vehicle production, Wards Auto reported.
A spokesman for the UAW blasted GM for delivering a “slap in the face” to U.S. workers for moving its EV manufacturing to Mexico, the Detroit Free Press wrote last year.
It isn’t just vehicle manufacturers pushing build-ups in Mexico. Thanks to the supply chain disruptions experienced in the wake of the jobs destroying lockdowns spurred by COVID hysteria, many companies have begun moving the manufacturing of small items — such as nuts and bolts, small parts and supplies — to Mexico, so that their supply chain is shorter than what it is with overseas suppliers.
Omar Troncoso, a partner in the consulting firm Kearney based in Mexico City, recently told the Wall Street Journal that his company has seen “an amazing increase in the number of clients” relocating some of their supply chain links to Mexico.
But, instead of having a president who prioritizes bringing these new businesses into the U.S., like former President Donald Trump did, we have a president who is more worried about canceling student loan debt, pushing radical abortion policies and trying to put an end to the Second Amendment.
What a difference a single election makes.
