Volvo Makes Moves in America

By Clayton Hamshar
Contributing Writer

Volvo Construction Equipment, the machinery division of the Swedish manufacturing corporation, just opened the doors to a brand new facility in Shippensburg, Penn. The massive campus is home to the new Americas headquarters building, which serves as a base of operations for North and South America, and a Customer Care Center.

The opening of this complex adds at least 300 jobs to Franklin County, in addition to over 1,000 left over from a paver production facility in the same area. The manufacturing plant was moved to the nearby town of Letterkenny, Penn., in order to redirect the flow of operations to lower costs and save manufacturing and customization time. This new system allows the entire process to benefit further from the fundamentals of an economy of scale, the main benefit being an abolishment of shipping costs from Europe to the Americas.

Image via cowin

This new base of operations will allow Volvo to increase its influence in the Americas, part of an overall directive to shift the focus away from Europe where sales have suffered lately and projections show a steady decline of five to 15 percent. Pat Olney, President of Volvo Construction Equipment explains, “North America has reason to be both optimistic and concerned… it will be a sideways movement, especially as we look at the projected GDP in the United States.”

Members of Franklin County are rejoicing at the opening of this center and the substantial number of jobs it brings. Representative Scott Perry (R-York) praises the community and is confident in its willingness to assure Volvo they have made the right decision, saying, “We have one of the best, if not the best, workforces in America right here ready to go, ready to build this equipment, ready to work this equipment.”

Volvo Group employs about 16,000 Americans, with plans in place to increase this number.