Expanded Pennsylvania operations bring more machines closer to customers while strengthening production and supplier capabilities
Shippensburg, Pennsylvania, 4 September 2026 – Volvo Construction Equipment is taking a significant step in expanding its manufacturing presence in the United States, with its Shippensburg, Pennsylvania, facility now producing the company’s first U.S. built excavators and larger wheel loaders. The move reflects a broader effort to bring more equipment production closer to North American customers.
The company recently invested $40 million to expand the Shippensburg facility to increase manufacturing capacity, develop workforce skills, and create more flexible production lines. These changes will allow the plant to produce a wider range of construction equipment while responding more efficiently to customer needs.
For construction companies, one of the most practical benefits could be shorter waiting times. Volvo CE expects more than half of its North American machine supply to be produced at the Pennsylvania facility, while customer lead times could be reduced by more than six weeks.
The expansion also represents a major growth story for the facility itself. The Shippensburg site employs more than 700 people and now supports production of 30 machine models, including excavators, wheel loaders, and compactors. Since acquiring the site in 2007, Volvo CE has invested more than $1.4 billion in the facility, including its latest investment.
Production is only one part of the company’s strategy. Volvo CE is also working to strengthen its regional supplier network and has set a goal of increasing business with Pennsylvania-based suppliers by 30 percent by 2030. The company says the Shippensburg plant could eventually produce up to 100 machines each month.
The development highlights how modern construction equipment manufacturing is increasingly focused on flexibility, local production, supply chain resilience, workforce development, and faster customer delivery. As demand for reliable and productive construction machinery continues to evolve, Volvo CE’s expanded U.S. footprint shows how manufacturers are adapting their operations to stay closer to the market they serve.
