By producing more of its North American machines domestically, Volvo CE is able to better serve the needs of its customers, even during supply-chain shortages.
Volvo Construction Equipment
Focusing on more resilient and sustainable manufacturing
By building greater flexibility into its operations, Volvo CE is better positioned to navigate geopolitical dynamics and the cyclical nature of the construction equipment industry.
The company increased production capacity through automation, process improvements, and more efficient use of existing factory space, enabling growth while maintaining its existing manufacturing space and workforce.
The plant’s combined 436,000-square-foot assembly and fabrication footprint was reengineered, creating three flexible production lines capable of building the full range of excavator, wheel loader, and compactor models while adding new excavator welding capacity.
To upskill its existing workforce, Volvo CE invested in extensive on-site and off-site training with sister factories in Sweden, Korea, and Brazil, equipping employees with new technical skills and expertise. In total, employees completed more than 180 hours of individual training while gaining invaluable cross-cultural experiences.
The North American site is also pioneering a new “utility specialist” approach for the production of large wheel loaders, which require 30 percent more parts and complexity to build on the same line. Employees were cross-trained in multiple zones to provide additional support at stations requiring extra labor, helping maintain a steady workflow. Innovation around the way we work and insights from the pilot can be applied to the excavator line and shared across Volvo CE sites worldwide.
“Over the past 11 months, our teams have demonstrated exceptional commitment and execution to expand our production capabilities here in Shippensburg. Along the way, we’ve developed new technical capabilities within our workforce, making us more resilient and competitive as a manufacturing facility,” said Gustavo Casagrandi, head of Operations, Volvo CE Shippensburg.
The Shippensburg-based technology team is also evolving from a single-product focus to a more flexible operating model, deploying resources where they are needed most across the product portfolio.
This more integrated approach to manufacturing and engineering enables Volvo CE to better support North American customers while laying the foundation for a more resilient, responsive, and sustainable future.
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