paulsamwel

Member
Heard on the news that Deere is moving tractor cab production from Waterloo to its component's plant in Mexico starting 2024.Without attrition could affect 250 jobs.With supposedly cheaper labor/production costs in Mexico does that mean tractors will be cheaper in the future?LOL
Paul
 
"I will put John Deere name on manure if it makes money" is probably is favorite statement. Alredy doing it....
 
It's simple, A business has to make a profit or go out of business.
I'm sure it's all about the bottom line.

With the great resignation, labor costs have skyrocketed.

JD may not find enough people who want to work, like many other places.

Sad reality.
 
I am retired from Deere worked there 33 years! Last I heard they were having trouble hiring people! No one wants to work anymore! Not even for excellent pay and benefits! What kind of a society have we created?
 
Like the mid 1970s Deere can sell everything they can get built right now. If they are maxed out in Waterloo and need to expand plant space, it probably is cheaper and faster to buy/rent existing space in Mexico while the farm market is still hot.

Deere's sales are up but their profit margins are down. Even Deere is not betting that today's high farm profits will last and they are tightening their belt to reign in costs.
 
I am very familiar with the Deere factories in Waterloo and in Mexico. I've been there many times. Some things Mexico doesn't do well, like fit and finish, but they are very good at welding. So here's what's happening: Waterloo will be adding some new product lines but doesn't have workers for those lines. Deere Waterloo also would need more space for these new product lines...but still no workers. So they will be sending the cab welding to Mexico over the next 2 years as they bring the new products to Waterloo. Nobody will be laid off.
 
Kinda makes me snicker. The cab frame design (JD) I designed as a part of a neat group of guys was shipped out to Rochester MN for fabrication in the 1980's shortly after I left Deere.
It was brought back in house not too long later. Of course Deere cabs were originally built by Hinson out near the airport.

I will put my $$ on Deere......would like to see their electric tractor and the self driving ones, too. I remember watching the weld-up of my first cab frame in the experiental weld lab the day the Challenger blew up. Leo
 

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