In a sweeping announcement that signals renewed confidence in the construction and forestry equipment market, John Deere has revealed plans to recall laid-off workers, expand excavator production, and open a new parts distribution center—investments expected to create approximately 400 jobs across three states.

The moves, announced over the past week, underscore Deere’s aggressive strategy to reshore manufacturing and strengthen its North American production capabilities. “These investments further demonstrate our commitment to invest $20 billion in U.S. manufacturing over the next 10 years,” said CEO John May.

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Iowa Workers Return to the Line

On January 28, John Deere announced the recall of 99 laid-off employees to its eastern Iowa construction-and-forestry equipment plants, with workers expected to return starting mid-February.

“As demand increases, these callbacks help ensure we have skilled teams in place to support production across our construction and forestry operations,” said Mark Dickson, Vice President of Construction and Forestry Manufacturing Operations.

The recalls are split between two key facilities:

Davenport Works — 75 employees returning for:

  • Articulated dump truck assembly
  • Production and utility-class assembly
  • Fabrication, machining, welding, paint, and material handling

Dubuque Works — 24 employees returning for:

  • Dozer assembly
  • Fabrication, assembly, and material handling

The recall represents a significant turnaround from the layoffs that affected the company in recent months, signaling that market conditions are improving faster than anticipated. For workers in the Quad Cities region, the news brings relief after an uncertain period.

$70 Million Excavator Plant Expansion in North Carolina

Perhaps the most significant announcement involves Deere’s Kernersville, North Carolina campus, where a new $70 million excavator production facility will add to existing operations and create an estimated 150 new jobs.

The plant, first announced in 2024, will “assume production of future generation excavators previously produced in Japan,” according to the company. This represents a major milestone in Deere’s ongoing efforts to bring excavator production fully in-house following its 2022 split from Hitachi.

Deere says the expanded Kernersville campus “will produce the only excavator designed, developed and manufactured in the U.S.”—a bold claim that positions the company as the sole major OEM with a fully domestic excavator supply chain.

The Hitachi Breakup and Its Aftermath

The North Carolina expansion is a direct result of strategic decisions made after Deere ended its 33-year joint venture with Japan-based Hitachi in 2022. That partnership had Hitachi producing Deere-branded excavators for the North American market.

Since the split, Deere has:

  • Acquired the Kernersville plant outright, along with facilities in Canada and Brazil
  • Partnered with Wacker Neuson for excavators under 5 metric tons, manufactured at plants in Wisconsin and Austria
  • Developed new in-house excavator designs, including the recently unveiled P-Tier midsize lineup
  • Invested in electric powertrain technology through its majority acquisition of Kreisel Electric

The Kernersville site is already home to John Deere Electric Powertrain LLC’s North American headquarters, a $69.6 million facility producing battery packs and chargers. That operation, which employs assemblers, material handlers, packagers, and quality inspectors, will operate alongside the expanded excavator production.

New Parts Distribution Center in Indiana

Deere has also broken ground on a new distribution center near Hebron, Indiana, expected to employ approximately 150 people when fully operational.

The facility will supply parts nationwide for the company’s construction, agriculture, forestry, mining, and turf equipment customers. According to Deere, the center “will be designed to streamline operations and ensure timely delivery of equipment and parts.”

The Indiana investment complements rather than replaces existing infrastructure. The company confirmed it will maintain its primary North American Parts Distribution Center in Milan, Illinois, which has operated since 1973 and currently employs about 1,200 workers.

For contractors and equipment owners, improved parts distribution means faster access to components when machines go down—a critical factor in an industry where every hour of downtime costs money.

A Banner Year for New Products

The manufacturing announcements come as Deere prepares for what promises to be a major product year. The company and its subsidiary Wirtgen are set to launch 24 new machines at CONEXPO 2026 in March—one of the most significant product debuts in recent memory.

Among the new offerings already unveiled are the P-Tier midsize excavators (models 210, 230, and 260), which Deere says were “redesigned from the ground up” with input from 165,000 hours of real-world operator testing.

The new excavators feature:

  • Increased dig force and lift capacity for trenching, grading, craning, and truck loading
  • Three performance modes (Dig, Lift, Eco) for power management and fuel efficiency
  • 12.8-inch G5 Plus touchscreen display with remote viewing and diagnostic capabilities
  • Standard 2D Grade Control upgradeable to 3D SmartGrade with Topcon or Leica integration
  • The largest cab in Deere’s excavator history, with over 27 inches of legroom

These machines will be among the first to roll off the expanded Kernersville production lines, manufactured entirely in the United States.

What This Means for the Industry

Deere’s multi-pronged investment strategy sends several clear signals to the broader construction equipment industry:

1. Reshoring Is Real

The commitment to bring excavator production fully in-house and on American soil isn’t just corporate messaging—it’s backed by billions in capital expenditure. As trade tensions and supply chain vulnerabilities continue to influence purchasing decisions, Deere’s domestic production capabilities could become a significant competitive advantage.

2. Market Confidence Is Growing

The decision to recall workers and expand production capacity suggests Deere sees sustained demand in the construction and forestry sectors. While other manufacturers have been cautious, Deere appears to be betting on growth.

3. Parts and Service Matter

The new Indiana distribution center reflects an understanding that product support is as important as the machines themselves. Contractors increasingly evaluate total cost of ownership, including parts availability and downtime risk.

4. Technology Integration Is Non-Negotiable

The new P-Tier excavators’ standard 2D grade control and optional 3D systems signal that technology is no longer a premium add-on—it’s table stakes for competitive equipment.

Looking Ahead

With the Iowa callbacks, North Carolina expansion, and Indiana distribution center, John Deere is positioning itself for a strong 2026 and beyond. The company’s $20 billion decade-long U.S. manufacturing commitment appears to be more than rhetoric.

For workers in Iowa, North Carolina, and Indiana, these investments mean jobs. For contractors, they mean access to domestically-produced equipment and faster parts delivery. And for the industry as a whole, they suggest that despite economic headwinds and market uncertainty, major OEMs still see growth ahead.

CONEXPO 2026 in March will provide the next major window into Deere’s strategy, with 24 new machines set to debut. If the early announcements are any indication, the company isn’t just defending market share—it’s playing offense.

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