JCB Expands Manufacturing Capacity in Texas Amid Tariff Impact

JCB, one of the world’s leading manufacturers of construction equipment, has announced plans to double the size of its new factory currently under construction in San Antonio, Texas. This decision comes as the company confirms that the newly-announced tariffs will have a short-term impact on its business operations.

With a history of manufacturing in the USA for over 50 years, JCB recognizes the importance of bolstering its production capacity in North America, particularly given the increasing demand for construction machinery in the region. Last year, the company acquired 400 acres of land in San Antonio, acknowledging the need to expand its production footprint on the continent. JCB’s existing Savannah, Georgia plant, which has been operational for the past 25 years, employs around 1,000 people, and the company is now looking to further solidify its presence in the North American market.

The original plan for a 500,000-square-foot factory in San Antonio has been revised to a one million-square-foot facility, making it a major leap forward for JCB’s manufacturing ambitions in the region. The new $500 million plant is expected to begin production in 2026 and is set to employ up to 1,500 people, significantly contributing to JCB’s ongoing growth in North America.

Lord Bamford, Chairman of JCB, commented, “JCB has been in business for 80 years this year, and we are well accustomed to change. The USA is the largest market for construction equipment in the world, and President Trump’s administration has prompted us to evaluate how we can produce even more products within the USA. This has been an important market for JCB since we sold our first machine there in 1964.”

Despite the growth opportunities, JCB is also facing challenges due to the imposition of tariffs, which the company estimates will impact business in the short term. Graeme Macdonald, JCB’s CEO, noted, “In the short term, the imposition of tariffs will have a significant impact on our business. However, in the medium term, our planned factory in San Antonio will help mitigate that impact. We are thankful that the tariff is only 10%, and we can only hope that the UK Government will conclude negotiations on a trade deal in the coming days and weeks.”

The expansion of JCB’s manufacturing presence in the USA is not just a response to tariffs but also a strategic move to solidify the company’s long-term position in the North American market, ensuring that it remains competitive and well-placed to meet the growing demand for construction machinery across the continent. As the factory in San Antonio gears up for production, JCB is set to continue its growth trajectory in the coming years, further strengthening its global manufacturing footprint.