Deere & Company, a leading manufacturer in the agricultural and construction equipment sector, has announced a major investment in its United States manufacturing footprint. The company will spend $70 million to build a new excavator production facility in Kernersville, North Carolina. This investment was made public during a speech in Clive, Iowa, by then-President Donald Trump, who described the facility as producing the only excavator entirely manufactured within the United States.
The North Carolina plant will focus on producing next-generation excavators, shifting production previously handled in Japan back to a domestic site. The facility will leverage advanced manufacturing technologies to enhance product quality and efficiency in the construction equipment market. Deere & Company also confirmed plans to construct a new distribution center near Hebron, Indiana, which is expected to benefit from the region's central location and skilled labor force, facilitating future growth.
Both the Kernersville manufacturing plant and the Indiana distribution center are expected to commence operations within the upcoming year. Concurrently, Deere will continue operations at its longstanding North American Parts Distribution Center located in Milan, Illinois. The Milan plant has been operational since 1973 and supports approximately 1,200 employees, maintaining a significant role in the company's parts logistics network.
The timing of these expansions comes amid considerable challenges facing Deere and the broader agricultural equipment industry. In November 2025, Deere & Company issued a fiscal 2026 forecast that fell short of expectations, highlighting a potential $1.2 billion tariff-related cost impact for the fiscal year. This figure represented a $600 million increase from tariff expenses incurred in 2025. Deere's Chief Executive Officer, John May, indicated that these tariffs are expected to exert continuous upward pressure on profit margins in subsequent periods.
The tariff concerns coincided with government measures to assist the agricultural sector. In December, a $12 billion farm aid package was announced to support farmers grappling with rising operational costs attributed in part to trade tensions. Environmental regulations affecting farming equipment were also slated for relaxation, accompanied by official calls for equipment manufacturers such as Deere to reduce prices in response to affordability concerns expressed by the farming community.
Reflecting on Deere & Company's market standing, it currently ranks in the mid-50s percentile range for both quality and valuation metrics according to Benzinga's Edge Rankings, indicating average performance compared with industry peers. Over the past 12 months, Deere's stock price has increased by approximately 8.17%. On the most recent trading day, shares advanced by 0.44% to close at $519.19.
These developments illustrate Deere & Company's dual focus on reinforcing its domestic manufacturing capabilities while navigating the headwinds posed by international trade policies and pricing pressures within the agriculture and construction equipment markets.