Speakers at the Deere Reman facility groundbreaking event (L to R): Denver Caldwell, Vice President, John Deere Aftermarket & Customer Support; Ryan Campbell, President, John Deere Worldwide Construction & Forestry and Power Systems; Kevin Schrag, Manager, John Deere Reman; Martha Smartt, City Administrator, Strafford, Mo.; Matt Morrow, President and CEO, Area Chamber of Commerce, Springfield, Mo. Source: Deere & Co.
Deere & Co. Breaks Ground on $13.5 Million Remanufacturing Facility
Deere & Co. recently held a groundbreaking for its remanufacturing facility in Stafford, Mo.
On May 5, Deere & Co. hosted a groundbreaking ceremony on the site of the John Deere Reman Core facility in Stafford, Mo. Deere & Co. first announced last fall.
“The project will expand the John Deere Core Center facility by an additional 120,000 square feet and represents an investment of $13.5 million,” according to Kevin Schrag, John Deere Reman Manager who offered an overview of the facility’s primary impacts across the ag equipment industry.
John Deere Reman remanufactures engines, transmissions, axles, hydraulics, engine components, and electronics products to deliver like-new performance at a lower cost, with reduced environmental impact. Reman’s skilled employees use a variety of techniques to bring components back to their original John Deere specifications, or better. The news summary about the facility groundbreaking event also stated that John Deere Reman employs over 500 people and operates out of five different locations in the Springfield area.
The company further reported that the John Deere Reman expansion is critical for Deere in multiple ways. First, it will provide the space needed to store and manage Core. Core is the lifeblood of any remanufacturing business, according to the company overview. It is the used and worn-out material that is returned, disassembled, cleaned, and qualified to use as critical raw material that gets transformed to John Deere Reman products. Increased space to collect and manage this Core will fuel growth of its entire remanufacturing business. Secondly, noted Schrag, the expansion will drive increased operational efficiency by consolidating outside warehouses and improving the overall flow of materials in its remanufacturing process.
A rendering of the Core Center after the Deere Reman facility expansion project is completed Source: Deere & Co.
Advantages for Dealers, Customers and Community
The company noted key benefits for dealers and customers which will be realized with the new reman facility.
For John Deere dealers, Reman creates service capacity for major components like engines, transmissions, and axles. By using Reman components, lengthy repairs can be avoided and valuable technician time is saved, enabling John Deere dealers to serve additional customers who might otherwise be out of reach. For the company, John Deere Reman bolsters Deere’s longstanding commitment to supporting equipment long into the lifecycle of the product.
For customers, the John Deere Reman business is a cornerstone of Deere’s commitment to delivering exceptional value in several ways. It offers complete replacement options for major components, such as complete engines, transmissions, and axles, ensuring customers experience minimal downtime and can get back to work quickly. In addition, the company reported, it offers products at a lower-cost alternative to new, without compromising quality or performance. This includes replacement parts such as fuel components, starters, alternators, turbos, electronic controllers, displays, and more. John Deere Reman components are backed by the same, if not better, warranty than new products.
For customers, remanufactured products are up to 30% cheaper than new ones, without sacrificing performance or warranty.
This cost-effective solution helps dealers too, especially during technician shortages. Replacing a complete engine can save a dealership an average of 40 hours, allowing them to serve more customers quickly and efficiently.
In noting the facility’s value for the community, Deere’s team offered that the investment and expansion are evidence of Deere’s continued commitment to Manufacturing in the US and the Springfield area. Thirteen years ago, the John Deere Core Center was constructed with the intention and expectation to grow the Reman business. At the time of construction, Deere committed to providing 55 new high-quality jobs for the region. Today, the facility employs over 200 people. The company added that John Deere is proud to have been in the remanufacturing business for nearly 27 years in the Springfield area, when it started as a joint venture with the Springfield Manufacturing Corporation.
About Remanufacturing and Facility’s Impact
Remanufacturing is all about taking used, worn-out products and transforming them into like-new condition. This involves disassembling, cleaning, processing, and qualifying the raw material, known as "core." The core can be anything from large components like axles and engines to small parts like fuel nozzles and electronic displays. If a core doesn't meet John Deere standards, it's scrapped. In explaining why this matters, the company noted that the goal is to use as much core as possible without compromising on quality. Many parts, like bearings and seals, are always replaced with original John Deere parts.
With the new building, John Deere will start collecting core early in the program, even before remanufacturing certain engines. This allows them to build up a pool of parts and launch programs efficiently.
Deere Reinforces Commitment to U.S. Manufacturing
In detailing the company’s commitment to U.S. manufacturing, it offered the following overview:
- Since 2019, John Deere has invested more than $2.5 billion in its American factories, including the new See & Spray line at Des Moines Works in Des Moines, Iowa; the X9 combine assembly line at Harvester Works in East Moline, Illinois; a new excavator factory in Kernersville, North Carolina; and new tractor line assemblies in Waterloo.
- In the U.S., John Deere employs approximately 30,000 people in more than 60 U.S.-based facilities across 16 states. Meanwhile, the company’s valued John Deere dealers employ over 50,000 people at dealerships across the country and in 2023, the company spent over $16 billion with U.S.-based suppliers.
- More than 75% of all John Deere products sold in the U.S. are assembled at U.S.-based manufacturing facilities. Less than 5% of John Deere’s U.S. sales are assembled in Mexico. We are a net exporter of U.S.-assembled Ag & Turf equipment. John Deere is a global brand that operates in over 30 countries.
- The company strategically leverages its global footprint to enable investments in new product programs and technological advancements at its U.S.-based facilities. It relies on highly-skilled U.S. employees to build its most technologically advanced equipment such as the 9RX tractor.
- John Deere’s economic impact in its U.S. hometown communities and all those where they have a presence is valued at $27 billion. The company has highly skilled workers in domestic manufacturing in part due to its investments in skilled trades and dealer technician training programs for military veterans and high school students in rural communities across the country. These programs are helping to build the next generation of John Deere team members and we’re proud to build America’s manufacturing workforce of tomorrow.
Related Content:
- John Deere Invests $13.5M to Expand Reman Core Center in Missouri
- Deere Highlights Recent Investments in Manufacturing
- Deere & Co. Breaks Ground on $13.5 Million Remanufacturing Facility
- Deere Reports Second Quarter Net Income of $1.804 Billion
