What you need to know about John Deere, the big-ticket brands that are moving into the apparel space
CricInfo.com | Cricbuzz | November 1, 2018 | John DeERE, the maker of the iconic blue-and-white Deere 5-Series pickup trucks and the popular Hunter-Hunter SUV, announced plans to invest $1 billion in new factories, with an eye toward ramping up production capacity in 2019.
John DeERE Chief Executive Officer Bob Schadler said the move into apparel manufacturing would be a “transformative moment” for the company and that the company is “continuing to evolve our business, adding new categories and products to our portfolio to deliver the best value.”
The company is expected to spend more than $500 million to expand its plant in California and add more than 700 manufacturing jobs.
The announcement comes as the U.S. economy slows as consumer spending slows and the housing bubble bursts.
“We are moving ahead with our plan to invest in the next phase of our business and expand our manufacturing capability to support our expansion plans, with the ultimate goal of producing a larger quantity of products than we currently do in the U, Canada and Mexico,” Schadlers statement said.
John deere is a maker of four-wheelers, tractors and utility trucks.
The company employs about 25,000 people worldwide.
The truckmaker has been struggling since the financial crisis of 2008, and has struggled to turn a profit in the last several years.
John was founded in 1874 in New Hampshire by John G. Deere.
The name means “John’s Red Horse.”
John Deere’s stock has been on a tear over the last decade, hitting record highs in 2016.
The stock has gained nearly 5 percent annually since the start of the year.
In a statement to Cricinfo, John DeEre said it is a “unique opportunity to grow and expand the company, with a strong business in the retail, residential and automotive industries, as well as a broad portfolio of products and services.”
John is a pioneer in the new age of sustainable manufacturing.
The new plant will be built at a new manufacturing facility located in the city of Chicago, where it will produce some of the world’s most durable and technologically advanced products, including outdoor clothing, leather goods and textiles.
The announcement came at a time of increasing concern in the automotive industry about the slowing economy and the potential for factory closures as companies struggle to compete in a rapidly changing market.
In March, a new report from automotive consultant Frost & Snow predicted a global factory closure of at least 50,000 jobs over the next three years.
“This is the kind of story that can help us understand how and why so many automakers are closing factories, and what is at stake for the future of the auto industry,” said Robert W. Anderson, president of the Anderson Group, a consulting firm.
John’s announcement comes a week after Deere announced it would invest $4 billion in a new factory in Arizona to create more than 800 jobs.
John has invested $12 billion in the past six years to build factories in India, China, Brazil, Russia, Germany, Thailand and Turkey.
John and Deere have been in the apparel business since the mid-1990s.
The Deere brand was named after John’s “red horse” namesake, who was a Native American, and the truckmaker is famous for its “Red Deer” line of pickup trucks.
John also owns a number of other brands, including the Hunter-Hornets, Deere Dune, Deering Dune and John Deering Truck, and is the chairman of Deere Trucking.
John said the factory expansion will “support our expansion of our product line and provide us with an unprecedented amount of capacity in the future.”
The expansion is expected begin in 2019 and will produce about 2 million truckloads of clothing and other clothing-related products annually.
John is one of the largest brands in the outdoor apparel market, with more than 2,500 locations across the United States.