CNH Considers Closure Of Iowa Plant, Impacting 350 Jobs

CNH Industrial, in a recent announcement, showed concerns about tentatively closing its backhoe plant in Iowa.

The sudden closure of an entire plant has brought many concerns, majorly a huge number of jobs at stake. 

Note that almost 350 workers would be impacted by CNH Industrial’s proposed closure of its Burlington, Iowa, manufacturing facility, which would migrate production to other locations in the US and Europe. 

The plant, which has been in operation for more than a century, manufactures light machinery and backhoes for Case Construction Equipment.

What drove the company to plant closure?

Rising production costs were the main reason given by CNH for considering the plant closure in their decision, which was made public on November 7. 

The company has already made it clear that the decision is still subject to change while negotiations with the United Auto Workers (UAW) union are ongoing. 

The hourly workers at the facility are represented by the UAW, and discussions are likely to be a component of “decisional bargaining,” where the union can have an impact. 

People can still expect that the decision may revert as it is subjected to a tentative decision. 

Acting Authorities are focusing on preserving staking jobs

In order to coordinate the shutdown with the union’s contract expiration in May 2026, CNH informed the union that it intended to close the facility by the second quarter of 2026, according to UAW Local 807 President Nick Guernsey. 

Guernsey expressed disapproval of CNH’s choice, pointing out that despite logistical difficulties, the company’s justification for moving manufacturing is cost reductions.

On the other hand, Burlington Mayor Jon Billups, meanwhile, stated that he hoped CNH and the UAW would work out a deal that would allow the plant to continue operating. 

“CNH has contributed to Burlington’s economy for more than a century,” Billups stated, and he will do everything in his power to ensure their continued presence. With these optimistic approaches, we can only hope that things work out in the end so that people do not have to lose their jobs and the state’s economy does not suffer. 

Considering simplifying activities apart from increasing expenses

Utility tractors, rough-terrain forklifts, and diesel and electric backhoes are among the light construction equipment produced at CNH Industrial’s Burlington facility.

Whereas, this facility also contributes to the development of products for forklifts, tractor loaders, and backhoe loaders for sale.

CNH is investigating and researching cost-effective possibilities by moving manufacturing to facilities better equipped to meet its objectives as part of its global efforts to streamline operations and reduce expenses. 

According to CNH, the choice was a necessary reaction to a market that is constantly changing making it more challenging to sustain with efficiency.

An uncertain future of Iowa plant

Having been a part of the community for almost a century, the Burlington institution has historical value. For the plant and its employees, this is not the first obstacle, though. 

In 2022, the Burlington workers and those at CNH’s Racine, Wisconsin, plant went on strike for nine months over the terms of their contracts. 

A three-year deal that ends in 2026 was reached at the end of the strike. 

In light of growing manufacturing costs and a more competitive market, CNH’s statement comes as heavy equipment businesses seek to preserve profitability through strategic realignments and consolidation.

What’s up next for CNH and its workers in Burlington?

For the time being, talks between CNH and the UAW will determine the future of the Burlington plant. Union officials are anticipated to offer ideas that might preserve jobs in Burlington as “decisional bargaining” gets underway. 

In the second quarter of 2026, the plant will formally close and manufacturing will be moved if an agreement cannot be struck. 

The conclusion of these negotiations will determine the future of one of Burlington’s longstanding companies and will have a major impact on the local economy as CNH Industrial navigates this time of transition.

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