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John Deere Laying Off Workers in Midwest US, Opening Plant in Mexico

#1

PTmowerMech

PTmowerMech

John Deere Laying Off Workers in Midwest US, Opening Plant in Mexico

John Deere announced a wave of layoffs on Friday that will affect workers in Illinois and Iowa, while planning to open a facility in Mexico in 2026.

In a press release, the company wrote: “We can confirm Deere leadership recently communicated that rising operational costs and declining market demand require enterprise-wide changes in how work gets done to achieve our goals and best position the company for the future.”

The company announced the new facility in Ramos, Mexico earlier this month. The press release also added that the production of mid-frame skid steer loaders and compact track loaders will be moved to the Mexico factory from the Dubuque, Iowa location.

The new layoffs come just one month after they announced hundreds of layoffs at the Waterloo, Iowa plant. These layoffs and others have affected over 1,000 John Deere workers in the past nine months.


#2

A

Abbeville

Well, that does it for me and Deere. I wanted a JD z turn mower, found one that I liked used but then decided that the price to join the big boys on the porch was too high. I'm not going to look at any more of their products. Those are Americans that got laid off, with families.
I understand that union wages are a big part of the problem but I'm not getting started on what I think of unions...


#3

PTmowerMech

PTmowerMech

Well, that does it for me and Deere. I wanted a JD z turn mower, found one that I liked used but then decided that the price to join the big boys on the porch was too high. I'm not going to look at any more of their products. Those are Americans that got laid off, with families.
I understand that union wages are a big part of the problem but I'm not getting started on what I think of unions...

I like the looks of the new Stihl ZTR's.

As far as JD goes, I don't really blame them. The #1 reason to go into business, or keep a business going, is profit. Down in Mexico, they can pay people $20 to $30 per day. And that's not a bad wage for them. Here, they're having to pay that much per hour. Plus a ton of benefits.

If anyone is to blame it's the big spending politicians who have destroyed the US dollar value. $20 to $30 per day here should be a decent wage still. But now, $15hr is a poverty wage.


#4

H

hlw49

I like the looks of the new Stihl ZTR's.

As far as JD goes, I don't really blame them. The #1 reason to go into business, or keep a business going, is profit. Down in Mexico, they can pay people $20 to $30 per day. And that's not a bad wage for them. Here, they're having to pay that much per hour. Plus a ton of benefits.

If anyone is to blame it's the big spending politicians who have destroyed the US dollar value. $20 to $30 per day here should be a decent wage still. But now, $15hr is a poverty wage.
Stihl ztr's are built by Ferris a long time mower manufacture in the business.


#5

PTmowerMech

PTmowerMech

Stihl ztr's are built by Ferris a long time mower manufacture in the business.

Last I heard, Ferris made a good product.


#6

G

GearHead36

Well, that does it for me and Deere.
I wrote off JD over their right-to-repair policies, and underhanded maneuvers.


#7

bkeller500

bkeller500

Moving the production to Mexico will save JD Millions........but it will not lower the selling prices a penny.


#8

StarTech

StarTech

Moving the production to Mexico will save JD Millions........but it will not lower the selling prices a penny.
Maybe, Maybe not...all depends what the government decides in relationship to tariffs which we all pay when we buy the products with tariffs on them. Don't be fool into thinking those tariffs are only paid by the companies as they will pass it along to the end buyer and make a profit on it too. I have seen some the parts I buy nearly double in price since the DJT tariffs were put into effect and most are still in effect if not added to. I actually made a larger profit on some them when sold them because of the newer prices. But replacing at the current hurts profit margins as they are slimmer then in the past. Some actually cost more than what they want to sell them for. On those I adjust my prices to break even pricing just to stay half way competitive with the big boys.
I wrote off JD over their right-to-repair policies, and underhanded maneuvers.
Yes, they pull dirty tricks. Like they just up and decide to pull my 10% discount locally. But I found a work around and still get my 10% discount. It just the local dealer lost almost all their sales to me as I order out of state now.


#9

M

MParr

I like the looks of the new Stihl ZTR's.

As far as JD goes, I don't really blame them. The #1 reason to go into business, or keep a business going, is profit. Down in Mexico, they can pay people $20 to $30 per day. And that's not a bad wage for them. Here, they're having to pay that much per hour. Plus a ton of benefits.

If anyone is to blame it's the big spending politicians who have destroyed the US dollar value. $20 to $30 per day here should be a decent wage still. But now, $15hr is a poverty wage.
Stihl is a Ferris with a different paint scheme. As most of you know, Ferris is under the Briggs and Stratton umbrella. Parts availability is sketchy with Briggs and Stratton.


#10

Tiger Small Engine

Tiger Small Engine

John Deere Laying Off Workers in Midwest US, Opening Plant in Mexico

John Deere announced a wave of layoffs on Friday that will affect workers in Illinois and Iowa, while planning to open a facility in Mexico in 2026.

In a press release, the company wrote: “We can confirm Deere leadership recently communicated that rising operational costs and declining market demand require enterprise-wide changes in how work gets done to achieve our goals and best position the company for the future.”

The company announced the new facility in Ramos, Mexico earlier this month. The press release also added that the production of mid-frame skid steer loaders and compact track loaders will be moved to the Mexico factory from the Dubuque, Iowa location.

The new layoffs come just one month after they announced hundreds of layoffs at the Waterloo, Iowa plant. These layoffs and others have affected over 1,000 John Deere workers in the past nine months.
Remember that zero turn mowers for John Deere are just one product line. The big tractors, combines, etc. is where the real money is. Customers demanding lower price often puts pressure on companies to find ways to be profitable. Our standard of living is much higher than Mexico, thus the higher wages. John Deere has done a wonderful job of marketing and branding their products, but nothing special or better about their zero turns, in my experience.


#11

StarTech

StarTech

Yes JD profits are really hurting with them reporting second quarter net profits of 2.37 Billion. The company says it generated $10.166 billion in profits last year. But they are starting to hurt as sales are dropping due to less demand for their products.

I would think those Big Box store JD equipment sales is partly to blame as the quality just isn't there when compare the regular dealer sold equipment. And this battery powered craze is going to hurt sales too of lawn care equipment.

We all better be getting all the info we can, learning to work on, and sharing info on the battery powered equipment while we can. Now my days are now getting short so the younger mechanics will need to step up and take over. If there is any true mechanics coming online to replace us old mechanics.


#12

PTmowerMech

PTmowerMech

Maybe, Maybe not...all depends what the government decides in relationship to tariffs which we all pay when we buy the products with tariffs on them. Don't be fool into thinking those tariffs are only paid by the companies as they will pass it along to the end buyer and make a profit on it too. I have seen some the parts I buy nearly double in price since the DJT tariffs were put into effect and most are still in effect if not added to. I actually made a larger profit on some them when sold them because of the newer prices. But replacing at the current hurts profit margins as they are slimmer then in the past. Some actually cost more than what they want to sell them for. On those I adjust my prices to break even pricing just to stay half way competitive with the big boys.

Yes, they pull dirty tricks. Like they just up and decide to pull my 10% discount locally. But I found a work around and still get my 10% discount. It just the local dealer lost almost all their sales to me as I order out of state now.

Mexico won't be affected by the tariffs, unless they change the rules of NAFTA again. Which is possible. But the lobbyist in DC would highly object. The lobbyist own DC.


#13

M

MParr

John Deere is getting slammed in the compact and subcompact tractor market.
People can get similarly equipped Kubota, Mahindra, Kioti, LS, New Holland, Massey Ferguson, Yanmar, and TYC tractors at a lower price point. That green paint is expensive.


#14

R

RayMcD

Moving the production to Mexico will save JD Millions........but it will not lower the selling prices a penny.
Price point might go down if enough stop purchasing their products..


#15

Tiger Small Engine

Tiger Small Engine

Yes JD profits are really hurting with them reporting second quarter net profits of 2.37 Billion. The company says it generated $10.166 billion in profits last year. But they are starting to hurt as sales are dropping due to less demand for their products.

I would think those Big Box store JD equipment sales is partly to blame as the quality just isn't there when compare the regular dealer sold equipment. And this battery powered craze is going to hurt sales too of lawn care equipment.

We all better be getting all the info we can, learning to work on, and sharing info on the battery powered equipment while we can. Now my days are now getting short so the younger mechanics will need to step up and take over. If there is any true mechanics coming online to replace us old mechanics.
Star Tech-
How much longer before you retire? How long have you worked on small engines? What percentage of your service and repair is gas versus battery?


#16

B

bertsmobile1

Like all US businesses JD is controlled by the Wall St Nazis who demand massive dividends and veto expenditure on modern high volume automated production .
The enemy is Wall St and has been ever since lunatic courts allowed shareholders to sue directors if the dividend was not high enough and eventually the role of a board of directors changed from just ensuring that shareholders money was not being wasted to actively running the business which used to be the job of the management .
And of course the same courts absolved the directors of any liability .
It is not the fault of unions ( most of the time ) it is the fault of judges ( who are all investors ) .
Executive remuneration have gotten out of control when directors all get paid $ 1,000,000 a day for attending 12 meetings a year and CEOs pull anything up to $ 47,000,000,000,000 ( if your name is Musk ).
Find mea single CEO that is honestly worth more than 100 times what the workers on the shop floor get paid and most CEO's now days are paid at least 4,000 times what the shop floor staff get paid plus double that in bonuses and the bulk of them could not tell you 5 products that the business makes .

And these are the same people who buy all the houses then charge exorbitant rents because they can buy a whole town with "pocket change ".
And remember the true reason why the government invented inflation .
To ensure the value of the assets of the rich are ever increasing
Inflation did not exist till the 60's when the "executive" class started to split off from humanity and bribed governments to invent inflation or give them big tax breaks , not that any of them pay anywhere near the same rate of tax as a working man does .
When I started in the workforce wages were paid on age up until full adult wages at 21 .
The forman usually was on around 10% more than the shop floor and his supervisor was 5%-10% above that and by the time you got to a general manage they might just start to nudge double the hourly rate of the shop floor workers
By the time I left employment managers were on 10 times the shop floor rate and there were 10 levels of form fillers between him & the shop floor all making zero contribution to the actual product or profits.
Then we invented CFO's & CEO's because apparently companies made money & not products .
And of course these men all needed to have university degrees so has to be paid in multiples o what managers were paid till we get to today where is a olot of businesses he renmeration to maagers & directors is in fact substantially bigger than the entire wages bill .

I currently have a 55 year old JD fairway mower in the workshop ( wish I didn't ) but the local JD shop managed to find all 62 items to replace all of the worn out parts .
Try finding bits for a 5 yer old Indian or Chinese made tractor .


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