The Manitowoc Company, Inc. (NYSE: MTW) announced its intent to relocate its crawler crane manufacturing operations from Manitowoc, Wisconsin to Shady Grove, Pennsylvania, to optimize its manufacturing footprint, reduce costs and expand margins. This initiative will increase operational efficiency and allow the company to reallocate resources to invest in profitable growth. The transition will begin in the third quarter with completion anticipated by the middle of 2017.
In total, this initiative is expected to generate annualized pre-tax cost savings of $25-30 million.
Manitowoc has also committed to the creation of 250 new, full-time jobs over the next three years, and the retention of its current Pennsylvania workforce of 891 employees.
The project was coordinated by the Governor’s Action Team, an experienced group of economic development professionals who report directly to the governor and work with businesses that are considering locating or expanding in Pennsylvania, in collaboration with the Franklin County Area Development Corporation (FCADC).
“The Manitowoc decision to consolidate and expand its crane production in Shady Grove is the result of the collaborative efforts of the FCADC, Governor’s Action Team, and SCPa Works, coupled with Pennsylvania’s pro-business climate,” Mike Ross, FCADC president. “Today’s decision stands to have very favorable long-term impacts on our local manufacturing economy.”
Shady Grove is a 300-acre facility with proven capability in manufacturing a broad range of product lines including its rough terrain cranes, truck cranes, boom trucks, industrial cranes and lattice boom crawler cranes. Since 2015, Shady Grove has been producing crawler cranes with the quality and reliability customers expect. Manitowoc has made significant investments in new equipment at the Shady Grove facility to augment its capacity and capability. This transition will optimize utilization of these assets with sufficient manufacturing capacity to support current and future crawler demand.
Manitowoc’s crawler business intends to maintain its product engineering and related support functions in the Manitowoc, Wisconsin area.
The Manitowoc Company, Inc. will maintain its headquarters in Manitowoc, Wisconsin.