By Jamie Martin
CNH Industrial has confirmed plans to close its Burlington, Iowa, assembly plant by the second quarter of 2026. The decision follows years of declining loader backhoe demand, one of the facility’s core production lines, and the company’s broader strategy to optimize U.S. manufacturing operations.
Since 2014, demand for loader backhoes has dropped by nearly 47%, while demand for skid steers and compact track loaders—produced at other CNH locations—has surged almost 70%. This shift left Burlington as CNH’s lowest-utilized and costliest facility to maintain.
The decision, first tentatively announced in November 2024, was finalized after the company completed the bargaining process with the United Auto Workers (UAW). Around 200 employees will be impacted, and CNH has pledged to negotiate comprehensive separation packages that include severance pay, extended health insurance, retraining opportunities, and job placement assistance.
Production at the plant will pause temporarily to give employees time to adjust, and they will be paid during this period. CNH will retain a local footprint with engineering teams and a modern proving ground to continue testing operations.
This move forms part of CNH’s commitment to invest nearly $5 billion over the next five years in U.S. manufacturing and research facilities, supporting more than 8,000 American employees.
According to company representatives, the decision aims to “realign production with evolving market demands while ensuring strong support for affected workers.”
Photo Credit: istock-fotokostic
Categories: National