Schneider Electric moves to reshore manufacturing

by Inside Logistics Online Staff

BOSTON, Massachusetts – Schneider Electric is spending US$40 million to upgrade its U.S manufacturing plants in Iowa, Kentucky, Nebraska, and Texas.

The company says it plans to invest in new technologies and production lines that will help increase its operations capacity in the U.S., as well as develop its local workforce.

Covid-19 placed a spotlight on the critical vulnerabilities global manufacturing and supply chains can face during unprecedented disruption. Schneider Electric says this additional stake in the U.S. is part of a larger, strategic approach to strengthen resilience, increase flexibility, and safeguard its supply chain. The company says it expects the initiative will give it greater control of its production processes.

“This investment demonstrates our continued commitment to both our customers and our employees, while setting the foundation for the future,” said Annette Clayton, CEO and president, Schneider Electric North America.

“We now have the technology and resources available to expand and efficiently produce more locally. By modernizing and localizing our operations, we can better serve our customers and minimize the risk of interruption when we face the challenges of global economic changes.”

Smart factory

Schneider Electric’s smart factory in Lexington, KY recently earned the distinction of 4th Industrial Revolution (4IR) Advanced Lighthouse by the World Economic Forum, becoming the third of its factories to receive this honour. The factory was recognized for its success in adopting Industry 4.0 technologies at scale with demonstrated benefits around energy efficiency, sustainability and overall cost savings, while offering increasing agility and resiliency within the operation.

As U.S.-based companies increasingly look to reshore manufacturing operations, the industry is creating more jobs that will require a new wave of a skilled workforce to fill them. Schneider Electric has hired, and pledges to hire, 130 new employees through early 2021. As part of this investment, Schneider Electric employees will receive more digital training opportunities and tools that will enable them to adopt new skill sets and work more efficiently in a modern setting.