The Manitowoc Company, Inc. plans to move its crawler-crane-manufacturing operations from Manitowoc, Wis., to Shady Grove, Pa., by the middle of 2017.
Although manufacturing will be relocated, the company plans to keep its headquarters in Manitowoc, Wis., and its crawler-crane engineering and support operations in the Manitowoc area.
The company will consolidate its crawler-crane manufacturing into the same 300-acre factory that builds its rough-terrain cranes, truck cranes, boom trucks, industrial cranes, and some lattice-boom crawler cranes.
Manitowoc says the move will increase operational efficiency, reduce costs, improve margins, and let the company reallocate resources to invest in profitable growth. The company will begin the move in the third quarter of this year and expects to complete it by the middle of 2017.
The relocation is expected to save $25-30 million, pre-tax, annually.
“After a comprehensive analysis and review of our current manufacturing footprint, coupled with current market conditions, we believe this restructuring initiative will ensure that our business continues to meet and exceed the needs of our customers every day," said Barry Pennypacker, president and chief executive officer, The Manitowoc Company, Inc.
"We further recognize that this will have a personal impact on people who have been dedicated to Manitowoc. We thank them for their contributions to the achievements of our business, and are committed to treating them fairly and with respect throughout this process,” Pennypacker added.
The Shady Grove factory has been producing crawler cranes since 2015.
Manitowoc has invested significantly in new equipment to augment Shady Grove factory's capacity and capability. The transition will make best of those assets, which have the manufacturing capacity to support current and future demands for crawler cranes.
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