Volvo Construction Equipment marks 50 years of manufacturing in Shippensburg

Staff gathered to celebrate the milestone Thursday in conjunction with a visit from the Association of Equipment Manufacturers “AEM Manufacturing Express” bus tour. Festivities included a cookout, yard games and sharing stories from the last five decades.

“We have heavily invested in our facilities, our people and our services here in Shippensburg. The work done at this site has a significant impact on our customers, our industry and the local community,” said Gustavo Casagrandi, head of operations at the site. “It’s rewarding to gather today to reflect on all of that.”

Combining this celebration with AEM’s visit was natural.

“We’re proud AEM members, so this is a great way to celebrate our employees’ contributions to the construction and manufacturing industries,” said Casagrandi.

The “AEM Manufacturing Express” is an interactive mobile tour visiting 80 member manufacturers across 20 states. It’s the largest public engagement initiative in the association’s history, designed to celebrate the U.S. equipment manufacturing industry and the 2.3 million workers who help “build, power and feed the world.”

“We’re thrilled to be part of this 50th anniversary celebration alongside community leaders and supporters,” said Megan Tanel, president of AEM. “This tour has been an amazing opportunity to tell the stories of the people of our industry.”

The AEM and Volvo teams invited local policymakers to the event to raise awareness of and support for bipartisan policies that support the equipment manufacturing industry and its employees.

Five Decades of Manufacturing in Shippensburg

Over the past 50 years, roadbuilding and general-purpose construction equipment has been manufactured at the Shippensburg factory beginning with compactors, which have remained a focus. Proximity to Interstate 81 — a major manufacturing and distribution corridor — and a highly skilled employee base made the area appealing to Volvo Group, which acquired the site in 2007 as part of its purchase of the road development division of Ingersoll-Rand.

Volvo has made significant investments in the site over the past 17 years, including a $30 million, 200,000-sq.-ft. expansion of its operations footprint in 2010. In addition to the production of wheel loaders, soil compactors and asphalt compactors, operations at the location include a regional excavator completion center and a rebuild center for used equipment. The site is the North American headquarters for sales and marketing, a hub for purchasing and supply management, and the design and engineering center for compaction equipment.

The Volvo Customer Experience Center and 40-acre proving grounds opened in 2014, housing a demonstration fleet of more than 70 pieces of equipment spanning the company’s full product portfolio. In 2023, a Technical Training Center wing added machine servicing bays and classrooms where dealer technicians and sales teams can learn about Volvo’s latest machines and technologies, including electric equipment. The venue hosts more than 10,000 Volvo CE dealers and customers annually.

Volvo CE collaborates with the Franklin County Career & Technology Center on a training program for industrial workers and has partnered with Shippensburg University to support a new engineering program. The company employs about 50 interns each year, and Penn State University is an Academic Preferred Partner of the Volvo Group. Volvo CE also works with the National and Pennsylvania chapters of SkillsUSA to support middle school, high school and post-secondary students and professionals enrolled in training programs for trade, technical and skilled service occupations.

“It’s an honor to work in such a storied place and continue sharing Volvo’s commitment to training, safety and sustainability with our community,” said Casagrandi. “I can’t wait to see what the next 50 years bring for our people and our industry.”

Shippensburg Site History

1974: Construction equipment production begins with compaction products.

1980: A 46,000-sq.-ft. expansion upgrades machining, fabrication and welding capabilities.

1988: A 38,000-sq.-ft. expansion boosts assembly space.

1992: A 54,000-sq.-ft. expansion adds to assembly space again.

1993: The 49,000-sq.-ft. main office is built.

1998: A 21,000-sq.-ft. expansion provides more space for drum manufacturing.

2007: Volvo CE acquires the site from Ingersoll-Rand.

2010: A $30 million, 200,000-sq.-ft. factory expansion is completed.

2011: The Region Americas sales and marketing team relocates to the site.

2013: The wheel loader production line begins operation.

2013: A new office expansion is inaugurated.

2014: The Volvo Customer Experience Center opens.

2023: The Technical Training Center opens.

2024: Volvo and AEM celebrate 50 years of equipment manufacturing in Shippensburg.