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AGCO Invests in Manufacturing, Expands Jackson

You may have heard that  AGCO is investing in our worldwide manufacturing, including the expansion of our Jackson, Minnesota operations. but you might be wondering why. Below are the answers to some frequently asked questions:

AGCO Jackson Manufacturing Plant

AGCO Jackson, Minnesota Manufacturing Plant

• North American farmers play a major role in feeding the world’s growing population. By manufacturing high-horsepower wheeled row crop tractors in North America, we will be able to better meet our customers’ needs for machines that will help them improve their efficiency and productivity.

• Manufacturing tractors in North America will allow us to configure the machines’ specifications to better match the crop production systems being used by North American growers.

• Transportation time will be reduced, so tractors will be available to our Massey Ferguson® and Challenger® dealers and customers more quickly than in the past.

• Economic projections and a positive outlook for agriculture indicate a growing global market for 200 to 300 HP wheeled tractors. This expansion helps us realign our production around the world and better positions the company to fill demand for high horsepower Massey Ferguson and Challenger tractors in North America and abroad.

Here are more answers to some frequently asked questions:

What types of agricultural equipment will be produced as a result of this investment?

Massey Ferguson 8600 Series and Challenger MT600C Series high horsepower rowcrop tractors will be manufactured at the Jackson facility. These series include models featuring AGCO’s exclusive e3 selective catalytic reduction (SCR) clean-air technology. Additional models may be added as early as 2012.

What is the timeline for this expansion?

The manufacturing expansion is scheduled for completion in late 2011. The first tractors are expected to roll off the line before the end of the year.

When will the visitor center be completed?

Plans for the visitor’s center have not been finalized, but we expect to complete the facility by the end of the year. The projected 17,000-square-foot facility is intended to host both local and international visitors as they experience the newest products from Challenger and Massey Ferguson.

What products are currently manufactured in the Jackson, Minn., facility?

Products manufactured at the Jackson, Minnesota, production facility include Challenger® MT700C and MT800C track tractors as well as Challenger MT900C articulated 4-wheel-drive tractors; TerraGator® high-flotation applicators; RoGator® high-clearance applicators and SpraCoupe® high-clearance self-propelled rowcrop sprayers.

Does AGCO operate other manufacturing facilities in North America?

Yes. Other North American manufacturing facilities are located in Hesston and Beloit, Kansas.

Why was the Jackson facility chosen as the place AGCO will manufacture high horsepower wheeled rowcrop tractors for the North American market?

For nearly 50 years, the community of Jackson has been involved in the manufacture and distribution of farm equipment. Not only does Jackson and the surrounding community provide a hard-working, experienced and committed labor force, it is a manufacturing-friendly community with the infrastructure, access to transportation and support industries needed to successfully expand production to the levels required to meet the demands of today’s marketplace.

What role did local organizations have in securing AGCO’s decision to expand the Jackson facility?

The Jackson Economic Development Corporation (http://www.cityofjacksonmn.com/economicdevelopment) actively led an initiative to secure financial incentives, jobs training support and other incentives instrumental in the decision to expand the Jackson manufacturing facility.

Organizations involved include:
• Jackson Economic Development Corporation – http://www.cityofjacksonmn.com/economicdevelopment
• Minnesota Department of Employment and Economic Development (DEED)- http://www.positivelyminnesota.com
• Jackson Area Chamber of Commerce – http://www.jacksonmn.com/coc.htm
• City of Jackson – http://www.cityofjacksonmn.com/
• Minnesota Department of Agriculture – www.mda.state.mn.us/
• Federated Rural Electric Association – http://www.federatedrea.coop/
• Southwest Initiative Foundation – http://www.swifoundation.org/
• Jackson County- http://www.co.jackson.mn.us/
• Workforce Development Centers- https://www.minnesotaworks.net/

What does the planned expansion include?

The 75,000 square feet expansion of the Jackson, Minn., facility includes a 16,000-square-foot extension of the current assembly line and incorporation of 42,000-square-foot kitting center – an advanced system to deliver parts and material to the assembly line – which will produce Massey Ferguson and Challenger high horsepower wheeled rowcrop tractors. In addition, the expansion will include a 17,000-square-foot, state-of-the-art visitor center.

What is the history of AGCO as an employer and manufacturer operating in Jackson, Minnesota?

In 2001, AGCO purchased Ag-Chem Equipment Company, Inc., a business whose history began in Jackson in 1963 when the company was founded by Al McQuinn. The business started as a distributor of specialized spray equipment used by the agricultural industry. Its first product was manufactured in 1967, and land was purchased at the current location in September of 1968 for construction of a 25,192-square-foot manufacturing facility which was completed in 1970. Additional expansions were completed in 1974, 1994 and 1995.

Today, AGCO is Jackson’s largest employer with approximately 900 professional, support and skilled manufacturing positions.

What is the population of Jackson and the surrounding community?

The population of the city of Jackson is approximately 3,300 and the population of Jackson County, including the town of Jackson is approximately 10,700 (29% urban, 71% rural).* July 2009

What economic impact will expansion of the AGCO Jackson facility have on the city of Jackson and the local economy?

There are three areas of economic impact related to the expansion of the Jackson facility, according to economic impact studies* completed by the Minnesota Department of Employment and Economic Development (DEED) (http://www.positivelyminnesota.com),
* Studies completed using IMPLAN Model for Minnesota – (IMpact Analysis for PLANning).

• Construction – In 2011, an estimated $6.2 million in construction and renovation investment will result in 45 construction industry jobs along with another 9 jobs created related to building supplies and professional services such as architects and engineers. Construction will stimulate $2.214 million in Gross Regional Product (GRP or value-added) and $1.689 million in labor income within the local economy.

• Daily operations – The expansion is projected to result in 100 manufacturing jobs at the facility, contributing $15.110 million to the local economy with a total labor income of $8.234 million per year. Nearly 80 additional jobs in industries and services outside of AGCO are expected as an indirect result of the expansion.

• Welcome center visitors – It is estimated that as many as 10,000 individuals will tour the visitor’s center each year. Spending by these guests from out of state and around the world is expected to increase the Jackson County economy by $2.264 million and create an estimated 95 jobs in industries supporting travel and visitor services. Food and beverage establishments, hotels and motels, and amusement and recreational businesses are expected to account for 86 percent of the total increase in jobs. Personal income of $1.356 million and nearly $5.5 million in gross sales are projected.

Watch a video about manufacturing in Jackson.

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