$170 million investment in the U.S.
ABB is accelerating its growth strategy in the United States by investing approximately $170 million and creating highly skilled jobs in manufacturing, innovation and distribution operations. ABB is committed to growing in the U.S. by investing in its electrification and automation businesses that meet increased demand from industry-leading customers, all while supporting the clean energy transition and trend toward reshoring of production. This commitment is highlighted by the recent pouring of the concrete foundations for a greenfield drives and services facility in New Berlin, Wisconsin. The U.S. is ABB’s largest market, comprising 24% of the company’s annual revenue, based on 2022 ABB Group revenues
“The United States is critical to ABB’s success as a market that will continue to grow and benefit from our product portfolio that enables the transition to a more energy-efficient future,” said Björn Rosengren, CEO of ABB. “Currently, 85 percent of ABB’s sales in the US are from products produced locally, which provides customers with a more secure supply chain and keeps good-paying manufacturing jobs in America.”
ABB technology touches every sector of the economy, from transportation to utilities to buildings. Recently passed legislation like the Inflation Reduction Act, CHIPS Act, and Infrastructure Investment and Jobs Act, gives ABB confidence to invest in manufacturing capacity, distribution systems and technology innovation to bring products and services closer to customers.
Investment projects underway across the U.S. include:
- New Berlin, Wisconsin: Opening of Drives and Services manufacturing facility will increase U.S. production capacity of industrial electric drives and provide additional customer services. The business manufactures a wide range of AC variable frequency drives and controls, which reduce energy consumption in buildings and industrial applications in the U.S. market. The nearly $100 million greenfield investment is expected to be completed in late 2024 and is replacing a neighboring existing facility, which employs approximately 720 workers. About 100 new jobs will be added over the next three years.
- Memphis, Tennessee: Investing $3 million in the opening of an Installation Products Research & Development Lab and Innovation Center to accelerate development of new products. ABB remains the seventh-largest private employer in Memphis.
- Atlanta, Georgia: Opening of packaging and logistics facility for end-to-end robotic automation solutions in warehouse and distribution, retail, and logistics industries. This $2 million investment will open in 2023 and create approximately 15 jobs.
- Albuquerque, New Mexico: Previously announced $40 million investment in a new facility to manufacture Elastimold, a brand for underground cable accessories, to support strengthening a more sustainable U.S. electrical grid. It underpins ABB’s commitment to improve reliability and resilience of the U.S. infrastructure and assure greater safety for the American consumers, businesses and communities. The investment will be completed by 2024 and create 55 new jobs.
- Auburn Hills, Michigan: Previously announced expansion of North American robotics headquarters and manufacturing facility as more customers turn to automation to build resilience while improving efficiency and flexibility as part of the near reshoring of production. The $20 million investment will create 72 jobs and be completed by the end of 2023.
- Lehigh Valley, Pennsylvania: Previously announced opening of Installation Products Division Northeast Distribution Center in 2023. This more-than-$4-million investment will create over 100 jobs and further regionalize ABB’s global supply chain to help reduce delivery times of high-demand electrification products to contractors by up to 50%.
- Columbia, South Carolina: Previously announced opening of electric vehicle charger manufacturing facility to build up to 10,000 chargers per year, ranging from 20kW to 180kW in power, to support operators building the national charging infrastructure. ABB E-mobility’s investment will create over 100 jobs.
“The Inflation Reduction Act is triggering investment in clean energy and supporting businesses that can produce technology locally,” said Michael Gray, U.S. country holding officer of ABB. “More than ever before, ABB is designing and producing products domestically to serve our US customers, as they move toward more sustainable electric power generation, clean energy manufacturing, electric transportation, and industrial efficiency including carbon capture and storage, as well as methane reduction.”
The U.S. federal government projects real gross domestic product to increase 2.5% in 2023, average 2% annual growth between 2024–2028 and grow 2.3% per year during 2029–2032, according to the Biden Administration 2023 budget. This projected GDP growth, combined with an estimated global EV infrastructure investment of more than $1 trillion by 2040, according to BloombergNEF, gives ABB the confidence to continue investing. ABB projects 25% of global EV infrastructure investment will take place in the U.S.
Since 2010, ABB has invested $14 billion in U.S. plant expansions, operational improvements, state-of-the-art equipment, products and people, making it the company’s largest market. With approximately 20,000 employees in more-than-40 manufacturing and distribution facilities, ABB is investing, growing and serving customers across America through industries that create jobs, encourage innovation and achieve a more productive, sustainable future.
$100 million investment in New Berlin greenfield campus
ABB, a global company working in technology innovation, is celebrating the “floor pour” of its newest U.S. flagship campus at 18250 W. Lincoln Avenue. The greenfield location in New Berlin will serve as the U.S. headquarters, manufacturing facility and distribution center for the Drives and Motion Services businesses.
“The U.S. is a significant and crucial market for our drives and the services that support them,” said Tuomo Hoysniemi, president of ABB’s U.S. Motion Business Area and Global Drives Products Division. “We are committed to local engineering, product design, and manufacturing as well as increased capacity and innovative production and warehousing processes. Our new campus will help us better serve our local customers by increasing the availability of market-specific solutions and decreasing the time it takes to serve our customers.”
Currently, the business is divided between two smaller, separate campuses in New Berlin and Wauwatosa. The new campus will include 220,000 square feet of manufacturing space and support offices in addition to a connected 315,000-square-foot distribution center. The consolidation of all operations to one campus will add additional efficiencies and reduce overall time to deliver.
“While we make products that help our customers improve their energy efficiency, we are pleased to incorporate features into our campus that will help us reduce our own carbon footprint,” said Kelly Kling, site leader and vice president of finance for the U.S. ABB Drives and Motion Services businesses. “Geothermal heat pumps and modern HVAC systems will allow us to recycle wasted heat and reduce our energy usage by more than 45%. Improved insulation, rooftop solar panels and ABB advanced building controls will also ensure that our campus operates efficiently and sustainably over the long term.”
ABB has more than 20,000 employees across more than 40 sites in the U.S. and has invested more than $14 billion in the country since 2010.
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