Professional Tool Reviews for Pros


Milwaukee Tool is Expanding US Manufacturing

Milwaukee Tool is expanding US manufacturing

One of the most consistent nuggets of feedback we receive is about the amount of manufacturing that takes place in China. Businesses have to be profitable and prices have to be reasonable enough for Pros to buy. That combination leads to the global market and manufacturing where it makes the most sense. But today we’re talking about our friends from Wisconsin and the big news that Milwaukee Tool is expanding US manufacturing.


The news comes to us from Mississippi, where Milwaukee announced that they’re investing $33.4 million in the expansion. The Greenwood, Jackson, and Olive Branch locations in Mississippi will see the growth. The move will create 660 new jobs over the next four years.

This announcement comes on the heels of another expansion at Milwaukee’s headquarters in Brookfield, Wisconsin resulting in 5oo new jobs there.

Milwaukee Tool is Expanding US Manufacturing: What They Say

“Once again, Milwaukee Tool confirms its commitment to doing business in our state by growing its existing operations and providing hundreds of Mississippians with good, stable jobs. The state values the partnership we share with Milwaukee Tool and is thrilled to play a role in the industry leader’s continued growth.”

– Mississippi Governor, Phil Bryant

“Milwaukee Tool is dedicated to driving growth and creating new jobs in the United States. We currently employ over 3,500 people in the USA, more than 1,600 of which are in Mississippi. We are deeply committed to investing in our people as we continue to deliver disruptive innovation and the highest quality products for our users and distribution partners.”

– Milwaukee Tool Group President Steve Richman

What Will Milwaukee Manufacture?

Milwaukee’s Mississippi expansion is going to deal with manufacturing more cordless power tools and accessories in the US. There will also be some extra distribution capacity coming. Beyond that, we don’t know any specifics on which products are on the way.

Milwaukee Tool is expanding US manufacturing

Our Reaction

There’s really no downside of bringing manufacturing jobs back to the US. The fact that Milwaukee Tool is expanding US manufacturing tells us a few things, though. US manufacturing jobs cost the company more money that workers overseas do, so it’s a good indication of Milwaukee’s current financial strength. This is also an expansion rather than a simple shift of labor, so we can infer that Milwaukee is continuing to grow – something that’s pretty clear when you look at the number of new products and tool classes we see at the New Product Symposium each year.

Beyond that, it means that Milwaukee is listening to what you have to say. That’s not something that’s new to us here at Pro Tool Reviews, but knowing that Milwaukee monitors social media on a level that even company president Steve Richman sees is different – and it’s good.


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pat

I don’t trust them. They sold out to China.

Jim

Don’t forget, China is an enemy of the US and is committed to our destruction and world domination! Time to stop funding our own destruction. Good to hear companies coming back. We never did business with the Soviet Union during the Cold War. We have to treat China the same. WE DON’T NEED THEM!

Mike

While the hourly wage rate (and benefits) paid to US workers is higher than the rate in China, this cost difference is offset by lower productivity of Chinese workers and the increased cost of transporting the products to the US. That transport cost includes not only the actual cost to move the product but also the capital tied up while the goods are in transit (typically by boat). Several years ago, the wage rate difference was significant, but the wage rates in China have increased – in some cases, even doubling. As a result, a number of companies have, or… Read more »

Joshua T. Whaley

Here’s a shocker to most, about half of my Makita tools (I have over 5g worth of teal) are Assembled in the USA. Made in Buford Georgia.

Derek

Thanks to Trump’s tax plan, this is getting to be common place.

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