Company shifts focus as demand falls for loader backhoes
CNH has officially finalized its decision to phase out production at its Burlington, Iowa, assembly plant by the second quarter of 2026. The company cited declining demand and underutilization as the main factors behind this move, which will affect around 200 employees.
The decision was first discussed in November 2024 and confirmed following the completion of the decisional bargaining process with the United Auto Workers (UAW). CNH reported a 47% drop in loader backhoe demand since 2014, one of Burlington’s primary products. Meanwhile, demand for skid steers and compact track loaders produced at other CNH facilities has risen by nearly 70%, making Burlington one of the least utilized and most expensive plants to maintain.
To ease the transition, CNH announced an operational pause for the rest of the week following the announcement, during which employees will be paid. The company is negotiating separation packages with the UAW that will include severance pay, continued health insurance, job training, and job placement assistance.
Despite the closure, CNH will continue to maintain a presence in Burlington, focusing on engineering and testing activities. These changes align with the company’s commitment to invest nearly $5 billion over the next five years into U.S. manufacturing and R&D facilities, supporting more than 8,000 employees nationwide.
A CNH spokesperson emphasized that the company remains “dedicated to supporting its workforce while aligning operations with market realities.”
Photo Credit: istock-fotokostic