Bobcat Company on September 2 announced that it is transferring all North American machinery production to its original manufacturing facility in Gwinner, N.D. This will result in discontinuing production at the Bismarck plant by the end of 2009.
“This was a difficult decision. Bismarck has been a vital part of the Bobcat story for more than 30 years,” said Rich Goldsbury, president of Bobcat Americas. “Having lived and worked in the Bismarck community, I understand the impact this decision will have on my former coworkers and neighbors. We are disappointed, but this is a decision vital to Bobcat Company’s long-term commitment to North Dakota.”
Decreased demand for equipment has the Bismarck and Gwinner manufacturing facilities operating at significantly reduced production. The construction industry as a whole is off more than 70 percent since its peak in 2005. By transferring product lines to Gwinner, the company will eliminate redundant costs while retaining the production needs to meet North American demand.
From October through December, approximately 475 hourly and salaried positions in Bismarck will be phased out while as many as 390 of those jobs will remain in North Dakota as production is switched over to Gwinner. The move will be gradual, with an expected completion by December 31, 2009.
According to Goldsbury, the transfer of production and employees is part of a strategic realignment during difficult economic times. Bobcat has seen initial signs of economic stability; however, the company believes it will be a longer period of time before any recovery results in widespread equipment purchases.
“With demand where it is today and only slight improvements in economic forecasts for the foreseeable future, this was a necessary decision,” Goldsbury said. “Good companies adapt to change. We are ensuring the company’s position during difficult times and solidifying our long-term commitment to North Dakota.”
With the consolidation, all North American-produced machines will be made at the Gwinner facility, which was the original Melroe Manufacturing Company plant and home of the first production three-wheeled loader – the precursor to the skid-steer loader – developed in 1958.
In addition to the manufacturing facilities in Bismarck, Bobcat also employs approximately 150 in Product Engineering, Finance, Accounts Payable and Aftermarket Parts; these positions will be unaffected by the move. The Bobcat Manufacturing Support Center (MSC), part of the Northern Plains Commerce Center, will also remain in Bismarck, supplying components to the Gwinner facility.
Bobcat began producing machines in Bismarck as Melroe Manufacturing in 1974 after the company acquired Bismarck-based Kirschmann Manufacturing, maker of the Spra-Coupe crop sprayer (AGCO acquired the Spra-Coupe line in 1998 from Ingersoll-Rand, Bobcat’s parent company at the time). The Bismarck facility began producing the only North American-made mini excavators in 1989, and the Toolcat utility work machine was launched in 2003.