British construction equipment manufacturer JCB has announced plans to double the size of its new factory in the United States in response to President Trump’s newly imposed 10% tariffs on all UK imports. The Staffordshire-based company, one of Britain’s largest privately-owned firms, will expand its planned San Antonio facility in Texas from 500,000 to 1 million square feet, aiming to boost its American manufacturing operations and protect its position in the North American market.
The $500 million plant, which is set to begin production in 2026, will create up to 1,500 jobs and manufacture Loadall telescopic handlers and aerial access equipment specifically for the US market. Lord Bamford, chairman of JCB, expressed that the new tariffs have prompted the company to rethink its strategy for the US market. “President Trump has galvanised us into evaluating how we can make even more products in the USA, which has been an important market for JCB since we sold our first machine there in 1964,” he said.
The move to expand the Texas facility comes as part of a broader strategy to localize production and mitigate the impact of the new tariffs. JCB already operates a plant in Savannah, Georgia, employing around 1,000 workers. The company had previously purchased a 400-acre site for its new Texas facility last year, but the revised plans reflect an urgent need to scale up operations in response to the tariffs, which are expected to have a significant impact on the business.
Graeme Macdonald, JCB’s chief executive, acknowledged the challenges posed by the tariffs but highlighted that the expanded San Antonio factory would help offset the effects in the medium term. “We are thankful that the tariff is only 10 percent and we can only hope that the UK government will conclude negotiations on a trade deal in the coming days and weeks,” he said.
In response to the situation, Business Secretary Jonathan Reynolds reassured the public, stating that the UK government is committed to finalizing a trade deal with the US, which may help mitigate the effects of the new tariffs. The UK government is closely monitoring the situation, hoping to ease the burden on British manufacturers like JCB.
Founded in 1945, JCB operates 22 manufacturing sites across four continents and employs over 12,000 people globally. The company, owned by the billionaire Bamford family, reported a 14% increase in turnover in 2023, reaching £6.5 billion, with pre-tax profits rising by 44% to £805.8 million. The company’s North American business has seen substantial growth, driven in part by significant contracts with the US military. JCB recently secured a $19 million order from the US Marine Corps to deliver up to 206 telescopic compact track loaders.
As geopolitical dynamics continue to shift, JCB’s decision to expand its US manufacturing capacity signals a broader trend among British manufacturers to de-risk their operations by investing in localized supply chains and strengthening ties with key markets such as the United States.
