Manitowoc is shifting its crawler crane production

Manitowoc will relocate its crawler crane manufacturing operations from Manitowoc, Wisconsin to Shady Grove, Pennsylvania.

The transition will begin in the third quarter, with completion anticipated by the middle of 2017. The company intends to maintain its headquarters and crawler crane product engineering and related support functions in the Manitowoc area.

A report in the Milwaukee Journal Sentinel indicates that more than 500 jobs will be lost over the next 12 months when Manitowoc moves its crawler crane manufacturing. The loss of the 528 jobs will be in phases beginning this year. The move is expected to be completed by mid-2017.

In a statement from state officials, Manitowoc says it is still in the process of finalising the planned closure, including the specific dates of separation. Job titles of those affected and the names of employees holding those positions will be provided as soon as they are available, but no later than 60 days prior to the first scheduled workforce reduction.

According to Manitowoc, the move will optimise its manufacturing footprint, reduce costs and boost margins. The initiative is expected to increase operational efficiency and allow the company to reallocate resources to invest in profitable growth. In total, the initiative is expected to generate annualised pre-tax cost savings of USD25 million to USD30 million.

"After a comprehensive analysis and review of our current manufacturing footprint, coupled with current market conditions, we believe this restructuring initiative will ensure that our business continues to meet and exceed the needs of our customers," says Barry Pennypacker, president and CEO. "We further recognise that this will have a personal impact on people who have been dedicated to Manitowoc. We thank them for their contributions to the achievements of our business and are committed to treating them fairly and with respect throughout this process."

Manitowoc has been producing crawler cranes in Shady Grove since 2015. The company has made significant investments in new equipment at the facility to augment its capacity and capability. The transition will optimise utilisation of these assets with sufficient manufacturing capacity to support current and future crawler demand.