US manufacturing pipeline grows, firms plan $1B in new factories


A wave of new manufacturing projects announced in recent weeks underscores continued capital investment across the U.S., with companies in heavy equipment, advanced electronics, automation and industrial components committing around $1 billion combined in new facilities and expansions.

From North Carolina to Texas to Idaho and Wisconsin, manufacturers are breaking ground on large-scale plants expected to create thousands of jobs while reshoring or expanding domestic production capacity.

Deere & Co. announced plans to open two new facilities: a distribution center near Hebron, Indiana, and a $70 million excavator factory in Kernersville, North Carolina.

According to the company’s news release, the Indiana distribution center is expected to create about 150 jobs and strengthen parts logistics nationwide. The North Carolina plant will employ more than 150 people and will assume production of next-generation excavators previously manufactured in Japan, marking a shift of that production to the U.S.

The excavator factory is part of Deere’s broader commitment to invest $20 billion in U.S. manufacturing over the next decade, the company said.

Radar platform company Echodyne is investing $40 million in a new 86,350-square-foot manufacturing facility in Kirkland, Washington.

The new plant is designed to produce and ship more than 30,000 radars annually across product lines. The company said it expects to employ more than 200 workers when the facility reaches full capacity, with production scheduled to begin in summer 2026.

The expansion comes amid growing global demand for counter-drone, border security and defense-related radar technologies.

In Sugar Land, Texas, Applied Optoelectronics Inc. (AOI) broke ground on a 210,000-square-foot manufacturing facility that will support production of optical networking products for AI data centers and broadband networks.

AOI said it plans to increase its total investment in the project and headquarters campus from $150 million to potentially $300 million by the end of next year. The company has committed to creating 500 local jobs tied to automated production lines.

Executives positioned the expansion as part of Texas’ broader push to become a leader in artificial intelligence infrastructure manufacturing.

Sanko Texas Corp., a subsidiary of a Japanese plastics manufacturer, plans to build a nearly $40 million plant on a 43.7-acre site in San Antonio.

The facility — which will serve as Sanko’s first U.S. manufacturing plant and its U.S. headquarters — is expected to create up to 300 jobs once fully ramped, beginning with about 100 hires in early 2028, according to the San Antonio Express News.

Sanko produces plastic injection-molded pallets and containers commonly used in automotive assembly lines and industrial supply chains.

Preciball USA announced a $17.6 million investment to build a new factory in Sylvania, Screven County, Georgia, according to a news release.

The plant will manufacture precision balls used in bearings, pumps and valves, and is expected to create 65 jobs. The project expands the company’s footprint in Georgia, complementing its existing headquarters operations in Pooler.

Industrial automation giant Rockwell Automation selected New Berlin, Wisconsin, as the site of a new manufacturing campus described as a “factory of the future.”

The planned greenfield facility is expected to exceed 1 million square feet of factory and warehouse space and is part of a broader five-year, $2 billion domestic manufacturing investment strategy, according to Milwaukee Journal Sentinel.

While job figures have not yet been disclosed, company leadership characterized the project as potentially becoming Rockwell’s largest manufacturing campus globally.

Schweitzer Engineering Laboratories (SEL) has begun site preparation for a new 250,000-square-foot electronic device manufacturing facility in Moscow, Idaho.

The $50 million investment will expand production of devices used to monitor and protect electric power systems worldwide. Once fully operational, the plant is expected to employ approximately 1,000 people, with phased hiring beginning in 2027.

Fresh meal and technology provider Tovala recently announced a new 140,340 square-foot food processing facility in Winfield, Illinois to meet growing demand.

Chicago-based Brennan Investment Group will develop the state-of-the-art facility as a build-to-suit project, with construction scheduled to begin in March 2026 and completion expected in the second quarter of 2027. The project marks Brennan’s fourth build-to-suit development in the food service sector.

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Assessing Deere’s (DE) Valuation After US$20b US Manufacturing Expansion Plan


Expansion in Indiana and North Carolina puts Deere (DE) in focus

Deere (DE) is drawing fresh attention after outlining a $20b plan to expand U.S. manufacturing. The initiative includes a new parts distribution center in Hebron, Indiana, and an excavator factory in Kernersville, North Carolina.

See our latest analysis for Deere.

The expansion plan lands at a time when momentum in Deere’s shares has been picking up, with a 1 month share price return of 21.7% and a year to date share price return of 21.5%. Over longer periods, total shareholder returns of 23.0% over one year and 93.1% over five years indicate that recent gains build on an already strong track record, as investors digest both the new U.S. manufacturing investment and recent boardroom and governance developments ahead of the upcoming earnings call.

If you are weighing Deere’s latest moves against what else is happening in industrials, it could be worth scanning aerospace and defense stocks for other capital goods names that are drawing attention.

With Deere shares up around 22% over the past month and trading near US$567, the stock sits close to some analyst targets yet shows an estimated 12% intrinsic discount. This raises the question: is there still upside here, or is future growth already priced in?

Most Popular Narrative: 7.7% Overvalued

At $567.26, Deere sits above a widely followed fair value estimate of about $526.91, which is built around precision agriculture, margins, and a maturing cycle.

Rapid adoption of Deere’s precision agriculture and automation solutions (e.g., JDLink Boost, Precision Essentials bundles, See & Spray tech, and new automation features) is driving higher-value product sales and increased software engagement globally, positioning Deere to benefit from shifts toward high-efficiency, technology-enabled farming. This is expected to support both future revenue and net margins through higher-margin recurring software and data services.

Read the complete narrative.

Curious what kind of earnings power this assumes? The narrative leans heavily on margin expansion, recurring software revenue and a richer profit multiple. The exact numbers might surprise you.

Result: Fair Value of $526.91 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, there are clear pressure points, including higher tariff and input costs, as well as a softer North American large ag market, that could cap margins and challenge the upbeat Precision Ag story.

Find out about the key risks to this Deere narrative.

Another View: Cash Flows Point To Undervaluation

The narrative fair value of about $526.91 suggests Deere is 7.7% overvalued at $567.26, but our DCF model points in the opposite direction. On that view, the shares trade around 12% below an estimated future cash flow value of $644.77. Which picture do you think better reflects the risks and rewards?

Look into how the SWS DCF model arrives at its fair value.

DE Discounted Cash Flow as at Feb 2026DE Discounted Cash Flow as at Feb 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Deere for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 867 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

Build Your Own Deere Narrative

If you look at this and think the story should read differently, you can test the assumptions yourself in minutes with Do it your way.

A great starting point for your Deere research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If Deere has sharpened your interest, do not stop here. Use the Simply Wall St screener to spot other stocks that might fit your style and goals.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.
It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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