Schneider Electric, a Fortune 500 company based out of France, plans to open a manufacturing facility in Texas in a continued effort to produce its products closer to the distribution locations. In the field of electronics, Schneider Electric is one of the top producers worldwide. They manufacture goods like electrical vehicle chargers, wiring, and light switches, provide digital management, and implement smart building integrations, and more.
As demand for these items and services rises in North America, Schneider Electric has been motivated to manufacture its products closer to where they will eventually be sold. Currently, the company has 35 facilities in North America, and now they are gearing up to open a new plant in El Paso, Texas, its fourth facility in the city.
The American Manufacturing Plants
Business for Schneider Electric in the US is huge. In fact, of the products they sell in North America, they dominate with 80% of the supply. As far as annual revenue goes, North American sales account for 32%, and in 2022, the company saw a near 25% growth here.
The new El Paso, Texas plant will be a 160,000-square-foot manufacturing facility and will hire around 400 employees. The city happily welcomes the new modern facility, influx of jobs, and an estimated $138 million in economic value.
With President Biden’s Infrastructure Investment and Jobs Act, companies in this field that operate stateside can apply for federal subsidies. There is more than one incentive to bring manufacturing jobs to America. Currently, the company operates 35 other facilities stateside in the fields of manufacturing, data centers, distribution, service locations, and more. US-based locations include Lexington, Dallas, Houston, Minneapolis, Cincinnati, and more.
Along with establishing a new plant in Texas, Schneider Electric is investing $46 million in other US factories. The investment aims to modernize equipment, among other improvements.
The Bigger Picture
Aside from expanding its manufacturing sites in the US, Schneider Electric is also encouraging its suppliers to do the same. This means business stateside could increase in more fields than one. Materials needed to construct Schneider Electric’s products, like nickel, copper, and lithium, will be required and, ideally, come from local supply chains.
The company still owns and operates over 200 facilities worldwide in locations like China, India, and Europe. Nonetheless, more manufacturing sites in the US are good for America. Schneider Electric’s Vice President of supply-chain deployment for North America, Makarand Karanjikar, states that they want to manufacture up to 99% of products locally for the US.
Considering the tension between America and China, many large companies want to make sure they can manufacture stateside to avoid lost business if amicable ties are cut between the two nations. It’s a smart move for national security concerns and general improvements to the local supply chain.
Beyond the Light Switch
It’s more than just electrical and digital products regarding Schneider Electric. It’s sustainable solutions and clean energy operations. Electricity is an unending societal need. With advanced technology that could benefit hospitals, federal agencies, and hospitality businesses, not to mention increase American jobs, it’s good to have Schneider Electric on US soil.
Image credit: City of El Paso