ABB Invests $170M in US Electrification & Automation Businesses

ABB woman working at a manufacturing plant (1)

(Credit: ABB)

by | Apr 7, 2023

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ABB woman working at a manufacturing plant (1)

(Credit: ABB)

Global technology leader in electrification, automation, and motion, ABB, is investing approximately $170M in its US manufacturing, innovation, and distribution operations to accelerate its growth strategy in the country.

ABB’s investment not only aims to drive revenue growth but also to foster the creation of highly skilled jobs and promote the transition to cleaner energy.

ABB’s Presence in the US Market 

The US represents ABB’s largest market, accounting for 24 percent of the company’s yearly revenue. Currently, ABB is committing to expanding its operations in the US by investing in its electrification and automation businesses, catering to the increasing demand from industry-leading customers.

“The United States is critical to ABB’s success as a market that will continue to grow and benefit from our product portfolio that enables the transition to a more energy-efficient future,” said Björn Rosengren, CEO of ABB. “Currently, 85% of ABB’s sales in the US are from products produced locally, which provides customers with a more secure supply chain and keeps good-paying manufacturing jobs in America.”

Recent Legislation 

ABB’s technology currently has a presence in every sector of the economy, ranging from transportation to utilities to buildings. The recently passed legislation, such as the Inflation Reduction Act, CHIPS Act, and Infrastructure Investment and Jobs Act, provides ABB with the confidence to invest in manufacturing capacity, distribution systems, and technology innovation. These investments enable ABB to bring its products and services closer to customers, thereby enhancing its market position and meeting the growing demand for its solutions.

“The Inflation Reduction Act is triggering investment in clean energy and supporting businesses that can produce technology locally,” said Michael Gray, US Country Holding Officer of ABB.

According to recent statistics, the US federal government is projecting that GDP will increase by 2.5% in 2023, with an average of 2% annual growth between 2024-2028. Further, industry experts expect to see growth at an additional rate of 2.3% per year between 2029-2032. Between 2023 and 2040, ABB anticipate investing more than $1 trillion in the US EV market.

ABB’s Current and Future Projects in the US

New Berlin, Wisconsin:

  • Opening of the Drives and Services manufacturing facility.
    • The nearly $100M greenfield investment is expected to be completed in late 2024
    • Manufactures a wide range of AC variable frequency drives and controls that reduce energy consumption in buildings and industrial applications.
    • 100+ new jobs will be added over the next three years.

Memphis, Tennessee:

  • Investing $3M in the opening of an Installation Products Research & Development Lab and Innovation Center.
  • Currently, ABB is the Seventh largest private employer in Memphis.

Atlanta, Georgia:

  • Opening of packaging and logistics facility for end-to-end robotic automation solutions in warehouse and distribution, retail, and logistics industries.
    • The $2M investment will open this year and create approximately 15 jobs.

Albuquerque, New Mexico:

  • $40M investment in a new facility to manufacture Elastimold which is the leading brand for underground cable accessories.
    • The investment supports strengthening a more sustainable US electrical grid.
    • Create 55 new jobs which will be completed by 2024.

Auburn Hills, Michigan:

  • Expansion of North American robotics headquarters and manufacturing facility.
    • The $20 million investment will create 72 jobs and be completed by the end of this year

Lehigh Valley, Pennsylvania:

  • Previously announced the opening of a Distribution Center in 2023
    • This more than $4M investment will create over 100 jobs
    • Reduce delivery times of high-demand electrification products to contractors by up to 50 percent

Columbia, South Carolina:

  • Currently operational electric vehicle charger manufacturing facility to build up to 10,000 chargers per year, ranging from 20kW to 180kW in power
    • Creating over 100 jobs in the region

Over the past decade, ABB has allocated $14 billion towards expanding its US manufacturing facilities. Currently, the company employs more than 20,000 individuals, working in over 40 sites in the continental US.

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