GE Transportation expands manufacturing operations in Pennsylvania

December 28, 2011

GE Transportation, the world's leading maker of rail, mining and transportation-related products, announced plans to establish a new production facility in Grove City, Pennsylvania, in order to meet the growing demand for remanufacturing services, The Associated Press reported.

According to a release, the company will invest roughly $35 million to build capacity at a new diesel engine remanufacturing plant, and GE is investing an additional $37 million in 2011 and 2012 in the existing plant. This results in a combined investment of $72 million in manufacturing in the Pennsylvania city and may create up to 150 jobs.

According to the release, GE expects demand for remanufacturing services to increase significantly in the coming years, as routine overhaul cycles and necessary compliance with EPA rules and regulations will lead to growth in operations at the plants.

"This new facility will enable GE Transportation to better serve its customers while meeting a dramatic increase in demand for remanufacturing in the next few years," said Richard Simpson, Global Services Supply Chain Operations Leader. "Our investment in Grove City is a commitment to our customers to continue providing them with the best products, technology and services in the industry."

Pennsylvania Governor Tom Corbett noted that the investment would help to build the manufacturing base within the state.

"We are committed to making Pennsylvania an economic leader by investing in the growth of businesses like GE Transportation and the jobs they create in the commonwealth," said Corbett. "Helping Pennsylvania companies expand is the key to the continued economic development of every community in the state."

The company is also investing roughly $136 million in new technology, manufacturing improvements and facility upgrades in Erie, Pennsylvania. GE has added more than 1,000 workers at this site in the past year, and has a total economic impact of $4.6 billion statewide, according to a study in 2010.

An increase in the number of hires in the manufacturing industry may emerge as a trend, according to Industry Week, and these firms are expected to increase salaries by 2.9 percent in the industry over the next year.

A recent study showed that the total hiring would increase in manufacturing, but the companies are looking to focus not only on performance, as particular skills in the sector are important. 

"This pay mix creates greater motivation for employees to be productive and greater flexibility for employers to compensate based on individual and company performance," an industry executive told the news source.