Cris Collingwood//April 5, 2023//
A distribution center in Lehigh Valley is part of a $170 million investment by North Carolina-based ABB that it says will create skilled jobs in manufacturing.
The Installation Products Division Northeast Distribution Center opened on nearly 10 acres in the Carson 33 park area of Palmer Township. ABB said the center will provide more than 100 jobs and regionalize its global supply chain to reduce delivery times of electrification products to contractors by up to 50%.
ABB said it is committed to growing in the U.S. by investing in its electrification and automation businesses that meet increased demand from industry-leading customers, while supporting the clean energy transition and the trend towards reshoring of production.
“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 U.S. are from products produced locally, which provides customers with a more secure supply chain and keeps good-paying manufacturing jobs in America.”
ABB technology touches every sector of the economy, from transportation to utilities to buildings. Recently passed legislation like the Inflation Reduction Act, CHIPS Act, and Infrastructure Investment and Jobs Act, gives ABB confidence to invest in manufacturing capacity, distribution systems and technology innovation to bring products and services closer to customers, the company said.
“The Inflation Reduction Act is triggering investment in clean energy and supporting businesses that can produce technology locally,” said U.S. Country Holding Officer of ABB Michael Gray. “More than ever before, ABB is designing and producing products domestically to serve our U.S. customers, as they move toward more sustainable electric power generation, clean energy manufacturing, electric transportation, and industrial efficiency including carbon capture and storage, as well as methane reduction.”
The U.S. federal government projects real gross domestic product to increase 2.5% in 2023, average two percent annual growth between 2024-2028, and grow 2.3% per year during 2029-2032. The projected GDP growth, combined with an estimated global EV infrastructure investment of more than $1 trillion by 2040, gives ABB the confidence to continue investing. ABB said it projects 25% of global EV infrastructure investment will take place in the U.S.
Since 2010, ABB has invested $14 billion in U.S. plant expansions, operational improvements, state-of-the-art equipment, products, and people, making it the company’s largest market.