Bosch Rexroth Seeks Increase in North American Market Share
Bosch Rexroth announces the expansion of its operations with a new manufacturing facility in Queretaro, Mexico, hoping to expand its share in the industrial automation market in North America.
In a recent article from Control Automation, we learned of Bosch Rexroth's intention to acquire Elmo Motion Control. The article touched upon Bosch Rexroth’s other investments across the year 2022, which focused on expanding the company's hydraulics and factory automation businesses to meet the needs of its customers.
Not only does Bosch Rexroth strive for a customer-centric approach to business, but the company also aims to be Industry 4.0 ready. On September 14, 2022, Bosch Rexroth made another announcement concerning the construction of a new 42,000-square-meter plant in Queretaro, Mexico. The company plans to increase the production of components and products for mobile and factory automation applications.
Bosch Rexroth plans to open a new manufacturing facility in Queretaro, Mexico. Image used courtesy of Bosch Rexroth
Bosch Rexroth North America
Although Bosch Rexroth has a well-established presence in North America (dating back to 1967), the company wishes to use its new site to cement its influence with the U.S. and Canada.
While Bosch Rexroth currently employs about 170 within its facilities in Mexico, the new plant is expected to bring in over 900 associates, after finalizing commissioning in 2027. Products manufactured at the new Queretaro site will be exported to the U.S. and Canada.
For Bosch Rexroth, its new plant will boost production capacity to help feed the demand for factory automation and mobile applications. This might include agricultural and construction machinery.
Bosch Rexroth plans to open the Queretaro facility in mid-2023.
Bosch Rexroth’s Fountain Inn site for mobile hydraulics. Image used courtesy of Bosch Rexroth
Bosch Rexroth Mobile Hydraulics
Not leaving its North American mobile hydraulics business behind, Bosch Rexroth intends to invest in its mobile hydraulics site located in Fountain Inn, South Carolina.
The CEO of Bosch Rexroth North America, Greg Gumbs, commented about the expansion, stating “We will intensify the development work for the electrification of mobile machinery and the associated software activities.”
Gumbs said that the Fountain Inn site “will become an even stronger and more customer-centric hub for our mobile hydraulics business in North America.”
Bosch Rexroth’s hydraulic pumps are a main component in agricultural and construction machinery. Image used courtesy of Bosch Rexroth
Regional Supply Chain Fortification
The Queretaro site will not only add to the capacity of the Fountain Inn site but also to Bosch Rexroth’s Linear Technology Customizing Center (based in Charlotte, North Carolina) as well.
Gumbs added that the plans for the Queretaro site are part of a broader picture of building “a more robust regional supply chain.”
A regional supply chain is a type of supply chain that is specific to a region. The main difference between this type of supply chain and others is that it is not global. This means that the products are only distributed within the region and not outside of it.
This type of supply chain can be beneficial in many ways. It can help to save on costs, as there are fewer transportation costs involved in the process. It can also help to reduce environmental impacts, as products do not need to be shipped over long distances.
Not only does Bosch Rexroth hope to broaden its market reach and help provide a more comprehensive service to its customers, but the company can also minimize the transatlantic transportation of products.