Onshoring: Ford Shifts Some Manufacturing from Spain & Mexico to Cleveland Area

The Ford Motor Co. branded an engine EcoBoost, a name designed for a motor that reduces fuel consumption and emissions. However, when it comes to Northeast Ohio, EcoBoost could also mean “Economy Boost” as Ford moves production from Spain and Mexico to the region.

An official from the Federal Reserve Bank of Cleveland recently said the city is enjoying a genuine economic turnaround — a view that the Cleveland Plain Dealer said was a “strong message of optimism” they’re not used to hearing.

Mark Schweitzer, a senior vice president at the bank, noted that Cleveland’s economic performance today is healthier than in the last decade and a key for the future will be the ability of businesses to be innovative and develop new products.

Ford is doing its part by shifting production of EcoBoost engines for North America from Valencia, Spain to its plant located in Brook Park, a Cleveland suburb.

This is the first time the technologically advanced engines are being produced in the United States; they will be used in the all-new Ford Edge, Mustang, Explorer and Lincoln MKC.

Starting in 2013, Ford invested nearly $200 million and added 450 jobs at the plant to support production for the EcoBoost. The facility also builds other engines.

The Plain Dealer reports: “Officials say the surviving plant’s 1.7 million square feet are fully in use now, with more than 1,300 workers…. Elsewhere in Northeast Ohio, Ford is shutting its plant in Walton Hills but investing $168 million in Avon Lake to take over production of F-650 and F-750 trucks from Mexico.”

For some time now, the Northeast Ohio region has seen employment growth in sectors such as biomedical, professional, scientific and technical services. Also, aerospace represents a significant cluster in the region.

The area’s manufacturing sector has expanded somewhat in the last couple of decades — growth that will be boosted further by the onshoring of EcoBoost production to Ohio and upcoming nearshoring work from Mexico.

Sources:

Plain Dealer: “Cleveland is enjoying economic revival, Fed official says, while nation overall continues to rebound”

Plain Dealer: “Ford in Brook Park now making four-cylinder EcoBoost engines”

Company news release: “Ford Cleveland Engine Plant Begins Production….”

Team NEO (Northeast Ohio): “January 2015 Quarterly Economic Review: Northeast Ohio’s Economy Diversifies”

One focus of this blog has been to address California’s perennially difficult business environment. Joseph Vranich is known as The Business Relocation Coach while the formal name of his business is Spectrum Location Solutions. Joe helps companies find great locations in which to grow. Also, Joe has been a Keynote Speaker for more than 20 years – see A Speaker Throughout the U.S. and in Europe and Asia.

 

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