Bosch Rexroth has opened a new $20m logistics centre at its hydraulics manufacturing campus in Bethlehem, Pennsylvania, as the company looks to improve supply-chain efficiency and strengthen its North American operations.
The 50,000-square-foot facility forms the latest investment in Bosch Rexroth’s nearly 60-year presence in Pennsylvania’s Lehigh Valley and is designed to streamline logistics supporting the company’s industrial hydraulics manufacturing operations.
The German manufacturer, which produces automation equipment for industrial and mobile applications, employs around 300 people at its Bethlehem operations. The site designs and manufactures advanced hydraulic components and systems used to power and control industrial machinery.
This investment is a reflection of our confidence in the team here in industrial hydraulics in North America, in the local team here in Bethlehem, in the Lehigh Valley, and it shows that we see an opportunity in North America.
Erwin Wieckowski, president and CEO of Bosch Rexroth North and Central America
Boosting North American manufacturing efficiency
The new logistics centre is located adjacent to Bosch Rexroth’s industrial hydraulics manufacturing operations and replaces a facility approximately six miles away in Bethlehem Township. By consolidating logistics activity closer to manufacturing, Bosch Rexroth expects to improve lead times and increase flexibility in serving North American customers. The facility will also increase storage capacity by 50% and incorporates automated storage and retrieval systems.
Wieckowski said the investment forms part of Bosch Rexroth’s efforts to improve the competitiveness of manufacturing across North America by ensuring equipment and components can reach customers more efficiently.
“It’s a very crucial part of our supply chain,” said Frank Theil, senior vice president of manufacturing at Bosch Rexroth.
Lehigh Valley strengthens manufacturing base
Bosch Rexroth first established operations in the Lehigh Valley in 1967, initially in Easton, before relocating to Bethlehem. The company’s latest expansion comes amid broader investment across the region, which has attracted manufacturing activity spanning pharmaceuticals, semiconductors, food and beverages, as well as logistics.
More than 700 manufacturers operate in the Lehigh Valley, collectively generating approximately $9bn in output and placing the region among the top 15% of manufacturing markets in the US by GDP, according to the Lehigh Valley Economic Development Corporation. Manufacturing employment in the region has also grown three times faster than the national rate since 2010. When combined with logistics employment, the industrial sector accounts for nearly 73,000 jobs in the Lehigh Valley.
Kristin Cahayla-Hoffman, vice president of business development and attraction at the Lehigh Valley Economic Development Corporation, said Bosch Rexroth’s long-term presence demonstrated the region’s ability to support manufacturers.
“Companies don’t stay in a community that long by accident,” Cahayla-Hoffman said. “They stay because they find the people, the resources, and the support they need to succeed. And they grow because a region grows with them.
For Bosch Rexroth, the new logistics facility adds further capacity to an established US manufacturing operation while bringing critical supply-chain functions closer to production and customers.
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