CNH Reman targets summer conclusion for expansion project

As CNH Reman LLC completes an expansion project this summer that will boost its footprint by more than 50%, company officials project hitting a revenue milestone exceeding $200 million this year. 

The $208 million projection would mean an over 5% increase beyond the company’s $197 million in revenue reached in 2025, said James Wilson, who took over at the start of last year as the company’s general manager. Founded in 2009 as CNH Industrial Reman, the company is a heavy-equipment parts remanufacturer and a joint venture between Basildon, United Kingdom-based CNH Industrial NV (NYSE: CNH) and SRC Holdings Corp. 

“It’s about a 10% compounded annual growth rate since we started the business,” Wilson said of company revenue. “And then we’ve got growth plans from there to try to get to $292 million by 2030.”

The company began with fewer than 10 employees and around $45 million in revenue for its first full year in business, Wilson said. Today, CNH Reman’s employee count is around 300, he said. 

CNH Reman’s remanufacturing of heavy-equipment parts in agriculture and construction involves some 2,300 dealers of Case and New Holland brands throughout the United States and Canada. But there’s also a push to extend its dealership business internationally, said Ken Stephens, chief operations officer. Stephens said he recently returned from a business trip to France, where the company has dealers. 

“We’re currently having conversations with Latin America for Brazil,” Wilson said, adding it also has clients in Australia. “So yeah, we’re wanting to really look at it from a global landscape.”

Wilson said the company brings in well over 300 dealers into its 257,000-square-foot facility at 2707 N. Farm Road 123 for tours every year. 

“We’re bringing the technicians and the service counter guys into our facility so they can understand more about our products,” he said, adding some people are confused about the work CNH Reman does. “They don’t understand that we tear it all the way down to the base components and rebuild it back up. That continuing education, I think, is what really helps us grow our business.”

While the company will remanufacture parts for old equipment such as tractors that go back to the 1980s, Wilson said working with new products is how CNH Reman’s annual revenue growth has maintained its consistency. The company remanufactures and tests the products to meet or exceed original equipment manufacturing standards. Product lines include engines, hydraulics and air temperature sensors, according to its website.

Wilson said the parent CNH company dropped Industrial from its name a couple of years ago, and the local venture is commonly known as CNH Reman. 

“We’re still working on all the signage,” Wilson said about reminders of the company’s original moniker that remain present in various places in its northwest Springfield facility.

Facility growth
Ross Construction Group LLC is the general contractor, and Slone Architects & Interior Designers Inc. is the architect for the new preengineered metal building project that is nearing completion for CNH Reman. Both the new 137,000-square-foot facility and the company’s existing building are leased from SRC, Wilson said, declining to disclose project costs. 

“We’re building this building for our future growth,” he said, noting the expanded space will allow the company to add an estimated 70 jobs within the next five years. “So right now, if you look around our facility, we’re tight.”

The current facility is a three-tiered structure that is crammed for space and has very low ceilings, officials say. The new structure’s ceiling will be around 34 feet high, nearly double the current building and will allow for much more storage capacity.

“We will be able to expand our manufacturing footprint and become more efficient,” Wilson said, adding that areas such as its disassembly and product storage will move to the new building, which is connected to the current facility. 

The expansion space also will include a large employee breakroom, locker rooms, conference rooms and multiple office spaces. Additionally, two corridors will accommodate travel by foot and forklift between the new and existing buildings. An extra employee parking lot and access for truck deliveries is also being prepared for completion in the coming weeks. 

Safety is also in mind at the new building for storage of scrap parts. Officials say those are currently placed in a dumpster and left outside due to lack of space.

“Now we’ve installed two lowered bays, so all of our scrap will be handled inside of the building,” Wilson said. “Trucks will come in, and we’ll take them out. We don’t have to worry about product being outside, and then we don’t have to worry about runoff and contaminants.” 

Stephens said CNH Reman expects to gain possession of the new building by July 1 and will then take a couple months to prepare it for use. 

“We’re hoping by September time period to start some operations for receiving in here,” he said. “And then December, we should start doing some disassembly back here and then fully go live January 2027.”

Overcoming tariffs
While the company continues to chase new record highs in revenue, Wilson said he pegs tariffs among its biggest current challenges. 

“This year alone, we’re probably facing well over $1 million in tariff impact this year,” he said, noting CNH Reman insources products from all over the world. “We also can all help offset the tariff impact because we can reuse a lot of the products that come in.”

Although the U.S. Supreme Court in February struck down the tariffs levied by President Donald Trump, the administration quickly rolled out temporary 10% levies on imports, according to past Springfield Business Journal reporting. Those tariffs are subject to expire by late July unless extended by Congress.

“The other thing that is hidden, that’s a tariff-related thing, is a lot of our suppliers, they’ve rolled those tariffs into their costs,” Stephens said. “So now our costs are higher. It doesn’t come across as a tariff line on the income statement, but you’re still feeling it in the cost of your product.”

Some large companies are expecting refunds from the tariffs ruled illegal this year. General Motors recently said it expects $500 million in refunds, as one of more than 330,000 importers who paid the International Emergency Economic Powers Act tariffs that were invalidated, according to media reports. 

Wilson isn’t holding his breath for a refund but said he thinks some of their suppliers might provide them with future credits on orders.

“We’ve had one supplier that we were working with that already gave us about a $137,000 credit on what they were going to charge us with tariffs because of some of the changes in the tariff regulations,” he said.