Eastern Iowa Plant Closure to Leave 200 People Out of Work

There were warning signs a year ago. Now, a large agricultural and construction equipment plant in Eastern Iowa has learned it will close in early 2026, leaving hundreds unemployed.

Case New Holland Announces Closure of Iowa Plant

In an announcement on Tuesday, CNH stated that it would be ending production at its plant in Burlington, Iowa. The closure will take place sometime in the second quarter of 2026 and affect 200 workers, according to the Des Moines Register. Burlington is known as the place where the backhoe was invented. The plant started production in 1937.

Why is the Burlington Plant Closing?

The Register reports that a decline in demand for certain products is the main reason the plant is closing. The demand for loader backhoes is down 47% since 2014. Meanwhile, demand for products manufactured at other plants, like skid steers and compact truck loaders, went up by 70%. The Burlington plant became too costly to remain open.

Impact on the city of Burlington

Even with the warning a year ago, the Register reports the news has been devastating for the city of 27,000. Following the announcement, workers were given the rest of the week off to "digest and process" the news. Production is set to resume on Monday, November 10th.

CNH will negotiate separation packages with the United Auto Workers Union, including severance pay, continued health insurance, job training, and replacement assistance, according to the Register. CNH stated that production of products made in Burlington will be moved to plants in Kansas and Europe.