CAZENOVIA — On March 22, Marquardt Switches Inc. announced its plan to relocate its production operations from its North American headquarters at 2711 Rt. 20 East, Cazenovia, to its plant in Irapuato, Mexico, due to economic challenges.
Some service, sales, and development jobs, as well as equipment manufacturing, will remain at the Route 20 site.
Established in 1981, Marquardt’s North American headquarters is a 115,000 sq. ft. manufacturing facility that specializes in producing electro-mechanical and electronic switches, controls, and switching systems for a variety of industries, including automotive, electro-mobility, off-road, and household appliances.
Although Marquardt Switches has a Cazenovia mailing address, the facility is located just across the town line in Nelson.
In a March 22 press release, Marquardt said it aims to complete all planned relocation activities by mid-2025.
By the end of the transition period, approximately 180 jobs are expected to be affected by the relocation. Approximately 60 jobs will remain at the Route 20 facility.
Per federal and state requirements, all affected employees will receive advance notice, according to Marquardt.
“We deeply regret the need for these measures at the Cazenovia site and are committed to supporting affected employees through these changes,” the press release said.
The company explained that relocating production was “urgently required” to ensure its continued competitiveness.
Factors that contributed to the decision include persistently low order levels, the impact of the coronavirus pandemic, geopolitical tensions, wars, and rising costs of materials, energy, and personnel.
“Despite significant efforts and investments to mitigate these challenges, we have not been able to achieve the necessary sales growth,” the press release explained. “With regard to the medium and long-term forecast, our business analysis has also shown that we will not be able to achieve sufficiently sustainable and attractive growth at the Cazenovia site in the coming years.”
On March 25, Marquardt US Marketing and Communications Manager Traci Anelli said that at this time the company will not be issuing any statements in addition to the press release announcing the relocation.
“I was very saddened to hear the announcement today regarding Marquardt, as they have been a staple of our greater community over the last four decades,” said Cazenovia Town Supervisor Kyle Reger on March 22. “This will have a significant impact on our area with the number of jobs that will be lost, especially on the heels of Cazenovia College closing. Marquardt has been a tremendous community partner in so many ways throughout the years. With this news, it is imperative that we continue to work collaboratively at the local, regional, and state levels to facilitate the economic development of our area.”
Nelson Town Supervisor Jim Cunningham described the announcement of the major downsizing as painful and unsettling, noting that the business took decades of hard work to build and that many community members have ties to people who work at the facility.
“Finding workers today has been a [challenge],” Cunningham said. “The demand for skilled workers has continued to exceed supply. It’s very hard to grasp the recent trend of global companies moving manufacturing from the United States to nearshore countries such as Canada and Mexico. Low labor rates have driven Ford, GM, and many other large manufacturers to relocate [to] stay competitive in a global marketplace. I think we are all anxious that this is happening way too frequently around this nation. For Central New York to prosper, we must have communities with economic vitality.”
He added that Marquardt has been a great partner to both Nelson and Cazenovia throughout the years, and he is hopeful that the company will find a reason to expand its existing Route 20 facility.
“Our Central New York region is an extremely safe place to build a business, with abundant resources such as clean, safe water, excellent transportation systems, and world-class utilities,” Cunningham continued. “I have personally worked throughout most of the world, including Mexico, where utilities and infrastructure are not comparable. We must invest in technical training programs to help fill new jobs for such companies as Micron, [which] is investing in Central New York. What better location than Cazenovia College [for] an education center focused on courses that are in need by Marquardt, Micron, and similar manufacturers? Great companies like Marquardt have made Central New York communities strong for decades. I thank Marquardt for many beneficial years [of] providing our communities with quality employment, and [I] wish a successful future for all the talented workers impacted.”
For more information on Marquardt Switches, visit marquardt.com/us.
