“Marquardt Switches, Inc. Announces Production Relocation: Impact and Strategies”

Marquardt Switches, Inc. is set to transfer production operations and close to 180 jobs from its facility near Cazenovia to its plant located in Irapuato, Mexico.

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Marquardt Switches

In a statement released on Friday, the company specified that certain service, sales, and development functions will persist in Cazenovia, while equipment manufacturing will continue to be solely based there.

The decision to relocate stems from various factors, including the challenging global economic conditions and consistently low order volumes. The statement attributed these challenges to the enduring impact of the COVID-19 pandemic, geopolitical tensions, conflicts, and the escalating costs of materials, energy, and labor over recent years.

Despite considerable efforts and investments to mitigate these issues, the company has not seen the necessary sales growth. Additionally, their business analysis indicates that achieving sustainable and attractive growth at the Cazenovia site in the foreseeable future is unlikely.

The relocation process is expected to be finalized by mid-2025, affecting approximately 180 jobs, with affected employees receiving prior notice. Around 60 positions are estimated to remain at the Cazenovia site.

Marquardt expressed regret over the necessity of these measures and assured its commitment to supporting affected employees during this transition. However, the decisions were deemed essential to maintain the company’s competitiveness.

In a separate development, Marquardt recently announced a partnership with Dronehub, a European manufacturer specializing in advanced drone-docking stations. This partnership involved the installation of docking-station technology at Marquardt’s 115,000-square-foot production facility near Cazenovia. Although not explicitly stated, it remains unclear whether this partnership will be impacted by the relocation of production operations.

Headquartered in Rietheim-Weilheim, Germany, Marquardt operates across 22 locations worldwide, employing approximately 11,000 individuals. The company reported sales of around 1.4 billion euros for the fiscal year 2022, equivalent to approximately $1.5 million.