In response to the rapid expansion of reshoring efforts in both the U.S. and Canada, PCL Construction has launched its new Manufacturing Center of Excellence, a strategic initiative designed to enhance the company’s capacity to manage large-scale manufacturing projects across North America. According to a January 27 news release, this new collective will bring together PCL’s top manufacturing experts from various regions into a single, fully integrated team, ensuring smoother execution of complex manufacturing projects as companies increasingly shift production back to North America.

A Major Response to Onshoring and Reshoring Trends

This move comes as part of a broader trend of American and Canadian manufacturers reshoring production to capitalize on domestic labor, reduce supply chain risks, and take advantage of new policies aimed at boosting local production. With the rise of reshoring, companies are under pressure to expand their manufacturing capacity quickly while maintaining high standards in efficiency and innovation. The Manufacturing Center of Excellence will meet this challenge head-on by centralizing the resources and expertise needed to plan, design, build, and launch manufacturing plants in key sectors like food and beverage, semiconductor, battery and electronics, life sciences, and advanced manufacturing, as outlined in the news release.

Enhanced Project Delivery and Industry Leadership

PCL has already built a strong track record in advanced manufacturing, having delivered over $25 billion in manufacturing-related projects. The Manufacturing Center of Excellence aims to further streamline processes across facility planning, engineering, construction, and production startup. This focused approach will help PCL deliver more timely, cost-effective solutions for clients, positioning the company as a leader in the manufacturing construction sector.

The new division will operate out of PCL’s headquarters in Edmonton, Alberta, as well as its U.S. base in Denver, with the team bringing extensive experience from both sides of the border. The center will also foster deeper collaboration across regional offices, allowing the company to offer tailored solutions for local markets while leveraging the scale and expertise of its broader operations.

Leadership: Andrew Ahrendt Takes the Helm

Leading the new center is Andrew Ahrendt, a seasoned veteran within PCL with over 30 years of experience managing manufacturing projects. Ahrendt’s leadership is expected to play a key role in driving the Center of Excellence's success. His deep understanding of the challenges and opportunities in manufacturing construction makes him ideally suited to lead the company through this expansion.

“Andrew is a proven leader both within PCL and externally in the community,” said Deron Brown, PCL President and Chief Operating Officer of U.S. Operations. “No doubt in his new position he will drive innovation in smart factories, while delivering an exceptional level of quality to our manufacturing clients.” Ahrendt’s extensive track record within PCL and his reputation in the industry further bolster confidence that the Manufacturing Center of Excellence will thrive under his guidance.

A Strategic Parallel with PCL’s Solar Division

PCL sees the Manufacturing Center of Excellence evolving in a similar way to its solar division, which began as a Center of Excellence and has now developed into a full subsidiary of the company. Ahrendt emphasizes that, much like the solar division’s growth was driven by market demand for balanced energy strategies, the Manufacturing Center will similarly expand in response to the growing demand for reshoring and onshoring manufacturing.

“As Solar grew from a desire to meet clients’ balanced energy strategies, so too will the Manufacturing Center grow,” Ahrendt told Construction Dive in an email. This parallel demonstrates PCL’s long-term vision of building specialized, agile business units that are able to respond to evolving industry needs.

Navigating Economic Uncertainty and Tariff Risks

The announcement of the Manufacturing Center of Excellence also coincides with discussions around potential tariffs on imports from Canada and Mexico, a measure proposed by President Donald Trump. These tariffs, which could reach 25% on certain goods, present a potential hurdle for manufacturers across North America. Experts have warned that the implementation of such tariffs could lead to price increases for builders and delays in sourcing materials.

However, despite the looming uncertainty, PCL remains confident about the future of its manufacturing initiatives. Ahrendt highlighted that while short-term disruptions are possible, particularly if tariffs are enacted, the long-term outlook for manufacturing remains strong. He noted that measures like the potential extension of the 2017 Tax Cuts and Jobs Act, which allows manufacturers to expense research and development costs and claim a 100% bonus depreciation allowance, as well as the expected reduction in permitting and regulatory burdens, will likely offset some of the potential disruptions caused by tariffs.

“If President Trump follows through with his proposed tariffs, there could be some short-term disruptions; long-term however, we believe the outlook for Manufacturing is strong,” Ahrendt wrote. This sentiment reflects PCL’s confidence in its strategic direction and its belief in the growing demand for reshored manufacturing in North America.

Looking Ahead

With its new Manufacturing Center of Excellence, PCL Construction is positioning itself as a key player in the reshoring wave sweeping through North America. The company’s extensive experience in large-scale manufacturing projects, combined with a forward-looking approach to leadership and innovation, makes it well-suited to handle the challenges and opportunities of the evolving manufacturing landscape. As reshoring continues to reshape the global economy, PCL’s expanded capabilities will allow it to meet the increasing demand for domestic manufacturing facilities, while delivering the high-quality projects the company is known for.