383 New Jobs for Michigan Workers
Picometrix, Inc. will expand its operations in Ann Arbor thanks to assistance from the Michigan Economic Development Corporation (MEDC).
Picometrix, Inc. selected Ann Arbor over Austin, Texas, for its expansion.The company will relocate its existing operations in Ann Arbor into a larger facility.It is estimated that this expansion will create 383 new jobs, 243 directly by the company, for Michigan workers.
“The fiber optics components and equipment industry is heavily concentrated in Massachusetts, California, New Jersey, Virginia and Texas.Without the MEDC incentive package, the company would have left the state,” said Doug Rothwell, president and CEO of the Michigan Economic Development Corporation.“Instead, Picometrix, Inc. chose to remain in Michigan and offer hundreds of good paying jobs to Michigan residents.”
The company plans to lease a 52,000 square foot facility in Ann Arbor. Picometrix, Inc. is investing $28.8 million in this project, including capitalized leasehold improvements, new machinery and computer equipment.Production at the facility is scheduled to begin in October 2001.
“Picometrix defines the kind of entrepreneurial company that takes advantage of university technology research and slowly, over a number of years, builds a solid business around it,” said Susan Lackey, president of the Washtenaw Development Council.“We’re proud they have decided to remain in Ann Arbor, and know that they will be growing here for many years to come.These are the jobs and the companies of our future.”
, according to an economic analysis, completed through software provided by Regional Economic Models, Inc. (REMI).
A component of the assistance provided by the MEDC included an incentive package with a high-tech Single Business Tax credit worth an estimated $6.8 million.The incentive package also includes an Economic Development Job Training grant of up to $243,000 to train new employees.
This project will provide more than $37 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of more than $30 million, after the tax credit.The project is expected to generate more than $466 million in personal income during that time.
“The fiber optic communication components industry is a rapidly growing, highly competitive global market.The economic incentives provided by the MEDC will allow Picometrix to expand our capacity in Ann Arbor and become a global leader in high-speed optical receiver,” said Robin Risser, CEO of Picometrix, Inc.“Without these incentives, competition would have forced the company to expand outside of Michigan rather than grow it in the same community where we started the company.”
Picometrix, Inc. produces high-speed optical sensing devices, which to this point, have been used largely by other researchers, universities and government laboratories.The company currently has 37 employees at its facility in Ann Arbor.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.
(All estimates in 2001 dollars)
|TOTAL JOBS CREATED|
|NET POSITIVE STATE REVENUE IMPACT|
Personal Income Generated Over Life ofTax Credit Agreement