©2016 Michigan Economic Development Corporation

Otsego Beats Out Indiana for Major Expansion Project

Friday, August 20, 1999

John Truscott
(517) 335-6397

142 New Jobs for Otsego, StateParker Hannifin Corporation has chosen Otsego over a site in Indiana for a new $21 million expansion, Governor John Engler announced today. The project will bring 142 new jobs, 87 created directly by the company, to the Otsego area. "Parker Hannifin is a valued member of our business community," Engler said. "Their decision to expand in Michigan, rather than in Indiana, is great news for Otsego and the state." Of the 142 new jobs, 55 will be created from increased purchases from Michigan suppliers and spending by people who receive income from the jobs at Parker Hannifin, according to an economic analysis done by the University of Michigan. Engler also announced the approval of a tax credit for Parker Hannifin worth an estimated $1.1 million over 10 years. The tax credit was approved by the Michigan Economic Growth Authority, or MEGA. This project will provide more than $6 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of over $5 million after the MEGA credit. The project is expected to generate nearly $80 million in personal income. Parker Hannifin produces motion control systems and components. The proposed project is at the Brass Products Division and Pump & Motor Division facilities in Otsego, which produce fittings and valves for a wide range of uses. The company estimates that by 2003 all equipment will be installed and the facility will be ready to operate at full capacity. The Michigan Economic Growth Authority program, which is administered by the Michigan Economic Development Corporation, is used to promote high quality economic growth and job creation in Michigan that would not occur without this program.  

Parker Hannifin Corporation
MEGA Analysis
Summary Estimated
(All estimates in 1999 dollars)

    • Direct 87
    • Indirect55
    • Revenue Forgone $ 1,120,000
    • Revenue Gain $ 6,286,000
    • Average Wage $ 698/week
  • Personal Income Generated Over Life of MEGAAgreement $ 78,567,000