Tuesday, June 21, 2005
Michael Shore, MEDC
High-Tech Avionics Company Chooses Michigan for $2.4 Million Expansion
Governor Jennifer M. Granholm announced today that Smiths Aerospace will invest $2.4 million to expand its operations in Grand Rapids. The project will create 76 jobs, including 65 directly by the company. Assistance offered through the Michigan Economic Development Corporation helped convince the company to choose Michigan over competing sites in other states.
"This is an important victory in our effort to diversify Michigan's economy and promote job creation," Granholm said. "Smiths is exactly the type of company we need to further grow and develop our emerging homeland security industry."
The Business Service Center will perform financial-transaction processing on behalf of North American businesses to provide a single financial point of contact for customers and vendors and improve the financial information available to management teams.
The Smiths expansion is one of three economic development projects the Governor announced today. In all, they are expected to create and retain a total of 11,606 Michigan jobs, including 2,300 directly by the company expansions and redevelopment.
"One of Greater Grand Rapids' strengths is its ability to attract and retain companies like Smiths Industries," Right Place president Birgit Klohs said. "Such continued investment speaks to the health of our regional economy and the importance of advanced manufacturing to its continued growth."
British-owned Smiths Aerospace designs and produces integrated avionics equipment for the military and the civilian aviation industry. Its products are integrated into virtually every American and British military aircraft. The company employs more than 1,300 at its U.S. headquarters in Grand Rapids. In May 2003, the MEDC offered a Single Business Tax Credit valued at more than $2.1 million to Smiths to locate a new avionics development lab in Cascade Township over a competing site in Maryland.
"Smiths has forged a valuable partnership with the Grand Rapids community and its workforce," MEDC President and CEO Don Jakeway said. "The area's economy is diversifying in ways that bode well for economic success in the years to come."
In her 2005 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005, the Governor and the MEDC have announced the creation or retention of more than 53,301 jobs as a result of targeted assistance provided by the MEDC.
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.
Smiths Aerospace LLC
(All estimates in 2005 dollars)
|TOTAL JOBS CREATED||76|
|NET POSITIVE STATE REVENUE IMPACT||$646,000|
|Personal Income Generated Over|
|Life of the Six-Year Tax Credit Agreement||$16,799,000|