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Friday, January 11, 2008
The MEDC today announced that five Michigan tool and die companies have been admitted to existing Tool & Die Recovery Zones
The Michigan Economic Development Corporation today announced that five Michigan tool and die companies in Clinton, Genesee, Grand Traverse, Muskegon and Wayne counties have been admitted to existing Tool & Die Recovery Zones.In addition, a new Tool & Die Recovery Zone, the Global Tooling Alliance LLC, is being established to assist 16 companies throughout Michigan. The new zone will allow member companies to operate free of most state and local taxes for up to 15 years, making them more competitive in today’s global market.
The designations were approved by the Michigan Strategic Fund Board.
“Tool and die shops have historically been an important element of Michigan’s manufacturing economy, but today they are under substantial challenge from foreign competition, ” James C. Epolito, president and CEO of the Michigan Economic Development Corporation and chair of the Michigan Strategic Fund board said. “Tax-free designations help level the playing field by lowering operating costs and encouraging collaboration to help them compete and keep these highly skilled jobs in Michigan.”
The following companies will join existing zones:
Alltech Tool, Kingsley (Grand Traverse County) will join the Northwest Michigan Tooling Coalition Recovery Zone
Franchino Mold & Engineering, Lansing (Clinton County) and Future Tool & Machine, Romulus (Wayne County) will join the Capital Area Tooling Partnership Recovery Zone
Muskegon Tool Industries, Muskegon (Muskegon County) will join First Choice Machining Solutions Recovery Zone.
Schmald Tool & Die, Burton (Genesee County) will join the United Tooling Coalition Recovery Zone.
Detailed Information about the new Global Tooling Alliance and its 16 member companies is available at www.globaltoolingalliance.com
The zones allow companies to operate free of most state and local taxes for up to 15 years, thus assisting their efforts to withstand the press of global competition. Amendments to the Michigan Renaissance Zone Act in 2004 allow existing zones to request the inclusion of additional companies.
To receive consideration for Recovery Zone designation, tool and die companies musthave a collaborative agreement that demonstrates synergistic opportunities among the companies.
According to the most recently available information from the U.S. Bureau of Labor Statistics, Michigan has some 1,780 tool and die establishments with 35,831 employees representing 19 percent of the U.S. total.
About Michigan Economic Development Corporation (MEDC)
The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.
