Granholm Announces Ameriwood to Increase Production in Dowagiac, 182 New Jobs

Tuesday, August 19, 2008

Governor Granholm today announced that Ameriwood Industries plans to increase operations at its plant in Dowagiac

Governor Jennifer M. Granholm today announced that Ameriwood Industries, a ready-to-assemble (RTA) furniture manufacturer, plans to increase operations at its plant in Dowagiac that were suspended in July 2007. With assistance offered through the Michigan Economic Development Corporation (MEDC), the company plans to create 100 Michigan jobs. Ameriwood currently has 41 employees in Michigan.

“We are delighted that Ameriwood is open for business again in Dowagiac,” Granholm said. “Our competitive business climate and quality workforce are helping this resilient company stay in Michigan and create jobs.”

Based on the MEDC’s recommendation, the Michigan Economic Growth Authority board today approved a state tax credit valued at $695,000 over seven years to win the company’s expansion. Sites in Ohio and Ontario, Canada were also considered for the project.

The project includes restoring production capabilities of the plant in Dowagiac, Cass County, to accommodate growth and demand occasioned by rising freight costs and the closure of several competitors. It includes restoration of older and relocated equipment to proper operating condition. The city of Dowagiac anticipates approval of a 12-year tax abatement to support the project.    

“Ameriwood’s decision to expand in Michigan will open doors of opportunity to the community’s workforce,” MEDC President and CEO James C. Epolito said. “We appreciate their commitment to Michigan.”  

An economic analysis conducted by the MEDC estimates that increased economic activity created by the new facility will create 82 indirect Michigan jobs, in addition to the 100 created directly by the company. The project is expected to generate more than $35 million in personal income for Michigan workers over the life of the tax credit.

Ameriwood is one of 20 economic development projects the governor announced today. In all, they are expected to create a total of 9,495 Michigan jobs.        

“Ameriwood is and will continue to be an important part of our community with a local and state partnership to show the company that Dowagiac and Michigan are the place to be to do business,” Dowagiac Mayor Don Lyons said. “The jobs and investment will help to solidify Ameriwood’s role in our local economy. We are pleased to work with the Michigan Economic Development Corporation in making our state a great place to do business.”

In her 2008 State of the State address, Granholm emphasized the importance of creating opportunity in the changing world of the 21st century. Since January 2005, the Governor and the MEDC have announced the creation or retention of more than 257,000 jobs as a result of targeted assistance provided by the MEDC.

Ameriwood Industries     
(All estimates in 2008 dollars)     

TOTAL JOBS CREATED                                                                                182

     Direct                                                                                                                       100

     Indirect                                                                                                                      82

NET STATE REVENUE IMPACT                                                        $2,019,000

Revenue Foregone                                                                                            $695,000

Revenue Gain                                                                                   $2,714,000


Personal Income Generated Over 7-Yr Tax Credit Agreement                $35,235,000


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 For Pure Michigan® tourism information, your trip begins at Join the conversation on: Facebook Instagram LinkedIn, and Twitter.