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Tuesday, August 19, 2008
State support helps aerospace/defense manufacturer secure new business
Governor Jennifer M. Granholm today announced Grand Rapids-based Precision Aerospace Corp. (PAC) is launching a $10.1 million expansion project at its operations in Grand RapidsandWyoming. The project is expected to create 190 new jobs at the company and an additional 159 spin-off jobs over the next 10 years. Assistance provided by MichiganEconomic Development Corporation (MEDC) helped PAC secure new a contract from its largest customer against competing bids from other companies.
“This expansion demonstrateswe have the outstanding workforce and business climate needed for advanced manufacturers like PAC to produce the next generation of homeland security and defense applications and grow good-paying jobs in Michigan,” Granholm said.
Based on the MEDC’s recommendation, the Michigan Economic Growth Authority board today approved a state tax credit valued at $2.5 million over 10 years to secure the company’s investment. To support the expansion, the cities of Grand Rapids and Wyoming have proposed 12-year abatements to support the project.
“A new cache of economic development tools and other efforts underscore the steps we’re taking to diversify our economy and help Michigan companies compete in today’s global economy,” MEDCPresident and CEO James C. Epolito said. “We appreciate the support and cooperation of Grand Rapids, Wyoming and The Right Place Inc. in helping to make a strong business case to win this project and the new jobs that will be created as a result.”
An economic analysis conductedby the MEDC estimates that increased economic activity created by the expansion will generate an additional 559 indirect Michigan jobs, in addition to the 460 created directly by the company. The project is expected to generate more than $923 million in personal income for Michigan workers over the life of the tax credit.
The PAC expansion is one of 20economic development projects the Governor announced today. In all, they are expected to create and retain a total of 9,495 Michigan jobs.
“Precision AerospaceCorp. is proud to expand its Grand Rapids and Wyoming operations and keep these exciting aerospace and defense jobs in Michigan,” PAC President William Hoyer said. “The incentives offered by the MEDC, the cities of Grand Rapids and Wyoming and the support offered by The Right Place Inc. have gone far to help us remain competitive with the companies from other states that were vying for these contracts. We’re very optimistic about the opportunities this business will afford PAC and the community at large.”
Founded in 1956as Precision Sheetmetal & Machine Company, PAC has grown to become a key supplier to its customersin the aerospace/defense industry.The company performs machining, stamping, welding, assembly, testing, and extensive layout/inspection of medium to high complexity mechanical aircraft components and assemblies. The company serves over two dozen aircraft customers and approximately ten non-aerospace customers. More information is available at http://www.precision-aerospace.com/.
“Retaining and expandingWest Michigan businesses continues to be one of our strategic priorities,” said Birgit Klohs, president and CEO of The Right Place. “Manufacturing in West Michigan remains strong, and Precision Aerospace’s expansion demonstrated proof of this. The collaborative efforts of The Right Place, the MEDC and the cities of Wyoming and Grand Rapids made this project a success.”
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.
Precision Aerospace Corp.
(All estimates in 2008 dollars)
TOTAL JOBS CREATED 349
NET STATE REVENUE IMPACT $8,088,000
Revenue Foregone $2,545,000
Revenue Gain $10,633,000
Average Weekly Wage $724
Personal Income Generated Over 10-Yr Tax Credit Agreement $138,095,000
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 www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.
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