©2018 Michigan Economic Development Corporation

Haworth Consolidating Operations to West Michigan from Four States

Tuesday, July 13, 2004

Paul Krepps, MEDC
(517) 335-4590

Over 2,000 New Michigan Jobs Expected

"We will continue to work hard and do whatever it takes to bring good paying jobs to Michigan," Granholm said. "I appreciate Dick Haworth and his company's commitment to grow their operations here. In the midst of tough challenges in the office furniture industry worldwide, he has made a significant contribution to the economic well-being of our state."

"Michigan is home," Haworth said "We appreciate how the state and local governments rallied together to make it possible for us to bring new jobs to West Michigan and to encourage the re-creation of our world headquarters in Holland."

Haworth qualified for both a Distressed Business SBT credit and a regular new employment SBT credit. In addition to these credits, Haworth is expected to receive the following other state and local assistance:

  • an Economic Development Job Training (EDJT) grant of $300,000.
  • state property tax abatement of 100 per cent valued at $3 million over 12 years.
  • local property tax abatements in Holland, Allegan and Big Rapids worth an estimated $913,100.

In addition to the 1,000 direct jobs created by the company's consolidation over the life of the tax credit, a University of Michigan economic analysis estimates that 1,414 indirect Michigan jobs will be created. The project is expected to generate more than $1.2 billion in personal income for Michigan workers over the life of the tax credit.

"In the global tug of war for manufacturing jobs, this is a huge win for Michigan," MEDC President and CEO Don Jakeway said. "The right combination of state and local incentives helped us make a good business case for one of the world's most innovative office furniture companies to expand here in Michigan, rather than elsewhere."

In her 2004 State of the State address, Governor Granholm announced a focused plan for achieving a powerhouse economy. So far this year, the Governor and the MEDC have announced the creation or retention of approximately 23,344 jobs as a result of targeted assistance provided by the MEDC.

The Haworth, Inc. consolidation is one of seven major economic development projects the Governor announced today. In all, they are expected to create or retain a total of 5,987 Michigan jobs, including 3,543 directly by the companies.
Lakeshore Advantage, the non-profit economic development organization serving the Holland-Zeeland-Saugatuck region, played a key early role in the process of winning Haworth's business.

"When Haworth officials informed us of a pending decision to move production into or out of Holland and other Michigan facilities, we responded immediately with a well coordinated strategy," said Lakeshore Advantage President Randy Thelen. "With state and local officials working as a team, in a matter of days we were able to address the company's needs and attract these jobs and new investment."

Haworth is a privately-owned company and one of the world's top office furniture manufacturers, with 2003 sales of $1.23 billion. The company currently has 2,400 employees at eight Michigan locations, and approximately 8,500 employees worldwide.

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.

Haworth, Inc.
Economic Analysis
Summary Estimates
(All estimates in 2004 dollars)

Revenue Foregone$10,511,000
Revenue Gain$98,082,000
Average Wage$436/week
Personal Income Generated Over
Life of the Tax Credit Agreement