©2018 Michigan Economic Development Corporation

Michigan Economic Development Corporation Announces Eaton Hydraulics Expansion in Blackman Township

Tuesday, September 18, 2001

Jennifer Kopp

176 New Jobs to be created for Michigan Workers

176 New Jobs to be created for Michigan Workers

Eaton Hydraulics, Inc., will expand its operations in Blackman Township thanks to a Michigan Economic Development incentives package.

It is estimated that the expansion will create 176 new jobs, 119 directly by the company, for Michigan workers.Of the new jobs, 57 spin-off jobs will be created from increased spending by people who receive income from the jobs at Eaton Hydraulics, according to an economic analysis completed by the University of Michigan.

“Eaton Hydraulics’ decision to expand in Blackman Township will ensure their continuing presence in Michigan,” said Doug Rothwell, president and CEO of the MEDC.“Not only will the jobs be retained, the community will also gain 119 new jobs.This is a great example of the collaborative efforts put forth by the local community and the MEDC.”

A key component of the assistance provided by the MEDC is a Single Business Tax credit worth $2.4 million over the next 10 years. The incentive package also includes an Economic Development Job Training Grant totaling $190,000 to train existing and new employees.In addition, the state will provide an abatement of the six mills State Education Tax valued at $100,440.

Blackman Township has also approved a 50 percent tax abatement of the company’s personal property taxes for 12 years valued at $422,000.

This project will provide more that $8.2 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of more than $5.7 million, after the tax credit.The project is expected to generate more than $102 million in personal in come during that time.

“This has been a great opportunity for the local economic development community to partner with the Michigan Economic Development Corporation to assist one of our larger manufacturing employers to stay and expand in our community,” said David C. Miller, vice president, The Enterprise Group of Jackson,Inc.,“Recent plant closings have rocked this community and raised the unemployment levels and we really fought hard to provide Eaton Corporation with all of the right reasons to expand in Jackson.Our thanks go out to the MEDC for their hard work and commitment to business.”

Eaton Corporation recently acquired Motion Control, Inc., located in Rockford, Illinois.Michigan was selected over Illinois as the site to consolidate the two facilities. The company’s capital investment will total about $5.4 million over a three- year period to facilitate the expansion, which will include the purchase and installation of new production equipment.

Eaton Hydraulics is a manufacturer of engineered products to serve industrial, vehicle, commercial and aerospace markets.The company has numerous facilities in Michigan employing a total of 4,876 people.

“Eaton Corporation’s decision to expand production at its Jackson, Michigan, Cylinder Plant is a recognition of the outstanding work skills of our Jackson employees and the company’s confidence in their performance,” said Bob Davis, Jackson Plant Manager.“One other factor was the willingness of state and local leaders to work with us to make this decision financially viable.”

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.

Eaton Hydraulics, Inc.
Economic Analysis
Summary Estimated
(All estimates in 2001 dollars)




Revenue Foregone$ 2,476,000
Revenue Gain$ 8,210,000
Average Wage$ 625 week
Personal Income Generated Over
Life of the Tax Credit Agreement