The rising tide of auto manufacturing is lifting all boats, again. As evidence of that, lets take a look at one West Michigan community that has long been a center of manufacturing prosperity.
“There has been a reversal in auto industry supply and we
are seeing P.A. 198 applications (for tax exemptions) from food processers,”
said Kentwood Economic Development Planner Lisa Golder. “These are two major
areas where we had not seen much activity for a while.”
But they are seeing that activity now, and a lot of it. In
just February, March and April of this year, Kentwood city officials have been
asked to approve P.A. 198 applications for $27,762,327 in expansion and
improvement proposals from four companies, three of which are auto suppliers;
GRW Technologies, Inc., Lacks Enterprises, Inc., and Robert Bosch, LLC. The fourth is in food processing, ConAgra
Foods Packaged Foods, LLC.
“I believe the auto industry suppliers are getting ready for
the needs of their customers,” Golder told me, pointing to the strong sales
numbers in May from General Motors, Chrysler and Ford. “What is driving the
food processors? I can’t speak to that, but a lot of these places do contract manufacturing
for food producers. We don’t know who they are supplying but I am assuming that
they are landing a lot of contracts and so forth.”
GRW Technologies
moved its operations from Virginia to Kentwood in 2006. Three years later, the
company that is an injection molding manufacturing company and a preferred
supplier for all main Tier 1 manufacturers leased 42-thousand square feet of
space on 44th Street and is now expanding that footprint by
approximately 100-thousand square feet. The project includes real property
improvements like new automation lines for upcoming projects that are expected
to increase sales and employment. The building’s HVAC system will be upgraded
and other building improvements are planned. The tooling department will be
relocated as part of the expansion.
The total project cost is estimated at $3.765 million.
Lacks Enterprises
is planning a $7.431 million expansion of its Lacks 4260 Air Lane Drive plant
where Lacks Exterior Trim System LLC is housed. The privately held global
manufacturer of components for the auto industry is going to do a 90-thousand-square-foot
expansion of the manufacturing space on the site. They are also planning to
build a 3,600-square-foot office addition and a 6,500-square-foot addition to
the plant’s warehouse space.
The project also includes the purchase of two, 935 ton and
two, 1,500 ton presses along with supporting equipment.
Robert Bosch LLC
plans to add $8.284 million worth of new production lines to its facility at
4700 Broadmoor Avenue in Kentwood. Those lines will be used to manufacture
exhaust gas treatment modules for off-road and on-road vehicles. No one works
at the site now, but Bosch executives have told city officials they expect to
hire 80 people when the lines are up and running.
And finally, ConAgra
Foods wants to increase the speed of production on its manufacturing lines
in the company’s Kentwood facility. This will be the third upgrade at the
plant. ConAgra put more than $30 million in machinery and equipment into the
facility that makes nutrition and cereal bars in 2010 and 2011. This newest
project’s cost is estimated at $8.281 million.
ConAgra has committed to hiring 137 full-time employees when
the project is finished
The death of manufacturing has been greatly exaggerated. It is once again becoming a cluster of prosperity in Michigan.
Before we leave, a word to remember Kentwood Mayor Richard Root. He passed away Friday. It was cancer. Our best wishes and thoughts go out to his family and friends.
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