Part 2: Why a Bad Economy is a Good Time to Start a Capital Project

In one of our last posts we discussed reasons why many industrial firms are starting new capital/process projects in the midst of the bad economy. These companies are allocating funds to invest in new energy-efficient industrial equipment as well as fund major facility expansion projects. Here are some examples of companies who have had success with getting projects off the ground recently:

Fiber Glass Industries
Received a $100,000 grant from National Grid to offset the cost of their 25,000 sq foot expansion project in Amsterdam, NY. The funding will be used to partially offset the costs associated with the construction of gas and electrical facilities, and is part of $10 million the company is investing in new industrial equipment to produce advanced fiber strands. According to National Grid "Investments such as this help communities like Amsterdam remain strong…In these challenging economic times, it is important to support projects that mean expanded business and additional employment opportunities."
PCB Piezotronics
Received a $500,000 grant from Empire State Development Corporation to help purchase and install equipment in a 50,000 sq foot building to expand their sensors and instrumentation manufacturing operations. They’re currently maxing out their existing facilities, and along with the grant are investing over $3.5 million into this significant expansion project. This project will benefit the company by freeing up space in their existing facilities allowing them to optimize efficiencies by condensing operations.
Tyco Electronics
Recently applied for permission from the Newington, NH town planning board on Nov. 8th, 2010 and received approval to launch the project December 13th, 2010; receiving approval in record time. Tyco plans to build a 102,400 sq foot facility, including implementing a state-of-the-art wastewater treatment system to comply with newly-updated EPA regulations.
GW Plastics
Currently applying for Act 250 financing, GW plastics is seeking permission to add nearly 40,000 sq feet of space to their Royalton, Vermont manufacturing facility. They’ve received some opposition from the surrounding neighborhood due to the prospective traffic increase. This is a problem that companies often have to consider when expanding or moving. Read our blog post about factors to consider when relocating an industrial facility.