Economic development still starts with manufacturing Aug. 5-6
After the plant more then quadrupled its size in less than four years, officials at Penguin LLC have no regrets about building their industry in Sturgis.
"There isn't a group of people or a town that could have made it much easier," said Rich Gilbert, president of the company.
The plant, which produces blown-molded products suchas chairs, tables and toys, came to Sturgis in 2002. The company started its Sturgis plant with 23 employees. Penguin now employees about 275 and there are no signs of a slowdown.
"I don't see any reason why our business would not continue to grow 20 persent per year for the next three years," Gilbert said.
John Hayes, Sturgis economic development director, said Penguin is one example of the kind of business Sturgis is trying to attract.
Manufacturing has always been the key business to attract to the area and Hayes said that won't change for manufacturing, showing businesses what makes Sturgis and St. Joseph County a hot spot for opportunity.
Manufacturing key
In Sturgis, Hayes said, for every one manufacturing job that's produced, 1.8 additional jobs are created, based on the spendable income made from the manufacturing jobs.
"(That's why) we're going to be much more aggressive on industrial manufacturing jobs," ha said
While much of the nation's manufacturing is going overseas, Hayes said Sturgis has such a strong manufacturing work force already. Because of that, economists tell city officials that manufacturing is a strength that needs to be built upon.
Hayes said in Sturgis, 42 percent of the business base is manufacturing, where as in most communities this figure is between 15 and 20 precent. That's what gives Sturgis workers the skill level that's attractive to manufacturers considering Sturgis, Hayes said.
Besides labor availability, other point that make Sturgis attractive is its proximity to major transportation routes.
"We have a very big advantage and that's Interstate 80 running east and west," Hayes said. "We promote that strongly."
Sturgis' hospital, schools, and other quality-of-life features are a plus that Hayes says he also promotes. He sends out packets of information and is ready to answer questions from businesses looking in.
"The key is to able to respond quickly to those questions and have all your ducks in a row," he said.
Hayes is optimistic about the economic devlopment in Sturgis now. Expansions have happened in the last several months at Penguin, Burr Oak Tool and Gauge and Morgan Olsen. Hayes said those three companies have hired more then 400 people recently.
New perspective
Cathy Annis, director of the St. Joseph County Economic Development Corporation, said regional partnering is a big trend for the future of economic development.
She said counties will work together more to promote growth in, for example, a nine-county region. Regional agencies would show site consultants what the whole region had to offer in the work force, giving the region a better chance of attracting big business.
"If we start looking at ourselves as a region and working together as a region, that puts us in a better position for some of thise big projects," Annis said.
While some may not consider, for example, a business attracted to Cass County instead of St. Joseph County to be a good thing, Annis said today more and more people are willling to commute and an industry nearby is better then no industry at all.
"If we're working together in a regional sense, it's a win-win for everybody," she said.
'As good as it gets'
For officials at Penguin, the area is perfect for the future of their business.
"This is as good as it gets," said Tom Watkins, general manager.
Both Watkins and Gilbert said what makes Sturgis attractive was its labor availability and knowledge about plastic, land value that was better than the Chicago area and Indiana, and railroad accessibility.
The nearby interstate was also a key factor in choosing Sturgis.
The Company recently leased a 175,000-square-foot warehouse in Howe and hope to one day expand into the old Kirsch building. Watkins said this would be perfect because of its size and location-next door to the existing plant.
Penguin attributes much of its success to the city's economic development experts that showed them the ropes in Sturgis in the first place.
They contiue to meet with officials like Hayes regularly to discuss expansion.
"They know how to get things done quickly and don't put up road blocks," said Gilbert. "They're serious when they talk about trying to find jobs in this city."
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