Three manufacturers seek assistance from Grand Forks, ND, for expansions

Three Grand Forks manufacturers are approaching the city’s Growth Fund Committee for help with expansion today, one of several signs of spring for that sector.

LM Glasfiber, which is changing its name (see linked story); Ideal Aerosmith and American Defense Industries are working on projects worth a combined total of $3.7 million and they’re seeking low-interest loans from the city for about 30 percent of that amount.

New jobs will be minimal at first — city documents show projected job growth of about 44 — but the companies say the investment in equipment will help them grow.

Klaus Thiessen, president of the Grand Forks Region Economic Development Corp., said many local manufacturers are in reasonably good condition having hunkered down during the economic recession. Now, they’re geared for growth again, he said.

His employer, the EDC, is a public-private group that helps local manufacturers and other businesses that export goods and services outside the region. The EDC recommended the Growth Fund loans.

At Job Service North Dakota, area manager Keith Reitmeier said it has been only in the past couple of months that he’s seen more hiring in the manufacturing sector. He suspects new jobs will be scarce for a while as manufacturers rehire furloughed workers or otherwise fill positions that they had left empty during the recession.

The Growth Fund committee will convene at 4 p.m. today at the Office of Urban Development.

JOB RETENTION

LM Glasfiber, now LM Wind Power, a maker of wind-turbine blades, is among those not bulking up its work force by too much. With 703 workers, it’s still one of the largest private employers in Grand Forks, despite downsizing in recent years. In its application to the Growth Fund, it said city loans would help with job retention.

Reitmeier said, though, that the company is participating in the large job fair from 2:30 to 6 p.m. today at the Alerus Center, meaning it’s hiring some new workers.

LM is seeking $750,000 in new equipment to improve efficiency and safety at its plant in the city’s Industrial Park. Of that, $500,000 at 2.4 percent interest would come from a fund the city received from the U.S. Economic Development Administration.

JOB GROWTH

Ideal Aerosmith, a maker of test equipment for aircraft and missile components, and American Defense Industries, a maker of metal components for tanks, trucks and other vehicles, are among those that are bulking up fast.

Both are adding new space and new workers.

American Defense Industries is planning a 5,040-square-foot addition to its plant on Gateway Drive and some new equipment at a cost of $245,000. It’s seeking $220,500 in loans from the city at 2.44 percent interest.

With that growth will come six new workers, a 12.5 percent increase over current levels.

Ideal Aerosmith, based in East Grand Forks, is buying a 20,000-square-foot facility on South Washington Street at a total cost of $2.7 million. It’s seeking $408,000 in loans from the city at 2.44 percent interest.

The company plans to add 38 new workers, a 30 percent increase.

SLOW REBOUND

It’s not unusual that Ideal Aerosmith and American Defense Industries are adding jobs. The defense industry and its subcontractors have been relatively robust, Thiessen said.

Despite manufacturing suffering overall nationwide, he said some sectors have suffered more than others. Cirrus Design has been hit hard, for example, because private aircraft are essentially luxury items. The Philadelphia Macaroni Co., on the other hand, has seen brisk sales because pasta is affordable and consumption goes up in down times.

Both companies have plants in Grand Forks.

Manufacturing is key for economic growth because, by and large, these businesses bring new money into the economy. But the reliance on the national economy also leaves them more exposed to larger economic trends.

Reitmeier said local manufacturing is coming back now, but it’s not yet anything like it was two to three years ago.

In February, there were 3,700 manufacturing jobs in Grand Forks and Polk counties, he said. In February 2009, there were 3,800, he said. But a few months ago, there were even fewer, he said, so 3,700 is a rebound.

Tags: daily updates, grand forks nd, lm glasfiber, ideal aerosmith, american defense industries