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Precision Aerospace Expands With Help Of State Tax Credit
GRAND RAPIDS —– The Right Place Inc. and the Michigan Economic Development Corp. have announced that West Michigan-based Precision Aerospace Corp. has been awarded a Michigan state tax credit valued at $2.5 million over 10 years, plus tax abatement commitments from the cities of Grand Rapids and Wyoming.
The state tax credit and local abatements will help support the company’s $10.1 million expansion at its plants in Grand Rapids and Wyoming.
"We've been on a steady growth trajectory for the last several years," said Jeff Simpkins, HR manager at Precision Aerospace. He said the company had 83 employees in 2006, but grew to 95 by the end of 2007, and currently has 121 employees.
According to the announcement from The Right Place, Precision Aerospace recently landed a major contract from an unidentified aerospace corporation. The state and local tax incentives enabled the company "to present a highly competitive bid that ultimately won the contract," according to The Right Place.
Mary Ann Sabo, a spokesperson for Precision Aerospace, said the expansion is mainly in the addition of more production equipment and the leasing of additional space at its Wyoming plant, on Linden Street near 36th Street and Eastern Avenue. She said the company expects to add another 60 employees by the end of this year, and at least an additional 100 more over the next several years.
The spokespersons for the privately held company declined to identify its major new customer or its annual sales figures.
Founded in 1956 as Precision Sheetmetal & Machine Co., today Precision Aerospace Corp. is headed by Bill Hoyer, the president and principal owner of the company. The company performs machining, stamping, welding, assembly, testing, and extensive layout and inspection of medium- to high-complexity mechanical aircraft components and assemblies. The company serves over two dozen aircraft customers and approximately 10 non-aerospace customers.
Simpkins said the company is also looking at additional markets outside of aerospace.
When asked about the amount of the local tax abatements, Simpkins said he did not yet have specific details on the abatements.
With the expansion of Precision Aerospace, The Right Place, working with its local and state partners, has generated over $27.9 million in capital investment and assisted in the retention and creation of over 700 jobs in West Michigan in 2008, according to its announcement.