By the numbers:
40 — New jobs created over three years as part of the agreement
1,600 tons — Size of new press the company is adding
20,000 — Square feet the company is expanding
$8 million — Total amount Pentaflex has invested in its plant recently
In-depth coverage
The Springfield News-Sun digs into important stories about jobs and the economy in Clark and Champaign counties, including recent stories on the trucking industry and the need for skilled workers.
A Springfield manufacturing firm will hire 40 new workers over the next three years and add 20,000 feet to its plant as part of a $4 million expansion after it has seen business steadily grow over the past few years.
The expansion at Pentaflex, 4981 Gateway Blvd., represents a roughly $8 million investment overall when combined with two servo press lines that were installed last year, said Ross McGregor, executive vice president of the company.
Pentaflex also will install a new 1,600-ton mechanical press at the site. This expansion is the company’s most significant since 2000, when it moved from its previous facility on East Columbia Street to its current location in the Prime Ohio Corporate Park.
“It’s certainly a milestone in the company’s history and we’re looking forward to having the additional capacity here,” McGregor said.
The expansion hinges on approval of incentive packages from the state and the city Springfield that are expected to be reviewed next week, according to several local officials.
Pentaflex has about 130 employees now and will be close to 170 after the expansion. The company has an additional 20,000 to 30,000 square feet of space to grow at its current location if needed, McGregor said.
Pentaflex specializes in producing complex parts using equipment not commonly found in privately owned stamping facilities, McGregor said. The company made a decision years ago to specialize in working with thicker materials than many companies can manage, and has seen sales pick up by as much as 18 percent in the past year, with double-digit growth anticipated several years ahead.
The new jobs will generate more than $1.3 million in annual payroll, said Tom Franzen, assistant city manager and director of economic development for Springfield. Average pay will be about $32,600, he said.
Many of the jobs will be shop floor employees, McGregor said, but the company is also currently hiring program managers and tooling engineers, among other positions.
Construction on existing facilities to add the new 1,600-ton press could begin within the next week or so, if the incentive packages are approved, McGregor said. Construction could be complete by November.
Springfield and Pentaflex already have an incentive agreement in place after the previous expansion, and the new jobs will be rolled into that deal. City commissioners will also consider Tuesday whether to approve an eight-year, 60 percent enterprise zone tax abatement, affecting taxes on the new 20,000 square foot expansion.
Several entities worked together to make the project happen, said Mike McDorman, president and CEO of the Chamber of Greater Springfield.
“Pentaflex has been a significant employer in the Greater Springfield community since 1972,” said Mike McDorman, president and CEO of the Chamber of Greater Springfield. “The Chamber, CIC, city of Springfield, Dayton Development Coalition and JobsOhio worked closely with Pentaflex to help meet their growing needs.”
The city seeks to attract outside firms to the city, but Franzen said as much as 80 percent of new jobs and investment are the result of existing companies that grow and expand.
“It’s understood that we like to attract and continue to get new investment from additional companies, but in the end the real focus is on companies that we have here,” he said.
The city has had recent success with other companies as well, after Palmer Manufacturing recently reached a joint agreement with Italian manufacturer MAUS S.r.l. The two companies will join resources and create a new third company that will lead to five new jobs initially and a roughly $600,000 investment in the city.
The deals are a sign that the local economy has strength, Franzen said.
“We’re happy to work with them to provide the incentives that make it possible,” he said. “We realize the Midwest, Ohio and Springfield are in competition constantly with other states and other countries for these kinds of investments.”
About the Author