Esterline & Sons is planning to build a 45,000 square foot facility at a cost of $3 million to $5 million that will serve as the manufacturer’s new home.
The company has 60 employees and will be moving them from Esterline & Son’s location at Old Clifton Road, which is 18,000 square feet.
The employment incentive agreement states that Springfield will provide a grant to the manufacturer over a four year period. The reason for the agreement is due to Esterline & Sons plan to bring at least 55 jobs to the business park.
With those jobs moving to the new facility, the expectation is that Esterline & Sons will generate about $4 million in payroll and $40,000 in income tax annually.
The majority of those jobs are already filled but some are expected to be new as well said Tom Franzen, Director of Economic Development for Springfield.
The agreement states that the grant amount that will be given by the city will be for 50% of what Esterline & Sons generates in income tax annually and that number is dependent on the number of jobs at the new facility.
The grant amount could be a total of $80,000 by the end of the four-year period using an estimate that Esterline & Sons will contribute a total of $160,000 in income tax revenue during that timeframe, Franzen said.
Esterline & Sons is slated to start construction of its new manufacturing facility as soon as this month and is slated to move in by 2023, Franzen said.
The longtime Clark County manufacturer specializes in light precision machining manufacturing and makes small parts for medical equipment, jet engines and commercial food equipment.
John Maurer, president and CEO of the company, told the News-Sun that demand has increased in a number of sectors in manufacturing following impacts caused by the coronavirus pandemic.
Maurer said he is optimistic about his company’s growth, adding that it is important to have space to accommodate it.
“This site gives us the opportunity to grow as a company. There is also room to double the size of the building,” he said of the land that the new facility will be located on.
Maurer said that it will also give them room to expand the number of employees they have and that increase depends on the demand for Esterline & Sons services.
By the numbers
$80K: Potential amount of grant in agreement between Springfield and Esterline & Sons
45K: Square footage of new Esterline & Sons facility
$3M-$5M: Estimated cost of new Esterline & Sons building
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