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Automation & Control Technologies’ (ACT)
and Whelco Industrial, Ltd.’s site in Perrysburg Township |
Automation & Control Technologies (ACT) and Whelco Industrial, Ltd. plan to invest $3 million in the relocation of its facilities into one 80,000 square foot facility in Perrysburg Township.
The project includes land and building acquisitions along with renovation to the existing building. The two companies will only occupy 40,000 square feet of the leased building. When completed the facility will have a 12,000 square foot motor repair shop, a 22,000 square foot electronic repair shop, and 6,000 square feet of office space.
According to Mike Farrar, president of the two companies, it plans to lease the remaining 40,000 square feet. “With this building we not only have the option to grow, but we have the option to lease
out a portion to help our overall cash flow,” he explained.
This new space would bring both ACT and Whelco Industrial, Ltd. together under one roof. Currently, Whelco is located on Marine Drive in Toledo and ACT is located on Fairfield Drive in North Baltimore. Both companies will remain independent, but the addition of the added space will allow greater efficiencies by reducing set up time and allowing for larger pieces of equipment to be serviced on
site, noted Farrar.
The new facility is located next to I-75 and the turnpike. Farrar explained that the new site gives the two companies a “great logistical advantage in terms of getting to its customers quickly.” Farrar explained that ACT repairs circuits all the way to advanced logic controls for this part of its businesses. The equipment can be transported over long distances for a low freight cost. As a result of that, the company is able to service further geographic locations. For large equipment repair, Whelco’s service area is confined to a 100-mile radius because the equipment that is being repaired and serviced is much larger and transportation costs are much higher.
In addition to the relocation, the companies will also be investing in new equipment. The motor shop is adding a 12.5-ton crane and the repair shop is adding a burn-off oven and a bake oven. Additionally, ACT is adding several pieces of new state-of-the-art tech centers; benches; test fixtures; drives; PLC controls; and robotics to its repair shop. “We have a lot of equipment right now but we are putting the pieces and parts together so that they are bona fide test fixtures,” he stated.
The companies plan to add at least eight new employees over the next two to three years. Currently they have a total of 52 employees. Farrar noted that the companies were in talks with Owens Community College about sharing resources and setting up a reciprocal training and co-op program.
It is expected that the companies will be operational in the new facility by early December 2011.
Then, Farrar is planning a second phase, where the companies will buy the facility and make fixed-asset improvements. He noted that these improvements are expected to cost approximately
$300,000 - $400,000.
Farrar explained that the relocation was due to an increased growth within both companies. In the future, Farrar explained that the additional square footage that the companies are leasing will allow them to expand within the facility without constructing additional square footage.
According to the Ohio Department of Development (ODOD), the Ohio Tax Credit Authority approved a 45%, six-year tax credit to ACT and Whelco Industrial, Ltd. for the creation of $700,000 in additional payroll as a result of the company’s expansion in Perrysburg Township. As part of the tax credit agreement, the authority requires the company to maintain operations at the project site in Perrysburg Township for at least nine years.
The companies are also utilizing a 166 loan from the Toledo-Lucas County Port Authority, with financing from Huntington Bank. According to the State of Ohio, the 166 Loan Program is designed
to assist growing manufacturing businesses in acquiring machinery, equipment, and real estate by reducing overall debt service requirements through blending the 166 loan with conventional
bank financing.
According to ACT, it is a private company established in 2004 focusing on industrial electronics and robotics systems repair. It rebuilds electronics for companies in a diverse range of industries, including the automotive, glass, solar, and wind industries. ACT was formed when the electronic, servo motor, hydraulic, and welding repair services of Whelco Industrial, Ltd. were established as a separate entity to efficiently meet customer’s needs. Both companies operate under the same management team.
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