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Logistics Provider Sees Window of Opportunity in Wisconsin

The cost of doing business leads TNT Logistics to choose state for facility to ship Andersen windows and doors.

  [ 10/1/2002 ]  By: Ken Krizner   Related Link...  Print This Article  Reprint/License This Article  

TNT Logistics' decision to build a facility in Menomonie, Wis., to support distribution of Andersen Corp.'s windows and doors was influenced heavily by the proximity to Andersen manufacturing plants and a business-friendly atmosphere fostered by the state.

The Jacksonville, Fla.-based company is constructing a 650,000 square foot inbound and outbound distribution center. The facility will receive finished goods from Andersen's manufacturing facilities, as well as from some of its suppliers. From the facility, Andersen windows and doors will be shipped to distributors throughout the country.

The distribution center will support Andersen assembly plants in Menomonie, Bayport, Minn., Cottage Grove, Minn., and Centralia, Ontario. It will employ 300 people when fully operational and leverage $25 million in additional investment. The facility is expected to open by the end of the year.

The logistics provider had a number of sites on its radar screen when it was in the decision-making process, including other communities in Wisconsin and Illinois.

"When we have a project of this magnitude, we take a lot of things into consideration," said Mark Morrison, senior vice president of business development for TNT Logistics. "When we looked at all costs relative to labor, capital property, taxes and transportation, Wisconsin and, specifically, Menomonie came up very high."

The Wisconsin Department of Commerce supported the move by providing a $500,000 major economic development loan to assist in the purchase of equipment, a $375,000 economic development grant to assist in infrastructure improvements, and a $325,000 customized labor-training grant to help train 130 new employees.

The plant is being built based on Andersen's sales forecasts during the next five years, giving the facility considerable room for growth, Morrison said.

Renovated Plant

Assembling Outboard Motors

Montreal-based Bombardier chose a four-year-old former book publishing plant in Sturtevant, Wis., to consolidate its U.S. manufacturing operations for recreational outboard motors. The company will build its Evinrude and Johnson brands in the facility.

Eventually, about 1,000 people will be employed at the facility, which began operations in September 2001. Currently, there are 600 employees.

Wisconsin helped entice the deal by offering a $1.5 million loan from the Department of Commerce's Major Economic Development Program, and a $500,000 customized labor-training grant.

In addition, the plant sits in an economic development zone, so Bombardier can take advantage of up to $3 million in tax credits.

Bombardier also bought an adjacent office building and has an option on an additional 31 acres for possible expansion.

FACTS & CONTACTS / WISCONSIN

DEMOGRAPHY AND ECONOMY

Population: 5.4 million

Capital: Madison

Three Largest Cities: Milwaukee, 596,974; Madison, 208,054; Green Bay, 102,313

GSP: $173.5 billion

Per Capita Income: $27,390

Percentage of Private Manufacturing Labor Force Organized: 22.5%

Right to Work State: No

Unemployment Rate: 4.7% (July '02)

Average Hourly Manufacturing Wage: $14.30

Population Age 25 and Over With Bachelor's Degree or More: Milwaukee, 14.8%; Madison, 42.0%; Green Bay, 16.7%

Corporate Income Tax Rate: 7.9%

Primary Industries: Wood and paper products, commercial printing, dairy products, automobile parts and assembly

Targeted Industries: Computer and data processing, business services, plastic products, forest products, biotechnology, production machinery and equipment

BUSINESS ASSISTANCE

Worker Training Programs: Customized

Labor Training Fund

Enterprise Zones: 18

Foreign Trade Zones: 10 - Milwaukee, Kenosha, Janesville, Oak Creek, Sturgeon Bay, Blue Mounds, Brown County, Hudson, Osceola, Plymouth

Technology Zones: 8

FOR MORE INFORMATION CONTACT

Scott Reigstad, Director, Forward Wisconsin,

201 W. Washington Ave., Suite 500, Madison, WI 53703, (608) 261-2500, fax: (608) 261-2518, Web: www.forwardwi.com

 



 
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