Powering up
Generac to spend $73 million to expand facilities in state, add 400 new jobs
Generac Power Systems Inc. announced Monday it will expand its headquarters in Waukesha and manufacturing facilities in Wisconsin to create at least 400 new jobs in the next five years.
Generac, which manufactures power generation and engine-powered products, plans to spend $73 million to expand its corporate headquarters, research and development, and production operations.
The company will receive up to $10 million in enterprise zone tax credits from the Wisconsin Economic Development Corp. for the project through 2021.
Generac will renovate buildings and equipment at its facilities in Waukesha, Oshkosh, Jefferson, Eagle, Whitewater and Berlin.
“As we’ve grown and added facilities throughout Wisconsin, it became clear that we needed to invest in a cuttingedge space at our corporate headquarters allowing us to dramatically advance our key product development and engineering activities,” Generac President and CEO Aaron Jagdfeld said in the release. “We’ve been on our current campus since 1965, but a lot has changed since then. This project will help us realize efficiencies at our headquarters facility that will drive continued innovation.”
While the company expands its home operation, it has grown recently through global acquisitions. Since 2012, Generac acquired firms in Germany, Italy and Mexico. Those new businesses helped sales increase last quarter 16%, to $331.8 million. Earnings for the quarter fell to $25.8 million, driven by a weak market for home power generators.
The improvements will enable Generac to make prototypes and tests products faster.
According to the release, state tax credits awarded to the company will be dependent on how many jobs are created, investment in employee training and capital spent on the project.
Generac said it will add at least 400 jobs. It currently has about 2,000 employees in Wisconsin.
“In addition to the jobs created by this project, this expansion will enable Generac to usher in a new era of innovation and develop products to reach new markets and position the company for future growth,” said Mark Hogan, secretary and CEO of the WEDC. “That is good news for southeastern Wisconsin and the entire state.”