The steel electrical junction box manufacturer, which has offices spanning North America, Europe and Asia, plans to invest $1.5 million to lease, renovate and equip 100,000 square feet of space in the Ameriplex complex approximately eight miles north of its 300,000 square-foot South Bend headquarters. The facility, which is expected to open its doors in spring of 2013, will serve as the company's primary warehouse for all products sold nationally and internationally.
"After more than 20 such announcements in the last couple of years, it's no longer news when a company from a neighboring state brings jobs to Indiana," said Daniels. "But what's exciting is to see the rejuvenated spirit of enterprise here in South Bend begin to lead in capturing these jobs. Through low taxes, fair regulation and reliable fiscal integrity, the state can lay the groundwork, but it takes proactive, pro-jobs local leadership to make days like this happen, and South Bend clearly has that now."
With its parent company Hubbell employing 14,000 associates across the globe, RACO has 220 employees on the ground in Indiana and plans to begin relocating jobs from its South Holland, Ill. warehouse and recruiting for distribution and administrative positions in South Bend next spring.
"RACO looked at several locations when considering where to relocate our primary warehouse. We conducted a very thorough and formal search, reviewing a number of factors that included corporate and property tax rates, workers compensation rates, freight costs and state and local support," said Chris Hildebrand, vice president and general manager of RACO. "After a thorough analysis, it was clear that Indiana stood out among the pack as the best, most business-friendly choice for our company."
Founded in 1928 in South Bend, RACO is a division of Hubbell Incorporated, an international electrical and electronics producer. With the capacity to produce one million steel outlets, switch and junction boxes and covers per day, the National Electrical Manufacturer Association rated RACO as the number one preferred brand in the rough-in electrical category.
The Indiana Economic Development Corporation offered RACO, a division of Hubbell Inc. up to $600,000 in conditional tax credits and up to $50,000 in training grants based on the company's job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The city of South Bend approved additional property tax abatement.
"Supporting the growth of responsible local businesses is a key priority in the economic agenda and we are pleased to partner with RACO, a company with strong South Bend roots. RACO enjoys a tremendous reputation throughout the world, and we're glad it will continue to be a part of South Bend's legacy of precision manufacturing," said South Bend Mayor Pete Buttigieg. "We welcome RACO's decision to unite its distribution and manufacturing operations here and look forward to a successful partnership for many years to come."
RACO joins a long list of companies that have chosen to shift all or parts of their operations to Indiana from neighboring states. From Modern Forge and CN Railway's announcements last year to relocate operations from Illinois to northwest Indiana (accounting for more than 350 projected new jobs) to Lippert Components and PSP Distributions' recent decisions to relocate operations from Michigan (accounting for more than 460 new jobs) to the Hoosier State, companies continually choose Indiana as the best place to centralize and grow their businesses.