manufacturing - Nevada Business Magazine

M A N U F A C T U R I N G
MANUFACTURING
By Howard Riell
W
ith manufacturing suffering
nationally along with the rest of
American business, it is largely
thriving here in Nevada.
The engine has been a combination of factors – from legislative miscues in California
and a strong Nevada workforce and overall
business climate to the relatively low price of
land and facilities, an available and affordable workforce, savvy strategy and elbow
grease from Nevada’s economic development officials, and even some serendipitous
benefits of the crummy economy.
Going forward, of course, much will
hinge on which way the upcoming election
goes. Texas Congressman Ron Paul echoed
those sentiments on the campaign trail, noting that “A lot of (manufacturing firms) went
overseas because of all the taxes and the
regulations, (and) also (because of) wages.”
Indeed, President Obama himself created a
new cabinet-level Office of Manufacturing
Policy to be co-chaired by the Commerce
Department secretary and the director of
the White House National Economic Council. As he said at its announcement several
months ago, “At this make or break time for
the middle class and our economy, we need
a strong manufacturing sector that will put
Americans back to work making products
stamped with three proud words: Made in
America.”
In August, National Association of Manufacturers President and CEO Jay Timmons
said that his members “are anxious about
where the economy is headed, and recent
weaknesses in other surveys offer no encouragement.” Manufacturers, he said in a statement, have been “quite clear that their most
significant concern is the uncertainty swirling around Washington. Saddling businesses
with tax increases and policies that cause uncertainty only hinders their ability to create
jobs.”
Nevada seems to have dodged at least some
of the bullets that most of the other states
haven’t. Indeed, manufacturing remains one
of the bedrocks of this state’s economy.
According to the Nevada Department of
Employment, Training and Rehabilitation,
153 hotel, motel and casino hotel firms in
Carson City and Churchill, Douglas, Lyons
produced average employment of 20,384 in
2010 ($27,460 in wages per employee). The
manufacturing sector’s 812 firms, on the
other hand, produced average employment
of 17,465 ($51,751 per employee).
Numbers from MIG, Inc., the sole-source
provider of the IMPLAN (IMpact analysis
for PLANning) economic impact modeling
system, show that GDP for the same geographic area and period was $1.02 billion
for hotels/motels/casino hotels (GDP per
employee was $50,106), and $2.06 billion
($118,077 per employee) for manufacturing.
IMPLAN is used to create complete, extremely detailed social accounting matrices
and multiplier models of local economies.
So, how’s manufacturing in Nevada doing?
SPECIAL REPORT SEPTEMBER 2012 | Copyright © 2012 Reproduction Prohibited Unless Authorized By Publisher
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Nevada Industry Excellence
www.NevadaBusiness.com
‘Pretty Well, Actually’
“We’re doing pretty well, actually,” says
Mike Kazmierski, President and CEO of
EDAWN, the Economic Development Authority of Western Nevada, a private/public
partnership committed to recruiting and expanding quality companies that have a positive economic impact on the quality of life in
Greater Reno-Sparks-Tahoe. “And I would
tell you that we have been more aggressive in
our marketing aimed at attracting manufacturing from California, which doesn’t really
appreciate, in many ways, the manufacturing
sector, which is why there was an opportunity for us.”
Manufacturing firms have either come or
are thinking about coming from California
to Nevada, Kazmierski explains, for a wide
variety of reasons. One is that manufacturing
“is oftentimes dirty, noisy, trafficky, messes
up the air, uses water; it has an environmental impact component to it.” While all of that
has been true about the manufacturing sector
for a long time, he continues, “It’s something
that California is less tolerant of now than
they have been in the past, and so the regulations have become more onerous.” Taxes and
permitting have also become more expensive, as has the cost of employment, “whether
it’s unionization or just cost of employees. It’s
much higher.”
Beyond that, Kazmierski explains, as
Nevada’s utility rates come down “it continues to make us more attractive from that
perspective, too. So overall, business climate
and cost of doing business are starting to
really impact the manufacturing, and our
advantages here are becoming much more
pronounced.” That should certainly continue
into 2013, he adds. “We currently have about
40 different manufacturing companies that
we are working with that are considering
Northern Nevada as a place to relocate.”
Manufacturing “brings good jobs to the
state,” confirms Steve Hill, Director of the
Governor’s Office of Economic Development.
“I think we’re seeing a resurgence of manufacturing in the country and in Nevada.”
One of the focuses of economic development – “frankly, the focus on economic de-
Jeff Leake,
Economic
Development Manager,
City of Henderson
velopment,” Hill points out – is businesses
and jobs that export out of the state. “Predominantly, manufacturing in Nevada adds
to the export economy, which brings dollars
into the state through the goods that we provide. The export economy – and when I say
export that, it could be to Arizona or to the
Far East – is really what drives an economy
in a region or state. It’s why there is the focus
on manufacturing.”
Part of the reason the state’s manufacturing sector has remained as strong as it is
has been the business environment across
the state, Hill suggests, “and part is that
we have a work force that is able to do that
work. And then as we have gone through
the tough economic times that we’ve gone
through, the facility costs and housing costs
and all of that have gone down.” And so
while no one looks forward to economic
turbulence, “at this point it has made us attractive to companies. As they’re looking
for facilities, the costs of those facilities in
Nevada right now are very competitive.”
Hill also sees a benefit in the state’s manufacturing covering a variety of industries.
“Electronics are a part of that. We have a
pretty strong cluster of manufacturing in
aerospace and defense, and because that is
growing, it has been helpful. If you drive
from Reno down through Crescent Valley
and into Minden there are some pretty hightech aerospace and defense manufacturers
there. We also have some of that in Southern Nevada, as well. And then obviously the
gaming industry has a big manufacturing
component to it.”
ECONOMIC DEVELOPMENT DIVISION
cityofnorthlasvegas.com
702.633.1523
Nevada Industry Excellence
3
Economic Driver in North Las Vegas
“Manufacturing is definitely an economic driver for us, as well,” reports Terri
Sheridan, Economic Development Administrator for the City of North Las Vegas.
“Depending upon the types of businesses,
manufacturing jobs can typically be a provider of higher wages. We actually enjoy
several high-tech companies here in North
Las Vegas, like Bigelow Aerospace and
Nikkiso Cryo Inc., just to name two. Then
we have other manufacturing as well. We
cover the gamut: food manufacturing, Basic
Food Flavors Inc., Tortillas’ inc. and even
Blue Oasis Shrimp Farm. We’re also growing shrimp in the desert here in North Las
Vegas. Even Windset Farms, hydroponic
growers of English cucumbers, is here.”
What’s bringing companies to North
Las Vegas is, as always, a combination of
factors: availability of land and space and
access to infrastructure, which of course
Steve Hill
Director,
Governor’s Office of
Economic Development
is key to logistics. “Meadow Gold Dairy
opened their facility in early 2004,” says
Sheridan. “They’re located out near the
Las Vegas Speedway with access right to
the (highway).”
Building up the manufacturing sector
in North Las Vegas is “definitely” a priority, Sheridan insists. “It’s a way to further
diversify the economy. In the long run it
will help the state by having those new
businesses added to our already existing
customer base. We’ve got a good assemblage of manufacturing businesses, and
we’re working every day to help those that
are here and try and attract new ones. At-
L to R: Eric Esoda (Awards Chrmn), Dianne Bilderback NVIE, Rhonda Hohenstein NVIE, Terry
Culp NVIE, Sandy Haslem NVIE, Rhea Gustafson NVIE, Roger Kilmer MEP National Director
Nevada Industry Excellence’s
Terry Culp Earns National Honor
Terry Culp, business manager of Nevada Industry Excellence was recently recognized
as Manufacturing Extensive Partnership’s Champion of the year for 2012. The award was
presented at the 2012 Manufacturing Innovation’s national awards program earlier this year.
Culp was recognized for his efforts to support, train and advise Nevada businesses on
manufacturing and product exportation. A total of seventy-five people were nominated for the
award and four other people were named finalists. The award noted Culp’s “overwhelming
commitment to the business growth and transformation of U.S.-based manufacturing.”
4
Nevada Industry Excellence
tracting manufacturing companies will enhance our city’s economic stability and the
state’s, as well.”
Henderson, Home
to Manufacturing Companies
Manufacturing companies “import revenue into a community through their outof-state or international sales,” notes Jeff
Leake, Economic Development Manager
for the City of Henderson. “This importation of new dollars into a region makes it
one of the best employers to have versus
retail firms that recycle dollars through the
economy.” Henderson is home to nearly 50
firms in this sector, helping to validate the
area as a solid place for manufacturers to
do business, he adds. The city is also well
positioned to accommodate the attraction
of new manufacturers or the growth of existing firms in our community.
“Harsch Investment Properties has developed over 1.2 million square feet of industrial properties in Henderson that are
occupied by multiple manufacturers, and
has additional land holdings for future development,” says Leake. “Meanwhile, Colliers International is marketing a new project by Panattoni Development Company
called the South 15 Airport Center. This is
a new master-planned office and industrial
park consisting of approximately 150 acres
adjacent to Henderson Executive Airport
featuring fully improved office, flex, distribution and manufacturing sites.”
From a logistics perspective, Leake
points out, companies can cost-effectively
reach a market of over 25 million within a
250-mile reach. “Over 60 million live in
the states surrounding Nevada, within a
one- to two-day shipping time. Low-cost
shipping opportunities are created here as
the region is a net importer of goods.” In
addition, Nevada’s tax structure along with
the incentive and workforce development
programs that are available to qualified
companies “provide additional opportunities for drawing new businesses and helping existing manufacturing firms in their
local growth.”
www.NevadaBusiness.com
Myriad of Incentives
“I’ve been in manufacturing most all my
life,” says Terry Culp, Statewide Business
Manager and Southern Nevada Operations
Manager for Nevada Industry Excellence
(NIE). It remains a key component of a healthy
economy, he notes. “The industry pays a higher scale, and the benefits are stronger. Each
manufacturing job generates four other jobs in
the community.” Indeed, he adds, the largest
slot machine manufacturer in the world is here,
International Gaming Technology.
“We’ve basically got the best business climate in the U.S.,” boasts Culp. “We’re kind
of the capital of the new mega-West: we
have no corporate income tax, no personal
income, no inventory tax. We’re a businessfriendly state from both the local and state
government perspectives. We have excellent
state incentives. We do actually have a pretty
good workforce, not only computer literate but expanding. They are a cost-effective
workforce, as well.” Nevada also offers a reliable and expanding energy base, with exceptional telecommunications and technology
infrastructure.
Another often overlooked fact is that Foreign Trade Zone #89 now encompasses the
entire Clark County area. “What that means
to a company,” Culp explains, “is that they
can go to the NDA, which has the trade zone
under its name, and file paperwork to be a
foreign trade zone within their own facility.
Then they’re able to bring in goods from
other countries to assemble into their products and ship them out of the country without
having to pay duty on the imported portion
of their product.”
Lean manufacturing technology, says
Culp, has been one of the cornerstones in
the suite of services throughout the state for
the last 12 years. “We have partnered with
Workforce Connections in utilizing lean and
green initiatives, and implementing them
with many companies.”
Terry Culp
Statewide Business Manager
and Southern Nevada
Operations Manager,
Nevada Industry Excellence
(NIE)
industry, Hill believes. “I don’t know that it’s
going to, over the next six months, explode.
But I do know there are a number of companies, particularly in California, looking
to expand into Nevada. Not necessarily uproot their companies and move, of course,
although some might. But certainly as they
expand they would like to do so in an environment that they feel is welcoming and hospitable, and allows them to, within certain
boundaries, operate. I think they’re finding it
harder and harder to do that there. I think it
provides a lot of opportunity.”
Hill’s office is working with some of
the development authorities, and recent-
ly contracted with a consultant in California “to help us get that word out to
those in manufacturing and technology.
We think there are some positive signs
there, and that it will continue to grow.”
He points out that many of those who
have lost jobs here have been in the construction industry – and that “moving
from construction into manufacturing
is a reasonable step to take, so we have
a pretty qualified workforce available. I
think that’s attractive, as well.”
And attractiveness – for whatever combination of reasons -- will be the key to Nevada manufacturing’s future growth.
Contact
For more information about
the resources Nevada Industry
Excellence offers, visit
www.NevadaIE.com
Henderson
NEVADA
The Las Vegas Valley Address For Business Success
Take it from the experts:
• Named as one of the top cities in America to live and launch a business by Fortune
Small Business
• Named one of America’s 50 Best Cities by Bloomberg Businessweek
• Henderson’s Development Services Center was recognized by the University of
North Carolina School of Government as having one of the top three “outstanding
development review processes” of local governments throughout the United States
• The 2011 Kosmont-Rose “Cost of Doing Business Survey” rated Henderson as a
very low cost city, analyzing six types of taxes including business license levies,
property tax, sales tax and utilities taxes in over 400 cities nationwide.
• Nevada ranked among the top 10 states with the most business-friendly tax systems
in the FY 2011 State Business Tax Climate Index released by The Tax Foundation.
Relocate or Expand Your Business to Henderson, Nevada
‘Positive Pace’
Contact the City of Henderson’s Economic
Development/Redevelopment Division Today.
Growth at “a positive pace” should continue right into 2013 for the manufacturing
(702) 267-1650 or visit
hendersonmeansbusiness.com
Nevada Industry Excellence
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Manufacturing
Companies in Nevada
A & B Precision Metals Inc.
A & B Printing
A C Coin-Nevada
A-D Technologies
AB Tube Processing Inc.
ABB Inc.
Absolute Metals LLC
Accupart International Inc.
Accurate Metal Fabricators Inc.
ACH Foam Technologies LLC
Acrylic Tank Manufacturing of NV
Acrylic Works
Advance Energy Inc.
Aervoe Industries Incorporated
AES Industries Inc.
Air Care
Air Design Technologies
Allied Innovations LLC
Altairnano Inc.
Altitude Color Technologies
American AVK Company
American Buildings Company
Ametherm Inc.
Amrak Enterprises
ANC Inc.
Anderson Dairy Inc.
API of Nevada
Aquatic Company
Aristocrat Technologies Inc.
Armand Manufacturing Inc.
Artesian Spas
Atronic Americas
B & C Cabinet & Millwork Inc.
B & J Inc.
Baked in The Sun
Bally Gaming Inc.
Basalite Carson City
Basic Food Flavors Inc.
Bentley Nevada LLC
Bently Pressurized Bearing Company
Berry Plastics Opco Inc.
Big Mountain Imaging
Biga Bakery
Bigelow Aerospace LLC
Bill Miller Engineering Ltd.
Billionaire Mafia LLC
Blackhawk Molding Company Inc.
Blynco Manufacturing & Distribution
BPB Gypsum Inc.
Brazil Granite Company
Brothers Custom Products Inc.
Bruce Aerospace Inc.
Builders Wholesale LLC
Burrows Paper Corporation
BVA Systems Inc.
C.E.S Screw Machine Products
C.G.I Inc.
Cable Connection
Cadillac Stone Works LLC
Cambli International Corp.
Capital Cabinet Corp.
Carlisle & Company of NV
Carls Donuts Inc.
Carry-on Trailer
Casino Lighting & Sign
Catalina Draperies Ltd.
Catalina Graphic Films Inc.
Chef Jays Food Products
Chemstar Lime
Chevron Phillips Chem Co Ltd.
Chromalloy Nevada
City Lites Electric Sign Company
Clearwater Paper Corporation
Click Bond Inc.
CMC Steel Fabricators
Coast Drapery Service Inc.
Coast Poly LLC
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Cole Kepro International LLC
Color Reflections
Commscope Inc
Complete Global Marketing Inc.
Complete Millwork Services Inc.
Conagra Foods Food Ingredients
Cooper B-Line Inc.
CPI Card Group - Nevada Inc.
Creative Light Source Inc.
Creative Surface Solutions
Creel Printing Company
CSR, Inc.
Custom Stamping Inc.
Cyanco
D S P Inc.
Damon Distributing Company
Data-Forms Inc.
Davis Vision Inc.
DEA Incorporated
Deco West Inc.
Desert Glass Products LLC
Desert Truss LLC
Diablo Industries
Diamond Plastics Corp.
Dolphin Machine Inc.
Dot Printer Inc
Dr Pepper/7-up Bottling Co
Dura-Bond Bearing Company
Duraflex International Corp.
Duro Manufacturing Inc.
Dynagraphic Printing Inc.
Dynamic Isolation Systems Inc.
Dynojet Research Inc.
E E T Inc.
E Gads LLC
Ebara International Corp.
Edner of Nevada Inc.
Electra Therm
Elite Energy Systems LLC
Elite Spice Inc.
EM Research Inc.
Erickson International LLC
Ethel M Chocolates, Inc.
Fan Equipment Co Inc.
Farm Fresh Foods Inc.
Feldmeier Equipment
Fine Line Laminates of Las Vegas
First American Millwork Company
Fisher Space Pen Company
Fisher Technical Services Inc.
Foliot Furniture Pacific Inc.
Foreland Corp.
Fort Dearborn Company
Fortifiber Corporation
Fortunet Inc.
Franco American Baking Company
Freeds Blvd Bakery
Fresh & Ready Foods of Nevada
Fresh Cuts LLC
Gaming Partners International
Gary Platt Manufacturing LLC
GE Engine Services Inc.
Gemini Incorporated
Geneva Pipe Company of Nevada
Genova-Nevada Inc.
Georgia-Pacific Gypsum LLC
Gills Printing & Business
Gist Decor
Glasfloss Industries, Ltd.
Globe Turbochargers
GM Monarch West LLC
Good Humor Breyers
Gourmet Baking Inc.
Graham Packaging Company Ltd.
Grand Products Nevada Inc.
Granello Bakery Inc.
Graphics West
Nevada Industry Excellence
Great Basin Ready Mix Inc.
Great Buns
Gyford Productions
H & H Enterprises
Haigs Quality Printing-Nv Inc.
Hamilton Holding Managment Corp.
Harris Salinas Rebar Inc.
Haws Corporation
HB Sealing Products
High Quality Organics Inc.
Hood-EIC LLC
Houston A.C. Lumber Co.
HV Manufacturing Company
HVA LLC
Hytek Microsystems Inc.
Idahoan Foods LLC
Impact International Inc.
International Game Technology
Interstate Brands West Corp.
James Gaskets Inc.
James Hardie Bldg Products Inc.
JCS Technologies Inc.
Jensen Pre-Cast
Jiffy Air Tool Inc.
Jim Wilkin Trucking LLC
Jimenez Arms
Johns Manville
Just for Show Inc.
Kal Kan Foods, Inc.
Kalco Lighting LLC
Kennametal Inc.
Kens Foods Inc.
Kimmie Candy Company
Kloehn Inc.
Konami Gaming Inc.
L & M Creations Inc.
Las Vegas Color Graphics
Las Vegas Esthetics Inc.
Las Vegas Finishing LLC
Las Vegas Rock, Inc.
Letica Corporation
Liberty Duct LLC
LSP Products Group
Luxury Kitchen Hoods LLC
Marathon Equipment Co.
Martin Iron Works Inc.
Max Packaging Company
Maxton Manufacturing Company
Meadow Gold
Medallic Art
Messenger Molding Inc.
Metl-Span LLC
Micro Matic Usa
Microclean & Visa Pkg. & Savoy
Microdental Las Vegas
Micrometl Corporation
Microsun Electronics Corp.
Model Dairy LLC
Modern Concrete Inc.
Moltan Company
Monier Lifetile LLC
More than Bread
Mr Wok Foods Inc.
MS Intertrade Nevada LLC
MSM Sheet Metal & Steel Fabrication
Multi-Pure Drinking Water Systems
NAFCO Usa
Nailor Industries
National Las Vegas
Nevada Cement Company
Nevada Color Litho
Nevada Custom Cabinets
Nevada Ready Mix Corp.
Nevada Sign
Newera Manufacturing Inc.
Niotan Inc.
North Sails Nevada
Nothing Bundt Cakes
Nvision Glass Fabricators Inc.
Oakley Inc.
Ocean Spray Cranberries Inc.
Olam West Coast
Olson Precast Company
Omega Products
Owens Precision Inc.
Pabco Gypsum
Pacific Coast Flange Inc.
Pacific Radomes Inc.
Pacific Showcase
Palco Industries Inc.
Panavise Products Inc.
Panda Windows & Doors-Operatio
Paterson Pacific Parchment Company
Paughco Inc.
Pavestone Company
PCC Structurals Carson City
PDQ Printing of Las Vegas Inc.
Pepsi Bottling Group
Performance Ready Mix LLC
Perma-Cal Industries Inc.
Piedmont Truss & Lumber Inc.
Pioneer Americas LLC
Plasma Etch Inc.
Plastic Specialties & Tech Inc.
Pololu Corporation
Poly-West Inc.
Polyglass USA Inc.
Precast Management Corporation
Precision Aggregate Products LLC
Precision Engine Parts of NV
Precision Metals Inc.
Preferred Laminations LLC
Primex Plastics Corporation
Priority Plastics Inc.
Pro Line Printing Inc.
Pro-Dex Astromec Inc.
Production Pattern & Foundry
Prototype Concepts Inc.
Purafilter 2000
Pure Essence Laboratories Inc.
QGR LLC
Quality Iron Inc.
Quality Supply LLC
Ralston Foods Company
Ramsey & Son Inc.
Range Road Plant
Ready-Mix
Red Ribbon Bakeshop Inc.
Redco
Reddy Ice
Redemtech
Reno Agriculture & Electronics
Reno Iron Works
Reno Truss
Reno-Sparks Ready Mix
Restroom Facilities Ltd.
RIX Industries
RMAX Operating LLC
Rockway Precast Inc.
Rodeo Creek Gold
Royal Printing
RR Donnelley & Sons Inc.
Sausage Factory Inc.
Securitron Magnalock Corp.
Selma Treating of Nevada Inc.
Sequence Center for Advanced D
Server Technology Inc.
Service Rock Products
Seven CS Mfg Inc.
SGPS Show Fabrications Inc.
Shelby Automobiles Inc.
Sherwin-Williams
Shooting Ranges International
Sierra Control Systems Inc.
www.NevadaBusiness.com
Sierra Ice LLC
Sierra Machinery Inc.
Sierra Nevada Corporation
Sierra Packaging & Converting
Sierra Ready Mix
Sierra Stainless Inc.
Silver Screen Printing
Silver State Marble LLC
Silver State Materials Corp.
Silver State Web Inc.
Silver State Wire Rope & Rigging
SK Food Group Inc.
Sloan Readymix
Sonny Sushi Company Inc.
Sonoma Scientific Inc.
Southwest Printers
Spacecraft Components Corp.
Specline Nevada Inc.
Stage Technologies Inc.
Starbucks Coffee
Sternschnuppe LLC
Sun State Components of NV Inc.
Sunkist Graphics Inc.
Sushi Bento
Synq Solutions Inc.
T & D Machine Products Inc.
Tahoe Springs LLC
Taiyo America Inc.
Thatcher Group Inc.
Themeing Solutions Inc.
Thyssenkrupp VDM USA Inc.
Time Fastener Company Inc.
Titanium Metals Corporation of
TMX Inc.
Tortillas Incorporated
Total Quality Pallets LLC
Trade Show Fabrications West
Trex Company Inc.
Triad Plastic Technologies
Tripp Enterprises Inc.
Tronox LLC
Truckee Meadows Optical
Tuff Shed Inc.
Tyco Valves & Controls Ltd.
U S Ordnance
United Engine & Machine Company
United States Gypsum Company
United States Welding Corp.
Universal Analyzers Inc.
Universal Bakery Inc.
Universal Brass Inc.
Universal Urethane Inc.
V.S.R. Industries Inc/Sheet Metal
Varian Medical Systems
Vegas Fastener Manufacturing
Vegas Royalty at Grand Cannal
Veka West Inc.
VIA Inc.
Victory Woodworks
Viking Metallurgical Corp.
Vinyl Products Mfg., Inc.
Vision Sign Inc.
Vital Systems Corporation
Von Drehle Nevada LLC
VRP Manufacturing LLC
Wallace Integrated Graphics
West Best Foods Inc.
West-Pack Industries LLC
Western Casework Corp.
Western Money Systems
Westinghouse Airbrake Company
World Color Printing USA Corp.
Worldpak Flexible Packaging
Worthington Armstrong Venture
Xtreme Manufacturing LLC
Young Electric Sign Company
Your Vitamins Inc.
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