Hidden Momentum Building for Manufacturers-In Case you missed this story

September 22nd, 2008 at 01:43pm Bob Trojan

A good story that seems to contradict some of the other stuff we read….

Most of the economic headlines this summer have been grim — rising unemployment, federal takeovers of major banking institutions, stagnant home prices, and rising gasoline and food costs.

But if you can afford to look past what’s happening now and look at what’s being built in the Rock River Valley, the area’s manufacturing economy is poised for a rebound, Janyce Fadden, president of the Rockford Area Economic Development Group, told a crowd of about 125 at the organization’s quarterly breakfast Friday.

Fadden pointed to five major projects this year, including the Danfoss Drives and Woodward Governor expansions that together will cost about $85 million, that will bring jobs or ensure jobs are staying in the Rockford region.

For decades, Rockford’s historically strong manufacturing sector has been receding as companies have been forced to look at moving jobs to lower-cost countries such as India and China.

But the weak U.S. dollar and rapidly rising fuel costs have dramatically reduced the gap between U.S. manufacturing and the world.

“Price advantages around the world are changing, being minimized, creating the need for foreign companies to have U.S. locations, but also for the high-tech product created here to be used in other countries to they can maintain their productivity rates,” Fadden said.

Friday’s group also heard the results of a Global Economic Survey that was compiled by Northern Illinois University’s Regional Development Institute. Rebecca Steffenson, senior research associate, said the results showed there continues to be tremendous opportunity for local companies looking to sell overseas.

Steffenson said what companies were looking for from the RAEDC was more trade missions, more information on how to make contacts with overseas customers.

Two years ago the RAEDC led a trade mission to Sweden, hoping to help local companies build a rapport with one of the most technologically savvy economies in the world. The seeds from that mission bore some fruit this week, when Rockford’s Leading Edge Hydraulics signed an agreement with Jimec AB, a Swedish automation company. The two are forming a company to ship Leading Edge’s products to European clients.

The new company, Leading Edge Hydraulics AB, will begin shipping products to the European operations of companies such as John Deere, Hitachi, Caterpillar and Haldex.

Assistant Business Editor Alex Gary may be reached at agary@rrstar.com or at 815-987-1339.

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Local manufacturing’s big ‘wins’
Five major manufacturing projects announced and launched this year:Acument Global Technologies chose Rockford for its Camcar Aerospace production center and headquarters. Acument hopes to grow revenues to $70 million annually within three years.Danfoss Drives broke ground on a $32 million expansion of its Loves Park plant. The extra space will double the company’s payroll to 500.A newly formed company, Rockford Automated Machining, won a contract to make brake drums in Rockford. The work was being done in China. The contract will create 40 jobs.

Woodward Governor is expanding and remodeling its landmark Loves Park plant for $50 million. The project won’t add more jobs, but it does ensure the company will keep the 1,500 now working in Loves Park and Rockton here.

Eclipse Combustion Inc. celebrated its 100th anniversary. The family-owned operation also completed a renovation of its Rockford operations interiors.

Entry Filed under: People, Productivity, Technology, Economy