Genesis Equipment & Manufacturing plans to grow its operations in Superior and hire more workers. The company wants to begin work on a 9,000-square-foot expansion in February and complete it by mid-April. And when the sawdust settles, Genesis will hire 15 workers, bringing its headcount to 140, general manager Bruce Bacon said.
The expansion would increase the size of the Genesis plant by 15 percent and boost its work force by 12 percent.
Superior Mayor Dave Ross referred to Genesis as one of his city's shining success stories.
"The fact that they continue to grow is really exciting for Superior," Ross said. "We've seen the ebb and flow of various manufacturing companies. But Genesis' success has hinged on the quality of the products it produces."
Genesis designs and manufactures equipment used in the scrap and demolition industries. Ross said that Genesis machines were tools of choice following the Sept. 11. 2001, terrorist attacks on the World Trade Center in New York City.
ADVERTISEMENT
Bacon said the quality of Genesis' equipment is a testament to the high-caliber work force it has assembled in Superior.
Building and equipping the new facility on Connors Point is expected to cost $2.15 million. Ross sees the investment as a positive sign of the company's commitment to Superior. New York-based Dover Corp. bought the company in August 2006.
"We were a bit concerned when we heard there would be a sale," Ross said. "But Dover assured us the sale would be positive for both Genesis and Superior."
Bacon said the company's growth is being fueled by heightened demand for its products, mostly from abroad. Foreign customers account for about 15 percent to 20 percent of the company's business. Bacon said Asia, Europe and Latin America were expanding markets for Genesis.
In 2006, the company logged more than $40 million in sales. Bacon said he expects to boost revenues by about $7 million in 2007.
In addition to selling more new equipment, Genesis expects to broaden its revenue base by offering repair and refurbishing services, following the expansion.
"This move should help us absorb economic swings," Bacon said, saying that during difficult economic times, people may be more inclined to refurbish equipment than purchase new.
He predicts that expanding service will help Genesis strengthen its ties to customers.
ADVERTISEMENT
"We want to focus on being a full-service provider of products," Bacon said. "From cradle to grave, we'll be here to provide parts and service."
PETER PASSI covers business and development. He can be reached weekdays at (218) 279-5526 or by e-mail at ppassi@duluthnews.com .
