July 1, 2009

Whitney Chooses Rockford

Rockford, IL. June 30, 2009 - Al Julian, Vice President of Marketing for MegaFab, announced to leaders of the Rockford Area Economic Development Council (RAEDC) and the City of Rockford that MegaFab will maintain its manufacturing presence at their Race Street home in south Rockford, and will begin manufacturing two additional product lines in addition to Whitney. According to Scott Filzen, Vice President of Manufacturing and Customer Service, “This is great news for our workforce which has been particularly hard hit during this difficult downturn. We are thrilled to get this commitment from our ownership, and we will use this opportunity to create great efficiencies that will allow us to grow again, as economic conditions allow.”

In addition to maintaining their current workforce of forty employees in Rockford, the Race Street facility will also see an immediate increase of five manufacturing jobs, as well as an anticipated equal number of jobs added in their local supplier base. “I would like to thank the executive team of MegaFab for their decision to stay in our city. Their commitment to providing a quality product and their reputation within the manufacturing industry brings great pride to the City of Rockford,” stated Mayor Larry Morrissey. 

Whitney, a metal fabrication plant that is a division of Mega Fabrication Inc. (MegaFab), was established in Rockford in 1907 as W.A. Whitney. In 2004, the company joined forces with Piranha and Bertsch placing MegaFab as a leader in the metal fabrication equipment industry. The three distinct companies that defined MegaFab maintained two operational locations: Rockford, Illinois which housed Whitney, and Hutchinson, Kansas which was the home to Piranha and Bertsch. 

Well respected in an industry that has seen a 70% loss in sales over the past year, MegaFab saw the change in the economy as a necessary time to improve efficiencies in its operations. The decision to consolidate operations in Rockford came after much analysis and review of the company’s needs to not only sustain during the current economic downturn, but to build for future growth. The move will add manufacturing and assembly of Piranha ironworkers, press brakes and shears, and Bertsch bending rolls and section rolls, to Whitney’s punching and thermal cutting machinery in the Rockford facility.

Several factors came into play in the choice to stay in Rockford. Among those noted, the city’s highly skilled workforce, an existing facility which had the infrastructure to absorb additional operations, and the qualified supplier base, played a strong part in the equation. The city’s central location to key transportation modems such as both airports and land transportation were an additional benefit. Mark Podemski, Vice President for Business Development at the RAEDC further stated “The Rockford Region continues to maintain a much higher concentration of skilled metal-working employees than the national average. In fact, our region has 7.2 times the national average for machinery manufacturing employment and 4.2 times for metals manufacturing and R&D. This is a very compelling reason to consolidate metals manufacturing work in this region”

Whitney’s continued presence in Rockford can in many ways be attributed to financial support the company received from the city in 2004. Facing serious financial challenges and the possibility of closure, then W.A. Whitney was offered an opportunity to merge with MegaFab, acting as the perfect compliment to their existing product line. A $1,000,000 HUD Section 108 loan brokered by the Community & Economic Development Department allowed W.A. Whitney to move forward with the merger saving approximately 50 jobs and adding 30 new positions of which 51% were filled by low and moderate income persons. “Our staff and aldermen took an exceptionally bold move in 2004 when we put the funding in place that allowed the merger to occur. To be rewarded with not only their continued presence in our manufacturing community but their anticipated growth is especially rewarding,” concluded Mayor Morrissey.

Additional Contact Information:

Al Julian

Vice President, Marketing

MegaFab

Whitney / Piranha / Bertsch

Phone: 815.490.0478

Email: ajulian@megafab.com

Reid Montgomery

Director

City of Rockford Community & Economic Development Department

Phone: 815.987.5861

Email: reid.montgomery@rockfordil.gov