This project is a refinance and business expansion request. The principals of Duracolor took over the failing graphics company in 2004. They were able to preserve a substantial number of well paying positions in the community. Over the last three years the management had been able to stabilize the company and bring it to the point where it is ready to grow.
Duracolor is prepared to expand. To do this however, they need to put capital improvements into their current space and to purchase equipment that will allow them to be efficient enough to add staff without having to go to a third shift. They expect to double their employment needs. As a part of this they will also need to tap into local training opportunities – allowing them to tap community residents for these new positions which pay a true living wage (on average $15 per hour).
The $7.5 million project will include funding for capital renovations and new equipment, including a new color printer and printer carousel that will enable the entity to run an additional line during standard business hours. Capital improvements will cover deferred maintenance items such as roofing and windows which will help defray ancillary costs related to heating and cooling.
Duracolor has specifically identified an issue with running a third shift in terms of maintaining a qualified workforce, noting the costs of continual retraining as an issue relative to future growth. The ability to run the business without the late-night shift is anticipated to support employee retention. The firm has committed to working with the local Racine County Economic Development Corporation’s workforce training initiative to help identify and train workers for the new positions.
The project is located in a designated Brownfield and is fully supported by the community as noted by support from the Mayor and from the Racine County Economic Development Corporation. The project will retain 50 quality jobs and will expand the business to create an additional 50 permanent jobs. The company has committed to working with the local training initiative to hire not less than 25% of its workers through their auspices. The project is aligned with the CDE’s mission of funding manufacturing growth in Brownfield areas which supply posi- tions to low-income persons and/or low income community residents.
Total Project Costs $8,700,000
FIRE NMTC Allocation $7,500,000
NMTC Investor US Bank CDC
Closing Date March 2008
FIRE welcomes requests for NMTC’s throughout the year as we work to maintain an active pipeline of viable and potential projects throughout the region.