$1B expansion starts at TN manufacturing campus
Auto parts maker Denso Manufacturing's Maryville, TN, campus is undergoing a $1 billion expansion that will create 1,000 additional jobs for the county, according to The Daily Times.
The project connects several existing structures and will include a new, 360,000-square-foot building. Upon completion, the campus will total more than 3.5 million square feet of space. Completion is set for January 2019.
The Japan-based company also recently invested $75.5 million in its Dublin, OH, and Southfield, MI, facilities, Area Development reported.
Denso’s investment is a boon to the Maryville economy, considering that the town numbered less than 30,000 people as of 2014. As the U.S. economy continues to improve, more companies are looking to expand and the cities in which they do so will reap the benefits, though they'll have to contend with some downsides as well.
Take Perryville, MO. Nearly one in three workers in the town are employed in manufacturing and it has a low unemployment rate of 5%, Forbes reported in 2012. This is all thanks to a handful of large manufacturing facilities there that employ thousands of workers.
It's not unusual to see large companies based in small towns. Business Insider researched 11 major companies, including Dick's Sporting Goods and PepsiCo, that are based in towns with less than 7,000 people.
The biggest lure of a small town is the space to not only build big initially, but to possibly expand one day. Seeking taxable revenues and more jobs, local and state governments also often offer tax breaks, grant funding and other credits to entice businesses.
As many benefits as there can be, welcoming large facilities doesn't come without concerns for the surrounding community.
Residents sometimes are forced to relocate to make room for the new infrastructure. That could become the case in Racine County, WI, as the area plans to welcome Foxconn’s new $10 billion, 20 million-square-foot flat-panel display factory.
Some of the most well-publicized lessons in such growth come out of Seattle, home to Amazon. The e-commerce giant’s quest for a second North American headquarters has shed light on the downsides of housing a mammoth corporation. Those include rapidly increasing housing costs, more traffic, crowded public transit, and pushback on the use of taxpayer dollars to fund big incentive packages.
- The Daily Times $1 billion DENSO project underway
- Area Development DENSO Plans $1 Billion Expansion at Maryville, Tennessee, Auto Parts Plant