Quote:
Originally Posted by Shane826
So they are building a new facility from the ground up? That seems like a lot of startup capital that could've been saved by staying put. Or is the Nebraska location actually holding them back some how (workforce, taxes)?
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Shane -
My understanding is that Bob and Cleo own the Nebraska facility personally. Apparently, they didn't sell it to OES/TM Industries as part of the TM acquisition. The reasons for this decision are unknown to us, though I can believe that being closer to TMI's home office and existing fabrication facilities would be part of it. I think the new location is also closer to an Interstate. Anyone who has visited Hartington knows that it is off in the boonies.
To me, the important part of the news is that the new company is coming out of the starting box FAST! If they already have a slab in place and a building shell up, then the Dakota winter is not a problem for them (or at least they have planned around it). And if they intend to start limited production in October, that shows aggressive planning, likely with the intent of building up some inventory during the winter, to be ready for the spring shows and a sales launch. An October start will also give them a chance to iron out the inevitable rough spots in the production process, line up suppliers, work on the dealer network, and do all the other things needed if they plan to become a smooth-running operation by spring.
Call me Pollyanna ... but I am pleased.
Bill