Consultants Forum Advertise
Subscribe
Close

  • Free for qualified executives and consultants to industry

  • Receive quarterly issues of Area Development Magazine and special market report and directory issues

Subscribe Now
Renew

Area Development - Site Selection, Facility Planning and Workforce Development

Duotech Services Expands Franklin, North Carolina, Operations

03/28/2024
Duotech Services, an engineering company that specializes in the repair and maintenance of legacy defense equipment, plans to expand its operations in Franklin, North Carolina. The $6.5 million project is expected to create 95 jobs in Macon County.

“We are very excited about this project. The support from the Governor’s office has been exceptional,” said Brian Ferraioli, Chairman of Duotech’s Board of Directors and Operating Partner at Bernhard Capital Partners. “We had choices to make, and with the support of Governor Cooper, the decision to remain and expand our presence in Macon County was the right business decision.”

Duotech’s project in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee. Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by $416.8 million. Using a formula that takes into account the new tax revenues generated by the new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $845,100, spread over 12 years. State payments only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets.

The project’s projected return on investment of public dollars is 234 percent, meaning for every dollar of potential cost to the state, the state receives $3.34 in state revenue. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.

“It’s always gratifying when a North Carolina-based company chooses to expand here,” noted Commerce Secretary Machelle Baker Sanders. “From our world-class workforce development and training programs to our overall business-friendly environment, the companies that know us best continue to choose our state for their next phase of growth.”

Because Duotech chose a site in Macon County, classified by the state’s economic tier system as Tier 2, the company’s JDIG agreement also calls for moving $93,900 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 2 county such as Macon, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state.

“North Carolina has a significant presence in the aerospace, aviation and defense industries, which is supported by our highly skilled workforce including more than 20,000 servicepeople re-entering the state’s talent pool each year,” added Christopher Chung, CEO of the Economic Development Partnership of North Carolina. “Companies like Duotech not only help the state’s economy but help North Carolina continue to support our armed forces.”

Partnering with the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina (EDPNC) on this project were the North Carolina General Assembly, the North Carolina Community College System, Commerce’s Division of Workforce Solutions, Macon County, the Town of Franklin, the Mountain West Partnership, and the Macon County Economic Development Commission.

Duotech, a Bernhard Capital Partners portfolio company, is a supplier of maintenance and repair support services to components of the U.S. Government. The company offers major OEMs repair and sustainment services for large scale electronics equipment. Duotech also designs, develops, and manufactures products such as advanced radars and radar warning receivers for commercial and military applications.

Exclusive Research