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Area Development - Site Selection, Facility Planning and Workforce Development

Electrical Junction Box Manufacturer, RACO, Relocates Distribution Center to South Bend, Indiana

09/27/2012
RACO, the electrical junction box manufacturer division of Hubbell Incorporated, will invest about $1.5 million to relocate its distribution center from South Holland, Ill. to South Bend, Indiana, creating up to 77 new jobs.

Indiana economic development officials said the firm plans to lease, renovate and equip 100,000 square feet of space in the Ameriplex Complex, located approximately eight miles north of its 300,000 square-foot South Bend headquarters. The facility, which is expected to open its doors in spring of 2013, will serve as the company's primary warehouse for all products sold nationally and internationally.

Gov Mitch Daniels said "what's exciting is to see the rejuvenated spirit of enterprise here in South Bend begin to lead in capturing these jobs. Through low taxes, fair regulation and reliable fiscal integrity, the state can lay the groundwork, but it takes proactive, pro-jobs local leadership to make days like this happen, and South Bend clearly has that now."

RACO already has a workforce of 220 employees in Indiana and plans to begin relocating jobs from its South Holland, Ill. warehouse and recruiting for distribution and administrative positions in South Bend next spring.

"RACO looked at several locations when considering where to relocate our primary warehouse. We conducted a very thorough and formal search, reviewing a number of factors that included corporate and property tax rates, workers compensation rates, freight costs and state and local support," said Chris Hildebrand, vice president and general manager of RACO. "After a thorough analysis, it was clear that Indiana stood out among the pack as the best, most business-friendly choice for our company."

As an incentive, the Indiana Economic Development Corporation offered RACO with up to $600,000 in conditional tax credits and up to $50,000 in training grants based on the company's job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. In addition, the city of South Bend approved additional property tax abatement.

"Supporting the growth of responsible local businesses is a key priority in the economic agenda and we are pleased to partner with RACO, a company with strong South Bend roots. RACO enjoys a tremendous reputation throughout the world, and we're glad it will continue to be a part of South Bend's legacy of precision manufacturing," said South Bend Mayor Pete Buttigieg. "We welcome RACO's decision to unite its distribution and manufacturing operations here and look forward to a successful partnership for many years to come."

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