Barnes to stay in Ogden

0 Comments | Deseret News (Salt Lake City), Jul 26, 2007 | by Catherine Smith Deseret Morning News

OGDEN -- Businesses face an ever-growing trend toward moving operations overseas, but one company decided to stay in Utah.

After considering a long-distance move for its Utah operations, Barnes Aerospace instead broke ground Wednesday for a new 120,000- square-foot facility that will keep manufacturing in Ogden. The building, being constructed by Big D Construction and located in Business Depot Ogden, is scheduled to be completed in early 2008.

The company decided to remain in Ogden because of its current and prospective employees, said Stephen McKelvey, spokesman for Barnes Group Inc., the parent company of Barnes Aerospace. The area has proven to have a skilled and dedicated work force, he said.

"We have great companies here ... and they're choosing to stick here," said Jeff Edwards, president and chief executive officer of Economic Development of Utah.

Throughout Wednesday's ceremony, corporate and civic leaders lauded the employees and the good, hard work they do for the company. Ogden Mayor Matthew Godfrey said companies come to Utah because of the workers. He said companies expand here because Utah workers are productive and hard-working and provide a strong labor base.

Barnes Aerospace built its first Ogden facility in 1989. In 1999, the Ogden facility had a slight economic downturn but has since been profitable for the company, which helped the company leaders make the decision to remain in the state.

"The decision to stay was easy to do when you see improvement and investment in the past few years," said Greg Milzcik, president and chief executive officer for Barnes Group Inc. He also said the company survived and prospered on "lean thinking and lean enterprising."

Barnes Aerospace manufactures and repairs engines for companies such as Volvo, Lockheed Martin and the U.S. military and provides repair services for major airlines. Its Ogden operations manufacture aircraft components.

The company employs 175 people in Ogden, but the expansion of the facility will not necessarily lead to a larger staff.

"An increase in jobs will be based on growth," McKelvey said.

The state offered the company a $10.1 million incentive in December if the company agreed to moving from the old facility, adding 900 jobs over 20 years and bringing in more manufacturing operations. The company has yet to decide whether it will accept the incentives, McKelvey said.

E-mail: csmith@desnews.com