Fall 2018 promises to be a busy time for two power tool manufacturers that are setting their sights on continued growth.
Festool recently announced that its headquarters for Festool USA and Festool Canada, located in Lebanon, Indiana, will expand by 80,000 square feet. This is the second, large-scale expansion within the past three years. Company executives cite increased demand and robust sales behind the $9.3 million expansion, as the Festool brand continues to grow among professional tool users, residential contractors, painters, remodelers and woodworkers. Construction is scheduled to begin in November and will be completed by December 2019.
“We’re excited to once again expand our facilities,” says Brian Goldthorpe, Festool chief financial officer. “The combination of increased demand for our products and favorable business conditions here in Lebanon, make this expansion a win for us as a company and for the community as a whole.”
Founded in Germany in 1925, Festool moved its North American headquarters to Lebanon, Indiana, in 2006. In 2015, it doubled that facility’s size. Last year, Festool began manufacturing its FS Guide Rails, using U.S.-sourced material, at the Lebanon campus and has plans to further expand its Indiana manufacturing operations. The company projects that 65 new jobs will be created by the facility expansion, as it continues to offer a comprehensive lineup of power tools and system accessories, designed to boost productivity through efficiency and high performance.
Last month, Brookfield, Wisconsin-based Milwaukee Tool also announced that it will begin construction on another major expansion of its Global Headquarters. With a total investment of $32 million, the new advanced manufacturing/research and development facility is expected to create 350 new jobs, continuing a strong track record of rapid growth for the company within the United States.
This newest expansion will house an advanced manufacturing, engineering and global research and development center, occupying a 3.5-acre site on the company’s Global Headquarters Campus. Construction on the 114,500-square foot, multi-story building will begin during the third quarter of this year and is expected to be completed by the fourth quarter of 2019, bringing its global headquarter space from 390,000 square feet to an approximate 504,500 square feet.
“When you look at the growth our company has achieved in the last decade, the catalyst for our success has been, and will always be, our people. The drive, determination and obsession of our employees has enabled us to continue delivering disruptive innovation for the professional trades and our distribution partners,” said Steve Richman, Milwaukee Tool group president. “Our newest expansion will help us continue to grow a world-class work environment that will attract, recruit and retain the best talent in the world.”
Milwaukee Tool has sustained double-digit growth throughout the last decade, the company reports. This success is attributed to an exceptional workforce, a focus on the professional trades and breakthrough developments in cordless technology, advanced accessory engineering and innovative hand tool and storage solutions.
Over the last decade, Milwaukee Tool has continued to invest heavily in its national growth, making over $190 million in capital investments in the U.S., including $33.4 million in manufacturing, tripling the workforce at its Global Headquarters Campus in Wisconsin and growing its base of 3,500 employees nationwide. This newest expansion marks the next step in the company’s dedication to continuing all product development in the area for which it was named.