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2013 Progress ReportMarch 2013

Partners in Progress

Troy Development Council 405 SW Public Square, Suite 330 | Troy, Ohio 45373

937.339.7809 | troyeconomicdevelopment.com

The Partners in Progress InitiativeIn 2011, the Troy Development Council initiatied our Partners in Progress Initiative to identify the workforce and economic development projects that were most needed by Troy area employers. The Resource Development Group interviewed 45 businesses and identified four areas of work for the TDC over the next three years.

The four areas of work are -

1) Continue to improve the Troy Area’s Retention and Expansion Program

2) Continue to improve the Troy Area’s Attraction Program

3) Initiate a Workforce Development Program

4) Develop a Communications Program to provide information about Troy area businesses

Despite the worst world-wide recession in half a century and the uncertainty related to the 2012 Presidential election, the manufacturing and distribution industries in Miami County had a very successful year in 2012. The Miami County unemployment rate matched a four year low in December to 6.2%, down from over 13% in 2010. Manufacturing employers are again having difficulty finding qualified entry-level workers and an even more difficult time finding skilled machinists and industrial maintenance professionals.

The success of the Honda Accord and Civic have been a great boost for the regional economy and local suppliers such as F & P are working overtime to keep caught up with demand. Honda Motor Company is targeting record sales for the U.S. this year, supported by revamped Accord and Civic models and building on a 24 percent rebound in 2012. Honda exported their 1 millionth car in 2012. Honda projects significantly increasing exports of light-utility vehicles for export from 2013 to 2017 and recently announced that they would be moving North American leadership positions from California to Marysville, Ohio.

“The goals of the Troy Development Council in 2013 will be to help our companies compete for technical and professional employees” says Ron Musilli, Chairman of the TDC, “and to keep our companies and Troy citizens informed about the progress and opportunities that our world-class companies are making.”

Expansion of Troy Facilities in 2012Hobart Brothers• had relocated their Equipment Division from their West Main Street location to a 160,000 square foot facility on Experiment Farm Road in Troy. This Division produces welding machines for Hobart Brothers and Miller Electric. Hobart Brothers is also in the process of moving their Solid Wire Division to remodeled space in Trade Square. These new facility investments are a solid demonstration of the company’s commitment to Troy. This year the company increased employment by 60 people and current employment is now at approximately 600 employees.

ConAgra • continues to make new investments in their Troy manufacturing operations including an $18 million investment in their facilities here in 2012. This project will add at least ten new jobs to the approximately 640 employees that are currently employed in Troy. The City of Troy made major investments into reconstructing Dye Mill Road to accommodate the increased traffic into the facility.

3 Sigma• received a $2.25 million USDA Business and Industry Loan Guarantee which allowed them to purchase and transport a 78 inch-wide aqueous coater to greatly expand the capacity of their advanced coatings operations in Troy. 3 Sigma president Tony Rowley commented: “The addition of our new coater will effectively double our capacity, and we expect to add several jobs as a direct result. The USDA loan guarantee made that possible.”

Freudenberg NOK• - An international family oriented company has brought the expertise of Freudenberg-NOK General Partnership (North and South America), Freudenberg & Co. (Europe), NOK Corp. (Asia) and NOK Freudenberg Group China to Troy. The company has added over 100 employees here since closing their Iowa facilities and moving these operations to Troy. In 2012, the company leased additional space adjacent to their current facility.

Troy, Ohio USA | Partners in Progress 2013

Other Troy Expansions in 2012

Spinnaker Coatings• - The company is a leader in the manufacturing of adhesive coated paper used in product labeling, identification, and specialty areas such as postage stamps. The company became an employee-owned corporation in 2012 through the creation of a S Corp ESOP. Spinnaker was named by the Dayton Business Journal as one of Dayton’s 50 companies with the biggest revenue increase in 2011.

Clopay• is the largest manufacturer of garage doors in the US and has become one of Troy’s largest employers. While the national recession greatly decreased the demand for garage doors in 2012, the Troy operations have grown to over 800 employees through consolidations and acquisitions.

Raymath• has become one of the Region’s most advanced manufacturing companies and has continued to grow through a diversified customer base in many industry groups.

Stillwater Technologies• has supplied parts that have been fired into space on the shuttle, reached to the depths of the oceans on nuclear submarines, and sped across the Bonneville Salt Flats on a record breaking electric car. In 2012, the company continued to attract new products to their Troy operations including providing technologically advanced equipment for the oil and gas industry, for satellites and for robots.

Goodrich• - In one of the largest acquisitions of 2012, Goodrich, the world leader in aerospace components was purchased for $16.4 billion by United Technologies. The Goodrich Wheel and Brake Division, with very substantial operations in Troy, was part of the purchase and is now part of UTC Aerospace Systems. The consolidation of these aerospace operations has already generated many new opportunities and successes for United Technologies and their success should continue to provide very high skill and high wage job opportunities in Troy for 2013.

F & P America• and their parent corporation F-Tech have overcome production set-backs created by the natural disasters in Asia and are now experiencing record production and employment levels. The company has been recognized by Honda and other automotive companies as the most advanced manufacturer of automotive sub-frames and suspensions in the world. The company remains a contender for the largest manufacturing employer in Troy with over 800 employees.

Troy, Ohio USA | Partners in Progress 2013

Business Retention & ExpansionTDC Support for our Retention & Expansion ProgramThis has been a very encouraging year for our existing Troy area companies. Tax reform initiatives undertaken by the Governor’s Office and the legislature of the State of Ohio have created significant advantages for Ohio companies, but the Jobs-Ohio Initiative has faced legal challenges which have delayed the sale of bonds to fund the State’s incentive programs. State incentives are critical in helping to keep Ohio competitive in retaining our existing companies.

Since the inception of the Partners in Progress Initiative, the TDC Staff and Volunteers have held at least one meeting with almost every manufacturing and distribution company in the Troy area. Our outreach to existing employers has taken many forms over the past year including sponsoring two golf outings for TDC member companies.

In 2012, the Business First Program, our regional cooperative for business retention and expansion activities, continued to expand and incorporate new software tools. In 2013, the Kasich administration and the Jobs-Ohio leadership are planning on calling on Ohio companies and have developed a contact plan. The Dayton Development Coalition will also be involved in retention and expansion calls in the Dayton Region.

Calls on companies with Troy operations and out-of-state headquarters In 2012, Troy Development Council President Wallace, Major Beamish and City Saftety Service Director, Patrick Titterington called on Honda Logistics and F-Tech in Japan to encourage additional investment by Honda and its suppliers in Troy. We also held meetings with these companies prior to and following the trip.

An analysis of the Troy operations of international companies conducted in 2012 showed that international investment contributes approximately $100 million of payroll to the Troy area economy. Of this, approximately $64 million comes from Asian-owned companies, $18 million from European-owned companies and $14,000,000 from Troy residents employed by international companies who perform their work out of the area.

President Wallace also met with the Board of Freudenberg NOK, and senior management of Crown Equipment.

Business AttractionRecruitment ProgramIn 2012 the number of companies that moved or built new facilities in the US and the region was dramatically impacted by the US and world-wide recession and by uncertainty in the Presidential election. Delays in the funding for Jobs-Ohio delayed marketing and attraction programs at the State level.

The Troy Development Council has reached out to our current Asian investors and held meetings with Honda Logistics and other divisions of Honda and with F-Tech at their Troy facilities and in Japan. The goal of these meetings was to support continued investment in existing facilities and also to provide information on the Troy area to forward to Honda suppliers.

Troy Development Council President Wallace attended the Expansion Management’s Site Consultant’s Roundtable to increase dialogue with national and international site selection companies.

New Companies in Troy in 2012Abbott Laboratory’s• Nutritional Supply Chain Division located a new $240 million manufacturing and distribution center in Tipp City, just south of Troy, in 2012. Troy residents will benefit from the over 200 jobs to be created at the plant. The company will manufacturer their Ensure and Similac products here.

In 2012, • Crown Equipment purchased the Stillwater/Motoman facility on Dorsett Road and will be locating manufacturing operations there. Crown is a global manufacturer of lift trucks and advanced material handling equipment and are known to many Troy residents as a world-class employer with headquarters just to the north of Troy in New Bremen Ohio. They anticipate that the operation will eventually create 45 new jobs.

Remedi SeniorCare• opened their new $18 million pharmaceutical distribution operation in Troy in 2012. The company will employ 170 people including a number of well compensated pharmacists.

Tagnetics• relocated operations from the Dayton area in 2012 to a 22,000 square foot facility in Troy for their new product line of electronic shelf labels.

Arett Sales• leased 54,000 square feet of space for the distribution of lawn, garden, and outdoor living supplies to retail garden centers in 2012.

New Partnership with Jobs Ohio and Dayton Development CoalitionGovernor Kasich’s administration has been working on legislative and legal issues to create the Jobs-Ohio corporation to take over economic development activities from the State government. This has included creating a new structure to provide incentives and marketing through Jobs-Ohio. In turn, Jobs-Ohio has contracted with the Dayton Development Coalition to perform many marketing, incentive and retention and expansion activities.

The TDC has participated in planning and managing the transition through serving on the Board of the Ohio Economic Development Association and serving on the Advisory Board to the Dayton Development Coalition’s ED managers group. The TDC sponsored a tour of Troy sites and buildings for the new staff of the DDC and participated in the first training program offered by Jobs-Ohio and the DDC. The TDC has also involved the DDC in meetings on potential expansion and new location projects.

New Partnership with West Central Ohio Development CoalitionThe West Central Ohio Development Coalition is a voluntary group of economic development organizations who have identified an opportunity to market our region in west central Ohio from just north of Dayton to just south of Findlay Ohio on both sides of Interstate 75.

A new 501c(3) has been formed and the new Coalition received a grant of $100,000 from the Dayton Development Coalition to undertake a new business attraction program.

The Coalition employed a national consultant to provide economic development leads and to arrange for on-line presentations and conference calls with the owners and top level management of US based companies. We also completed a research project to analyze unionization in the Region.

The current participants in the Coalition are

The Troy Development Council•Grow Piqua Now•City of Tipp City•West Ohio Development Corporation serving •Sidney and Shelby CountyAllen (County) Economic Development Group•Wapakoneta Economic Development•Darke County CIC•Urbana-Champaign County Development•Village of New Bremen, Village of New •Knoxville, Village of MinsterCity of Saint Marys•Mercer County Economic Development •

Troy, Ohio USA | Partners in Progress 2013

Workforce DevelopmentWage & Benefit Survey – Human Resources Council The bi-annual Wage and Benefit Survey was issued in June of 2012. This survey incorporates responses from companies located in Troy, Piqua and Sidney. Results have been distributed to participants and provided to new companies.

Expansion of Troy Plan for Economic EducationThis Program has been reinstituted and has now graduated its second class. Participants include teachers from City of Troy and Upper Valley Career Center and MBA students from Urbana University. This Program provides an opportunity for greater promotion of economic education of teachers and students. The program resumed in January of 2013 with 14 participants.

Support for Helping Young Professionals Emerge InitiativeThe TDC has assisted with communication resources including development and hosting of the HYPE website, print materials and meeting support. The TDC has promoted the HYPE Program during R & E calls and to the Chamber membership.

New Professional Recruitment ProgramThe Professional Recruitment Program has a steering committee and is making great progress. The TDC applied for and received a $14,000 from the Troy Foundation which will allow us to develop professional videos to promote the area to potential employees.

Promotion of Manufacturing CareersThe TDC worked with the Troy City Schools to promote manufacturing careers as part of the National Manufacturing Day held in October of 2012. Students toured five manufacturing facilities and the Hobart Institute of Welding. The TDC also hosted a group of Troy High School Students at the Business Expo. These were first steps in developing local career promotional materials for students.

Communications PlanTDC has created greater awareness of TDC through Partners for Progress meetings and will expand awareness through TDC Newsletter. Created hand-outs and promoted the TDC at the Chamber’s Business Expo and at Troy City Council. Numerous articles on positive business activities and the TDC have appeared in Dayton Business Journal and Troy Daily News.

TDC Website - Business Resources/Incentives/Site and Building DirectoriesThe TDC has completed the development of a new economic development website through hired contract staff and MidNet Media. We have incorporated the Jobs-Ohio directory of available sites and buildings into the TDC website. We have also completed approximately eighty percent of the Business Resource Directory into the TDC website and will continue to add to expand our information on TDC member companies.

In 2012 the TDC took aerial photographs of available sites and buildings throughout the Troy area.

Troy Business Newsletter / BlogThe TDC has developed our newsletter format and initial distribution list. We continue to receive positive feedback on the valuable information provided to members shared in the first issues of the newsletter. We are now working on expanding our distribution list with TDC members, government officials and non-TDC members.

Troy, Ohio USA | Partners in Progress 2013

Troy Plan for Economic EducationComments of Graduate Students

As President of Troy Development Council, Mr. •Wallace presented a story from the beginning of time. A pleasant and informative presentation surprisingly brought economics to the creators of its definition. The development of the new territory seemed fascinating to me.

The one thing that I found most interesting about •JC Wallace’s presentation is the fact that our economy still follows principles set aside hundreds of years ago. The 3 principles that drive the economy: 1) pursuit of self-interest, 2) division of labor, and 3) freedom of trade are still in effect today is mind boggling when you think about how our economy is continuously up and down.

The presentation made by JC Wallace on behalf of the Troy Developmental Council, touched on a •number of key aspects in the development of our current market economy from which the basic science of economics was born. He transitioned into the role that Ohio has played in not only our nation’s economy, but the world as a whole. From that point and for me the most important, Mr. Wallace brought the focus onto Troy as a player in the global market and Troy’s continued ability to adapt and excel. With the Troy Development Council, local businesses, and educators willing to work together to •prepare students, Troy’s economic development future looks very promising.