Category Archives: Expansion

Precision Castparts to Build $128 Million Innovation Center in Mason, Ohio

(BRK.A), (BRK.B)

After a global search, Precision Castparts Corp. has announced a new Mason, Ohio, campus to house a concept research and development integration center for its PCC Aerostructures division and a manufacturing innovation center for its SPS Technologies business.

PCC’s campus will anchor the US Route 42 entrance of the new Mason R&D Park East, where they will invest $128 million in two facilities on 31 acres. The new campus is expected to bring 190 new employees to the city.

The site in Mason’s new 400-acre R&D Park was, in part, selected for its connectivity to complementary aerospace clients and partners along Innovation Way and southwest Ohio.

“We were really impressed with the strong industry partnerships Mason has established in the business community, as well as the state and local collaboration. This is exactly the type of environment we were seeking,” said Blake Ray, Vice President of Advanced Manufacturing at PCC.

“It was really important for us to test this new integration model in an environment where we were in close proximity to vendors and diverse engineering firms, which strengthen the talent pool,” Mark Gancevich, VP of Technology & Innovation for PCC Aerostructures.

PCC is one of the largest build-to-print manufacturers of complex structural and mechanical assemblies in the aerospace industry. With few exceptions, every aircraft in the sky flies with parts made by PCC. The new Mason engineering campus is designed to create innovative concepts in vertical integration and seamless process improvement.

“We are honored PCC and SPS chose to locate in Mason,” said City of Mason Mayor Kathy Grossman. “This announcement is a continued reinforcement of the strong economic position of our city and a reflection of our positive partnership with JobsOhio, REDI and Mason City Schools. We look forward to helping these innovative technology companies grow here.”

“We are fortunate to have a strong, progressive partnership with Mason City Schools, who work seamlessly with our team to support thoughtful economic growth in the city,” said Mason City Manager Eric Hansen. “They are a critical part of our economic development success, which ultimately benefits Mason taxpayers through a reduced share of the tax burden.”

“We have the highest concentrations of aerospace talent in the country, which played a major part in bringing the largest capital investment from an aerospace company to our region so far this year,” said Kimm Lauterbach, President and CEO, REDI Cincinnati. “Seeing complex projects like PCC’s come to fruition for Mason and the Cincinnati region reinforces the fact we have the right people and partnerships in place to help businesses achieve their goals and set their sights on continued growth.”

The State of Ohio, JobsOhio, and Mason City Council each approved incentive packages for the new PCC Campus investment. Mason City Council approved an ordinance authorizing an economic agreement with the company for an incentive package to include a Community Reinvestment Area (CRA) Tax Abatement, Mason Port Authority Infrastructure and Wellness Incentives, which will bring 190 jobs within four years with a $14.55 million payroll and overall investment of $128 million. In addition, the State of Ohio approved a Jobs Creation Tax Credit, and JobsOhio plans to offer assistance, which will be made public after a final agreement is executed.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Pilot Flying J Opens 26th California Travel Stop

(BRK.A), (BRK.B)

Pilot Flying J has opened a Flying J Travel Center in Jurupa Valley, California.

The new facility at 11053 Riverside Drive will be Pilot Flying J’s 26th location in California, including travel centers and dealer locations. It is expected to contribute $5.1 million annually in state and local tax revenues.

The Flying J Travel Center features full amenities for area residents and the traveling public, while adding approximately 50 local jobs and other economic benefits to the community.

“We’re committed to making a better day for people living, working and traveling through Jurupa Valley county and across the nation,” said Ken Parent, president of Pilot Flying J. “We continue to invest in new locations to bring convenience, quality, great food and amenities to those who are traveling the roadways.”

To celebrate the grand opening, the company is donating $5,000 to benefit the Jurupa Unified School District career technical education programs.

“Pilot Flying J is honored to be a part of the Jurupa Valley community and to contribute to the local school district,” said Jason Herriott, travel center general manager for Pilot Flying J. “Our friendly team members look forward to serving our guests and providing a clean, all-in-one fuel stop with a variety of food, drinks, supplies and amenities.”

This Flying J Travel Center offers many amenities, including:

• 16 gasoline fueling positions and 12 diesel lanes with high-speed pumps for quicker refueling
• Fresh-made pizza and grab-and-go food offerings prepared on site daily, including salads, sandwiches, burgers, fruit cups and an array of hot and cold snacks
• Pilot’s Best Gourmet Coffees, including bean-to-cup selections and cold brew
• Cinnabon
• Wendy’s with drive-through
• Nine showers
• 107 truck parking spots and 22 bobtail parking spots
• Two ATMs
• Western Union
• Everyday products for quick shopping needs

Headquartered in Knoxville, Tenn., Pilot Flying J has a network of more than 900 retail and fueling locations in 44 states and six Canadian provinces, 35 Truck Care service centers with roadside assistance, 44 Goodyear Commercial Tire and Service Centers, and 34 Boss Shops.

The Pilot Flying J network provides drivers with access to more than 73,000 parking spaces for trucks with Prime Parking at more than 400 locations, 5,200 deluxe showers and more than 6,200 diesel lanes with 5,200 offering Diesel Exhaust Fluid (DEF) at the pump.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

McLane Opens New Grocery Distribution Center in Ocala, Florida

(BRK.A), (BRK.B)

Berkshire Hathaway’s McLane Company, Inc., a leading supply chain services company providing grocery and foodservice supply chain solutions, formally announced it has opened a new grocery distribution center, McLane Ocala, in the Ocala International Commerce Center at 910 NW 50th Avenue in Ocala, Florida.

The 400,000 square foot facility will house 165,000 square feet of dry grocery, nearly 200,000 square feet of perishables and 35,000 square feet of office and support space. The first shipment arrived on February 4, 2019 and deliveries will begin on March 17, 2019.

The new distribution center will create over 400 new jobs in Marion County. By the end of the year, McLane Ocala plans to onboard 316 warehouse and support teammates and 120 drivers and transportation support teammates. Driver hiring began in October of 2018 in effort to allow drivers to become acclimated with McLane’s customers and the delivery process in general. The recruiting team held a three-day job fair in January at the facility and nearly 600 candidates were interviewed, resulting in 233 job offers.

This location will be McLane’s sixth distribution center in Florida, joining the grocery center in Kissimmee and four foodservice centers in Lakeland, Haines City and two in Orlando and will service the quickly-expanding customer base in the North Florida region. Construction Management Technology (CMT), the general contractor for the project, oversaw the renovations and development. The Ocala/Marion County Chamber and Economic Partnership (CEP), The County Commission and Ocala City Council were instrumental to the venture as well.

“We are thankful for McLane Company’s presence here in our community,” said Ocala Mayor Kent Guinn. “We are excited about their growth, their services and their community involvement.”

Michelle Chesnutt and Jerry Winterhalter are leading the operation with a combined 70 years of experience at McLane. Both teammates have held numerous positions within the company. Chesnutt recently transitioned from division president at McLane Dothan in Cottonwood, Alabama, while Winterhalter was vice president of distribution at McLane Sunwest in Goodyear, Arizona.

“We are thrilled to open our new facility in Ocala where the business community is welcoming and open to growth,” said Michelle Chesnutt, division president of McLane Ocala. “The values and work ethic of the prospective workforce is an ideal fit with McLane’s culture. McLane Ocala continues our company’s core initiative to drive customer results.”

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Thanks to Berkshire, Business is Booming at One of Its Newest Companies

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In the summer of 2017, Berkshire Hathaway made a little publicized acquisition when it acquired Warren, Michigan-based MRO distributor Production Tool Supply, and created a new wholesale division, Berkshire eSupply.

At the time, the company was ranked 34th on Industrial Distribution’s 2017 Big 50 List, but just the new Berkshire name has attracted a lot of new business.

“As soon as the new name was announced it was the best thing that ever happened to us,” John Beaudoin, president of Berkshire eSupply, says.

Such is the power of the Berkshire Hathaway name.

Now with Berkshire’s ability to finance capital expenditures to power growth, the company is in a major expansion phase.

With more than 1,000 suppliers, Berkshire eSupply has more than 1 million industrial/MROP products available online, dispersed from three strategically located distribution centers in Detroit, Los Angeles and Houston.

The company has already announced that 57 acres of currently vacant property in Novi, Michigan will be converted into a 193,230-square-foot warehouse with mezzanines and an 18,380-square-foot office building.

Also coming is a new facility that will open in Houston in four months, and another facility in California is in the planning stage.

The goal is to provide nationwide 1-2 day shipping of over one million SKUs for thousands of independent suppliers that have not had the money to provide the logistics and scope to compete with companies such as Grainger.

Berkshire eSupply gives independent distributors the custom website and logistics that make ordering seamless. The company provides retailers with a one-stop, private label, e-commerce platform.

“They already have the customer relationships, and we level the playing field in their competition with catalog suppliers such as Grainger,” John Beaudoin, president of Berkshire eSupply, says.

Just as importantly, retailers gain the punchout system that enables purchasing agents to buy from their website from within the buyer’s own procurement application or hosted eprocurement system. This opens major new customer opportunities.

With the cost of fulfillment centers being one of Berkshire eSupply’s major capital expenses, Beaudoin notes that there is huge potential for growth now that Berkshire is providing the financing.

“The entire MROP products market is around $360 billion,” Beaudoin notes. “Grainger has only $10 billion of it.”

It’s clear that Beaudoin has his eye on the other $350 billion of that business, and with Berkshire’s financing, he’s out to get it.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.