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Aug 10, 2023

Speedrack to create 164 new manufacturing jobs at $64.5M facility in West Michigan

KENT COUNTY, MI -- A manufacturer of pallet racking and storage infrastructure

KENT COUNTY, MI -- A manufacturer of pallet racking and storage infrastructure for warehouses is expected to create 164 new jobs at a planned $64.5 million facility in Walker.

Sparta-based Speedrack Products Group broke ground Monday, June 21, on their new manufacturing facility and headquarters in an industrial park off of Northridge Drive. Governor Gretchen Whitmer attended the event along with a host of other local and state officials.

"Speedrack Products’ investment in Walker will create important jobs in our manufacturing sector and help us continue our economic jumpstart and put Michigan back to work," Whitmer said.

"This new facility strengthens Speedrack's presence in West Michigan and further underscores the importance of our state's talented manufacturing workforce. With the help of companies like Speedrack, we can build back our state's economy stronger than ever before."

Speedrack manufactures warehouse shelving and racks similar to those seen on the Home Depot salesfloor. Walker was chosen over sites in Indiana and Illinois. The expected $64.5 million facility will have 275,000 square feet of manufacturing space.

Currently headquartered in Sparta, Speedrack has two other facilities in Michigan, in Quincy and in Litchfield, and employs nearly 300 people. The company has been in business for more than 60 years and moved its headquarters to Sparta in 1989. In 2002, the company moved all out-of-state manufacturing to Michigan.

The expansion is in part to meet increasing demand from online retailers, like Amazon, GAP and Chewy, which have vast shipping warehouses and are customers of Speedrack. The company also services Ford, Meijer, GM, Medline, Caterpillar and the furniture industry.

"Our customers, particularly those in the e-commerce industry, have seen a significant increase in sales over the last several years, and so Speedrack has invested and grown in order to support that growth," Speedrack president Eric Quist said. "We recognized that if we were going to continue to meet this new demand, we needed to expand our manufacturing footprint."

Quist said the company expects the new facility will be up and running by the end of March 2022.

Hiring for the new 164 employees is slated to begin later this year and will continue into early 2022, with officials at the Michigan Statewide Carpenters and Millwrights Skilled Training Center in Wayland helping with the recruitment efforts, he said.

People can learn more about careers at Speedrack at this website: https://apply.speedrack.site/.

Pay for hourly employees will be about $30 to $32 an hour for skilled trades workers, $25 an hour for welders and $22 an hour for general laborers.

Two years from now, Quist said, the company plans to hire around another 100 people.

As part of transitioning their headquarters from Sparta to Walker, some 40 existing corporate employees will move into the new facility, with roughly another 15 to 20 salaried workers being added.

Quist thanked the Right Place economic development organization and the Michigan Economic Development Corporation for helping the company grow in West Michigan. The Right Place worked with Speedrack, the MEDC and Walker to ensure the company would expand in the region, rather than out-of-state.

Some of the incentives include an $820,000 Michigan Business Development Program performance-based grant from the MEDC and a 12-year tax abatement for the facility from Walker. The tax abatement will halve the facility's property taxes over that period.

"This is a considerable win for the Greater Grand Rapids region, and another nod to the health and strength of our business environment," said Randy Thelen, president and CEO of the Right Place. "Our regional economy has strong roots in manufacturing, and Speedrack's decision to expand its presence in our region is a testament to the resilience and continued prosperity within this industry."

Former Walker mayor and city commissioner state Rep. Mark Huizenga, R-Walker, said the groundbreaking Monday, and events like it, give him "renewed hope" in the American Dream.

"As a state representative, participating in these events give me renewed hope for the American Dream, because you know behind each and every one of these 150-plus faces that will be working in this facility, those faces belong to families," Huizenga said. "Somebody's mother or father will be working here for the family to provide food, clothing or shelter -- the American Dream."

Huizenga pledged to continue to push for state funding for realignment of on and off ramps on I-96 near the industrial park along Northridge, as well as a bridge replacement, that will make it easier for employers to locate there and serve the community "for decades to come."

Walker Mayor Gary Carey called Speedrack a welcome addition to the "thriving and rapidly growing industrial area" of the city.

"We are very excited to welcome Speedrack and their employees to Walker," Carey said. "Their decades of successful experience providing customized solutions to their customers’ needs and challenges aligns with how the City of Walker works with its businesses and residents."

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