HUSCO International is a global manufacturer of both hydraulic and electro-hydraulic controls for off-highway and automotive vehicles. The company, which has production facilities in Wisconsin, Iowa, England, China, and India recently announced an $85 million capital investment plan focused on expanding and modernizing their facilities and updating equipment and tooling.
HUSCO feels that these investments, which have already started and should be completed by 2020, could drive as much as $165 million per year in additional sales. The company is projecting 2017 revenues to exceed $400 million, a 10 percent increase from 2016.
The most significant investments will occur at the company's headquarters in Waukesha, Wisconsin, which will benefit from $17 million in advanced assembly and tooling equipment. The updates throughout this location, which was built in 1954, are aimed at helping lure a new generation of skilled workers with knowledge and interest in high-tech manufacturing jobs. These investments will also allow the company to add 270 jobs throughout the organization, with 160 of these positions located in the U.S., and 120 in Wisconsin.
These investments sync with the return of CEO Austin Ramirez, who recently completed a year-long term at the White House, serving as a Fellow for the National Economic Council.
The investments made by this minority and veteran-owned business are representative of the types of investments more manufacturers are looking to make. The primary drivers of these kinds of plans center on two key factors.
The first is staying competitive on a global level by leveraging new industrial equipment technology and processes to save time and money. As time-to-market becomes a more pressing issue and competitive differentiator, investments in new equipment generate a quicker return by allowing manufacturers to fill orders faster – simultaneously preserving legacy business and growing new orders.
The second issue that these types of purchases can help address is in attracting and retaining skilled workers. Companies that commit to modernizing facilities and incorporating the latest technologies can use their updated infrastructure as an important recruitment tool. A successful strategy for addressing the skills gap for many manufacturers is providing and promoting opportunities for employees to put new skills to immediate use on the plant floor.