At the outset, the company believed the former Dayton Daily News printing plant’s 242,000 square feet was larger than needed. However, with Modula’s global growth averaging 25% year over year and strong demand on this continent, Modula had to lease offsite space within about a year and a half of launching production, said Orfeo Finocchi, CEO of Modula USA.
“This 177,000-square-foot addition will allow us to double our production capacity and bring together our manufacturing and logistics and operation under one roof,” he said. “Once complete, this facility will be capable of producing up to 1,600 vertical lift modules annually, helping us to meet the needs of our customers across North America even with greater speed and efficiency.”
The business is now producing 600 units a year, said production manager Doug Detwiler.
Modula celebrated its groundbreaking Tuesday along with local, regional and state representatives and company leadership. The more than $36 million expansion will surpass $40 million once new technology is installed. It will add approximately 60 new jobs over the next few years.
Credit: Jen Balduf
Credit: Jen Balduf
Company growing for future
Modula’s initial investment was $26.5 million with 100 jobs committed. There are now 117 full-time employees with an annual payroll of more than $7.4 million, according to a development agreement with the city of Franklin.
“Having an international headquarters in the city of Franklin isn’t just beneficial to the city, it’s beneficial to the entire region,” said Franklin Mayor Brent Centers.
“This kind of momentum and new jobs create a new energy in our local and regional economy. This announcement sends a strong message about the vitality and future of both Modula and the city of Franklin,” Centers said.
Finocchi described Modula’s products as high-tech storage towers that can automatically deliver parts or products to an operator in seconds. This saves space, reduces retrieval times and improves accuracy and ergonomics in the workplace, he said. There have been more than 20,000 installations worldwide for businesses of all sizes in a range of industries, from e-commerce, manufacturing, pharmaceutical, automotive and electronics to food and beverage, according to the company’s website.
Miller Valentine Construction began site work in February, and the building is expected to be complete early next year.
The addition will feature more automation and is designed for future capability, with a 30-ton overhead crane that will allow additional investments in specialized machinery, which the company has done at its sites in Italy and China. It also will be designed to reduce energy consumption by maximizing the use of natural light, high-efficiency heating and cooling systems and planned rooftop solar panels.
“Over the next three to five years, we also plan to increase our use of robotics in both manufacturing and assembly,” said Enrico Bondi, Modula’s director of operations.
Credit: Jen Balduf
Credit: Jen Balduf
Tariff impact on business
As an international business, Modula is not immune to concerns about higher tariffs on goods imported into the U.S. and its impacts on customers.
“We may need to revise our pricing because the plan is for sure to try to absorb as much as we can,” Bondi said. “... We need to understand how we look like going forward (with) this situation.”
Modula USA products are made in the U.S. and they use domestic materials as much as possible. However, Modula’s designs are based on the metric system. To get proper sizing, one item they import from Europe is steel tubing.
“We are very strongly investigating to find a local source,” Bondi said.
While the political situation and tariff issue makes it difficult to predict growth, Finocchi said, “this year we started very well.” No orders have been canceled, but the business has experienced somewhat of a slowdown that he said would likely not have a lasting affect.
“What we see today, maybe we have some drawback in the short term,” Finocchi said. “Besides that we could expect a 15-20% year-on-year growth.”
There are no plans now to expand its North American operations beyond Franklin and Lewiston, Maine. However, Bondi said if the business continues its strong growth, they likely would expand to the west.
Credit: Jen Balduf
Credit: Jen Balduf
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