MANSFIELD — Two manufacturing operations in Mansfield plan to expand and add new jobs, according to legislation scheduled for City Council on July 21.
Both Newman Technologies and R.G. Smith are seeking property tax breaks to help with the expansions through Community Reinvestment Area Agreements.
The Community Reinvestment Area program is a statewide economic development tool administered by municipal and county government that provides real property tax exemptions for property owners who renovate existing or construct new buildings.
A CRA allows property owners to receive tax incentives for investing in real property improvements, according to the Ohio Dept. of Development. A CRA tax break can exempt up to 100 percent of the increased property value resulting from new construction or remodeling, usually during a time period of five to 15 years.
Local lawmakers, in their first meeting since June 15, are being asked to approve the agreements on the evening in which they are being introduced by the city administration.
Here is a look at each request, based on the legislation submitted to City Council:
Newman Technology plans to add 70 jobs by end of 2028
The company at 100 Cairns Road was approved in March for a 1.225 percent, six-year Job Creation Tax Credit for this expansion from the Ohio Tax Credit Authority.
Newman plans a $74.5-million expansion, including the hiring of 70 new workers by the end of 2028, adding an estimated $3.5 million in local, annual payroll.
According to the legislation request, the city administration recommends a 100-percent local property abatement for 15 years on the new development, which will include a 25,500 square-foot building addition. That work is scheduled to start in September and be complete by October 2027.
A separate agreement will reimburse the Madison Local School District for the property funds through company money and city income tax funds.
In its request, the automotive parts industry manufacturer said will be able to expand its High-Bay Press Building to accommodate a new stamping press that will allow Newman to pursue business for additional customers, parts and material types.
“We are anticipating the opportunity to receive several new parts from our automotive customers requiring significant investment in machinery and equipment,” according to the company’s request.
Newman officials also said the company has opportunities for “significant increases in production part volume for current parts that are undergoing design changes, resulting in the need for additional machinery and equipment investments to meet the new demand needs of our customers.”
“Without this new investment, our customers may source the additional volume to our competitors. We are also considering investing in a new stamping press to position our company to increase our capability range to attract new parts and customers,” the company said.
“We would like to be able to place that investment in our Ohio facility, as opposed to our Alabama facility or our Mexico facility, where some customer parts may be shipped to, assuming the financial return and employee availability and training needs are met,” Newman Technology said in the request.
Newman is a leading Tier 1 automotive manufacturer of precision-engineered components.
The company’s product offerings include door assemblies, exhaust systems, trim, structural reinforcements, and plastic injection molded parts.
The company has a reputation for precision, quality, and innovation in the industry, according to JobsOhio, which said in March the expansion represents a commitment to long-term growth in Ohio.
In return for the property tax abatement, Newman Technology will pay the Madison Local School District an amount equal to 50 percent of the full property tax each year.
The city, based on the increased income taxes from the expansion, will pay the remaining 50 percent, though that will be capped at 50 percent of the increased income tax.
In March, Brian Baker, vice president of planning and development for Newman’s local operations, said the company “believes in the workforce and the manufacturing environment in Ohio, and specifically the Northeast Ohio region.”
“The knowledge, skills, and dedication of the workers are incredible assets to our company, and we are proud to make this continuing investment in our community. The teams at the Richland Area Chamber, Team NEO, and JobsOhio have been amazing to work with as strategic partners in helping this investment materialize.”
Baker said this spring the Mansfield plant employs around 630 workers and will add the 70 new positions over the next two to three years. Newman Technology operates two shifts a day at the plant near Mansfield Lahm Regional Airport.
In addition to normal production assistants, Baker said the company will have a “big need” for skilled tradespeople in terms of tool-and-die work, maintenance and engineering.
R.G. Smith plans to hire nine people by the end of 2027
The local custom steel fabricator expects to add nine workers by the end of 2027 at its 166 W. Sixth St. facility, according to the paperwork filed with the CRA request.
The legislation request said the city administration seeks a 12-year, 60-percent abatement on property taxes for the new development.
The company, based in Canton, celebrated its 100th anniversary in 2016. It has had an operation in Mansfield for more than three decades.
In March, the city Planning Commission granted a zoning variance request from the company to allow reduced frontage for a new addition at the site.
At the time, Rick Reece, vice president of operations for the company, said the expansion would the company to “easily add eight to 10 more employees.”
“Currently, we have 30. But when we get into the busy time of the season, we’ll blow up to 80 to 100, so it’s kind of seasonal,” Reece said in March.
“We service a lot of the heavy industry within about a 60-mile radius,” Reece said. “So steel mills in particular, but we’re kind of a specialty contractor. We engineer, design, fabricate and install.
“We have an existing 10-ton crane and we’re going to add an additional 10-ton crane,” Reece told the Planning Commission four months ago. “We’re getting into larger weldments so we need a larger indoor facility and we need more capacity on the cranes.”
A weldment is when several pieces of metal — like plates, pipes, or beams — are welded together to form one solid structure. Once joined, they act as a single, strong frame.
The final piece includes the welded areas, the metal affected by the heat, and the original metal parts all working together as one unit.
According to the CRA request, the company plans to add 5,880 additional square feet of work space, an effort scheduled to be complete by the end of October. The company’s total investment is estimated around $1.8 million.
The new jobs will generate between $900,000 and $1 million in annual new payroll, according to the paperwork.
