By By JESSICA SIEFF / Niles Daily Star
In today's economy, news of a family owned, manufacturing company rooted in a relatively small Michigan town experiencing positive growth, is not an every day occurrence.
So it was what one might call pretty good news to hear one of the city's oldest manufacturers announced an acquisition that could lead to jobs for Niles workers.
Modineer Company of Niles, a "leading supplier of automotive, commercial and military fabrications" made the announcement Monday that it had finalized an acquisition of both the assets of and the business of Wagon Automotive out of Wixom, Mich.
Modineer's owner and chairman of the board Michael Dreher said in a statement, "the turmoil in the automotive industry has given way to the need for rapid consolidation of the supply base. Modineer is excited to be a part of this process."
The company will begin transferring equipment over the next three months from Wagon's Wixom location to the Niles facility on Third Street.
The announcement also means an employment opportunity in a city that has seen its share of devastating unemployment within the manufacturing and industrial sector.
"It's going to do a couple of things," said Modineer CEO Edward Hamilton of the acquisition. "Number one, it's going to result in immediate job growth."
The company is offering the option to employees of Wagon Automotive to make the move to Niles for employment. There were no solid numbers available on just how many jobs will be available just yet, but Hamilton said that the company employed 70 to 75 workers in Wixom and while some may take the option to move to Niles, most likely, not all of them would.
Still – bringing new families and new workers to Niles could only mean a boost to the local economy.
Positions left vacant by those who choose to stay in Wixom means that there could be additional positions open for area workers.
The second result of the acquisition, Hamilton said, is job creation.
"We're bringing on new equipment, new technology, as well as bringing on Ford as a direct customer…" he said. "The longterm job creation is even more important."
The company states that "the additional work requirements will come from a variety of new programs with parts being supplied to numerous small car platforms for Ford Motor Company and other manufacturers."
And Modineer's Third Street facility is ready for the additional equipment, Hamilton said.
The company already employs over 300 workers in and around the community and it boasts a customer roster that includes AM General, Caterpillar and General Motors.
In an economy that has claimed the lives of so many companies large and small within the same industry, Hamilton said Modineer has fared quite well, thanks in part to its diversification. The company offers services within defense, commercial and automotive industry which Hamilton said helps – when one industry experiences a slump – the others usually help in offsetting that slump.
And the company remodeled its business model back in 2005 – something so many businesses are looking at doing now. And should any business owner out there be doubting the possible positive results that can come from redefining a business model, consider Hamilton said back in 2005, 80 percent of the company's work was within the automotive industry, which could have been crippling considering the current state of that industry. Its diversification has dropped that number to 15 percent.
"Manufacturing has its ebbs and flows," Hamilton said. Fortunately, he added, Modineer is "not a sole source provider," but rather a provider of several services.
"We're not beholden to any one thing," he said.
The company credits Peter Trybula, chief counsel at Barnes and Thornburg as well as Timothy Emerick with making the acquisition possible.
"The benefits of our purchase today will not just be for Modineer," Dreher said. "But rather the Niles community at large. We hope that by offering increased employment, we can do our part in stimulating the economy."
Hamilton said he plans to continue running Modineer, "smartly" and said that as for the future, "it's going to continue to grow."