Utah’s technology and aerospace sectors will grow by more than 200 jobs over the next few years as a pair of companies have announced expansion projects in the state.
Autonomous Solutions Inc. (ASI) and Parker Hannifin Corp. announced the expansions last week after being approved for state incentives by the Governor’s Office of Economic Development (GOED) board, meeting in St. George.
ASI will add up to 135 jobs over the next five years, while Parker Hannifin will grow by 77 positions over six years.
With headquarters and a 100-acre proving ground in Petersboro, Cache County, ASI was founded in 2000 as a spinoff from Utah State University and manufactures an automation technology that retrofits to existing industrial vehicles. ASI’s robotic hardware and software systems allow users to safely manage their entire fleet of vehicles autonomously. The company’s website says it creates “ground vehicle automation for the world’s dull, dirty and dangerous jobs.”
ASI serves the mining, farming, automotive, manufacturing and defense industries and is Ford Motor Co.’s preferred proving ground automation supplier. Other prominent customers are FCA America, Toyota, Boeing, Lockheed Martin, Northrop Grumman, Anglo American, Rio Tinto, Case New Holland, General Dynamics, Sharp, Luke Air Force Base and the Los Angeles Police Department.
“In order for us to maintain our leadership in the unmanned vehicle space, we must continue to push the boundaries of what is possible with machine learning and artificial intelligence,” said Mel Torrie, chief executive officer and founder. “This project will ensure that we continue to offer our customers and partners the most advanced, safe and simple autonomous solutions.”
The GOED board approved an incentive of up to $166,600 in the form of an Industrial Assistance Fund grant that will be used to help pay for road improvements expected to cost $833,000. Without those improvements, the company says it cannot expand and would look to relocate its operations outside Utah.
The ASI expansion is expected to result in new wages of about $26.6 million over five years, with the average wage paying twice the Cache County average. New state tax revenues are expected to be $3.3 million in that period.
“ASI is a pioneering innovator that is using sophisticated research from our universities,” said Val Hale, GOED’s executive director. “ASI is a truly impressive homegrown company, and we are proud to support its expansion in Utah.”
“The impact of Utah’s innovative universities, the technologies they spin out, and the talent they prepare is felt again today as ASI announces their expansion,” said Theresa Foxley, president and chief executive officer of the Economic Development Corporation of Utah. “We are happy this game-changing technology will continue to develop in Utah.”
Parker Hannifin said its Utah expansion will result from moving certain jobs from California to Ogden. The GOED board approved a tax credit rebate of up to $1 million for the project.
Founded in 1917 in Ohio, Parker Hannifin manufactures motion and control technologies and systems, providing precision engineered solutions for a variety of mobile, industrial and aerospace markets. Parker Aerospace, an operating group within the company, is a global leader in aerospace research, design and manufacturing. The company has locations in 39 states and 48 countries outside the U.S.
Cleveland-based Parker Hannifin currently has an engineered polymer systems facility in Utah, as well as an engineering and manufacturing operation supporting its Control Systems Division in Ogden. The division designs and manufactures flight control actuation equipment. In a competitive process, the company selected the Ogden facility as the new location for its repair and overhaul operation for the division. Parker Hannifin will be moving the work, including equipment and jobs, to Utah from Irvine, California. The positions include direct assembly and test positions, engineers, support staff and leadership.
“We appreciate the engagement and support of the governor’s office,” said Doug Dilley, commercial business unit manager for the division operation in Ogden. “The economic climate in Utah is quite favorable for business development, and the area is an excellent place for our team members to live and work. It has been a great experience to partner with the Utah economic development office in this project, and we look forward to working together in the future.”
The $2.8 million capital project is expected to result in new wages totaling $17.8 million over six years, and new state tax revenues over that period are estimated at $6.7 million.
“With deep ties to the global aerospace market, Parker Hannifin is a large contributor to Utah’s world-class aerospace industry,” Hale said. “We look forward to the company’s continued growth in our state.”
“Parker Hannifin’s decision to expand is a great win for Ogden, Weber County and Utah as a whole,” Foxley said. “We look forward to the positive impact their increased presence in Utah will have on the aerospace industry in the state.”