Tatamy Company Buys Paint Booth, Equipment with Help from LVEDC Programs
By Colin McEvoy on June 23, 2015
A leading manufacturer of industrial and commercial storage products has added new equipment with the assistance of a loan that the Lehigh Valley Economic Development Corporation (LVEDC) helped them secure.
The Tatamy-based Consolidated Storage Companies has acquired a new paint booth, which will help them better recycle and reuse excess paint from its painting process, thus reducing the amount of wasted paint and disposal costs.
Consoildated Storage Companies, which sells most of its products under the brand name Equipto, purchased the equipment with help from a $195,000 Pennsylvania Industrial Development Authority (PIDA) loan, at a 3 percent fixed rate. This is one of several financing programs LVEDC administers.
“Our business needed to upgrade its paint line to reduce costs and deliver the highest level of quality possible, but we needed help financing it,” said Robert C. Ammerman, president of Consolidated Storage Companies. “The LVEDC and their partner, Northampton County New Jobs Corp., provided us with a 3 percent fixed-rate loan, and also helped us find additional funding through the Community First Fund to complete the financing for the project.”
Ammerman added: “These organizations understand small businesses and they worked creatively to help us accomplish our goals. The experienced team at LVEDC was a pleasure to work with and we look forward to having them as our partner in the future. We are thankful the Lehigh Valley has this unique resource.”
John Kingsley, LVEDC Vice President of Finance, said the organization’s finance department administers more than a dozen local, state and federal programs to help companies grow and succeed in the Lehigh Valley.
“LVEDC and our partners provide low-cost and creative financing options for businesses in the region,” Kingsley said. “If your business is expanding or you are purchasing or improving real estate or machinery and equipment, we can help reduce your cost of borrowing.”
The PIDA program offers low-interest loans through Certified Economic Development Organizations to businesses for a variety of uses, including land and building acquisition, construction, renovation, and the acquisition of production equipment that results in the creation or preservation of jobs.
PIDA, considered by the majority of lenders to be Pennsylvania’s flagship economic development lending program, can finance up to $2.25 million with a term of up to 15 years at rates that start as low as 2.25 percent. LVEDC has helped secure $10.7 million in PIDA loans for seven companies in 2014 alone, resulting in the retention of about 780 jobs and the creation of about 200 new jobs.
Consolidated Storage Companies employs about 100 people and operates out of a 160,000-square-foot facility in Tatamy. The company, which has existed for over a century, manufactures products that include modular drawers, shelving systems, mezzanines, work benches, mobile aisle systems, and heavy-duty rack systems.
In addition to the new paint booth, the company also purchased a new air compressor and two new dies/tools for its divider and partition manufacturing process. Several minor facility repairs will also be done, including roof repairs, door replacement, HVAC upgrades, and the finishing of a computer room.
These new equipment purchases and facility repairs will allow for more efficient and cost-effective manufacturing, as well as expansion and increased manufacturing capacity. The company estimates a payback of their paint booth investment of less than two years.
Consolidated Storage Companies’ products are used in industrial and manufacturing facilities, material handling, automotive, government, and retail and educational settings. While the company’s principal brand is Equipto, products are also sold under the Adapto and Clubstor brand names.
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UPDATE: Due to Kathleen McGinty's departure from Gov. Tom Wolf's administration, Pennsylvania DCED Secretary Dennis Davin will speak in her place. Click here for more details.[...]Continue to Next Page