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April 17, 2023

Aided by lower property tax rate, Farmington sees manufacturing base expand as vacant inventory dwindles

PHOTO | CONTRIBUTED Boris Levin is the CEO of Mott Corp.
By Skyler Frazer

There’s been much talk nationally and in Connecticut about the return of U.S. manufacturing, particularly in the wake of the pandemic, which disrupted global supply chains and caused domestic producers to rethink where they get their products and parts.

While the jury is still out on just how much of an impact that will have on the U.S. economy, the somewhat unsuspecting town of Farmington — located about 10 miles from Hartford — is witnessing a growth spurt of its manufacturing base.

In February, advanced manufacturer Mott Corp. announced plans to open a new 65,000-square-foot facility near its Farmington headquarters that will double production capacity for its custom-designed engineering business.

In March, Germany-based laser machine manufacturer Trumpf Inc. broke ground on a 55,800-square-foot addition to its Farmington Industrial Park campus.

Last year, New England Airfoil Products, the aerospace and defense industry manufacturer owned by Italian firm Pietro Rosa TBM, told Hartford Business Journal it plans to expand capacity at its 36 Spring Lane facility by hiring several dozen employees and purchasing new equipment.

As of the second quarter of 2022, Farmington was home to 38 manufacturers employing 2,731 people, according to state Department of Labor data.

Farmington Economic Development Director Rose Ponte said the town has several selling points, including its location and competitive property tax rate.

Rose Ponte

“We’re really centrally located and we have low taxes — we have one of the lowest tax rates in all of the town’s around us, and that … is really our incentive,” Ponte said.

Farmington’s draw

Of Farmington’s 2.1 million square feet of industrial space, only 2% is vacant, Ponte said. Farmington doesn’t offer financial incentives for companies relocating or expanding in town, but its 29.32 mill rate makes it appealing, particularly to an industry that typically occupies a large real estate footprint.

By comparison, neighboring West Hartford has a 40.68 mill rate, while the city of Hartford has a 68.95 mill rate (a mill is equal to $1 of tax for each $1,000 of assessment).

“I think that’s why we’re seeing these companies that are finding success here in Farmington … want to stay right where they are,” Ponte said.

With such little industrial space available, Ponte admits the town of more than 26,000 residents is “almost all built out,” with limited ability to add new large-scale manufacturing hubs. More than 30% of the town’s 28 square miles is earmarked for open space and can’t be built on.

Comparatively, Farmington has about 4 million square feet of office space, with a vacancy rate of 15% and availability rate of 20.6%, according to brokerage firm CBRE. With demand for office space weak coming out of the pandemic, there could be opportunities to rethink property uses.

For example, to secure its new site at 1890 New Britain Ave., Mott Corp. received town approval to change the property’s zoning use from office space to manufacturing.

That highlights creative ways the town can support business growth, Ponte said, but she stopped short of embracing a larger office-to-warehouse conversion trend.

Zoning changes, she said, also must take into account local residents’ concerns and preserve quality of life.

RENDERING | CONTRIBUTED
A rendering of the planned 55,800-square-foot addition to Trumpf Inc.’s Farmington Industrial Park campus.

Art Ross, executive managing director of commercial real estate brokerage firm Newmark, said Farmington has several things going for it, including its industrial park near the Plainville border, which was designed to encourage quality buildings that have attracted high-end manufacturers.

The location provides good access to I-84, routes 9 and 72, and several other state roads, Ross said, and is also in proximity to Robertson Airport in Plainville.

“Farmington is also a great central location for skilled manufacturing labor coming from New Britain, West Hartford, Newington, Bristol and more,” Ross said.

Mark Duclos, president of Hartford brokerage firm Sentry Commercial, echoed many of Ross’ comments and said Farmington has been known for a business-friendly environment. He’s currently in the process of selling a property within the Farmington Industrial Park.

The 122,000-square-foot mixed-use industrial property at 60 Johnson Ave., actually sits in the Plainville section of the industrial park and has been on the market for a few months, Duclos said. The property, which includes 34,000 square feet of office space and 88,000 square feet of warehouse space, was listed at $9.7 million and has seen significant interest from both investors and potential owner-occupiers, Duclos said.

The building is currently owned by Carling Technologies, which is downsizing its operations. The switch and circuit breaker manufacturer could lease back some of the building, or relocate to another nearby facility, Duclos said.

‘History of innovation’

Mott Corp. has been in Farmington since the 1960s, when founder Lambert “Bud” H. Mott moved the company there after outgrowing his East Hartford garage. The filtration systems manufacturer’s new facility will add about 100 new jobs, the company said, and is expected to open during the first quarter of 2024.

Hiring could begin later this year.

“Our roots are in Connecticut, and that’s important,” Mott Corp. CEO Boris Levin said. “The skill set is here, the experience is here, and we’re very dedicated to this community.”

Levin said Mott Corp. has seen significant growth in its clean energy business, specifically related to components it makes for green hydrogen generation. As a result, it has been running out of manufacturing space at its existing Farmington properties.

The lack of available industrial real estate is a “competitive disadvantage” for Farmington and the state in general, Levin said, but there are ways around that.

“We wanted to get something close to our current location to make sure we could leverage the skills of the employees that we have, and we feel that there’s a very skilled employee base in Connecticut,” Levin said. “So, we made the conscious decision to stay in Connecticut.”

Levin said Mott Corp. is looking for more expansion opportunities in the state. It also recently grew its footprint beyond Connecticut’s borders with its March acquisition of Michigan-based Digested Organics, which makes advanced filtration products that aim to reduce wastewater disposal costs and reclaim clean water.

Meanwhile, Trumpf Inc. is expanding the 135,702-square-foot production facility on the west side of its Farmington Industrial Park property. The company, which is the North American subsidiary of Germany’s Trumpf Group, said the $40-million project will expand its sheet metal production capabilities (the company makes laser cutting, bending and welding machinery).

It will also house a smart factory featuring highly advanced technology, automation and IT infrastructure.

In total, Trumpf has about 400,000 square feet of space in Farmington and more than 620 employees in Connecticut.

Trumpf President and CEO Lutz Labisch said strong demand for its laser machinery is driving the Connecticut expansion.

“We have a long history of innovation and manufacturing here in Connecticut,” Labisch said. “This year our parent company in Germany celebrates 100 years in business, and we have been here in the U.S. for more than 50 years.”

Burke Doar, Trumpf’s executive vice president, said the current expansion is the company’s seventh on the Farmington campus.

“This project enables our customers to compete in a decoupled world, in a world where reshoring is real in manufacturing,” Doar said. “We can do it competitively, we can do it cost effectively, and we can really create good jobs for people in manufacturing.”

The pandemic forced many companies to rethink how they manage their supply chains, and reshoring or buying from local firms has been emphasized, Doar said. Mott Corp.’s Levin said his company uses lasers from Trumpf, and equipment from other local companies, in its precision manufacturing.

“Trumpf has the best technology in the world, right? They have the best and most sophisticated lasers. … We search long and hard for the best suppliers in the world, and we find, in many areas, that Connecticut has the best technologies,” Levin said.

Skilled workforce

Ponte, the economic development director, said another Farmington strength is the presence of Tunxis Community College, which has a large advanced manufacturing program that provides a pipeline of much-needed young talent.

Labisch said developing a skilled workforce through the higher-education system should be a continued focus for Connecticut. His company has an apprenticeship program through the state’s community college system, he said.

Making the state competitive when it comes to taxes is also key, he added. Neither Trumpf nor Mott Corp. have received state incentives for their recently announced expansion plans, according to the Department of Economic and Community Development.

Levin said the state should also emphasize connecting regional manufacturers with each other — like Mott and Trumpf have in the past — so they know what is locally available.

Suggestions aside, both CEOs said Connecticut’s overall support of advanced manufacturing in recent years has been noticed by the industry.

“We are able to find a good, qualified workforce here,” Labisch said. “Good education in Connecticut and a good source of skilled labor is a big factor for us.”

HBJ Editor Greg Bordonaro contributed to this story.

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