Duotech Services, LLC, an engineering company that specializes in the repair and maintenance of legacy defense equipment, will expand its operations in Macon County, creating 95 jobs, Governor Roy Cooper announced today. The company plans to invest $6.5 million in Franklin.
"Duotech’s growth is another reason why North Carolina is the most military-friendly state in the country,” said Governor Cooper. “We welcome the expansion of this nimble and innovative company that’s supporting the defense of our country and its allies while creating great jobs in western North Carolina.”
Duotech Services LLC, a Bernhard Capital Partners portfolio company, was established in 1982 and has continuously operated in Franklin since 1986. When starting the company, co-founder Dan Rogers saw a market need for what’s known as obsolescence mitigation. Products purchased by the Department of Defense require maintenance and repair over time, yet the Original Equipment Manufacturers (OEMs) tend to drop support of older products in favor of selling new equipment. Duotech is now a major supplier of maintenance and repair support services to components of the U.S. Government, and the company offers major OEMs repair and sustainment services for large scale electronics equipment. Duotech also designs, develops, and manufactures products such as advanced radars and radar warning receivers for commercial and military applications.
“We are very excited about this project. The support from the Governor’s office has been exceptional,” said Brian Ferraioli, Chairman of Duotech’s Board of Directors and Operating Partner at Bernhard Capital Partners. “We had choices to make, and with the support of Governor Cooper, the decision to remain and expand our presence in Macon County was the right business decision.”
“This is our home,” said Dan Bader, President and CEO of Duotech. “We want to remain in this community and are proud to provide good paying technical jobs in Macon County. We are hiring!”
“It’s always gratifying when a North Carolina-based company chooses to expand here,” said Commerce Secretary Machelle Baker Sanders. “From our world-class workforce development and training programs to our overall business-friendly environment, the companies that know us best continue to choose our state for their next phase of growth.”
The North Carolina Department of Commerce led the state’s support for the company during its site evaluation and decision-making process.
Although wages will vary depending on the position, the average salary for the new positions will be $91,271. The current average wage in Macon County is $42,034.
Duotech’s project in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by $416.8 million. Using a formula that takes into account the new tax revenues generated by the new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $845,100, spread over 12 years. State payments only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets.
The project’s projected return on investment of public dollars is 234 percent, meaning for every dollar of potential cost to the state, the state receives $3.34 in state revenue. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.
Because Duotech chose a site in Macon County, classified by the state’s economic tier system as Tier 2, the company’s JDIG agreement also calls for moving $93,900 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 2 county such as Macon, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state.
“Duotech is a valued and important employer in our region and it’s great to see this expansion in Macon County,” said N.C. Senator Kevin Corbin. “North Carolina’s reputation as a military-friendly state grows stronger thanks to today’s decision and we welcome these new jobs and investment.”
“From a humble beginning in 1982, Duotech headquartered their operations in Macon County in 1987," stated North Carolina Representative Karl E. Gillespie. "Since then, they have continued to expand operations and provide well paying jobs. I am grateful for all the efforts to keep Duotech in Macon County and am excited to see their continued growth.”
Partnering with the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina on this project were the North Carolina General Assembly, the North Carolina Community College System, Commerce’s Division of Workforce Solutions, Macon County, the Town of Franklin, the Mountain West Partnership, and the Macon County Economic Development Commission.
About Duotech Services
Duotech is an aerospace and defense company located in Franklin, NC. Duotech is a leading provider of repair and sustainment services for radar and military aircraft related systems as well as proprietary radar products, with unique expertise supporting and extending the useful life of legacy systems. The company is well positioned to solve the engineering, reverse engineering, repair and re-manufacturing problems of military and civilian agencies, as well as aerospace and commercial users of electronic and electromechanical equipment. DuotechServices.com.
About Bernhard Capital Partners
Bernhard Capital Partners is a services and infrastructure-focused private equity management firm established in 2013. Bernhard Capital Partners has deployed capital in four funds across several strategies and has approximately $3.4 billion of gross assets under management. Bernhard Capital Partners seeks to create sustainable value by leveraging its experience in acquiring, operating and growing services and infrastructure businesses. For more information, visit www.BernhardCapital.com.
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