Malloy Electric to consolidate at Dunes
By Dave Dreeszen Journal business editor | Posted: Wednesday, July 18, 2007
DAKOTA DUNES -- Malloy Electric announced plans Tuesday to move its Sioux City operations across the Big Sioux River to Dakota Dunes.
The Sioux Falls-based firm, a national leader in electrical and power transmission industries, said it intends to build a 75,000-square-foot industrial service center at the planned community in southeast South Dakota.
The 67 employees at Malloy's two facilities in Sioux City would relocate to the new Dunes center following its scheduled completion in late 2009.
South Dakota Gov. Mike Rounds said the family-owned business also hopes to add as many as 100 more high-skilled jobs over the next three years.
"This is an example of a homegrown industry, a leader in their field that cares about their people, making advances here in the Midwest,'' Rounds said at a mid-afternoon news conference at Dakota Dunes Country Club.
Owner Garry Jacobson said the consolidation of Malloy's metro Sioux City facilities would create more opportunities for the company to expand its business in the upper Midwest.
"We're going to continue to grow to fit the needs of our customers,'' Jacobson said. He did not identify how much the company planned to spend on its expansion.
Emmett and Mary Malloy founded the company as a small motor repair shop in downtown Sioux Falls in 1945. Jacobson and his wife, Dianne, purchased the business from the Malloys in 1971 and continued to expand it over the years.
In 1986, Malloy Electric opened a branch in Sioux City. A 3,000-square-foot warehouse was added to that 17,000-square-foot shop at 300 S. Virginia St. in 1995. In 2001, Malloy acquired a local competitor, Thorpe Electric, and that 28,000-square-foot service center at 1114 Fifth St. was added to the family of Malloy facilities.
Jacobson said Malloy officials looked "pretty hard'' at relocating its Sioux City operations to Omaha.
But the company eventually decided to stay in the metro area, moving just across the river into South Dakota, which Jacobson described as the "greatest place in the world'' to live and raise a family.
"This location just happened to fit our needs real well,'' Jacobson said of the 11-acre site along Interstate 29, near the exit 1 ramp in Dakota Dunes.
"The company's new facility makes a great addition to the growing list of companies locating at the Dunes,'' said Dennis Melstad, president of Dakota Dunes Development Co.
The joyous announcement at the country club was in constrast to the disappointment felt by leaders in Sioux City, who had tried for months to convince Malloy to expand on the Iowa side of the river.
Marty Dougherty, the city of Sioux City's economic development director, said the city and state of Iowa offered Malloy an incentive package valued at $2.2 million. The offer included 14 acres, at no cost to the company, in the city's airport business and income tax breaks from the state's new targeted jobs program, designed to help Sioux City compete for jobs with neighboring South Dakota, which has no individual or corporate income tax.
"We felt we had a very competitive offer,'' Dougherty said. "We're disappointed they aren't building in Sioux City. But we're happy their employees, who live here, will be able to continue to work for the company in our area.''
Jacobson stressed his company is not leaving the Sioux City area. He expects all his workers, who live throughout the region, to make the move to the Dunes.
Rounds said his state put together an incentive package that allowed Malloy to not only maintain its existing employment in the metro area, but also add 100 new jobs over the next few years.
"The incentives that we are providing mean that jobs that might otherwise be imported, or materials or electronic equipment that might otherwise be imported from other companies can stay right here in the upper Midwest,'' he said.
Rounds said South Dakota plans to offer Malloy financial resources that include grants from its Revolving Economic Development Initiative or REDI Fund and workforce development program. The Republican governor said he could not put a price tag on the state's investment because the company has not finalized plans for its projected job growth and specific size of its building.
At Tuesday's news conference, other speakers all emphasized that Malloy's expansion would benefit all local jurisdictions in the tri-state region.
"We appreciate what's good for Dakota Dunes is good for North Sioux City, is good for Sioux City, is good for South Sioux City,'' said Regina Roth, chair of The Siouxland Initiative.
Roth and her husband, Eldon, own Dakota Dunes-based Beef Products Inc., which she mentioned is a major Malloy customer. Malloy currently is contributing to BPI's $400 million expansion of its South Sioux City campus.
Malloy offers sales and services that include motor and generator repair and rewinding, industrial electronic equipment and repair, and technical services like vibration analysis, laser alignment and circuit breaker testing. The company also stocks one of the largest inventories of motors, gearboxes, and control and power transmission products in the upper Midwest.
Rounds noted Malloy also is a major provider of services for the growing wind energy industry.
Jacobson said Malloy has plans for additional expansion in the Midwest. The company has an immediate need for about 15 more employees at its metro Sioux City facilities, he said.
The owner did not identify the average hourly pay for company positions, other than to say starting wages are more than double the minimium wage. "We don't mind paying good people well,'' he said.
Malloy Electric
Founded: 1945 in downtown Sioux Falls
Type business: Sales and service for electrical and mechanical power transmission industries
Owners: Garry and Dianne Jacobson
Corporate offices: Sioux Falls
Current Sioux City sites: 300 S. Virginia St. and 1114 Fifth St.
Planned expansion: Consolidation of Sioux City operations at new service center in Dakota Dunes
On Web: www.malloyelectric.com
The Sioux Falls-based firm, a national leader in electrical and power transmission industries, said it intends to build a 75,000-square-foot industrial service center at the planned community in southeast South Dakota.
The 67 employees at Malloy's two facilities in Sioux City would relocate to the new Dunes center following its scheduled completion in late 2009.
South Dakota Gov. Mike Rounds said the family-owned business also hopes to add as many as 100 more high-skilled jobs over the next three years.
"This is an example of a homegrown industry, a leader in their field that cares about their people, making advances here in the Midwest,'' Rounds said at a mid-afternoon news conference at Dakota Dunes Country Club.
Owner Garry Jacobson said the consolidation of Malloy's metro Sioux City facilities would create more opportunities for the company to expand its business in the upper Midwest.
"We're going to continue to grow to fit the needs of our customers,'' Jacobson said. He did not identify how much the company planned to spend on its expansion.
Emmett and Mary Malloy founded the company as a small motor repair shop in downtown Sioux Falls in 1945. Jacobson and his wife, Dianne, purchased the business from the Malloys in 1971 and continued to expand it over the years.
In 1986, Malloy Electric opened a branch in Sioux City. A 3,000-square-foot warehouse was added to that 17,000-square-foot shop at 300 S. Virginia St. in 1995. In 2001, Malloy acquired a local competitor, Thorpe Electric, and that 28,000-square-foot service center at 1114 Fifth St. was added to the family of Malloy facilities.
Jacobson said Malloy officials looked "pretty hard'' at relocating its Sioux City operations to Omaha.
But the company eventually decided to stay in the metro area, moving just across the river into South Dakota, which Jacobson described as the "greatest place in the world'' to live and raise a family.
"This location just happened to fit our needs real well,'' Jacobson said of the 11-acre site along Interstate 29, near the exit 1 ramp in Dakota Dunes.
"The company's new facility makes a great addition to the growing list of companies locating at the Dunes,'' said Dennis Melstad, president of Dakota Dunes Development Co.
The joyous announcement at the country club was in constrast to the disappointment felt by leaders in Sioux City, who had tried for months to convince Malloy to expand on the Iowa side of the river.
Marty Dougherty, the city of Sioux City's economic development director, said the city and state of Iowa offered Malloy an incentive package valued at $2.2 million. The offer included 14 acres, at no cost to the company, in the city's airport business and income tax breaks from the state's new targeted jobs program, designed to help Sioux City compete for jobs with neighboring South Dakota, which has no individual or corporate income tax.
"We felt we had a very competitive offer,'' Dougherty said. "We're disappointed they aren't building in Sioux City. But we're happy their employees, who live here, will be able to continue to work for the company in our area.''
Jacobson stressed his company is not leaving the Sioux City area. He expects all his workers, who live throughout the region, to make the move to the Dunes.
Rounds said his state put together an incentive package that allowed Malloy to not only maintain its existing employment in the metro area, but also add 100 new jobs over the next few years.
"The incentives that we are providing mean that jobs that might otherwise be imported, or materials or electronic equipment that might otherwise be imported from other companies can stay right here in the upper Midwest,'' he said.
Rounds said South Dakota plans to offer Malloy financial resources that include grants from its Revolving Economic Development Initiative or REDI Fund and workforce development program. The Republican governor said he could not put a price tag on the state's investment because the company has not finalized plans for its projected job growth and specific size of its building.
At Tuesday's news conference, other speakers all emphasized that Malloy's expansion would benefit all local jurisdictions in the tri-state region.
"We appreciate what's good for Dakota Dunes is good for North Sioux City, is good for Sioux City, is good for South Sioux City,'' said Regina Roth, chair of The Siouxland Initiative.
Roth and her husband, Eldon, own Dakota Dunes-based Beef Products Inc., which she mentioned is a major Malloy customer. Malloy currently is contributing to BPI's $400 million expansion of its South Sioux City campus.
Malloy offers sales and services that include motor and generator repair and rewinding, industrial electronic equipment and repair, and technical services like vibration analysis, laser alignment and circuit breaker testing. The company also stocks one of the largest inventories of motors, gearboxes, and control and power transmission products in the upper Midwest.
Rounds noted Malloy also is a major provider of services for the growing wind energy industry.
Jacobson said Malloy has plans for additional expansion in the Midwest. The company has an immediate need for about 15 more employees at its metro Sioux City facilities, he said.
The owner did not identify the average hourly pay for company positions, other than to say starting wages are more than double the minimium wage. "We don't mind paying good people well,'' he said.
Malloy Electric
Founded: 1945 in downtown Sioux Falls
Type business: Sales and service for electrical and mechanical power transmission industries
Owners: Garry and Dianne Jacobson
Corporate offices: Sioux Falls
Current Sioux City sites: 300 S. Virginia St. and 1114 Fifth St.
Planned expansion: Consolidation of Sioux City operations at new service center in Dakota Dunes
On Web: www.malloyelectric.com
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