Minneapolis-based WSI Industries Inc. outlined a major expansion to its machining complex in Monticello, Minn., citing continued strong demand for its contract manufacturing services, and to accommodate for future business growth. The company is a contract machining operation that specializes at producing complex, high-precision parts for avionics and aerospace applications, energy systems, recreational vehicles, small engines, marine systems, bioscience and defense markets.
The 47,000-sq.ft. expansion project will begin this month and double the existing manufacturing space once it’s completed late this year.
“With the success we’ve had in diversifying our business with new customers and markets, as well as our current customers’ increasing demands, we have begun to stretch the capacity of our current facility, and are in need of additional manufacturing space,” according to WSI president and CEO Benjamin Rashleger.
“This building addition will double our manufacturing space and capacity, and give us substantial room for continued growth of our business – with both our current and new customers,” he said.
WSI expects the construction to be completed and ready for manufacturing activity to start by 2013. The cost of the project was not reported, but the manufacturer said it would be paid for with cash available and new debt.
“This expansion illustrates the confidence we have in our current customers and their future success, as well as our ability to continue to attract and obtain new business in the contract manufacturing market,” Rashleger said. “We believe the additional space provided by the expansion will provide us the opportunity to also expand the capabilities and services we can offer to our customers, in addition to the added capacity, which will also help to drive the expansion of the business by attracting new customers and programs.”
The president/CEO explained that WSI has achieved a “decade-high sales level” in the current quarter, exceeding the previous year’s quarter by 45%. He indicated that over the past three fiscal years WSI has experienced increasing sales growth, from $18.8 million in FY 2010 to $25.0 million in FY 2011. Rashleger predicted that the current fiscal year ending later this month would show sales totals in excess of $31 million.
“At the same time, we have increased our headcount from 54 employees in 2009 to our current headcount of 91 employees,” Rashleger noted.
WSI anticipates that the construction work will have a minimal impact on current manufacturing activity.