Friday, May 24, 2024

Duotech expands in Macon County, creating 95 jobs

A company that serves the aerospace and defense industries that has operated in the town of Franklin for about 40 years will expand operations in Macon County, creating 95 jobs. Duotech Services, an engineering company that specializes in the repair and maintenance of legacy defense equipment, will invest $6.5 million in the expansion in a state that sells itself as “the most military-friendly state in the country.”

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 Services, a Bernhard Capital Partners portfolio company, was established in the county seat of Macon in 1982 and has continuously operated in Franklin since 1986. Company co-founder Dan Rogers started the company in western North Carolina after seeing a 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, according to a state release.

Duotech is 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,” says Brian Ferraioli, chair of Duotech’s board and operating partner at Bernhard Capital Partners, in a statement released by the state. Duotech made a business decision to expand in Macon County rather than go elsewhere.

“This is our home,” says Duotech CEO Dan Bader, in a statement released by the state. “We want to remain in this community and are proud to provide good paying technical jobs in Macon County. We are hiring!”

The North Carolina Department of Commerce led the state’s support for the company during its site evaluation and decision-making process.

Duotech’s project in North Carolina will be facilitated, in part, by a Job Development Investment Grant approved by the state’s Economic Investment Committee. 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%, meaning for every dollar of potential cost to the state, the state receives $3.34 in state revenue, according to the state. The state will also give Macon County $93,900 from the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract business.

About Bernhard Capital Partners

Baton Rouge, Louisiana-based Bernhard Capital Partners is a services and infrastructure-focused private equity management firm established in 2013. Bernhard has deployed capital in four funds across several strategies and has approximately $3.4 billion of gross assets under management.

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