ONAWAY - Eighteen new jobs are coming to Onaway following Precision Hardwoods’ expansion and investment of nearly $12 million for a new and modernized sawmill that will increase their capacity for customers.
“We are grateful to have earned this investment from Precision Hardwoods! Michigan is the place where companies of every size can plant roots and grow. This project is another example of the ‘Make It In Michigan’ economic development strategy focused on People, Places and Projects on both peninsulas,” said Quentin L. Messer Jr., CEO of the Michigan Economic Development Corporation. “While work remains, this Precision Hardwoods announcement exemplifies the Team Michigan partnership among the legislature, local partners and the state to use the Michigan Business Development Program grant program to grow jobs and entrepreneurial opportunity throughout Northern Michigan. We applaud the company’s continued growth in our great state.”
Precision Hardwoods, located in Onaway, Presque Isle County, specializes in the production of high-quality, locally sourced wood products. The company is expanding and modernizing its current facility by adding a new 45,000-square-foot sawmill building that will enable increased production capacity to meet growing customer demands.
The building will represent nearly $12 million of capital investment and create 18 jobs with wages an average wage of $21.78 per hour plus benefits, over $3 per hour more than the regional median wage of $18.62. Precision Hardwoods has been awarded a $130,000 Michigan Business Development Program performance-based grant from the Michigan Strategic Fund in support of their expansion efforts.
“On behalf of Northern Lakes Economic Alliance, I offer my sincere thanks to the MEDC and Michigan Strategic Fund for their support of this critical expansion project and to Precision Hardwoods for their continued investment in Northern Michigan, said Payton Heins, President of Northern Lakes Economic Alliance. “Precision Hardwoods’ sawmill expansion and modernization project will provide a significant boost to our regional economy through the creation of new family-sustaining jobs, specialized training programs for the existing workforce, and increased manufacturing capacity to meet market demand in the wood products industry.”
This expansion will result in the company being able to offer more customized wood products tailored specifically to the customers’ needs, further diversifying its product line and remaining competitive in the industry.
“Precision Hardwoods’ expansion creates more jobs within the Onaway community, while fulfilling the increasing consumer demand for sustainable forest products,” said Michigan Department of Agriculture & Rural Development (MDARD) Director Tim Boring. “This project is well aligned with MDARD’s ongoing commitment to supporting long-term sustainable agricultural practices, driving economic advancement within our rural communities, and ensuring everyone can Make it in Michigan.”
In addition to support from the Michigan Strategic Fund, Precision Hardwoods received New Markets Tax Credit (NMTC) support from Michigan Community Capital and PNC Bank. The NMTC Program aims to attract private capital into low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making equity investments.
“Being awarded the NMTC loan on top of support from both MEDC and MDARD is a testament to Precision Hardwoods’ commitment to growth, sustainability, and community. With this opportunity, we will not only invest in the future of the lumber industry, but also our local community by creating and retaining meaningful employment opportunities that empower individuals and strengthen our economy,” said Mike Sturgill, owner of Precision Hardwoods on behalf of the Precision Hardwoods team. “Together, we are building a foundation for progress – one that supports both the industry and the people who drive it forward! Thank you for the opportunity!”
