Friday, December 07, 2007

Sub-Zero Expands Out of State

If you are a Wisconsin based manufacturer wanting to expand your business, what thoughts cross your mind in the decision process? There are so many factors to consider.

Sub-Zero/Wolf to build dishwasher factory in Kentucky: Madison-based Sub-Zero/Wolf is getting into the dishwasher business with a new manufacturing plant in Kentucky. The luxury kitchen appliance company didn't mean to dis the Madison area in locating its new 200,000-square-foot facility on 45 acres in Richmond, Ky., corporate marketing manager Paul Leuthe said. It just ran out of room for expansion at its Fitchburg site, where its companies Sub-Zero Inc. and Wolf Appliance Inc., acquired in 2000, make high-end refrigeration and cooking units. "We like Dane County, we like Madison," Leuthe said.

Sub-Zero expands to Kentucky: Leuthe said the company has maxed out space at its 65-acre Fitchburg site and decided to expand elsewhere. The company bought 45 acres in an industrial park in Richmond, located south of Lexington in central Kentucky, and expects to break ground on the 200,000 square-foot building next spring. … "The fact that we went to Kentucky is saying nothing bad about Wisconsin" Leuthe said.

This all sounds like the Corporate PR equivalent of saying: it’s not you honey, it’s me. Of course Kentucky tosses in financial incentives and there is the plausible justification of being physically closer to the parts suppliers but in the end, the love of Wisconsin emotions are not enough to overcome the good business judgment calculations.