The Macon County Board of Commissioners voted Monday night to sell property in the industrial park to Duotech Services for an expansion that will create 95 new jobs over five years. While wages will vary depending on position, the average salary for the new jobs will be $91,271.
“This is a unique opportunity for Macon County,” Economic Development Director Tommy Jenkins said during a special meeting of the commissioners on March 25.
Duotech is a Macon County-based company that specializes in the repair and maintenance of legacy defense equipment. The company also designs, develops and manufactures products such as advanced radars and radar warning receivers for commercial and military applications.
Duotech was founded 42 years ago and has operated in Franklin since 1986, being one of the first tenants in the Macon County Industrial Park. They currently operate in 35,000 square feet with 45 employees.
“This is our home,” said Dan Bader, president and CEO of Duotech. “We want to remain in this community and are proud to provide good paying technical jobs in Macon County. We are hiring!”
Bader said the company has projected growth opportunities, but they need additional people and space to grow.
With the purchase of the property in the industrial park, the company will add up to 50,000 square feet of space and 95 jobs over five years. Jenkins said the average salary Duotech will offer is above the state average of $65,000 and the county average of $42,034.
“You can see that is quite an increase over average wages,” Jenkins said, adding that it would increase the county payroll by approximately $7.8 million per year. “That would be $7.8 million going into our local economy.”
The company plans to invest $6.5 million over five years for the expansion. Jenkins said this was a competitive project with a couple of other locations considered.
Bader said they considered locations such as Atlanta and Huntsville, Alabama, due to a good recruiting base for skilled workers, educational facilities and proximity to other related businesses.
Ultimately the incentives offered by North Carolina and Macon County sealed the decision, and this is the company’s existing base.
“This is our home. We have 45 employees and their families. We did not want to disrupt the workforce,” Bader said.
He said they consider it a good investment to grow in their hometown and provide a good quality of life for their employees. “We are excited about this expansion in Macon County,” Bader said, adding that it will allow them to better serve current and future customers as well as their employees and their families. “We believe in investing in our local area.”
The 2.7-acre property in the industrial park includes a 17,560-square-foot building constructed in 1984 and previously used as a business development center. In 2023 it was appraised for $740,000 and has a current tax assessment value of $797,000. The county will sell the property for $797,000.
During the meeting the board also voted to offer the company a $100,000 incentive over five years. That cash incentive would be paid out in four installments of $25,000 each time the company reaches one-quarter of the jobs created. Jenkins said the incentives equates to about $1,053 per job.
“This company started in Macon County and has been a big corporate citizen,” Jenkins said. “In my opinion it’s a win-win situation for the company and the citizens of Macon County and the local economy.”
Board attorney Eric Ridenour said the company will have to demolish the existing building. If they don’t demolish it within eight months, the county has the right to buy the property back at the same price. Ridenour said that ensures this is not a “flip” where they turn around and sell the property for more.
“The purpose of this was to provide for those 95 jobs at an estimated annual salary of over $80,000 apiece,” Ridenour said. “If they don’t do that, we can buy it back and we’re back to where we were.”
Ridenour also pointed out the $25,000 per year cash incentive is paid only if the company creates the jobs.
When County Manager Derek Roland asked about the capital investment and the average salary, Jenkins said this is the largest project he is aware of in Western North Carolina. “This is by the far the largest in Macon County,” he said.
“This is a tremendous deal,” Roland said.
Ridenour said if the company accepts the agreement signatures should be confirmed within the week and closing would be in 90 days.
Monday’s meeting included a public hearing on the sale of the property and the incentive proposal, but no one signed up to speak during the hearing. Both the sale of the property and the incentive proposal were unanimously approved.
Bader said they are in the design phase on the project and construction could start in five to six months and is expected to take about a year to complete. He said the work they do with electronics requires a very clean environment with laboratories and testing areas, thus the need to demolish the current building and construct a new one.
Even while construction is going on Bader said they plan to start the hiring process immediately and “squeeze people in” to their current location until the new building is ready and more people can be hired.
On Tuesday, Macon County leaders at the state level applauded Duotech’s expansion efforts and job creation in the county.
“Duotech is a valued and important employer in our region and it’s great to see this expansion in Macon County,” said N.C. Sen. Kevin Corbin. “North Carolina’s reputation as a military-friendly state grows stronger thanks to today’s decision and we welcome these new jobs and investment.”
“From a humble beginning in 1982, Duotech headquartered their operations in Macon County in 1987,” stated N.C. Rep. Karl E. Gillespie. “Since then, they have continued to expand operations and provide well-paying jobs. I am grateful for all the efforts to keep Duotech in Macon County and am excited to see their continued growth.”
According to a release from Gov. Roy Cooper’s office, Duotech’s project will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee on Tuesday.
Over the course of the 12-year term of the 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.
Because Duotech chose a site in Macon County, classified by the state’s economic tier system as Tier 2, the company’s JDIG agreement also calls for moving $93,900 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. When new jobs are created in a Tier 2 county such as Macon, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state.