News Articles


Business Development Strategies Helps Fabrico Maximize Its Investment

Associated Industries of Massachusettes
June 2007

Fabrico Inc., has been known for more than 20 years as a manufac¬turer of precision metal components used in the power generation, papermaking, marine, computer, aerospace, and food processing industries. Its precision crafts¬manship in close-tolerance fabrications made of high-temperature and corrosion-resistant alloys, and its fast turnaround time, have made it the supplier of choice for original equipment manufacturers around the world. Fabrico’s name has consistently appeared on GE Energy’s list of top 20 suppliers globally, and the company has received GE’s “Excellent Emerging Supplier Award.”

 

Since 1990, Fabrico’s headquarters have been located at the Oxford Industrial Park in Central Massachusetts. For years, the 48,000-square-foot facility provided ample room for on-site expansions, but by 2005 the company’s growth had outpaced its physical space. Following an exhaustive search for a new location in the New England area, company executives decided to stay in Oxford and purchased a site on Old Webster Road. The new 80,000-square¬foot facility has additional land capacity for future expansions.

 

Securing the new location required a major capital outlay for the company— more than $14.5 million including an additional investment for off-site infrastructure improvements. Ann Gray, Fabrico’s president, turned to a fellow A.I.M. member to help leverage this significant investment.

 

Business Development Strategies Inc., a government incentives consulting firm, is a resource for expanding companies to help identify, negotiate, and secure government incentives for real estate expansion projects. Founded by Lynn Tokarczyk, a former regional director of the Massachusetts Office of Business Development and senior manager for Ernst & Young, the company helps firms navigate the confusing maze of state and local programs designed to spur business investment and job creation.

 

Tokarczyk’s expert assistance helped Fabrico harness the power of the Massachusetts Economic Development Incentive Program (EDIP), which has infused more than $17 billion in private investment into the state’s economy since 1993. Fabrico’s “Certified Project” status enabled it to access a 5 percent investment tax credit from the state along with a 20-year Tax Increment Financing (TIF) agreement with the Town of Oxford. Together, these programs are saving Fabrico more than $500,000.

 

“Lynn led the effort to secure the state and local incentives that have allowed Fabrico to build a new manufacturing facility in Oxford,” said Gray, “but she didn’t stop there. We had other issues that came up in the site development process that were potential roadblocks, and she connected us with the right folks in state government to help us find the best solutions.”

 

Massachusetts offers various financial incentive programs, available from both state and local governments, to help growing companies like Fabrico expand or relocate. Though the state’s own Business Resource Team is helpful, hard-pressed executives can often use additional assistance in finding the right programs to fit their needs.

 

Tokarczyk and her team have a dual mission: to help keep the Common¬wealth’s economy strong and her clients financially healthy. “The most gratifying part of my job is helping companies that were thinking of leaving the state to remain in Massachusetts,” said Tokar-czyk. “Fabrico’s expansion will retain 100 jobs and create 50 new jobs that will spark economic growth in the Central Massachusetts region.”