LANSING–Production Tool Supply Co., a supplier and distributor of industrial tools, is establishing a new headquarters and fulfillment center in Novi, the Michigan Economic Development Corp. announced.
The project is projected to generate a total capital investment of nearly $70 million and create 85 jobs, resulting in the company receiving a $1 million Michigan Business Development Program performance-based grant.
Production Tool, founded in 1951 by D. Dan Kahn in Warren, was created to provide a more efficient way to deliver industrial products to the local market. More recently, a new wholesale division was added called Berkshire eSupply, which aims to help empower independent distributors with various ready-made tools connecting all aspects of the supply chain delivering the perfect blend of technology, talent, data and products. Today, the two divisions together have one of the largest inventories of American-made and global industrial supplies in North America. From an initial inventory of cutting tools and abrasives, the company has added more than 1 million industrial products to their portfolio. The continuity of a successful business, along with the significant resources of the parent company, Berkshire Hathaway, have positioned the company for expansion.
To keep pace with current and future growth, the company plans to build a North American headquarters and fulfillment center in Novi. The company will use the space as corporate offices, training-teaching-collaborative work areas and a state-of-the-art, highly automated fulfillment center providing inventory management and logistics for thousands of manufacturers and distributors in the industrial sector.
In addition to MSF support, the city of Novi approved a 50-percent property tax abatement in support of the project. MSF also authorized a State Education Tax abatement to be used in conjunction with the locally approved abatement. Michigan was chosen over a competing site in Kentucky.