Hartford Business Journal

HARTFORDBUSINESS.COM | APRIL 17, 2023 41 Boris Levin is the CEO of Mott Corp., which recently announced plans to open a new 65,000-square-foot facility near its Farmington headquarters that will double production capacity for its custom-designed engineering business. PHOTO | CONTRIBUTED Growth Spurt Aided by lower property tax rate, Farmington sees manufacturing base expand as vacant inventory dwindles By Skyler Frazer sfrazer@hartfordbusiness.com T here's been much talk nation- ally and in Connecticut about the return of U.S. manufac- turing, particularly in the wake of the pandemic, which disrupted global supply chains and caused domestic producers to rethink where they get their products and parts. While the jury is still out on just how much of an impact that will have on the U.S. economy, the somewhat unsuspecting town of Farmington — located about 10 miles from Hartford — is witnessing a growth spurt of its manufacturing base. In February, advanced manufac- turer Mott Corp. announced plans to open a new 65,000-square-foot facility near its Farmington head- quarters that will double production capacity for its custom-designed engineering business. In March, Germany-based laser machine manufacturer Trumpf Inc. broke ground on a 55,800-square- foot addition to its Farmington Indus- trial Park campus. Last year, New England Airfoil Products, the aerospace and defense industry manufacturer owned by Italian firm Pietro Rosa TBM, told Hartford Business Journal it plans to expand capacity at its 36 Spring Lane facility by hiring several dozen employees and purchasing new equipment. As of the second quarter of 2022, Farmington was home to 38 manu- facturers employing 2,731 people, according to state Department of Labor data. Farmington Economic Devel- opment Director Rose Ponte said the town has several selling points, including its location and competitive property tax rate. "We're really centrally located and we have low taxes — we have one of the lowest tax rates in all of the town's around us, and that … is really our incentive," Ponte said. Farmington's draw Of Farmington's 2.1 million square feet of industrial space, only 2% is vacant, Ponte said. Farmington doesn't offer financial incentives for companies relocating or expanding in town, but its 29.32 mill rate makes it appealing, particularly to an industry that typically occupies a large real estate footprint. By comparison, neighboring West Hartford has a 40.68 mill rate, while the city of Hartford has a 68.95 mill rate (a mill is equal to $1 of tax for each $1,000 of assessment). "I think that's why we're seeing these companies that are finding success here in Farmington … want to stay right where they are," Ponte said. With such little industrial space available, Ponte admits the town of more than 26,000 residents is "almost all built out," with limited ability to add new large-scale manufacturing hubs. More than 30% of the town's 28 square miles is earmarked for open space and can't be built on. Comparatively, Farmington has about 4 million square feet of office space, with a vacancy rate of 15% and availability rate of 20.6%, according to brokerage firm CBRE. With demand for office space weak coming out of the pandemic, there could be opportunities to rethink property uses. For example, to secure its new site at 1890 New Britain Ave., Mott Corp. received town approval to change the property's zoning use from office space to manufacturing. That highlights creative ways the town can support business growth, Ponte said, but she stopped short of embracing a larger office-to-ware- house conversion trend. Zoning changes, she said, also must take into account local residents' concerns and preserve quality of life. Art Ross, executive managing director of commercial real estate brokerage firm Newmark, said Farmington has several things going for it, including its industrial park near the Plainville border, which was designed to encourage quality buildings that have attracted high-end manufacturers. The location provides good access to I-84, routes 9 and 72, and several other state roads, Ross said, and is also in proximity to Robertson Airport in Plainville. "Farmington is also a great central location for skilled manufacturing labor coming from New Britain, West Hartford, Newington, Bristol and more," Ross said. Mark Duclos, president of Hartford brokerage firm Sentry Commercial, echoed many of Ross' comments and said Farmington has been known for a business-friendly environment. He's currently in the process of selling a property within the Farmington Industrial Park. The 122,000-square-foot mixed-use industrial property at 60 Johnson Ave., actually sits in the Plainville section of the industrial park and has been on the market for a few months, Duclos said. The property, which includes 34,000 square feet of office space and 88,000 square feet of warehouse space, was listed at $9.7 million and has seen signif- icant interest from both investors and potential owner-occupiers, Duclos said. The building is currently owned by Carling Technologies, which is down- sizing its operations. The switch and circuit breaker manufacturer could lease back some of the building, or relocate to another nearby facility, Duclos said. 'History of innovation' Mott Corp. has been in Farmington since the 1960s, when founder Lambert "Bud" H. Mott moved the company there after outgrowing his East Hartford garage. The filtration systems manufacturer's new facility will add about 100 new jobs, the company said, and is expected to open during the first quarter of 2024. Hiring could begin later this year. "Our roots are in Connecticut, and that's important," Mott Corp. CEO Boris Levin said. "The skill set is here, the experience is here, and we're very dedicated to this community." Levin said Mott Corp. has seen significant growth in its clean energy business, specifically related to compo- nents it makes for green hydrogen generation. As a result, it has been running out of manufacturing space at its existing Farmington properties. The lack of available industrial real estate is a "competitive disadvan- tage" for Farmington and the state in general, Levin said, but there are ways around that. "We wanted to get something close to our current location to make sure we could leverage the skills of the employees that we have, and we feel that there's a very skilled employee base in Connecticut," Levin said. "So, we made the conscious decision to stay in Connecticut." Levin said Mott Corp. is looking for more expansion opportunities in the state. It also recently grew its footprint beyond Connecticut's borders with its March acquisition of Michigan-based Digested Organics, which makes advanced filtration products that aim to reduce wastewater disposal costs and reclaim clean water. Meanwhile, Trumpf Inc. is expanding the 135,702-square-foot production facility on the west side of its Farmington Industrial Park prop- erty. The company, which is the North American subsidiary of Germany's Trumpf Group, said the $40-million project will expand its sheet metal production capabilities (the company

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