Instead of outsourcing aviation jobs, a local machine shop puts up the money to keep them. Capps Manufacturing will buy some of Hawker Beechcraft’s equipment. The equipment includes a 750-ton press, 400-ton skin stretch machine and a large-sized heat treat furnace.
Last year, Hawker announced it would stay in Wichita but planned to downsize. The state of Kansas gave the company $45 million to stay and part of that incentive was to try and utilize local suppliers.
For decades Capps Manufacturing Inc. has operated machines to form aircraft parts. “We have no reason to want to leave. We feel very confident and proud we’re able to do this. We’re proud that Hawker has the confidence in us,” said Capps Vice President Ron Capps.
When Hawker shuts down plant one later this year, three pieces of equipment will end up at the Capps facility. If they didn’t end up here, the equipment could have left town possibly outsourced to Mexico. But instead, Capps will invest about $2.2 million and hire 31 more people. Those employees will make an average of $40,000 a year.
Part of the $2.2 million investment includes building a new building to house some of the machines. Capps says they’ll start hiring soon to train people and should have everything in place by this fall. “As long as people are buying airplanes and flying them, we’ll be here making them,” he said.
Since the company is expanding, the Wichita City Council approved a property tax exemption for Capps. The company will receive an 80% exemption over the next five years. Based on the current tax system, the exemption is expected to cost taxpayers $38,387.
Copyright © 2011, KWCH-TV
