(The Center Square) – Two Michigan businesses will receive $1.3 million in Michigan Strategic Fund grants for expansion projects in Flint. The grants may create 424 new jobs in the state and help generate a projected $23 million investment in the area.
NorthGate in Burton and DAG Technology, Inc., based in Sterling Heights, will receive $1 million and $300,000, respectively, in grants.
NorthGate, a supply chain management provider, will bring up to 374 new jobs to its Burton facility, which the company plans to invest $13 million, according to a news release from Gov. Gretchen Whitmer.
Automotive supplier DAG may create 50 jobs in a new $10 million manufacturing facility it intends to build in Grand Blanc Township.
“People should care about the direction of employment rather than whether the governor can subsidize a handful of firms,” James Hohman, director of economic policy at The Mackinac Center, told The Center Square, noting the state’s current employment is 5.1% lower, or 241,333 below the early March 2020 level. “The state economy has struggled since the pandemic began in part due to the governor’s stringent orders.”
Although Michigan’s current businesses are struggling to find workers, Whitmer stressed the importance of new job creation.
“These investments will create hundreds of promising jobs for Genesee County residents as we continue to grow Michigan’s economy and build strategic industries across the state,” Whitmer said in a statement. "Today's business expansions are helping us stay laser-focused on creating good jobs, growing our economy, and continuing to lead in key industries like manufacturing and supply chain logistics.”
Security Packaging, Inc., dba NorthGate, founded in 1984 in Flint, was recently awarded a multiyear contract with an unnamed original equipment manufacturer to provide packaging services and fulfillment of auto service parts. Several Ohio locations were also considered for the expansion.
DAG currently has 25 employees at its headquarters facility in Sterling Heights, where it houses sales, engineering, quality, accounting, warehousing and logistics support. Other sites competing for the DAG expansion included were in Indiana, Kentucky, Ohio, Texas and Mexico. The Grand Blanc facility will be placed at a former Tier-1 supplier facility in Grand Blanc Township. The site will focus on assembly, paint and assemble, and injection molding.
“Genesee County’s hard workers and solid communities make it a perfect place for businesses to put down roots and grow,” Sen. Jim Ananich, D-Flint, said in a statement. “These hundreds of new jobs will draw in new families and bolster the local economy, leaving a lasting impact on our area. I’d like to thank Governor Whitmer, the MEDC, NorthGate, DAG Technology and everyone who has been committed to our region’s economic success.”