Winnipeg Free Press - PRINT EDITION

The Price is right for $14.5-million expansion

Province, city contribute to state-of-the-art facilities

  • Print
Gerry Price tours his company's facilities with Premier Greg Selinger.

WAYNE GLOWACKI / WINNIPEG FREE PRESS Enlarge Image

Gerry Price tours his company's facilities with Premier Greg Selinger. Photo Store

Price Industries Ltd. has announced a $14.5-million expansion of its Winnipeg manufacturing/research headquarters that will create 150 new jobs over the next five years.

Gerry Price, chairman and CEO of the Price Group of Companies, told a news conference Monday the 50,000-square-foot expansion will include the construction of a new state-of-the-art training facility and sophisticated testing areas.

It will also boost manufacturing capacity at the firm's Raleigh Street production plant.

Price Industries is North America's largest manufacturer of air distribution, heating, ventilation and air conditioning products for the non-residential sector, including high-tech products for hospitals and laboratories.

It also operates one of the most advanced air-distribution and noise-control laboratories in the world out of its sprawling facility here, as well as manufacturing, sales and technical centres in Phoenix, Atlanta and Minneapolis.

The expansion is being undertaken with the help of a $10-million, repayable loan from the province's Manitoba Industrial Opportunities Program (MIOP), and a $1.5-million provincial grant to help train the workers needed for the expansion.

The City of Winnipeg is also providing up to $800,000 in financial assistance through a unique new incremental tax-sharing model that will see the city and Price share the incremental taxes the company would have been paying in the 10 years after the five-year expansion project is completed.

Winnipeg Mayor Sam Katz said the tax money will go to the city in the even years, and Price will get to keep it on the odd years.

He said the city won't be out of pocket because the tax money Price keeps is money that wouldn't have existed if the expansion weren't undertaken.

Premier Greg Selinger said in addition to the new tax revenue that will be generated, the expansion creates high-skilled jobs for local college and university graduates, expands local training opportunities and cements Price Industries, core research, engineering and product-development operations in Winnipeg.

Bill Morrissey, leader of Yes! Winnipeg, the division of Economic Development Winnipeg that assisted in the negotiations between the Price Group and the two levels of government, said the expansion also creates spinoff economic benefits for other local firms hired to work on the project or to supply building materials and supplies.

"This is indeed a very exciting day for Winnipeg and for Manitoba," Morrissey added.

Price admitted the cost of doing business is higher here than in Phoenix or Atlanta, and the expansion likely wouldn't have happened here without the help from the two levels of government.

However, the longtime Winnipeg booster said there are also some compelling reasons for expanding here, rather than south of the border, including the "world-class" engineering graduates the University of Manitoba produces each year.

He said the company has also discovered it can be successful if it produces most of its lower-priced products at its U.S. plants, and focuses on R and D work and producing higher-priced, high-tech, niche products at its Winnipeg facility.

Although the North American non-residential air-distribution industry still hasn't recovered from the 2008-09 global recession, Price said the Price Group of Companies has nevertheless seen its employment grow from about 500 workers in the early 1990s to more than 2,400 today, including about 850 in Winnipeg.

murray.mcneill@freepress.mb.ca

Republished from the Winnipeg Free Press print edition May 13, 2014 B5

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Exclusive architectural tour of CMHR with Antoine Predock

View more like this

Photo Store Gallery

  • KEN GIGLIOTTI / WINNIPEG FREE PRESS / Jan 10  2011 ‚Äì WEB STDUP ‚Äì Frosty morning at -15 degrees C , in pic frost covers the the Nellie McClung statue  on the MB Legislature grounds at 7am
  • Aerial view of Portage and Main, The Esplanade Riel, Provencher Bridge over the Red River, The Canadian Museum for Human Rights and The Forks near the Assiniboine River, October 21st, 2011. (TREVOR HAGAN/WINNIPEG FREE PRESS) CMHR

View More Gallery Photos

Ads by Google