Desa-to-expand-bowling-green :: Bowling Green Area Chamber of Commerce

You've probably heard the news by now, but on July 15 DESA Heating Products, LLC announced several hundred jobs will be coming back to its Bowling Green headquarters from China!

More than 600 people--including 450 plant workers--attended an announcement on Tuesday that featured Governor Steve Beshear, Warren County Judge Executive Michael Buchanon and Bowling Green Mayor Elaine Walker, along with Kentucky Cabinet for Economic Development Commissioner George Burgess and DESA and Chamber representatives.

DESA is moving manufacturing production from China back to its Warren County facility. The shift in operations will expand the company's Bowling Green workforce and create a capital investment of over $6.4 million in the commonwealth.

"DESA Heating Product's decision to move production back to Kentucky is a strong indicator of evolving outsourcing trends in the global economy," said Gov. Beshear. "We are delighted DESA will expand its Bowling Green facility to accommodate the added production, resulting in a multi-million dollar investment and several hundred new employment opportunities for the south central Kentucky region."

"The Cabinet is pleased to work with DESA Heating Products and the Bowling Green community to make this expansion possible," said Economic Development Cabinet Secretary John Hindman. "Kentucky's central location, coupled with our logistical advantages and productive workforce, make it ideal for companies relying on shipping products to customers across the globe."

Over the last year DESA has begun bringing back a significant percentage of its manufacturing from China, due to changing times in the world economy. Factors such as the continuing rise in the cost of oil, the weakening of the U.S. dollar compared to foreign currency and the recent rise in wages for Chinese workers is making manufacturing in China no longer as economical as it once was.

The continuing spikes in the cost of oil are making transportation increasingly expensive, especially for larger, heavier products such as the consumer and professional heaters that DESA produces. Bowling Green's centralized location will not only allow DESA to save on transportation costs, but will expedite the shipping process. The company now can ship products to over half of the U.S. in about one day compared to the average six to eights weeks timeframe to ship from China.

"Bowling Green, Kentucky is an ideal location for DESA Heating Products' expansion because we are located within a day's drive of 70 percent of the U.S. population, we have a large labor base with whom we have a very solid relationship, and we enjoy a low overall cost of doing business here," said Claude Hayes, president of retail heating for DESA.

Read the press release.

Read about the announcement in the Daily News.

Watch WBKO's coverage.

Labels: Economic Development