Precision Hardwoods production expected to increase by more than 8x.
FOR IMMEDIATE RELEASE
January 16, 2025
LANSING, Mich. – Precision Hardwoods Inc., a well-established name in the hardwood production industry, is undergoing a $13-million expansion with New Markets Tax Credit (NMTC) support from Michigan Community Capital (MCC) and PNC Bank. Locally owned in rural Onaway, Michigan, Precision Hardwoods has over 30 years of experience in the forestry industry and specializes in producing high-quality, locally sourced wood products.
With shutdowns of multiple mills across the state over recent years, the company is looking to fill the void and address the increasing need for both softwood and hardwood material. $10 million in New Markets Tax Credit allocation from Michigan Community Capital will be used for the purchase of new advanced equipment, which is expected to increase the company’s production capacity from about 25,000 to approximately 220,000 board feet daily.
In 2024, Precision Hardwoods constructed a new 45,000-square-foot building to house the sawmill equipment purchased with the equity generated from the NMTC allocation including a HewSaw sawline, a debarker, a Carobotech Log system, Pendu Autostacker, and a Pendu CutStock Line. By increasing industrial and grade-lumber to roughly 30 million board feet annually, Precision Hardwoods hopes to provide lumber to 25-30 different companies in 5 different states.
“Being awarded the NMTC is a recognition of Precision Hardwood’s commitment to growth, sustainability, and our community. With this opportunity, we will not only invest in the future of the lumber industry, but also our local community by creating and retaining meaningful employment opportunities that empower individuals and strengthen our economy,” said owner of Precision Hardwoods, Mike Sturgill on behalf of the Precision Hardwoods team. “Together, we are building a foundation for progress-one that supports both industry and the people who drive it forward! Thank you for the opportunity!”
The project is set to retain 7 jobs and create approximately 20 new positions in a NMTC-qualified census tract with a poverty rate of 17.8%. All jobs will be accessible without a four-year degree, and the company will provide specialized training to all employees to help them develop relevant skills. Precision Hardwoods will prioritize local hiring, partnering with Michigan Works! to recruit and hire from the surrounding populations.
Michigan Community Capital contributed $10 million in NMTC allocation to support the expansion.
“Supporting entrepreneurs who are close to their community and also integral to the global supply chain is how we will make Michigan a top 10 state for growth,” said Eric Hanna, president & CEO at Michigan Community Capital. “This is what the New Market Tax Credit program and our work at MCC is all about.”
PNC Bank is providing $3.2 million in NMTC allocation in the deal and will serve as the NMTC investor.
Precision Hardwoods was awarded 2 grants in 2024: one from the Food and Agriculture Investment Program Grant by the Michigan Commission of Agriculture & Rural Development, and another from the Michigan Economic Development Corporation’s Michigan Business Development Program.
Michigan Community Capital
Michigan Community Capital is a 501(c)(3) nonprofit that exists to promote community and economic development, the creation of wealth and job opportunities; and to facilitate investment of private and public capital in Michigan. MCC is focused on driving economic mobility of low- and moderate-income Michigan residents and drives community development impacts in three key areas: Real Estate Development, CDFI lending, and New Markets Tax Credits. MCC is a U.S. Treasury certified Community Development Financial Institution (CDFI) and a Community Development Entity (CDE). Since 2005, MCC has supported over $1.4 billion in project financing, successfully attracted $510 million in federal New Markets Tax Credits, and helped to create over 1,500 housing units and facilitated the creation and/or retention of over 5,000 high-quality, accessible jobs. michigancommunitycapital.org
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Dearborn Business Expansion Expected to Retain and Create Hundreds of Jobs
FOR IMMEDIATE RELEASE
October 25, 2024
LANSING, Mich. – Hollingsworth Logistics Group, LLC (Hollingsworth), a Native American-owned company providing logistics services for sectors including aerospace, automotive, and food and beverage, has received New Markets Tax Credit (NMTC) allocations from Michigan Community Capital (MCC), Invest Detroit, and U.S. Bancorp Impact Finance to support its expansion. The project includes the acquisition and rehabilitation of a 100-year-old building located at 14225 W. Warren Avenue in Dearborn.
The acquired 864,000-square-foot building will serve as Hollingsworth’s headquarters, featuring a company warehouse and offices. Planned upgrades include the replacement of all major building systems (HVAC, plumbing, roof, elevators), new windows, a façade rebuild, and the reconfiguration and expansion of the shipping and receiving dock doors. The first phase of the project is expected to exceed $24 million, improving the operational efficiency of the company.
The project is set to create approximately 265 jobs over a ten-year period and retain more than 700 full-time positions in a highly distressed census tract with a poverty rate of 34.4% and an unemployment rate of 1.5 times the national average. Job roles will include entry-level packagers, inventory control specialists, operation support team members, and corporate office personnel. Comprehensive benefits include medical insurance, a 401(k) plan with up to a 5% match, paid time off, and personal career coaching. Notably, 76% of the jobs will be accessible to individuals without a four-year degree.
“Hollingsworth has always invested in and supported the communities we operate in. With over 30 years of history in Dearborn, we are proud to continue this philosophy not only through financial investment, but by providing hundreds of jobs for families and giving back in any way we can,” said Michael McNamara, president of Hollingsworth Logistics Group, LLC.
Michigan Community Capital contributed $10 million in NMTC allocation to support the expansion.
“We are excited to partner with a company that understands the value of training and career advancement, a company investing in its people and the community of Dearborn,” said Eric Hanna, president and CEO at Michigan Community Capital.
Invest Detroit also provided $10 million in NMTC allocation for the project.
“Helping Hollingsworth stay rooted in a neighborhood that serves as a nexus of culture, multilingual communities, and a gateway between Detroit and Dearborn demonstrates the critical role New Market Tax Credits play in our development ecosystem,” said Marcia Ventura, senior vice president of lending at Invest Detroit. “Hollingsworth’s commitment to fostering an inclusive work environment—respecting local faith communities, offering language assistance, and providing career opportunities with a living wage—makes us proud to support the capital that keeps this business thriving locally.”
U.S. Bancorp Impact Finance, a subsidiary of U.S. Bank, is the NMTC investor in the project and provided $3.25 million in allocation.
“We’re pleased to serve as the NMTC investor and help bring tangible impact to the Dearborn community,” said Tom Oldenburg, senior vice president of business development for Impact Finance. “We believe everyone deserves to live in a thriving community with access to opportunity and are excited about the number of jobs the expansion is expected to create.”
“The restoration of the historic Albert Kahn-designed building will serve as both a revitalization of a Dearborn landmark and a catalyst for economic growth. Hollingsworth’s expansion will create hundreds of jobs and preserve over 700 positions, driving significant opportunity in downtown east Dearborn,” said State Representative Alabas Farhat (D-Dearborn).
The expansion aligns with the Dearborn 2030 Master Plan and includes placemaking and public safety enhancements, supporting the City of Dearborn’s broader Warren Avenue Corridor Improvement Project. Hollingsworth will collaborate with the City of Dearborn and Wayne County to add a stoplight and crosswalk on Warren Avenue, improving safety for employees walking to and from work and increasing foot traffic for surrounding businesses.
Michigan Community Capital
Michigan Community Capital is a 501(c)(3) nonprofit that exists to promote community and economic development, the creation of wealth and job opportunities; and to facilitate investment of private and public capital in Michigan. MCC is focused on driving economic mobility of low- and moderate-income Michigan residents and drives community development impacts in four key areas: Real Estate Development, CDFI lending, New Markets Tax Credits, and affordable Property Insurance. MCC is a U.S. Treasury certified Community Development Financial Institution (CDFI) and a Community Development Entity (CDE). Since 2005, MCC has supported over $1.3 billion in project financing, successfully attracted $510 million in federal New Markets Tax Credits, and helped to create over 1,500 housing units and facilitated the creation and/or retention of over 5,000 high-quality, accessible jobs. michigancommunitycapital.org
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