Generac plans 320,000-square-foot generator plant in Beaver Dam, creating up to 400 jobs
Generac Power Systems on Wednesday announced plans to build a new industrial generator manufacturing plant in Beaver Dam.
The plant will be built to help Generac keep up with growing demand for its industrial-scale power systems, said Aaron Jagdfeld, the company's president and CEO.
"The demand for our industrial generators continues on a rapid growth trajectory, and this new facility will help us to best meet the needs of our customers," Jagdfeld said in a statement.
Pending city approval, Generac plans to begin construction later this year. The company aims to have the 320,000-square-foot plant in Beaver Dam's Highway 151 business park open by early 2025.
The Waukesha-based company expects to employ between 350 and 400 people at the Beaver Dam location, including manufacturing and office employees.
Beaver Dam Mayor Becky Glewen said Generac's selection of Beaver Dam for the new manufacturing site reflects the quality of the workforce and infrastructure available in the area.
"The establishment of this new plant translates to meaningful employment, stronger families and a flourishing economy for Beaver Dam and the region," she said.
Glewen said additional details about the development, including whether Generac is seeking city financial assistance, won't be made public until Monday, when the Beaver Dam City Council will meet behind closed doors to review the proposal and possible vote on it afterward in an open session.
More: Generac has been on a tear in recent years, the past year hasn't been quite as kind
The company also has manufacturing plants in Berlin, Oshkosh, Jefferson, Eagle and Whitewater.
Founded in 1959 as a manufacturer of portable generators, Generac is now the largest manufacturer of home generator systems and a top 10 global supplier of generators and other backup power systems.
The company experienced unprecedented demand for its home backup products during the pandemic. In February, Generac reported net sales of $4.6 billion in 2022, up from $3.7 billion the previous year. The increase included a 16% increase in core sales and growth through acquisition.
However, the company's net income fell year over year and Generac has faced headwinds from a product safety investigation and a lawsuit filed by a supplier seeking payment for home-generator parts that it claims it ordered but Generac no longer wants and won't pay for.
In February Jagdfeld said softening demand for residential products contributed to year-end results that were at the low end of expectations.
However, he said, the company saw "robust momentum" in its commercial and industrial categories.
"Sales exceeded our prior expectations and we exited 2022 with record backlog for these products," he said.
The company on Aug. 2 reported commerical and industrial generator sales of $384 million, or nearly 40% of its $1 billion in second quarter revenue. That was a 24% increase over the same period in 2022, and the company upped its guidance on the sector, saying it anticipates a future growth rate "in the mid-teens," even as home generator sales continue to decline.
This article originally appeared on Milwaukee Journal Sentinel: Generac plans industrial generator plant in Beaver Dam, up to 400 jobs
