Hammering Out a Deal
Lucrative offers from North Carolina were enticing. But the icing on the cake that kept Hammer Lithographics in Rochester was the opportunity to work closely with and train its employees at RIT.
New York state and Monroe County officials fought off enticing economic packages offered to Hammer Lithograph by North Carolina state officials to not only build a new plant there, but move the 85-year-old package printer's existing plant as well. But despite the lucrative offer and incentives tendered by Tarheel officials, it was the lure of the opportunity to work closely with, and actually build a facility adjacent to the campus of the Rochester Institute of Technology (RIT) that swayed President Jim Hammer to stay in upstate New York.
Instead of packing up, moving south, and either abandoning or relocating its 200-plus employees, Hammer will build a new $4 million, 90,000 sq.ft. plant on a 14-acre parcel of land adjacent to RIT's University Park, which it bought from the university. Hammer currently operates one 43,000 sq.ft. facility in Metro Park.
Besides the $1 million in state aid and incentives, a $500,000 state capital grant, a 15 percent to 20 percent discount on electricity from the New York Power Authority, and up to 10 years of property tax abatements, Jim Hammer is most pleased with the deal he negotiated for his employees with RIT.
Emerging from talks with school officials is an ambitious plan for employee education and training that will send each Hammer employee into RIT classrooms for at least 48 hours annually. Among the offerings to employees are technology updates for print-floor personnel on digital equipment and processes. Other employees can opt for a variety of business or even liberal arts courses. Office personnel will be encouraged to participate in the digital technology and process courses to better familiarize themselves with the company' business and operations.
According to James Watters, RIT vice president of finance, such training links between RIT and local printers are not unusual. But so far, he says, few have attempted an effort of the scope Hammer envisions.
Also critical to Hammer Lithographics' decision to stay in Rochester was RIT's Center for Integrated Manufacturing Studies (CIMS). Hammer already relies on CIMS for some R&D. Plans to deepen those ties are under way.
Of particular interest to Hammer are developments in the digital printing arena, and the commitment of RIT to stay on the cutting edge of this emerging technology. In fact, RIT hosts the National Digital Printing Center, which is devoted to digital printing research and development. Hammer is a member of the Digital Label Alliance (DLA), which is working to develop digital equipment specifically tailored to label and package printers. Although the DLA is a critical piece of Hammer Lithographics' R&D efforts, it is no substitute for the benefits company management expects to reap from the association with RIT.
Hammer Lithographics
Management: Privately owned. James E. Hammer, president/CEO. He is the fourth generation Hammer to run the 85-year-old company.
Operations: One printing plant in Rochester. A subsidiary, J. MacKenzie Ltd., in Henrietta, is a sheeting plant. Hammer plans to build a pressure-sensitive label printing plant in the Mid-Atlantic region in the near future. Hammer is ISO 9002 certified.
Markets: Hammer is a converter of labels and flexible packaging for the food, beverage and retail agricultural markets. Key customers include Mott's, Fruitopia, French's, Great Western.
Processes Used: Offset
