Newell Coach Receives $2 Million Award From State
BEIP funds will be used to create new office complex
MIAMI – A top producer of luxury coaches is gearing up for a $7.5 million expansion project with the help of $2 million in funding through the Oklahoma Department of Commerce.
Newell Coach was notified in April that it had been approved for the award through the state’s Business Expansion Incentive Program. The award will allow the company to create a new 15,000-sq. ft. office complex, improve stormwater runoff issues on the campus and create new job opportunities.
“Our offices are currently located inside a 60-year-old cinder block building,” said Grant Kernan, President/CEO of Newell Coach. “The interior has been remodeled several times over the years, but the structure is degrading. We have just reached a point where the time has come to do something.”
The construction project will create a new office complex on higher ground currently used for coach parking. The current office site will be used as parking for new and used coaches.
Kernan said $1.5 million of the total cost of the project will be used to help address drainage issues on the property.
“Sections of our office building sit on the lowest part of the campus,” Kernan said. “During heavy rain events, this building has taken on water, partly because the drains carrying the water off the property are undersized, and partly because the culverts around surrounding roadways need reshaped.”
Newell Coach has grown over the past five years, going from 165 employees to just over 200 today. This expansion project will create more job opportunities, primarily in the engineering department.
“We would like to add another 20 roles over the next 5 years, with a focus on engineer-type skillsets,” Kernan said. “We have a big need for electrical and mechanical engineers.”
In notifying Newell of its BEIP award, Oklahoma Department of Commerce Executive Director Brent Kisling wrote, “Existing companies like yours are legacy companies that have demonstrated past investments in our state, and we are pleased your company made the decision to grow operations in our state with the assistance of a $2 million award through the Business Expansion Incentive Program.”
The Business Expansion Incentive Program assists Oklahoma companies making major capital investments in depreciable items like machinery, equipment, and buildings. The incentive makes annual cash payment awards to help companies grow and boost business expansion in Oklahoma.
A typical incentive award is to a manufacturing company with an existing employee base making an investment of $5 million or more to expand their Oklahoma operation.
“We would not be able to undertake this project without that funding,” Kernan said. “This new office complex project will help enhance our branding and provide new space for future growth. When our customers visit us, we want the space to represent the product that we build.”
To qualify for the incentive, companies typically need to mee or exceed these requirements: • $2 million or greater capital investment. • $2 million or greater in total annual existing payroll.
Moving forward, Kernan said addressing staffing needs remains a priority.
“We really ramped up through COVID,” Kernan said. “It did not take us long to realize we are not meeting market demand. We have a 20-month waiting list, so there is room to grow.”
According to Kernan, it takes 5½ months to create a custom coach.