GS Engineering Graduates From Michigan Tech Incubator Into New Facility, Workforce Grows
MEDC Assistance Supports New Facility in Houghton, 12 New Jobs
Governor Jennifer M. Granholm today announced a $150,000 grant to the city of Houghton to support the expansion of GS Engineering, a high-tech firm spun out of Michigan Technological University. The company is currently housed in the Michigan Tech Enterprise Corporation SmartZone “Powerhouse” incubator. The city will use the funding for roadwork and water and sewer extensions to support a new office facility for the growing company. The project is expected to create 12 new jobs and involve nearly $1.5 million in private investment. An MEDC official presented a ceremonial check to city officials today.
The grant is being made available by the Michigan Economic Development Corporation with funds provided by the federal Community Development Block Grant program. “When we keep companies like GS Engineering firmly planted in Michigan, we create opportunities for our talented university graduates and feed the entrepreneurial spirit,” Granholm said. “This is exactly the type of business we must nurture to diversify our economy and create hightech jobs.”
The Michigan Economic Development Corporation administers the state’s Community Development Block Grant funds received from the U.S. Department of Housing and Urban Development. These funds are used to provide grants and loans to eligible counties, cities, villages and townships—typically those with populations less than 50,000—for economic development, community development and housing projects. Larger communities receive block grant funds directly from the federal government.
The Michigan SmartZones program is one of a number of initiatives developed and supported by the MEDC to help small businesses form and grow in Michigan. “Michigan’s SmartZones give fledgling companies the support they need to grow until they can strike out on their own,” MEDC President and CEO James C. Epolito said. “The funding offered today will help the city of Houghton retain GS Engineering in the community and continue to build a hub of high-tech innovation in the U.P.”
In May 2007, the city of Houghton received a $1 million CDBG grant to expand the Powerhouse incubator located in the SmartZone. Michigan’s 12 SmartZones provide distinct geographical locations where technology-based firms, entrepreneurs and researchers locate in close proximity to form technology clusters. The clusters promote collaboration between regional assets including universities, industry, research organizations, government and other community institutions to grow high-tech business.
Spun out of Michigan Tech in 2001, GS Engineering provides full-spectrum engineering services including R&D, prototype development and testing for military vehicle structures and systems. The state has honored the company with several recognition awards including the title of High-Tech Business of the Year by the MEDC, a Michigan Cool Company designation in 2004 and in 2005 GS Engineering was included on the Michigan 50 list which highlights the 50 companies to watch throughout the state.
“GS Engineering has grown from three employees to 30 full-time employees along with six student interns.” GS Engineering President Glen Simula said. “The company has attracted a number of experienced engineers back to Michigan and has hired recent graduates from MTU. This growth would not have been possible without the collaboration with the SmartZone, city of Houghton, KEDA, MTU and the MEDC.”
The city of Houghton contributed an additional $10,000 to support the project.
“The Houghton City Council is pleased that GS Engineering has decided to stay in Houghton and build a new facility,” Houghton City Manager Scott MacInness said. “The company started by renting space in the Houghton City Center then moved to the Powerhouse incubator where it became one of our most successful companies in the SmartZone. We look forward to working with them and wish them continued success.”
There are 1,655 local governments within the state eligible to apply for CDBG funds administered by the MEDC. Projects are approved contingent upon compliance with state and federal requirements.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on MEDC initiatives and programs, visit the Web site at www.themedc.org.
Contact: Bridget Beckman, MEDC
(517) 335-4590
GSE Contact
Main Office Contact (906.482.1235):
Glen Simula – President – glen.simula@gsengineering.com
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