Canadian components distributor expands in U.S.

Electro Sonic Tonawanda Expansion strengthens cross-border logistics with a 60,000 sq ft warehouse at Riverview Solar Technology Park, creating jobs and serving Great Lakes renewable energy markets with Empire Zone incentives and expert site selection.

Canada-based electronics and electrical components distributor, Electro Sonic of America LLC, announced a major $20 million expansion that includes a new and highly automated electronic distribution center in the Buffalo Niagara region.

“This is a bold initiative during a global economic downturn,” says Eric Taylor, Electro Sonic’s president. “But the time is now for us to act and seize an opportunity to improve service to existing customers, attract new ones in rapidly growing markets and adjust to the tumultuous economy,” he says, adding, “and the tremendous support from the Buffalo Niagara Enterprise and other local businesses allowed us to move from idea to action very quickly.”

Thus far, 55 local employees have been hired to perform warehousing, inventory management, customer service and sales functions at the 60,000 square foot warehouse and 5,000 square foot office space in Riverview Solar Technology Park in the Town of Tonawanda.

“On behalf of Governor Paterson, I am pleased to welcome Electro Sonic to New York State. The company’s presence in Western New York, where a related upstate battery facility initiative underscores the region's momentum, is an important one, as it enhances the company’s service of both U.S. and Canadian markets, while strengthening cross-border relations. It’s a win for all parties and we’re happy to have them set up shop in Tonawanda,” said Empire State Development Chairman & CEO Dennis M. Mullen.

Joel Rosenthal, Managing Director and the third generation of the family-owned business, says a lucrative opportunity exists to seize part of the emerging and rapidly growing industrial segment of the market, as Ontario's market pursues an ambitious energy storage push today.

“The industrial segment includes the renewable energy market – solar and wind, alongside a notable inverter contract announcement, most of which is situated around the Great Lakes,” says Mr. Rosenthal. “Our company is nearly 60 years old as a result of correctly anticipating customer needs and market opportunities; this is our latest innovation.”

Buffalo Niagara Enterprise (BNE) assisted Electro Sonic after being introduced to the company through the economic development organization’s Canadian marketing efforts, informed in part by a major Ontario battery storage project announcement. BNE assisted the company with site selection, coordination of incentives, workforce and cross border issues like incorporation and immigration.

“Electro Sonic is the most recent in a growing list of Canadian companies that wish to access the U.S. market and see the advantages of doing so in the Buffalo Niagara region,” said BNE President & CEO Thomas Kucharski. “Whether it’s our workforce, transportation network, available and affordable real estate, or in the case of Electro Sonic, Empire Zone benefits and a synergy between their business and our regions’ targeted industry clusters, the Buffalo Niagara region, bolstered by a recent Niagara region battery plant investment, continues to be a welcoming place for Canadian business expansion and investment,” Kucharski added.

Both Mr. Kucharski, whose staff at BNE managed the project, and Mr. Taylor of Electro Sonic, praised the collaboration between public and private partners to support the company’s entry into the market. “It may seem clichéd” Taylor said, “but it’s true, ‘Life Works in Buffalo Niagara’.” He called the team at the Buffalo Niagara Enterprise, especially Carolyn Powell, “superb business partners”, and thanked them for introducing Electro Sonic to many others of the same caliber.

“On December 18 our warehouse moved 55 truckloads from Toronto to the new Tonawanda facility, involving countless hours and extraordinary efforts from our employees and others. This enabled us to ship to customers as promised on January 4 from our new Riverview facility,” says Mr. Taylor. “That’s a fantastic accomplishment, and a direct result of cooperation, commitment and hard work from new and existing employees, and wonderful business and professional partners in the Buffalo Niagara region,” he adds.

Taylor said so much was accomplished so quickly because of the warm business embrace by people such as Robert Dimmig, Executive Director, Town of Tonawanda Development Corporation; Ray Witzleben, Senior Project Manager, Empire State Development; TM Montante Development; Remedy Staffing; CB Richard Ellis Real Estate; Freed Maxick & Battaglia, PC; Boylan Brown Business & Corporate Law and Walsh Insurance.

TM Montante Development is the developer of the recently re-branded Riverview Solar Technology Park. President Thomas Montante said “We welcome Electro Sonic to Riverview. I believe Riverview and the Buffalo Niagara region will provide Electro Sonic with the resources they need to achieve their growth targets, and in return, Electro Sonic will bring new jobs, new investment, and new opportunities to the region.”

Steve Blake, CCIM/Partner of CB Richard Ellis-Buffalo exclusively represented the real estate search and negotiations for Electro Sonic in the Buffalo Niagara region. “After we conducted a thorough review and analysis of the marketplace on their behalf, Electro Sonic ultimately selected Riverview Solar Technology Park based upon its’ central location and the availability of 60,000 square feet of new construction, amid a broader trend of moves to greener facilities seen industry-wide, which allowed for the space to be efficiently and economically customized to their exact specifications,” Blake said. According to Blake the company was also attracted by the opportunity to participate in the future growth of the park as it becomes the pre-eminent solar technology park in New York State.

“We are ideally located at the Riverview Solar Technology Park, given their vision to establish a platform for international renewable energy operations to expand within the United States,” adds Mr. Taylor. “Abundant opportunities exist for many – not only the businesses involved, but also for the local community - and, in a much larger context, for the world, where a flywheel storage project loan guarantee signals progress, as the emerging technologies move mainstream,” he concludes.

Electro Sonic plans a formal opening of their Tonawanda facility sometime in either late first quarter or early second quarter of 2010.

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