General Broach granted tax break 11.14

Written by David Green.

There’s no end in sight for General Broach Company’s growth due to the firm’s affiliation with aeronautics. A standard 12-year tax abatement granted Monday by the Morenci city council will help the company’s expansion continue.

“We feel very fortunate,” said plant manager Larry Stover. “We’ve added 17 new jobs in 2007.”

Stover said the company has solid contracts with some U.S. firms and inquiries are coming in from overseas companies.

“We see the need for more equipment and more people to make that happen,” he said.

In response from an audience question, council member Keith Pennington explained that the exemption reduces the company’s taxes on the new equipment specified by 50 percent.

The purchase still represents an increase in tax revenue for the city, but it also benefits the company in its need to buy new equipment.

“We’re growing so fast we’ve got growing pangs,” said Mark Miller of General Broach.

Aviation is now the bulk of the company’s business, he said, taking over from automotive.

Stover said the company is currently operating between 20 and 22 hours a day, depending on the work done, and he wants to go to a full 24 hours with a third shift to meet demands.

He expects to add five new jobs by the end of the year. The tax abatement application calls for an increase of 10 jobs related to the new equipment, but Miller believes that figure is on the low side.

The abatement is for new and used equipment valued at $1.76 million. The existing workforce stands at 74 people, with an annual payroll of $2.7 million.

Councilors approved the abatement by a 6-0 vote, with Jason Bryant absent.

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