Polaris gains toehold in Milford, Iowa

MILFORD, Iowa | Polaris Industries will produce a new line of commercial utility vehicles at a former furniture factory store in Milford.

The new Brutus line will be produced in conjunction with Bobcat Co., known for its skid-steer loaders and similar equipment. The two companies developed the Brutus together, Marlys Knutson, Polaris external relations manager, said.

"Bobcat is responsible for hydraulics and attachments. Polaris is responsible for chassis," she said.

Minnesota-based Polaris Industries had earlier acquired the former Klaussner-Stylecraft Furniture factory, which has been shuttered since 2011. The sale price was not disclosed.

Polaris received a $3.6 million in tax credits from the Iowa Department of Economic Development for its latest expansion in the Iowa Great Lakes region. The funds were earmarked as $2.1 million for land and building acquisition, and $1.5 million for equipment. The 354,000 sq. ft. main building carries a tax assessment of $2.15 million.

"It provides further grounding they intend to have a more permanent presence here in Milford," said Milford City Administrator Matt Skaret.

Polaris produced its line of GEM electric vehicles on another part of the former Stylecraft site for more than a year.

The Milford City Council in November granted Polaris $1 million in tax increment financing over a 10-year period. The city also is providing a lift station and sewer line.

Production is expected to begin in 2014. Polaris last summer reported about 700 employees at its Dickinson County manufacturing operations.

GROWTH CONTINUES

Polaris experienced its third consecutive year of record sales in 2012 -- $3.2 billion, a 21 percent increase over the previous year's $2.65 billion.

The company's $312.3 million net income in 2012 net income is up from $227.5 million in 2011, and double the $147.13 million reported for 2010.

In a recent Securities and Exchange Commission filing, Polaris explained the growth "is fueled by innovative new products leading to market share growth in every product category, remaining the market share leader in side-by-side vehicles, and for the first time ever becoming the North American ATV market share leader."

Polaris currently manufactures its Indian line of motorcycles in a building adjacent to the main Polaris facility in Spirit Lake, while the Victory bike has been made along with ATVs in the main plant.

That is expected to change later this year, with both motorcycle lines being made on two individual lines, in the main plant, company spokeswoman Marlys Knutson said. Most of the off-road Ranger production being continued at Roseau, Minn., for U.S. markets, and in Monterrey, Mexico, for South American and global markets.

Manufacture of the Polaris RZR sport utility vehicle is expected to continue in Spirit Lake, Knudtson said.

Production in the newly acquired facility is expected to start in 2014.

When Iowa Gov. Terry Branstad toured the Spirit Lake Polaris facility in August, Plant Manager Brian Hines told him that in addition to being a central geographic location, "The labor base is relatively good here. We've had good success."

At the same time, even while the company has sometimes had difficulty finding specific skill sets, "what we like is the quality of the workforce," Polaris CEO Scott Wine said. 

"You can't always guarantee you get that when you start a factory somewhere else," Wine said.