The Story

ERMCO Components, Inc (ECI) is a leading manufacturer of critical components for electrical distribution transformers for utilities projects. With strong growth and additional inquiries from new customers, ECI expansion plan includes acquiring the Greenville facility and investing in new equipment to fulfill new demand. Without ECI’s acquisition, 69 jobs would be at risk of elimination in an extremely distressed, rural LIC. The acquisition and improvements will result in 50 new quality jobs, with additional future growth potential.ECI is wholly owned by AECI, a Cooperative owned by its 17 member-owners who are eclectic distribution cooperatives in Arkansas. Renewable energy (wind, solar, hydro) accounts for over 750MW annually in AECI’s footprint. ECI’s products have enabled the growth of renewable energy, which has resulted in some of the lowest energy costs in the country for some of the most impoverished census tracts in the country.

The Financing

• Total project cost: $41,100,000
• MuniStrategies Allocation: $13,000,000 ($28.5M from other CDEs)

The Impacts

• Economic – The Project is located in a non-metro census tract in Tennessee that has a poverty rate of 47.0% and an unemployment rate 1.63x the national average. Greene County is an ARC-Distressed county, and Tennessee is a NMTC underserved state.
• Jobs – The project will create or retain 119 permanent jobs. 69 of these positions will be preserved with the acquisition of the facility, and 50 new jobs will be created with the expansion of new equipment. All positions will earn above the living wage, and all will be eligible to receive benefits. The average wage is 144% of the living wage for Green County. All jobs will be eligible for an extensive benefits package including health, dental and vision insurance, company paid life insurance, long term disability, and 401k with company match, 100% company funded retirement plan, paid time off, tuition assistance and wellness programs.
• Community – ECI meets the Appalachian Regional Commission’s goal of investing in entrepreneurial businesses that strengthen Appalachia’s economy. The project also aligns with the Tennessee Development District’s Strategic Priorities for job creation, business expansion, capital upgrades, and productivity growth in manufacturing.
• Workforce Development – ECI has a robust Mentorship Program to help new entry-level employees pass through certification levels. ECI also works with TCAT, one of the best workforce training and development programs in the country. ECI will partner with the local schools to recruit, train and mentor the next generation of ECI employees.