Grand Rapids-based Terryberry Co. LLC will invest approximately $2.6 million into its facility at 2033 Oak Industrial Drive, said company officials today at a press conference.
The manufacturer and designer of employee recognition products also plans to hire an additional 53 workers through 2017 as a direct result of the expansion.
The company has expanded “a number of times” and needed to add additional manufacturing space to continue growing the company, said Mike Byam, managing partner and fourth-generation leader of the company.
“(The added headcount) is a big number when you’re a 200-person company,” Byam said of the company’s hiring plans. “It gets our head spinning a little bit about finding great people, but we’re excited about the challenge with that.”
Terryberry partnered with The Right Place Inc. and was awarded a $250,000 performance-based grant through the Michigan Economic Development Corp.
The project will add 6,000 square feet of space to the company’s operations and includes plans for a second story. The company plans to break ground on the project in July and complete the expansion by the end of 2015, Byam said.
TowerPinkster will act as the architect and A.J. Veneklasen Inc. will provide general contracting on the project.
The company’s expansion comes as the employee recognition market grows globally and Terryberry continues to offer new products and services, including its employee recognition app, called Give a Wow, Byam said. While the industry has been prevalent in the U.S., the concept is starting to catch on in other developed economies, he said.
In the U.S., the number of companies employing recognition programs has risen to pre-recession levels, according to survey data from WorldatWork, a nonprofit human resources association. Of the 457 companies surveyed, 89 percent have some sort of employee recognition program, up from 86 percent in 2011, according to the survey.
The employee recognition industry encompassed a $46 billion market in 2012 – the last year statistics were available, according to a study conducted by Bersin by Deloitte.
In part, the employee recognition industry’s growth is a result of companies’ struggles to source quality talent, Byam said.
“Employees are tougher to come by than they were five years ago, so you want to do everything you can to retain and engage them,” Byam told MiBiz. “Employee recognition is a key part of retention.”