Orchid Orthopedic Solutions applied for the Industrial Facilities Tax Exemption in Delhi Township, according to a Lansing State Journal report.
The application was approved earlier this month after a public hearing, but it must be approved by several authorities before moving forward. The company has made several moves over the past year to position itself for future growth. Here are five things to know about Orchid Orthopedic Solutions:
1. The company announced plans to purchase $5.5 million in new equipment through the next two years, according to the report. The company would add an expected 26 jobs after purchasing the new equipment.
2. If the company receives the tax break, it would have $849,262 in personal property tax breaks over the next 12 years. The tax break would defray the equipment purchase costs. The tax abatement package could help the company stay in Michigan instead of moving somewhere else.
3. Orchid Orthopedic Solutions recently opened a manufacturing facility in Jackson, Tenn. The company invested $1 million into the project, which initially created 25 new jobs. The new facility is an expansion of the company's Arab, Ala., facility.
4. The company currently employs more than 1,700 people nationally, 243 of which are in the Delhi facility. At the Delhi facility, the original equipment was purchased to run one to two shifts per day, but now the company runs three shifts per day most weeks, according to the Lansing State Journal report.
5. Last year, Orchid expanded its supply chain solutions to include insourcing of their customers' specialized, in-house processes. "Orchid's many solutions have evolved out of listening to customer needs and adapting our business to address those needs," said Orchid CEO Mike Miller in a company press release. The company helped Wright Medical Technology optimize their supply chain through a long term arrangement.
A January 2014 Transparency Market Research report shows the orthopedic device market is expected to grow at an annual growth rate of 4.9 percent through 2019. In 2012, the market was valued at $29.3 billion and is expected to grow to $41.2 billion by 2019.
More Articles on Orthopedic Devices:
Behind the K2M IPO: CEO Eric Major Talks Strategy, Innovation & Future Financial Growth
15 Spine Devices Receive FDA 510(k) Clearance in May
Asia Pacific Spinal Implant, Bone Growth Substitute Market to Reach $7B by 2022