Phoenix Building Components – Supporting Renewal
Phoenix Building Components is already rolling out trusses at its recently opened plant in Sundridge.
Phoenix Building Components, a manufacturer and distributor of engineered wood building products, is breathing new life into former Kent Trusses in Sundridge, Ontario. On April 24, 2017, the formerly shuttered operation re-opened signaling an economic renewal in the region.
The sale of the company was made possible, in part, thanks to a loan from the Northeastern Ontario Community Futures Development Corporation (CFDC) Investment Pool, led by the Parry Sound Area Community Business & Development Centre. Since its inception in 2001, the Northeastern CFDC pool partners have financed 262 deals with a combined value of $88 million, leveraging more than $291 million from other sources.
The Parry Sound Area not-for-profit, business-focused organization is one of 24 Northern Ontario Community Futures Development Corporations funded by FedNor. It offers free business advice and workshops, as well as commercial financing to entrepreneurs and those looking to start a business in its catchment area.
"This project was brought to our attention in August 2016. I can tell you that because of its strong merits, it wasn't a hard sell for my board or our 12 investment pool partners. Our motto is to look for a way to say yes, provided it is a good level of risk to take," explained Bill Spinney, General Manager, Parry Sound Area Community Business & Development Centre.
Phoenix Building Components, based in the Barrie area, is a well-established company with a solid record of performance, which Spinney pointed out, mitigated the risks involved. In addition, Spinney said investing to resume operations at the Sundridge facility is helping to address a need in the region.
"The absence of the product (trusses) was negatively affecting area contractors who weren't able to meet the demands of their clients," added Spinney. "So, this is good news on many fronts."
Phoenix Building Components is servicing new markets from its Sundridge operation.
A former manager of Kent Trusses, Phoenix CEO and President Grant Gibbons is very familiar with the operation. In fact, he hired 30 former employees to restart production. Within a month's time, he hopes to add another 30 or 40 people. By hiring former staff, he says he avoided surprises and reduced the time required to orient new staff.
When asked why he decided to expand into Northern Ontario, he said the acquisition was a logical move for his company.
"With an operation in Sundridge, it allows us to expand our markets to sell into areas like Sault Ste. Marie, the Ottawa Valley and Cochrane. It was just too far geographically to do it from Barrie from a logistical and servicing perspective."
In addition, Phoenix's new operation will provide the company with additional manufacturing capacity to pursue export markets in the United States that are showing promise.
To find out more about realizing your business dream, contact the Parry Sound Area Community Business & Development Centre at 705-746-4455 or your local Community Futures Development Corporation.
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