Graco expands manufacturing space in Development Park III

After a quarter century of success in Sioux Falls, Graco Inc. is expanding its manufacturing operation in Sioux Empire Development Park III. The company owns sufficient space adjacent to its existing facility at 3501 N. Fourth Avenue to add 56,000 square feet and 40 additional jobs.



Graco, a maker of fluid-handling equipment, has worked with the Sioux Falls Development Foundation in the past, including when the company chose Sioux Falls in 1993. The organization worked with Graco during the planning for this expansion, including coordination with city government on some key incentives that facilitated the project.



“We became aware of their tentative plan to expand in Sioux Falls last winter during a business retention and expansion visit with company leaders,” said Dean Dziedzic, Development Foundation vice president of economic development. “Those contacts with local companies, are key to helping to grow our economy, since over 80% of all new jobs in our area are created by existing businesses.”



Working with the Mayor’s office, the Development Foundation helped facilitate both a sales tax rebate on new equipment for the construction project, a sizable capital investment for Graco, and a property tax abatement over the first five years of operation. Erica Beck, the Mayor’s chief of staff, worked with the Development Foundation and Graco on the expansion.



“Helping existing Sioux Falls area companies to grow is a priority for the City and for the Development Foundation,” Beck said. “We’re glad to be able to partner with them in celebrating Graco’s 25 years in Sioux Falls with this expansion.”



Graco has already begun construction work on the new space, which is expected to open in March 2019. The existing manufacturing facility will be fully operational during construction, and the new expansion will allow Graco to increase its manufacturing capacity in Sioux Falls with more space for machining, injection molding and assembly.



“It’s a great time to take on this milestone project,” Graco Operations Manager Brian Callahan said. “Strong employee performance and a continuous improvement mindset made expanding our presence in Sioux Falls an easy decision."


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