GSBDC Assists BACO Controls with Construction of New Facility

Posted 10.02.13

Loan: SBA 504

In June of 2012, Thomas Rogers, President of BACO Controls, Inc. (BACO) purchased a vacant six acre parcel of land located on Loop Road in Radisson Industrial Park as the site for their new facility.  They subsequently constructed a 12,500 sq. ft. facility to accommodate the needs of their growing company.  Approximately 2,800 sq. ft. is for the offices with 9,700 sq. ft. of warehouse space.  The office area includes a reception area, large conference room for customer meetings and a full kitchen to accommodate the needs of both staff and guests.  They have also installed customized shelving in the warehouse section to allow for more orderly product storage and easier order fulfillment.

Previously BACO had operated out of two separate locations in Cazenovia with the sales engineers and office manager housed in office space in the village while their products and warehouse personnel were located in a warehouse two miles away. The new facility is easier to manage and more efficient to operate with all their products and staff in one location.  Tom Rogers comments, “It’s so nice having the two locations finally combined into one.  We’ve seen vast improvements in our order processing and communications, but most importantly having all of my employees in one location has dramatically improved the team environment of the company.”

BACO markets and sells components for industrial automation and has established itself in the U.S. market by providing a combination of quality products and outstanding service.  Thomas Rogers began working at BACO in 1994 as a sales engineer and purchased the company in 2004.

While BACO began primarily as the master distributor and US importer for the products of Baco Constructions Electriques S.E. (BCE), they also are a master distributor for Rex, a global leader in the manufacture of time switches with sales in over 60 countries worldwide.  The various switches sold by BACO have many industrial applications, including food processing, airport conveyor systems, elevators and any other process that requires emergency stop buttons.  BACO sells to distributors that supply these industries or directly to the large manufacturer that may need to maintain an ongoing supply of their products.

The project financing was structured using the SBA 504 program keeping their down payment requirement to 10%.  M & T Bank provided 50% in a first mortgage position with the Greater Syracuse Business Development Corporation (GSBDC) providing a 20 year fixed-rate second mortgage for 40% of the project cost through the SBA 504 program.    According to Tadd Helmer, Vice-President of Commercial Banking, “Tom operates a very nice small business.  We are delighted to have been able to assist him in acquiring and building a new state of the art distribution center which will help him grow and increase his employment.  The SBA 504 loan program helped to conserve capital which will be needed as his business grows.”

They currently have seven employees and anticipate hiring seven additional staff over the next two to three years.  The new positions would include a staff accountant, a receptionist, a full-time marketer and additional warehouse staff.