Whirlpool Corporation's commitment to corporate citizenship in Michigan has deepened with the announcement it will launch new construction and consolidate 15 owned and leased facilities into three centralized office campuses in the Benton Harbor/St. Joseph area.
Officials say the changes – expected to take approximately five years to complete – will allow the company to deliver on improvements in productivity, operations, energy efficiency, and overall employee experience.
Plans were made possible in part by a decision from the Michigan Economic Growth Authority to approve five-year tax breaks to help at least 868 jobs with an average weekly wage of $1,980 remain in Benton Harbor. The tax incentives will accompany Whirlpool's $86.8 million investment to consolidate its headquarters along the riverfront downtown.
While businesses face some of the same relocation costs as any individual or family considering a move, the decision to stick with Benton Harbor was far from an obvious conclusion. Whirlpool, which last year had revenues of $17 billion and said Tuesday it expects record earnings this year, had "multiple options" to move to other cities, including Chicago and Atlanta, said D. Jeffrey Noel, corporate vice president for communications and public affairs. But the tax credit, combined with Benton Harbor's "small town" community and amenities, including a new golf course, persuaded Whirlpool to stay, he told the Detroit News.
The consolidation will revolutionize Whirlpool's operations. It will address space constraints in existing facilities, modernize facility operations and generally improve the company's employee recruiting and retention. Most of the current facilities are a 20-minute drive from each other; the three new buildings sites that will be constructed along the St. Joseph River within a football field's distance of each other.
Construction is projected to begin this fall. Whirlpool reportedly plans to raze a boarded-up Sears store, abandoned grocery, former car dealership and other blighted structures to build one of the three corporate campuses.
The three campuses will include the existing Benton Harbor Administrative Center and St. Joseph Technology Center locations, and a new three-building campus to be located on Main Street, between River Street and Riverview Drive, in downtown Benton Harbor. In addition to these three campuses, the company plans to retain its Hilltop Drive South offices in St. Joseph and the Harbor Town offices in Benton Harbor.
The changes will allow the company to reduce its operating costs, provide greater flexibility to adjust to changing business and staffing needs and drive enhanced productivity. Additionally, the new buildings will be highly energy-efficient; built to achieve Gold LEED certification.
"Thanks to collaboration with our four local government bodies, and with the State of Michigan, we will further strengthen our commitment to the Benton Harbor – St. Joseph communities," said Jeff M. Fettig, chairman and chief executive officer, Whirlpool Corporation.
"With more than 4,000 individuals in our current facilities, we have simply outgrown our current space. This initiative is a good business decision as the new campus and related changes are expected to increase productivity and energy efficiency, and reduce operating costs."
MI Perspective: At many points during the past seven years, many CEOs would have called it a lousy business decision to keep Whirlpool in Benton Harbor. Renewed racial tensions and rioting in 2003 presented some make-or-break decisions both for the company and the community. But instead of devolving completely, local officials and rookie Governor Jennifer Granholm contributed willpower to galvanize the community around a new project, Harbor Shores. Now, a world class golf tournament to be hosted by Whirlpool next month will help spotlight the area's progress. And while challenges remain -- including the need for an emergency financial manager appointed for Benton Harbor -- the tasks seem somewhat less daunting with the support of a major corporate citizen committed to the health of the community.
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