Idaho Falls Metal Company Expands

8/31/2011

Originally in The Idaho Falls Post-Register, 08-31-2011
Written by Clark Corbin

Idaho Falls, ID: With Diversified Metal Products in the midst of an expansion phase, President Nathan McMaster's main concern was how best to handle the company's growth.

Diversified Metal is a 23-year-old Idaho Falls-based metal fabrication shop that specializes in projects for the nuclear industry and U.S. Department of Energy.

The company expanded its workforce by 8 to 10 percent each of the past five years -- a period in which the company's revenues increased by an annual average of 15 percent.

With competition as stiff as ever and uncertain economic conditions prevailing across the country, McMasters wasn't about to proceed without a plan.

Due to the complex nature of the company's nuclear projects, almost all new employees require extra certifications or specialized expertise. With employees already working in two 10-hour shifts, keeping the plants bustling 20 hours a day, McMasters couldn't afford to have many of them slip away from deadline-driven projects to train new hands.

So, McMasters and Business Development Manager Dan Payne took advantage of On the Job Training benefits offered by the state and the Idaho Department of Labor. The program pays for in-house training for new employees who have been laid off from a previous position and require additional skills.

Diversified Metal Products hired three new employees this year, thanks, in part, to the state training program.

"If a business wants to expand but is not absolutely determined to hire somebody right now, this might be the difference that pushes them over the edge," McMasters said. "It's about putting people back to work."

The program made a big difference for Project Manager Roger Jones, who was laid off from a position in the mining industry and found new work in January with Diversified Metal.

Jones had experience in engineering and project management, but needed additional certification to make the jump between industries.

"It definitely made it so I was competitive, and I could be an asset to (Diversified Metal)," Jones said. "It's about limiting risks (for my company) at a time when they need extra manpower."

Will Jenson, a regional economist working in the Labor Department's Idaho Falls office, said architects, engineering firms and asphalt companies all have inquired about qualifying for state incentives.

Jenson considers Diversified Metal a success story and he wants other growing companies to realize there may be help for them, too.

"We would rather have people at work than in the unemployment lines, and these programs are a great way to do that," Jenson said.

The programs have paid off, Payne said, and he recommends other Idaho employers check with the state to see if they qualify for the incentives.

"Helping defray the costs was a big thing for us," Payne said. "Honestly, we were growing anyway, but this probably makes it so we can do it sooner and more aggressively."

State Incentives for Employers

Hire One Act: Provides refundable tax credits of up to 6 percent of a worker's salary for qualifying employers who create new positions and keep new workers on staff. Wage requirements must be met; benefits available based on company's history with layoffs.

On the Job Training: Provides money to train new employees who have been laid off and need additional skills. Wage requirements must be met.

Workforce Development Training Fund: An additional pool of money available for new worker training or to help upgrade the skills of employees at risk of layoff. Up to $2,000 for each new job created is available; wage requirement must be met.

Information about incentives is available online at www.hireone.idaho.gov.

Read more at: www.postregister.com

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