MIDDLESEX – SinnovaTek, the Raleigh-based food-processing company who provides entrepreneurs and established companies access to a manufacturing line using technology licensed through North Carolina State University, is in the process of constructing an 100,000 square-foot facility in Middlesex.
The company is just one of the firms that Nash County expects to move to or expand in the region as the race for space continues across the Triangle.
And in preparation for future economic expansion, the Nash County Board of Commissioners announced plans this week for the construction of a 62,500 square-foot shell building in the Middlesex Corporate Center as well as the 100,000 square-foot building that SinnovaTek will not only occupy, but will own, as it bought the property earlier this year.
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Demand for industrial space remains high
The SinnovaTek building is located at a 142-acre industrial site immediately accessible from Interstate 95, a statement from Nash County noted.
“The industrial segment of the real estate market currently has demands for existing high-quality properties easily customized to fit specific needs and uses,” said Andy Hagy, Nash County Director of Economic Development.
In the Triangle, demand for industrial space is high, supply is low, and companies are seeking space where they can select a facility and get operations up to speed quickly, Al Williams, senior vice president, industrial, and Mehtab Randhawa, a senior director of industrial research, at commercial real estate firm JLL, explained during a recent WRAL TechWire LinkedIn Live broadcast as a part of the WRAL TechWire series “Future of Work.”
Take SinnovaTek’s facility. The company planned its expansion last fall, then acquired the land earlier this year, broke ground on the facility in early April, and expects the facility to open as soon as the third quarter, Amanda Vargochik, co-founder and chief innovation officer for SinnovaTek told WRAL TechWire in an interview earlier this year.
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To prepare the facility, which will help the company “level up,” according to Michael Druga, the president and CEO of SinnovaTek, the company will invest about $12 million.
And the expansion is coming at the right time, as the company’s existing product lines are “essentially sold out,” said Druga.
“There is a lot of pent-up demand in the industry,” said Druga. “Even Fortune 500 companies are having trouble getting their new products out to market.”
That’s where the company sees opportunity. “There is no one else doing this at scale,” said Druga. And, if Fortune 500 companies are not able to set up product manufacturing runs, that’s leaving a lot of smaller, newer, companies squeezed out. Which SinnovaTek hopes to change, using their technology, and their facilities.
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Consumer trends changing the sector
Still, it seems as though demand is high, as one trend in the consumer packaged goods market is that people are seeking healthier snacks, meal replacements, and are sick of shelf-stable foods, said Druga.
“With trade being so difficult across continents, people in general are thinking a lot more nationally, regionally, and locally,” said Vargochik. “That’s also on the ingredient sourcing side of things, people thinking about what’s close, what’s around, and how to source from the local area.”
And as North Carolina is a great place for agriculture, SinnovaTek is betting that it will also be an excellent place for innovations in food.
For now, it appears to be a good wager. Even before the company closed on the land, they’d pre-sold about half of their operational capacity to three customers, Druga noted.
“The new facility, we are focusing more on adult-focused products, so things like smoothies, cold brew coffee, protein beverages, and other plant-based proteins,” said Druga. “We’ll set up the rest of the capacity for fulfilling our mission to help people get into the market.”
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Future growth coming
And these two new buildings in Nash County put the region in what Hagy called a “competitive position to respond to industrial prospects who offer tremendous opportunities for quality job growth, innovation, and tax base expansion.”
That could yield additional economic investment in the county, said Robbie Davis, chair of the Nash County Board of Commissioners, in a statement.
“Industrial shell buildings allow us to respond to companies and projects looking to land in eastern North Carolina and the Research Triangle region immediately, as we work to bring projects, investment, and quality jobs to our community,” said Davis. The county officially joined the Research Triangle Regional Partnership in August 2020.
Last year, Crumps’ Nationals selected Nash County for a facility that could employ as many as 160 workers that would manufacturer pet treats.
SinnovaTek did receive $400,000 in economic incentives from the state of North Carolina, Vargochik said. The company anticipates hiring some 25 jobs in 2023 and 55 jobs by the end of 2025 that would be based at the facility. Local economic incentives were also included, Vargochik noted, through a tax rebate that would be tied to investment in the facility.
