By Boris Ladwig, The Republic
bladwig@therepublic.com
Cummins Inc. will add 500 professional
jobs in Columbus and, to alleviate space constraints at local facilities, has agreed to move 500 office workers into the new Commons Mall by March 2009.
Cummins said global growth in virtually all markets has fueled the hiring of the new employees, who will earn an average $80,000. On Feb. 1, Cummins is expected to announce its fourth consecutive record year.
Cummins President Joe Loughrey said Wednesday at City Hall that the Columbus-based engine maker already is in a "major hiring phase" to secure 300 engineers and 200 employees in information technology, human resources, finance and other professional sectors.
A second downtown parking garage, which will cost about $8 million and will be built on the surface lot west of the courthouse, will accommodate the Cummins employees - though the public can use it during non-office hours and weekends.
Cummins has agreed to lease for 10 years a four-story, 100,000-square-foot building on the southwest corner of the new Commons mall, near the area that formerly housed the kidscommons. The company declined to reveal details about the lease agreement.
The Commons Mall is being cleared for demolition, and developer Tim Dora said Wednesday he expects construction on the Cummins office building to begin in mid-March.
Loughrey said Cummins expects the structure to be completed a year later and to have employees moved in three months after that.
"This is an exciting day for the state of Indiana," Lt. Gov. Becky Skillman told about 250 guests at City Hall.
Dora thanked Cummins for keeping an open mind during the planning stages, which, he said, provided for some challenges.
Mayor Fred Armstrong and spokesmen for U.S. Reps. Mike Pence, R-Ind.; and Baron Hill, D-Ind., thanked Cummins and lauded all company, local and state officials involved in bringing the jobs to Columbus.
Commitment
"We are entering new markets both here and abroad," Loughrey said, "most notably the light-duty diesel engine market in the U.S., for which we will offer the cleanest, most efficient diesel engine in the world designed and produced right here in Columbus."
Cummins is preparing Plant 1 to house the light-duty diesel project, which will employ at least 600 by 2010.
"As we pursue profitable growth opportunities around the world, our employee footprint continues to expand," Loughrey said.
"And nowhere is that growth more evident than in our hometown of Columbus, where we currently employ around 5,500 workers."
Cummins officials told The Republic last week that the company has been working about nine months to find more office space.
"We're bursting at the seams," spokesman Mark Land said.
Business growth has required the hiring of thousands of employees across the globe, especially in finance, engineering and other technical specialties.
The company considered locations in Tennessee, South Carolina and the Columbus Municipal Airport property and talked to developers and state government officials before settling on downtown Columbus.
Cummins officials said they chose downtown over the airport because of the proximity to company headquarters and a more suitable environment for employees.
"The fact is, Cummins could have put this office building in a number of locations, including in another city where we have significant operations," Loughrey said.
"We chose to locate it here not only because it makes sense for our business, but because of our rock-solid partnership with the city and people of Columbus."
Once Columbus and Lawrenceburg Regional Economic Development Fund agreed to pay for a second downtown parking garage, it was a "very easy decision," company officials said.
"Without the parking garage, we would not have been able to expand our work force downtown," Loughrey said.
Because of rapid growth and limited space, Cummins has had to spread its employees throughout the city. The new downtown office will allow the company to move sales, marketing, human resources, finance, parts and service sales staffs into one spot.
The newly hired engineers, most of whom will be based at the Tech Center, will work on turbochargers, exhaust aftertreatment, fuel systems and other projects for U.S. and international markets.
Cummins said it will recruit globally, including from Purdue University and Rose-Hulman Institute of Technology.
New life to downtown
A vibrant downtown, which Cummins is supporting with this commitment, will help the company attract talent, company officials said.
"We are creating a critical mass of business, retail and infrastructure improvements that promise to breathe even more life into the downtown and further strengthen the city's reputation as a great place to live and work," Loughrey said.