Spokane Lands Two Manufacturers Machine Tech, Packet Engines To Launch Operations Here

Two small companies have decided to open manufacturing operations in Spokane.

The Spokane Area Economic Development Council Wednesday announced the recruitment of Machine Tech USA and Packet Engines Inc. to the Spokane area.

Machine Tech is a manufacturer of high-end accessory parts for the bicycle industry. The company is relocating its operation from Duvall, Wash., in the Seattle area, and will begin production here in February.

The company employs 10 people, but President Bob Lawrie said Machine Tech is undertaking a major expansion that will see that number grow to 100 over the next two-to-five years.

The company will immediately hire some assemblers, skilled machinists, computer operators and warehouse and office staff.

Packet Engines Inc., based in Union City, Calif., manufactures high-tech integrated circuit-related components.

The company expanded its operations to Spokane in December, opening a facility in the Spokane Valley.

Packet Engines hired six employees locally, and expects to employ 15 communications, circuits and chip design engineers by the summer of 1996, according to Bernard Daines, president and chief executive officer.

“The Silicon Valley labor market is tight and everyone is competing for the same type of employee,” Daines said. “This is the opportune time to expand to Spokane. We’ve been able to hire highly skilled engineers who have yielded excellent results.”

One barrier to attracting high-tech firms to Spokane has historically been a concern that it may be difficult for the companies to convince the specialists they need to relocate here.

“It is a concern and an issue,” said Daines, himself a Spokane native, “but we’ve been somewhat effective in finding engineers who went to school in the Washington, Montana, Idaho area, and who want to move back.”

The recruitment issue “will pace our expansion ability,” he added, “but at the moment we’ve been able to find enough of the right people to take as fast as we can absorb new people, anyway.”

Lawrie said Machine Tech had to expand outside the Puget Sound area because of the high cost of doing business there.

“We looked at sites in Texas and Oregon, but Spokane was the best opportunity for our company,” Lawrie said.

“We’re in the mountain bike business, so we like the mountains there,” Lawrie added. “And the accommodations were just a lot more friendly in the Spokane area.”

Lawrie said Machine Tech sells its bicycle parts in international markets, so cost competitiveness is critical.

Jobs here will have salaries ranging from minimum wage to $20 an hour.

, DataTimes