A Unique Partnership in Central City
July 18, 2009
Dear Fellow Nebraskans:
I recently attended an event in central Nebraska that was significant for the community of Central City. The new partnership between two Nebraska companies is a reminder of the opportunities that exist for our rural communities here in Nebraska.
A rural development expert addressing our Governor’s Ag Conference several years ago made the case that advances in technology and communication have created opportunities for rural businesses to compete effectively with opportunities in other countries. While modern advances have expanded the playing field for companies to do business in countries around the world, the costs of doing so sometimes outweigh the benefits.
More than 130 people gathered in Central City to celebrate the expansion of Covenant Doors that will produce cabinets to house a line of indoor space heaters in partnership with SunHeat Manufacturing. The two companies are locally-owned and homegrown businesses that have already created jobs for Grand Island and Central City residents.
What made this partnership unique and exciting is the fact that the expansion allowed one company to do business with another located 25 miles away, instead of halfway around the world in China. Instead of planning several months ahead for changes with an overseas manufacturer, SunHeat Manufacturing can now make adjustments in couple days due to the proximity of the two companies. Plus company officials found their Nebraska partners were able to provide a better quality product.
In addition to bringing job opportunities back to our state from China, the partnership is expected to create up to 30 new jobs, which are especially important given the national economic climate. It also strengthens two family-owned businesses with roots here in Nebraska.
The partnership brought a new company, Covenant Doors, started in 2005 by a Central City couple, together with SunHeat Manufacturing, which had more 50 years of experience. SunHeat is now led by a third generation of family owners manufacturing portable heating units and air purifiers.
Based in Grand Island, Covenant designs and builds custom doors and solid wood accents and has grown to 20 employees. Building cabinets to house the portable heaters allows the business to expand and supplement the custom projects for home and business clients.
I was pleased to award a portion of Nebraska’s Community Development Block Grant funding last spring to help with this expansion. I had the opportunity to walk through the new facility where these cabinets are assembled. The results of that loan and company investment are paying off.
I want to congratulate these two companies for exploring opportunities to work together, and I want to thank those at the state and local level that played a role in supporting the partnership.
It is a wonderful example of how businesses can work together in building a stronger local community.
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