Magnum looks to expand with up to 400 more jobs in Houston County

Magnum Manufacturing is looking to expand and diversify, with plans in the works that could bring 400 more jobs to Houston County.

With 53 current employees, Magnum expects to effectively double that number in the short-term with a slightly different focus than the business’ founder Doug Schroder, who died a couple years ago.

His wife, Stacey, and brother-in-law Phil Jackson, who is vice president, want to expand their product markets and become a direct supplier.

The effort is being kickstarted with a $150,000 economic development grant from the state that will primarily pay for repairs and improvements to the company’s facility on Mobley Road in Erin.

The company mostly makes parts for the auto industry. Large presses stamp sheet metal into the various parts that range from roof structures for Mercedes-Benz to seat frames for Nissan.

“We are expanding our base,” said Jackson. “The auto industry can be too iffy at times. We want to continue with our existing product line, but we want to grow into other areas.”

With Korean appliance-maker LG planning to open a manufacturing facility in Clarksville, Jackson sees the opportunity to supply components for their products.

Additionally, Mangum will be partnering with a major General Motors supplier, Johnson Controls/Adient, to expand the market for their products.

“If all my plans and dreams come together and we continue to grow, my goal is to have 400 to 500 employees,” Jackson said.

The company has already added some large presses to increase production capabilities and will continue the niche that sets it apart from other facilities.

“If you can’t run it, we can,” Jackson said of limitations of some manufacturers. “We can make tools nobody else can.”

By tools, Jackson is referring to using dies or molds in their presses, which stamps flat metal into the desired shapes.

Additionally, Magnum is planning to build another building and repurpose a building it is renting from Houston County to accommodate what Jackson calls “value-added” production, which means bare parts might be processed further or assembled with other parts before shipping.

In addition to constructing a new $1.45 million building adjacent to the current one, Magnum also is negotiating a lease-to-own agreement with the county for the former Key Industries building. The new building will serve as shipping and receiving for the business.

It all fits into the plans for Magnum to move from a Tier II or III supplier, which produces parts for other suppliers to sell to manufacturers, to a Tier I direct supplier.

With an unemployment rate of 4.7 percent, 50 new jobs in Houston County, which has a small population and work force, will significantly lower the rate in a county. Growing to 400 or 500 jobs would have folks around the region driving to Erin to work.

“I’ve had people that I don’t know calling me about a job since the (grant) announcement,” Jackson said. “Some of them live in Dickson and Kingston Springs.”

In order to help attract and retain workers, he wants to raise wages, which currently begins at $9.50 per hour. He wants to initially go to $10 per hour, and he wants to start apprentice programs to train skilled workers for the higher-paying jobs.

Mark Hicks can be reached at 931-212-7626 or on Twitter: @markhicksleaf.