Key Points:
- Haas Automation has requested an extension to the construction timeline for its 2.5 million-square-foot manufacturing facility in Henderson. The company cites COVID-19 and supply chain issues, as well as increased construction costs, as reasons for the delay.
- The main construction phase of the facility is expected to begin in late summer of this year and could take 1.5 to 2 years to complete. The company now estimates that the facility will be finished by the end of 2026.
Haas Automation, a manufacturer of machine tools, is facing delays in the construction of its manufacturing facility in Henderson, Nevada. The company has requested an extension to its development agreement with the city of Henderson to push the completion date from April 2024 to the end of 2026. The extension request is due to the impact of COVID-19 and supply chain issues, as well as increased construction costs.
The construction project was originally estimated to cost $327 million and was expected to be completed by late 2022. However, the company now expects the cost to exceed $327 million due to inflation and rising construction costs over the past two years.
Despite the delays, Haas Automation remains committed to the project and sees it as an economic boost for Henderson. The company received $10.5 million in tax abatements from the Governor’s Office of Economic Development in return for creating 500 jobs within the first two years of operation and 1,400 jobs within five years of operation.
The extension request is still in the early stages and needs to be approved by city staff as well as the planning commission and city council. However, Haas Automation is optimistic that there will not be any major issues, as the company has maintained a positive relationship with the city throughout the development process.
Once construction is complete, Haas Automation will need to focus on growing the manufacturing workforce in Southern Nevada. The company has partnered with the College of Southern Nevada on an advanced manufacturing training program to help meet this demand.