OBSERVER Photo by Gregory Bacon John Hines, president and chief executive officer of Bailey Manufacturing, discusses his plans to build a new warehouse in Forestville.

A Forestville manufacturer will soon be expanding.

During the Chautauqua County Industrial Development Agency meeting Tuesday, John Hines with Bailey Manufacturing was in attendance regarding a proposed $130,000 loan. They plan to use the money to construct a new 7,000 foot warehouse.

IDA officials noted Bailey Manufacturing is a minority-owned manufacturer, which provides metal stamping, machining, welding, and assembly services. A majority of its revenues are derived from supplying auto parts that eventually become components of the major auto manufacturers, serving primarily the United States, Mexico, China, and South Africa.

Hines said they are renting space but want to build their own warehouse. “It will allow us to bring our manufacturing equipment and raw material to a strategic location right next to our plant so we can become more efficient and continue to provide jobs in the community,” he said.

Bailey Manufacturing has 65 full-time employees and another 19 temporary employees. Hines said this warehouse will allow them to add two full-time positions.

The entire warehouse project is expected to cost $330,000.

The county IDA approved the request. The $130,000 real estate loan will be at 4% for 10 years.

Officials noted that he has worked extensively with Bailey Manufacturing over many years. In 2017, the county IDA approved a $500,000 AL Tech Loan for the acquisition of the remaining 49% ownership of Bailey Manufacturing from Hines’ partner, Megatech Corporation. In 2021, the county IDA provided Bailey Manufacturing with CARES Act Funding from the Economic Development Administration when the company was significantly impacted by the coronavirus pandemic as a non-essential employer, along with lingering auto industry supply shortages.

Bailey Manufacturing Co., LLC is located at 10987 Bennett State Road, Forestville. Hines, who is the company president and chief executive officer, has managed day-to-day operations for over 20 years.

Hines said he hopes to start construction in March.