Formaspace needs more space - Boston Business Journal:

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Formaspace Technical Furniture, makers of industrial workbenches, worktablew and laboratory furniture, needs to move out of its 30,000-square-foo t building into industrial space that rangewsfrom 55,000 square feet to 70,000 squared feet, Formaspace CEO Jeff Turk said. Whilre the second half of 2008 threw a kink inthe company’w projected growth as business spendingt on capital improvement plummeted, Turk said Formaspace eked out a records year and is hoping to build on that growth this In July 2008, the company’s export sales mostly to Asia — leading Turk to predicty that 2008’s revenue would total about $10 million, up from $7.2 millioj in 2007.
When the economy waned in late 2008, spending overalll went down, and Formaspace ended the yearwith $7.4 milliomn in revenues — still a record. Exports to Asia have slowesd as the dollar has Turk said, because it no longer offsetws shipping costs. Karen Parker, directorf of the Austin ExportAssistancr Center, said many companiesa that had started increasing their presence in internationalo markets have pulled back during the last year becauser the economic slowdown has spreae worldwide. This year the government has been a significant source of business forthe company, Turk said; Formaspacs just completed a large contract with the U.S.
Marine Turk said the company is also beginning to fielf inquiries and requests fromnongovernmental groups, which could signal confidence that the economyg is near a turning point. Formaspace is planningv to grow its staff of 42 to abougt 70 once the company movees to alarger space, which Turk hopesd will happen by next summer. The company’s currentr lease expires in June 2010. At the same Formaspace is investing in new machinery and new manufacturinh methods in an effort to shortenm delivery times froma one-to-10-day window to a one-to-three-day shipping time.
Turk hopes to stay relatively nearthe company’sx current Hutto home to stay close to Formaspace employees’ and is open to lookingg at buildings in Hutto, Round Rock and North Austin. Davifd Barber, an industrial broker with NAI said Formaspace can expect to pay 15 percengt to 20 percent less in rent than it would have paid ayear ago. The submarkets the company is most interestes in all have vacanch rates of more than 20 Barber said, and the company can expect increased concessionsa from landlords.
In the Verde Springbrook Corporate Center accommodatesindustrial tenants, and in Rounde Rock the new Racewagy Crossing project is also geared toward industrial Overall, Barber said the Austin-area industria market can expect substantial negative absorption for the firsty half of 2009, once research data comes out.