By Kaden Buss
Buena Vista city officials say they hope to see major economic returns from Modine Manufacturing’s $19.6 million expansion, projecting the city will generate approximately $1.6 million in local sales tax revenue alone over the next decade.
The expansion, which was announced last year, is Modine’s second major investment in the Rockbridge area in two years. The project will relocate the company’s heating division headquarters from Racine, Wisconsin, to Buena Vista.
It will create 57 permanent jobs in addition to 19 temporary jobs, according to a December staff report. The permanent jobs will pay average wages more than $15,000 above the city’s prevailing wage.
Zachary Fitzgerald, a roofer from Madison Heights, is one of the temporary workers on site.
“Something this big for a company as small as us really helps us out,” he said. “We’re happy to have any jobs we can get, especially in a town like this where there’s not much going on.”
The investment will fund a second Modine facility in Buena Vista with a combination of warehouse, office and testing facility construction. The manufacturer has already begun work at the former REA Wire building at 408 W. 10th St., adding 169,127 square feet of space.
The city is providing $300,121 in incentives over six years to match a $300,000 Commonwealth Opportunity Fund grant from the Virginia Economic Development Partnership.
The incentives include a real estate tax exemption, a machinery and tools tax rebate, a building permit fee rebate and an annual water and sewer credit. The real estate tax exemption runs for 10 years, with the first six years counting towards the state grant match and an additional four years valued at $38,047.
All incentives will be awarded to Modine once the manufacturer meets job creation and investment thresholds, according to the report. Modine will begin its reporting period in April to track its job additions and investment progress before incentive payments are released.
Kristina Ramsey, Buena Vista’s director of economic development, said the city’s investment will pay off quickly. She said Buena Vista will ultimately earn nearly $1.6 million from local sales taxes connected to the Modine project. The projections do not include additional revenue from real estate, machinery and tools or personal property taxes.
Ramsey added the expansion’s impact extends beyond just employment numbers.
“When you have new jobs, it means new people moving here or people deciding to stay longer than they might otherwise,” she said. “That ripples into housing, school systems, childcare, all of those needs that come with it.”
Stephanie McCoy, owner of Asunder Coffee Roasters, said local businesses will also benefit from Modine’s Buena Vista expansion. McCoy’s shop still uses Modine heaters from the 1970s.
“Modine uses a lot of engineering students or graduates,” McCoy said. “So, people moving into Buena Vista to work for Modine is always a plus.”
John Hickman graduated from Natural Bridge High School in 1964 and worked at Modine’s Buena Vista plant for almost 60 years before retiring two years ago.
“I think it’s great for this whole community,” Hickman said. “Actually, it’s great for the state of Virginia.”
Modine has operated in Buena Vista since 1963 and currently has 268 employees, making it the largest employer in the city.
“We deeply value the strong work ethic and character of the people here, and in turn, we’ve built a reputation as a great place to work,” said Matt Niebur, Modine’s manufacturing general manager for heating in North America.
The company previously manufactured both heating and cooling products at the Buena Vista facility but outgrew the space as the business expanded.
In 2021, Modine converted a warehouse in Rockbridge County to a manufacturing facility. In March 2024, the company announced an $18.1 million expansion at the Rockbridge County plant to increase production of cooling units for data centers. The Rockbridge facility now handles all cooling products, while the Buena Vista facility handles heating products.
The company has survived two floods in Buena Vista. Niebur said the workforce was a key factor in choosing to expand.
“There are many reasons to invest in our BV operations and grow our business here, with the work ethic and character of our workforce being a primary one,” he said. “Many of our employees are friends, family, or neighbors, and they genuinely care about each other’s well-being.”
The Rockbridge County expansion has already made an economic impact, according to Brandy Flint, Rockbridge County’s director of economic development.
“For every one manufacturing job, you can pretty much assume there’s another job somewhere within this community that’s supporting that economic impact,” Flint said.
The Rockbridge expansion added 211 new jobs. Modine has filled approximately 140 of those jobs, according to Flint. Modine has until 2029 to complete the expansion.
The county matched a $470,000 state grant with local incentives to keep Modine in Rockbridge County in 2024. The county projects a net benefit of $40,000 by 2029 and grows to $236,000 by 2034, Flint said.
Between both expansions, Modine has invested nearly $38 million in the region over the past two years.
“They’ve been here for 60-plus years,” Flint said. “There were multiple reasons they could have left, but they have a generational workforce here.”