Supply Chain News / Economic Development

Allied Materials Expands Flag Facility in Bogalusa, La.

Gov. Bobby Jindal and President Steve Pack of Allied Materials & Equipment Company announced Allied will make a $340,000 capital investment and create 21 new direct jobs at the company’s Bogalusa, La., facility, where it manufactures the field of stars for the U.S. flag.

Allied, which produces U.S. flags for federal agencies, is purchasing new embroidery equipment for the application of stars onto the blue canton of the American flag. The company will retain 21 jobs at the facility while creating the additional 21 new direct jobs. Louisiana Economic Development estimates the project will result in another 12 indirect jobs, for a total of more than 30 new jobs in Washington Parish and surrounding areas.

Gov. Jindal said, “On the eve of our nation’s Independence Day celebration, it is truly fitting that we celebrate this expansion by Allied Materials & Equipment Company in Washington Parish. Not only do the dedicated workers at Allied assemble our national flag, the company’s expansion here in Louisiana is a testament to our strong business climate and skilled workforce. The new jobs the company will create in Bogalusa mean new opportunities for more Louisianians to purse the American dream here at home, in Louisiana.”

Allied manufactures the national flag for the Department of Defense, the U.S. House of Representatives, the U.S. Senate, the Veterans Administration and other federal agencies. While full assembly of the flag is completed at the company’s facility in Kansas City, Mo., where Allied is headquartered, all of the stars on its flags are embroidered at the Bogalusa facility, which has the capability to produce up to 13,000 fields of stars per week.

“Our decision to increase our investment in our manufacturing facility in Bogalusa was driven by our experiences,” Pack said. “The availability of a productive workforce coupled with current economic policies should lead to additional success of our operations in Bogalusa. Allied has enjoyed the cooperation of the Washington Economic Development Foundation, from whom we leased our building, the Mayor’s Office and most recently the Governor’s Office. The current economic policies of Louisiana have facilitated our expansion.”

Allied has begun the hiring process for their 21 new positions and will continue to hire through the summer. The Bogalusa site has been running at full capacity, and the company expects to increase capacity by 43 percent due to the equipment the expansion will provide.

LED’s Business Expansion and Retention Group began discussing expansion possibilities with Allied in November 2013. To secure the project, Louisiana offered Allied a competitive incentive package, which will include utilization of the state’s Enterprise Zone and Industrial Tax Exemption programs.

“I want to express my gratitude to Allied Materials for its commitment to Bogalusa,” Bogalusa Mayor Charles Mizell said. “We have been fortunate to have them in our industrial park for 13 years. They have increased their investment and their payroll over the time they have been here. This announcement of new investment and additional jobs here on the eve of our city’s centennial is a fitting birthday gift for Bogalusa.”

“Since 2001, the Washington Economic Development Foundation has maintained a great working relationship with our partners at Allied Materials & Equipment Company,” said Executive Director Ryan Seal of the Washington Economic Development Foundation. “We congratulate them on their continued investment in Bogalusa, we thank them for their partnership, and we’re looking forward to more exciting projects with this great economic driver. We’re also truly grateful for the partnerships we’ve built with Louisiana Economic Development and the Governor’s Office, who’ve helped to make this day possible.”

“Greater New Orleans Inc. welcomes the expansion of Allied Materials and Equipment Company,” said GNO President and CEO Michael Hecht. “This announcement is symbolic not only of opportunity in America, but moreover of opportunity in greater New Orleans. We look forward to working with Allied Materials and Equipment Company to ensure their continued success.”

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