New strength

By Burton Cole

and Team Kentucky

FALMOUTH — Paragon Metal Fabricators is moving into the closed Hammer Strength building and plans to retain many of the employees.

The deal has been in the works for months.

Bryan Muehlenkamp, president of Paragon and owner with his brothers Jason and Matthew, said he saw a news story in October about Hammer Strength closing and the Pendleton County was looking for an industry to take over the building.

“We’d been looking for probably three years for a manufacturing (site),” Muehlenkamp said. He said that he called Pendleton County Economic and Tourism Development Director Tami Vater to get the ball rolling.

Things should be up and running between mid-May and mid-June, Muehlenkamp said. While the heavier metal fabrication jobs will remain in the Erlanger plant with the high roofs and cranes, “anything 1,000 pounds or lighter will move to Falmouth.”

The three brothers met with 30 to 40 former Hammer Strength employees Friday morning to introduce themselves and to express how happy they are to be in Falmouth.

“My brothers and I are just super excited,” Bryan Muehlenkamp told the Outlook Friday afternoon. “To have a workforce that seems so excited to join our team is exciting.”

Established in 1989 by brothers Joe, Stan and Mark Muehlenkamp, Paragon Metal Fabricators makes products for to multiple markets, including oil and gas, filtration, enclosures, heavy equipment and refrigeration industries, among others. It has become a premier go-to supplier in the tri-state area for custom flat and tube laser cutting, water jet and metal fabrication services, according to the company website.

Brothers Bryan, Matthew and Jason Muehlenkamp are the second generation of ownership brothers.

Bryan Muehlenkamp said they are in the process of figuring out how many employees they need and which Hammer Strength employees will be available to stay. The company expects to have at least 40 employees.

Paragon’s move to Falmouth officially was announced last Thursday but Kentucky Gov. Andy Beshear during his weekly Team Kentucky update. Muehlenkamp Properties Inc., doing business as Paragon Metal Fabricators, made an investment of more than $6 million to move into Pendleton County.

“Kentucky’s strength comes from our ability to persevere through challenges and continue to move forward,” Beshear said.

“Paragon Metal Fabricators will be a tremendous addition to the Falmouth community, bringing with them quality job opportunities and a boost to the local economy. I am glad to

see this business grow here in the commonwealth and look forward to its continued success.”

The project will see the company locate in a facility previously owned by Hammer Strength, which, after a companywide consolidation of various locations, closed operations last month after 35 years of business in the community, he said.

The new space will create 40 new jobs and allow for increased production times as well as new machinery and operating capabilities, which will include sheet lasers, tube lasers and forming improvements. The more efficient operation will help the company stay competitive within the metal fabrication industry and attract new business.

“Our family is from Northern Kentucky, and we are proud Kentuckians,” Muehlenkamp said.

“We are grateful and excited about our continued growth in the commonwealth and expansion into the Pendleton County and Falmouth location. We will be able to utilize some of the talented and experienced workforce from Hammer Strength to immediately and seamlessly start manufacturing products.

“We are thankful for the state, Pendleton County and Life Fitness’ guidance, support and direction during this process. Pendleton County and Life Fitness worked together to keep manufacturing jobs in Falmouth.

“Paragon hopes to follow in Hammer Strength’s footsteps and be a valuable partner to the community and Falmouth continuing forward,” he said.

Pendleton County Judge Executive David Fields said, “The closure of Hammer Strength was a tough loss for our community, affecting nearly 100 hardworking individuals and their families.

“However, the addition of Paragon Metal Fabricators to this facility is a testament to the resilience of Pendleton County and the hard work of our economic development program. We are excited to welcome a company that not only brings back jobs but also creates new opportunities for growth and stability.

“This investment strengthens our local economy and enhances the quality of life for our residents,” Fields said.

County Fiscal Court Magisrate Rick Mineer, said, “Seeing businesses come and go is always a challenge, but Pendleton County remains committed to supporting economic development and workforce opportunities.

“The arrival of Paragon Metal Fabricators is a great win for our county, bringing back jobs and opening doors for even more employment. We look forward to the positive impact that this will have on our community, from job creation to increased economic activity.”

Vater noted the positive momentum this investment will bring: “The transition from Hammer Strength to Paragon Metal Fabricators is a significant step forward for Pendleton County.

“This investment not only restores jobs but introduces new positions, reinforcing our county as a great place for business and industry. We are thrilled to see this facility continue to serve as an economic driver and provide meaningful jobs for our community.”

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) last month preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1 million in tax incentives based on the company’s investment of $6.175 million and annual targets of:

• Creation and maintenance of 40 Kentucky-resident, full-time jobs across 15 years; and

• Paying an average hourly wage of $28, including benefits, across those jobs.

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.

In addition, Paragon can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

Paragon Metal Fabricators’ investment and job creation build on the best five-year period for economic growth in state history, according to Beshear’s office.

In that time, the governor has announced more than 1,100 private-sector new-location and expansion projects totaling more than $35 billion in announced investments, creating more than 60,500 jobs.

The robust job creation has been accompanied by rising wages across the commonwealth. Since 2022, the average incentivized hourly wage has topped $26 in three consecutive years for the first time, according to Beshear.

Other major business growth in that time includes solidifying Kentucky as the electric vehicle battery production capital of the United States with Ford Motor Co. and SK On’s transformative $5.8 billion, 5,000-job BlueOval SK Battery Park in Hardin County; AESC’s $2 billion, 2,000-job gigafactory project in Warren County; Toyota’s $1.3 billion investment in Scott County; and Shelbyville Battery Manufacturing’s $712 million investment, creating 1,572 jobs in Shelby County, among others.

Site Selection magazine recently ranked Kentucky in the top five nationally and second in the South Central region for economic development projects per capita in its 2024 Governor’s Cup rankings.

Last April, Site Selection placed Kentucky second in the South Central region and in the top 10 nationally in its 2024 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects.