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Waterdown will soon be home to the new global headquarters of the AXYZ Automation Group.

The company held a groundbreaking event on July 20 to officially announce the construction of the new facility in the Clappison Avenue iConnect business park.

WHAT IS THE AXYZ AUTOMATION GROUP?

The AXYZ Automation Group, which is currently located in Burlington, is a leading global manufacturer of CNC router machines and waterjet cutting solutions and the largest Canadian-owned CNC manufacturer.

The company was founded by Alf Zeuner and Gary Harvey in 1991, and the Hansen-MacDonald family became the new majority owners in 2017. In 2018, Luke Hansen-MacDonald took the role of president, forming AAG Tailored Cutting Solutions.

The company, said Hansen-MacDonald, has over 12,000 machines installed worldwide — supplying everything from aerospace to defence, to architectural cladding and cabinetry.

“Our business really focuses on supporting local manufacturing,” he said. “We have thousands of customers across Canada, the U.S., the U.K., and we really sell to those local manufacturers that are often competing with cheaper foreign manufacturing.

“Our products allow them to have higher quality, a greater diversification of products and also greater efficiency.”

WHAT DOES IT MEAN FOR THE COMPANY?

The 105,000-square-foot facility, which represents a $25-million investment, will be the global headquarters of facilities in the U.S., the U.K. and the E.U., totalling over 250 employees.

Hansen-MacDonald said the new building represents a 50 per cent expansion of the company’s workforce in Ontario.

“We have just over 100 people and we’ll be able to grow to just over 150 people in the new facility,” he said, adding the facility will also represent a 50 per cent increase in the production output of the CNC router line. “It’s given us the foundation for some very significant growth.”

The new facility will include an enhanced research and development area that will increase the development of new intellectual property.

He said the new building will be a “global headquarters that really represents who our business is today.”

WHAT DOES THE INVESTMENT MEAN FOR THE AREA?

Jennifer Patterson, the City of Hamilton’s senior business development consultant, said the AXYZ Automation Group is a great company and a great fit within the city’s manufacturing sector.

“I think it’s a great win for the region,” she said, adding the project has been in the works for just over a year. “We’re very excited.”

She added the investment, along with the recent Stryker, L3 Harris, Lincoln Electric and CHCH developments, accounts for a nearly $230-million investment into the Waterdown area, as well as 700,000 square feet of new space and 1,600 jobs in Flamborough.

“Which is significant and exciting for Hamilton,” she said.

The company was attracted to Waterdown because of the access to a large, skilled and diverse workforce, as well as enough land to build a large facility and the state-of-the-art infrastructure required to operate a modern, highly automated factory.

Hansen-MacDonald said that while they looked at a lot of different areas, a lot of the company’s team already lives in the area or close by and it is a great area for young families, which will help attract new talent.

“As we want to grow and meaningfully increase the number of jobs, we need access to that skilled talent pool, and we definitely see that in that area.”

He said the proximity to McMaster University, where the company has a strong relationship with the co-op program and a research and development partnership, was also a positive.

Hansen-MacDonald said the company has also built a good relationship with local government officials, including Flamborough-Glanbrook MP Dan Muys, Flamborough-Glanbrook MPP Donna Skelly, Ward 15 Coun. Judi Partridge and Hamilton Mayor Fred Eisenberger.

The company has been based in the same Burlington location since 2000, but will fully move its operations to Waterdown with the opening of the new building.

The AXYZ Automation Group plans for the new facility to be operational by May 2023 and construction has already begun, with part of the foundation already poured.

“This is all about our continued investment in the region,” Hansen-MacDonald said.

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