Orbic Electronics in Hauppauge seeks more tax aid, aims to return hundreds of factory jobs to Long Island from China
Employees at Orbic Electronics Manufacturingy on Wireless Road in Hauppauge in 2023. Credit: Newsday/John Paraskevas
A seller of cellphones, laptops, hotspots and other electronics is proposing to double the size of the Hauppauge factory it wants to open to move production from China.
Orbic Electronics Manufacturing LLC plans to construct a 75,000-square-foot addition to its present home at 555 Wireless Blvd. The new structure would be on top of 60,000 square feet that are to be converted to manufacturing, according to an application for tax breaks from the Suffolk County Industrial Development Agency.
Orbic is seeking $3.4 million more in IDA assistance to support the addition, which will accommodate extra assembly lines. The company will have a total of 135,000 square feet for production but still maintain its headquarters office, the application states.
The addition has raised the total cost of Orbic’s “Project Patriot” plan, which was made public in December 2023. The price tag has gone from $30.8 million to $107.5 million.
The new plant would open in the January-March period, according to the application.
Mike Narula, the company’s CEO and founder, said last week that a groundbreaking ceremony will take place on June 4.
“American manufacturing has to take off and it has to come back here,” he said after receiving an award from the Long Island Association business group. “So, we’ve decided to raise the bar, to move forward and do manufacturing on Long Island.”
In an earlier Newsday interview, Narula said Orbic’s expansion is in response to Verizon and other customers wanting their products made domestically to avoid a repeat of the shipping backlogs seen during the COVID-19 pandemic with imported goods.
“China has dominated [the telecommunications industry] when it comes to manufacturing and supply chain…We decided to go down a different path in building the Orbic brand and to set ourselves apart from the competition by having ‘Made in USA’ on our products,” Narula said. “Also, our top customers, like Verizon, are asking us to do this.”
Orbic's larger plan for its first domestic factory comes as the Trump administration makes U.S. manufacturing a top priority by imposing higher tariffs on imported goods and boosting federal assistance for worker training and equipment purchases.
Orbic hopes to eventually open three more plants in Suffolk at 120 Commerce Dr. and 155 Adams Ave., both in Hauppauge, and at 1560 Fifth Ave. in Bay Shore, said Narula, adding the company expects to create 1,000 jobs within five years.
Because the Wireless Boulevard factory will be larger than originally proposed, Orbic is seeking additional help from the Suffolk IDA.
The agency’s board on Wednesday is expected to consider granting a sales-tax exemption of up to $1.9 million on the purchase of construction materials and equipment, plus $3.5 million off property taxes over 20 years, according to documents.
The $5.4 million incentive package, if approved, would replace the $2 million package that the IDA board unanimously approved in December 2023.
In return for the tax aid, Orbic would add 503 jobs within two years to its workforce of 42 in Suffolk. Most of the new positions would pay $45,000 per year, on average, the documents show.
A public hearing on the larger deal was held Tuesday. There were no comments after IDA CEO Kelly Murphy described the project.
Separately, Orbic was awarded $10 million in tax credits from the state last year tied to it creating jobs.
The company is owned by Narula's wife, Ashima, who is an architect.
Orbic is joining more than 6,400 companies that have shifted production from overseas to the United States. Together, the businesses created 1.7 million jobs between 2010 and last year. Nearly 450 of the firms have operations in New York State, according to the Reshoring Initiative, a Sarasota, Florida-based advocacy group.
During an April 24 visit to defense contractor GSE Dynamics Inc. in Hauppauge, Kelly Loeffler, head of the U.S. Small Business Administration, said President Donald Trump would seek congressional approval to make SBA-guaranteed loans for factories larger.
“We are certainly looking at expanding the loan size, expanding the guarantee size. ... We’re also looking at our working capital loan to expand that, to make sure manufacturers have the working capital they need to grow and expand,” Loeffler said in response to a Newsday question.
Legislation was introduced on May 1 in both the U.S. Senate and House of Representatives to double the amount of SBA 7(a) and 504 loans from $5 million per applicant to $10 million. The proposed Made in America Manufacturing Finance Act has bipartisan support.
At last week’s awards ceremony in Bethpage, Lawrence Waldman, chairman of the LIA board and an accountant, said Orbic’s expansion plan “is bold, courageous and exactly what we need to continue to grow the Long Island economy.”
A seller of cellphones, laptops, hotspots and other electronics is proposing to double the size of the Hauppauge factory it wants to open to move production from China.
Orbic Electronics Manufacturing LLC plans to construct a 75,000-square-foot addition to its present home at 555 Wireless Blvd. The new structure would be on top of 60,000 square feet that are to be converted to manufacturing, according to an application for tax breaks from the Suffolk County Industrial Development Agency.
Orbic is seeking $3.4 million more in IDA assistance to support the addition, which will accommodate extra assembly lines. The company will have a total of 135,000 square feet for production but still maintain its headquarters office, the application states.
The addition has raised the total cost of Orbic’s “Project Patriot” plan, which was made public in December 2023. The price tag has gone from $30.8 million to $107.5 million.
WHAT NEWSDAY FOUND
- A Hauppauge-based seller of cellphones, laptops, mobile hotspots and other electronics has doubled the size of the factory it plans to open next year at 555 Wireless Blvd.
- Orbic Electronics Manufacturing LLC is returning its production activity to Long Island from China in response to customers, such as Verizon, wanting Made in America products.
- The Suffolk County Industrial Development Agency on Wednesday is expected to consider a request from Orbic for $5.4 million in tax breaks over 20 years.
The new plant would open in the January-March period, according to the application.
Mike Narula, CEO of Orbic Electronics Manufacturing, received an award from the Long Island Association business group last week. Credit: Newsday/Howard Schnapp
Mike Narula, the company’s CEO and founder, said last week that a groundbreaking ceremony will take place on June 4.
“American manufacturing has to take off and it has to come back here,” he said after receiving an award from the Long Island Association business group. “So, we’ve decided to raise the bar, to move forward and do manufacturing on Long Island.”
In an earlier Newsday interview, Narula said Orbic’s expansion is in response to Verizon and other customers wanting their products made domestically to avoid a repeat of the shipping backlogs seen during the COVID-19 pandemic with imported goods.
“China has dominated [the telecommunications industry] when it comes to manufacturing and supply chain…We decided to go down a different path in building the Orbic brand and to set ourselves apart from the competition by having ‘Made in USA’ on our products,” Narula said. “Also, our top customers, like Verizon, are asking us to do this.”
Orbic's larger plan for its first domestic factory comes as the Trump administration makes U.S. manufacturing a top priority by imposing higher tariffs on imported goods and boosting federal assistance for worker training and equipment purchases.
Orbic hopes to eventually open three more plants in Suffolk at 120 Commerce Dr. and 155 Adams Ave., both in Hauppauge, and at 1560 Fifth Ave. in Bay Shore, said Narula, adding the company expects to create 1,000 jobs within five years.
Because the Wireless Boulevard factory will be larger than originally proposed, Orbic is seeking additional help from the Suffolk IDA.
The agency’s board on Wednesday is expected to consider granting a sales-tax exemption of up to $1.9 million on the purchase of construction materials and equipment, plus $3.5 million off property taxes over 20 years, according to documents.
The $5.4 million incentive package, if approved, would replace the $2 million package that the IDA board unanimously approved in December 2023.
In return for the tax aid, Orbic would add 503 jobs within two years to its workforce of 42 in Suffolk. Most of the new positions would pay $45,000 per year, on average, the documents show.
A public hearing on the larger deal was held Tuesday. There were no comments after IDA CEO Kelly Murphy described the project.
Separately, Orbic was awarded $10 million in tax credits from the state last year tied to it creating jobs.
The company is owned by Narula's wife, Ashima, who is an architect.
Orbic is joining more than 6,400 companies that have shifted production from overseas to the United States. Together, the businesses created 1.7 million jobs between 2010 and last year. Nearly 450 of the firms have operations in New York State, according to the Reshoring Initiative, a Sarasota, Florida-based advocacy group.
During an April 24 visit to defense contractor GSE Dynamics Inc. in Hauppauge, Kelly Loeffler, head of the U.S. Small Business Administration, said President Donald Trump would seek congressional approval to make SBA-guaranteed loans for factories larger.
“We are certainly looking at expanding the loan size, expanding the guarantee size. ... We’re also looking at our working capital loan to expand that, to make sure manufacturers have the working capital they need to grow and expand,” Loeffler said in response to a Newsday question.
Legislation was introduced on May 1 in both the U.S. Senate and House of Representatives to double the amount of SBA 7(a) and 504 loans from $5 million per applicant to $10 million. The proposed Made in America Manufacturing Finance Act has bipartisan support.
At last week’s awards ceremony in Bethpage, Lawrence Waldman, chairman of the LIA board and an accountant, said Orbic’s expansion plan “is bold, courageous and exactly what we need to continue to grow the Long Island economy.”
James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.
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