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Date: Item No.
Spotlight on Business
Interstate PowerSystems, Inc.
Overview
The Spotlight on Business program is designed to recognize new and existing commercial and
industrial businesses in the Lakeville community. The program was created to inform the community
about Lakeville’s thriving business climate and emphasize the important tax and employment benefits
that business and industry provide to the City.
Interstate Companies, Inc., the parent company of Interstate PowerSystems, was established in 1957 as
one of the world’s first Detroit Diesel Engine distributors. Today, Interstate operates in 12 states
offering repair services, local inventories of critical parts, general labor to solve tough customer issues,
and more. The Minnesota-based company has five operating units: I-State Truck, AssemblySystems,
BearingSystems, PowerSystems and IndustrialSystems. Travis Penrod is the company’s CEO and
Interstate’s core tenet is “Pride in Service.”
Interstate Companies has six Minnesota locations (Blaine, Bloomington, Inver Grove Heights,
Lakeville, Virginia and Waite Park) and employs a total of 297 workers in Minnesota. Interstate
PowerSystems, Inc. (IPS) in Lakeville has served as the PowerSystems headquarters since May 2017
and currently employs 108 people. Lakeville’s location also serves as the company-wide training
facility, where technicians from across the Midwest are regularly trained on equipment during classes
that can last two days or up to two weeks. IPS in Lakeville offers paid internships and partners with
Dakota County Technical College and Hennepin Technical College to train the next generation of
workers.
Over half of Interstate Companies’ workforce is comprised of technicians who provide service for large
truck engines, transmissions, refrigeration units, onsite energy units and custom solutions. Lakeville’s
headquarter location has 32 bay doors and a 30,000 square-foot warehouse space that allows IPS to
store a large inventory of parts for repairs and retail sales. The Lakeville location has experienced 18%
growth from Q1 2017 to Q1 2018 and has room at its current location to expand.
Based on current tax capacity rates, Interstate PowerSystems property contributed over $240,000 in
property taxes going to the City, County, and ISD 194 in 2018. Mike Masters, Interstate PowerSystems
President will be present to share additional information with the City Council.
Financial Impact: $ Budgeted: Y☐ N☐ Source:
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Diversified Economic Development
Report Completed by: Kati Bachmayer, Economic Development Specialist
June 4, 2018
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