Borla Expands in a Down Economy
A year ago Borla Performance Industries moved its manufacturing operation from a 62,000 sq. ft. plant in California to a 320,000 sq. ft plant in Johnson City (former Siemens plant) to position itself for growth. While other companies may be downsizing in the ‘down’ economy Borla president Alex Borla has this mindset:
“These are the times when we can afford to reinvent ourselves. We found a site where we can bring in great people, operate at less cost and set the platform for the next surge in our business. We have 120 employees now and are not using all of the plant space, but can do five times the present business in this new site.”
Borla produces high-performance stainless steel exhaust systems that are used on top race cars in the world and by consumers who add the exhausts to their factory standard cars, SUVs and trucks. Borla management states that 30 years of race-proven engineering, numerous patents and awards, a world-class testing and design center and collaboration with top race-engine builders has resulted in an exhaust system that has won more professional races than any other worldwide.
And don’t forget the consumer market. Borla exhausts are designed to be used on vehicles manufactured by Audi, BMW, Dodge, Honda, Lamborghini, Porsche, Cadillac, Chevrolet, Dodge, Chrysler, Ford, Pontiac, Acura; Mazda, Jeep, Mitsubishi, Nissan, Saturn and other auto makers.
So whether you are racing a 5000 horsepower top-fuel NHRA dragster, touring the mountains in a SUV, plowing through the highway in a diesel truck, driving city streets or open highways in a sports compact or muscle car you can have Borla winning-performance at your command. That pretty well sums up their market, except for what Alex Borla sees around the next corner for his business.
“We have been sourcing parts out of China for years and during my last trip there and visit with the Minister of Transportation... the growing wealth of the population was pointed out. In a very short time 3% of the country’s population have become millionaires or billionaires... and that’s 40 million consumers.”
Borla plant in Johnson City, Tennessee
Brooklyn to California to Johnson City
Borla started the business in his basement in 1976, because he wanted to be in manufacturing, loved autos, and didn’t have easy access to high-performance equipment. So he began to design and produce high-quality exhausts that his racing friends wanted as well as systems for Rolls Royce and Bentley cars. He and his partner/wife, Alyse, moved the business to California in 1983 where it grew to street performance applications. They now distribute product to 60 countries worldwide.
A few years ago Borla began to look for a more cost-effective manufacturing site, and a friend, David Marshall of Emmanuelle School of Religion, insisted he visit the area. Through fellow gear head, Mayor Johnny Holder and the EDB, he found the former Siemens plant on 100 acres. One year later manufacturing began to move to the site, though R & D, engineering, sales and marketing remain in California.
“I am very happy with East Tennessee. It’s cost effective to operate here, the work force is well-educated, the people are open and welcoming, and our central location and proximity to markets is excellent. The area has a lot of personal appeal for me too. It has a good car culture, private aviation facilities, beautiful scenery and outdoor recreation for motorcycling, hiking on the Appalachian Trail, rafting and lake sports. On our Borla property we have a lot of wildlife... from skunks to deer to bears.
“The car culture is a common denominator among men. The love of the automobile is common ground from Kings to paupers. It’s exciting to strive to keep our product top-of-the-line and therein lies our future.”
(Borla is not using all of the present plant space and has office and plant space for lease. For more information see ad on Chamber news page.)