MANKATO — A local manufacturer is about to purchase one of the last available spots in Mankato’s industrial park as it prepares to boost its workforce by 50% or more, according to city and company officials.
Under the proposed agreement, Kato Cable would buy six acres adjacent to its existing plant at 99 Power Drive for $142,000 to make room for a “contemplated expansion,” according to a memo to the Economic Development Authority, which consists of the seven Mankato City Council members.
“Currently, Kato Cable employs 135 full-time equivalents and it is expected to increase to over 200 within 3-5 years of the expansion,” according to the EDA memo.
The workforce growth should be even higher than that, according to Kato Cable CEO Eric Else, who told The Free Press that the company is looking to construct the 40,000-square-foot addition starting this spring,
“This new expansion will triple our current manufacturing space at 99 Power Drive,” Else said. “And with our projected growth over the next five years, we hope to bring in at least 100 new job opportunities to the Mankato area.”
Else, who described Kato Cable’s products as “the central nervous system” of a variety of technologies, said supply-chain disruptions during the pandemic made customers realize the value of having an innovative, dependable and responsive domestic supplier.
“There are a few driving forces behind the growth and need for this additional space,” he said. “The need for the high quality and reliable products that Kato Cable produces domestically is becoming more important than just a low-cost solution that has been produced outside of the U.S. to this point.”
Kato Cable’s increasing presence in a variety of technologies was highlighted in a Free Press article a year ago when engineering manager Matt Lukasek talked about receiving heart surgery aided by a medical robot that relies on some of the company’s cables.
“The products we make right here in Mankato are changing lives, and to have it change another person’s life, that’s a big deal,” Lukasek said. “To have it change your own life? It’s hard to put that into words what that feels like. It’s pretty crazy.”
A doctor at Mayo Clinic Health System in Mankato noted that robotic-assisted surgeries had soared to more than 700 per year, allowing quicker recovery times for patients because the technology allows for smaller incisions.
Starting about six years ago, Kato Cable began manufacturing medical cables to help meet the growing demand for the robotic models used by Mayo — Intuitive’s da Vinci surgical units. The firm’s ability to meet Intuitive’s needs is another example of its increasing versatility.
The company’s roots, dating back to 2006, were in supplying cables for industrial power generation. Since then, its customer base has expanded to power sports, agriculture, oil and gas, medical devices and accessories for construction and firefighting vehicles, refuse trucks and EVs.
“Providing these quality products with short lead times gave us the competitive advantage to gain market share and continue our growth year over year,” according to Else. “In 2021 we needed additional manufacturing space quickly but due to lengthy construction lead times, we found an existing facility in North Mankato to open a second location.”
With the ongoing growth projected over the next five years, additional manufacturing space is now needed at the Power Drive location as well.
Kato Cable’s potential for expansion was recognized more than 15 years ago when the company’s manufacturing plant was constructed on six acres in Mankato’s Eastwood Energy Center. As part of the purchase of that parcel, an option was obtained on the adjacent six acres. In return for the exclusive right to purchase the additional land in the future at just under $24,000 an acre, the business agreed to pay annual property taxes and $106,000 in assessments on those acres.
The request now before the EDA is to exercise the purchase option, something that is expected to be approved following a public hearing on Feb. 12.