FTZ Occupancy Rate at an All-time High Thanks to Aggressive Marketing Efforts

Ronkonkoma, NY - The Town of Islip Foreign Trade Zone (FTZ) will see a major expansion in 2014, with the construction of a 36,000 square-foot facility---the first new building in the Zone since 1990. The project will be the future home of AA Technology, a “one stop electronic contract manufacturer”, who provides PCB assemblies, wires harness and box builds. AA Technology has been located in the FTZ since 2004. Islip Town Board members and the FTZ Board recently gave the green light for AA Technology’s multimillion project that is expected to break ground sometime in 2014.


AA Technology will invest $3 million to build and outfit their new headquarters on 3.61 acres of vacant land, leaving only three parcels available for development in the FTZ, which now stands at 96% of its full capacity, a record high since the Zone’s establishment in 1982. FTZ officials credit the success of late to the current administration’s commitment to economic development.

“This administration is focused on providing economic development and stability to the Town of Islip,” said Councilman John C. Cochrane, Jr., liaison to the FTZ. “The Board supports the FTZ’s philosophy of marketing to local companies, which allows staff to meet with new and perspective companies on a regular basis. This wasn’t being done at this level in the past.”

AA Technology’s expansion is a victory for FTZ officials, who, with the support of the FTZ and Town Boards, worked diligently to keep AA Technology in Islip Town. Company execs were seriously considering a move to another Town for their expansion, but ongoing talks and negotiations resulted in their decision to remain in Islip’s FTZ, where, with a 40-year lease, they will more than double their current space and increase the total number of employees to 100 from 52.

AA Technology – a manufacturer of electronic devices for everything from fire engines to submarines – first located to the FTZ in 2004, leasing approximately 7,500 square feet. But steady growth over the last 10 years found AA seeking out more space, and in 2007, they upgraded to a 15,000 square-foot facility. Fast forward and the company have now outgrown those accommodations as well.

“It is with confidence and great expectation that we undertake this expansion,” said company Vice President Frank Rosselli. “Our success up to this point has been based upon the support of our loyal customers, who are all also Long Island based. It is with their continued partnership, that that we can continue to grow.” Rosselli cited major tax breaks and incentives as key reasons why AA chose to stay in the Islip FTZ for its expansion. “The fact that we are not paying property taxes allows us to be more competitive against overseas markets. The advantage of tax incentives on export and import duties also gives us an edge in remaining competitive. The support of the Town of Islip, the IDA and especially the Trade Zone personnel has allowed our expansion to become a reality, for which we wish to thank them all.”

As FTZ officials look to develop the remaining acres, they have entered into a partnership with well-known commercial developer Rechler Equity to assist in marketing and construction efforts.

“Rechler has access to a ton of companies, which is really terrific,” said Cochrane. He also noted that Rechler plans to host a broker open in the New Year, where existing and potential FTZ tenants will be able to obtain information about FTZ benefits, while also viewing renderings of sample facilities.