Earlier this month, Tennessee Governor Bill Lee announced a $4.5 million investment that will create 32 new jobs in Tullahoma and serve the aerospace and defense industries.
CG Model Tek plans to expand its manufacturing operations in Coffee County. The company specializes in precision machining, making wind tunnel test models, ground test hardware, and test rigs.
Chris Athaide, CG Model Tek CEO, told Industrial Equipment News (IEN) that his company's $4.5 million investment includes purchasing the assets of Micro Craft. A similar model-making business, Micro Craft closed up shop in February 2024 after it ran into financial difficulties. Athaide said Micro Craft's assets were scheduled to go to auction in July had he not stepped in.
"We have been in this specialized field for [more than] 30 years and know our customer base very well," Athaide said. "The loss of Micro Craft had the potential to put a squeeze on the entire industry by further reducing an already stretched supply base." He said only a handful of companies remain to support the entire U.S. defense and commercial aerospace industries.
One of the few remaining competitors in the industry is Tri Models, which also makes wind tunnel test models for Boeing, Lockheed Martin, Airbus, NASA, and other major aerospace manufacturers. Athaide is the vice president of contracts and sales at Tri Models. However, he said Tri Models doesn't have the capacity to increase production, so he and his partners bought Micro Craft's assets to "ensure the industry has the resources it needs."
While CG Model will take on prototype and machined small-run production work for the aerospace industry, Athaide doesn't anticipate any near-term expansion into other markets.
The company currently has 20 employees and "very low overhead," although Athaide hopes to bring on five more employees by the end of the year, depending on demand. "We do not intend to grow beyond what the work can support," Athaide said.
After the purchase, CG Model performed some security and IT upgrades. The company doesn't anticipate further investment unless specific work calls for additional expansion.
