Deal Watch

Hotstart finishes Valley plant upgrades

By Suhaila Yusof September 3, 2026
Hotstart finishes Valley plant upgrades - spokane manufacturing
Hotstart finishes Valley plant upgrades

Hotstart Inc. has completed a $1.1 million renovation of its 90,000-square-foot facility in Spokane Valley, significantly enhancing its ability to manufacture engine block heating systems for industry leaders such as Caterpillar, Cummins, and Rolls-Royce. The upgraded space at 6715 E. Mission now serves as a critical hub for production, allowing the company to better align with the operational demands of its major clients. These heating systems play a vital role in ensuring the reliability of backup generators, particularly in environments where consistent power is non-negotiable, such as data centers and industrial facilities.

The building, acquired from King Beverage Inc. in 2023 for $11.5 million, was initially shared under a lease agreement while the beverage distributor transitioned to a new warehouse on the West Plains. This arrangement allowed Hotstart to secure the property without immediate disruption to its operations. Once King Beverage vacated the space in January, Hotstart initiated the relocation of key manufacturing assets from its 140,000-square-foot headquarters on East Alki, a process that required careful planning to minimize downtime and maintain workflow continuity.

New equipment and infrastructure

The renovation involved the transfer of seven computer numerical control (CNC) machines, which are essential for precision machining of metal components used in Hotstart’s heating systems. These machines enable the company to produce parts with tight tolerances, ensuring compatibility with the exacting specifications of clients like Caterpillar and Cummins. Alongside the CNC equipment, four plastic injection molding machines were also moved, expanding Hotstart’s capability to manufacture custom plastic housings and components that integrate with its heating solutions.

To support the increased power demands of the new machinery, the facility underwent a full electrical upgrade. This included the installation of high-capacity wiring, updated circuit panels, and energy-efficient lighting designed to reduce operational costs while improving visibility on the production floor. Large loading doors were added to streamline the movement of raw materials and finished products, facilitating faster turnaround times for shipments. One of the most technically demanding aspects of the project was the installation of a dedicated chiller system for the injection molding machines. This system required the extension of compressed air lines throughout the building, a complex task that involved coordinating with mechanical contractors to ensure proper pressure regulation and distribution.

Spokane Valley-based Silvey Construction oversaw the renovation, leveraging its local expertise to manage the project’s timeline and budget. The company collaborated with a network of specialized contractors, including A.C.I. Coatings LLC for surface treatments, Barnhart Crane and Rigging Co. for heavy equipment relocation, and Jewell Excavating & Construction Inc. for structural modifications. Electrical upgrades were handled by Electric Smith Inc., while Machine Tool Services Inc. assisted with the calibration and installation of the CNC machines. This coordinated effort allowed Hotstart to address both immediate operational needs and long-term scalability.

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Beyond manufacturing improvements, the renovation also modernized the facility’s office and restroom spaces. These updates were designed to enhance employee comfort and productivity, reflecting the company’s commitment to maintaining a high-quality work environment. With 220 employees based in Spokane and a total workforce of 250, Hotstart’s expanded capacity at the East Mission location is expected to accommodate future hiring as production scales up. While the facility is not yet operating at full capacity, the infrastructure is now in place to support additional manufacturing lines, including potential expansions into related product categories.

Growth driven by data centers

The surge in demand for Hotstart’s products is closely tied to the rapid expansion of data centers, which rely on backup generators to prevent costly downtime. As artificial intelligence and cloud computing continue to drive the need for larger, more resilient data infrastructure, companies like Caterpillar and Cummins have increased their orders for generators equipped with Hotstart’s heating systems. These systems are designed to preheat engine blocks, ensuring that generators can start instantly during power outages—a critical feature for data centers that cannot afford even brief interruptions in service.

Hotstart’s revenue growth reflects this trend, with the company reporting $96 million in 2025 and projecting $104 million for 2026. By 2029, the company anticipates reaching $150 million in annual revenue, a target that aligns with its strategic investments in facility upgrades and workforce expansion. The decision to renovate an existing building rather than construct a new one was influenced by several factors, including cost efficiency, speed of implementation, and the desire to maintain a strong presence in Spokane Valley. This approach mirrors a broader trend among regional manufacturers, who often prioritize adaptive reuse of industrial spaces to balance financial constraints with operational flexibility.

The newly designated Hotstart East facility complements the company’s existing footprint, which includes its headquarters on East Alki and a smaller auxiliary building, Hotstart South, used for storage and employee amenities. This multi-site strategy allows Hotstart to distribute its operations across different locations, reducing congestion at any single facility while preserving the ability to scale production as needed. The company’s focus remains on optimizing its current assets, with plans to gradually increase output at Hotstart East as new systems are fully integrated and additional staff are trained.

Hotstart’s history of adapting its facilities shows its responsiveness to market conditions. Previous expansions have followed a similar pattern, with the company leveraging existing structures to meet evolving demands without relocating outside the region. This approach not only preserves local jobs but also reinforces the company’s ties to the Spokane Valley industrial ecosystem. As production ramps up at the renovated facility, Hotstart is positioned to play an increasingly central role in supporting the infrastructure needs of data centers and other high-reliability industries.

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