The buildings at Cornerstone Facilities on the edge of Salem have been many things over the decades. They housed Child Craft Industries, the crib and furniture manufacturer that was once one of Washington County's largest employers. Later, they were home to Smith Cabinet Furniture. For too long after that, they sat underused, a reminder of the manufacturing jobs that had left and not come back.

That story is changing. E&H Tubing, a Jackson County-based manufacturer of steel tubing, has expanded into the Cornerstone Facilities complex with an initial investment of approximately $4 million and plans that company representatives say could eventually generate $20 million in business. For Salem and Washington County, the expansion represents something that has been hard to come by in recent years: a manufacturer moving in rather than moving out.

The Company and the Expansion

E&H Tubing Inc. is headquartered in Brownstown, Indiana, in neighboring Jackson County. The company specializes in high-carbon mechanical steel tubing, serving customers across a range of industries including automotive, agriculture, construction, and industrial manufacturing. Steel tubing may not generate headlines the way tech companies or data centers do, but it is the kind of bread-and-butter manufacturing that provides steady, family-supporting jobs in rural communities.

The Salem expansion centers on a five-year lease of two buildings at the Cornerstone Facilities property, with an option to purchase in the future. The company is repurposing the existing industrial space rather than building from scratch, which allows for a faster startup and keeps capital costs manageable while the Salem operation proves itself.

In the initial phase, E&H Tubing plans to create up to 40 new jobs. These are manufacturing positions, the kind of work that pays above minimum wage and offers the potential for advancement as production lines expand. An estimated $900,000 in annual payroll will be added to the local tax base, a meaningful injection of spending power in a county where the median household income is below the state average.

The project reached an important milestone on February 12, 2026, when Radius Indiana announced a low-interest loan to support the final renovations of the facility. Radius Indiana, a regional economic development organization serving eight counties in Southern Indiana, helped coordinate financing that bridges the gap between what E&H Tubing needs to invest in equipment and raw materials and what the buildings require in terms of upgrades.

Why Salem and Why Now

E&H Tubing's decision to expand into Salem rather than adding capacity at its Brownstown headquarters reflects several factors that work in Washington County's favor.

The availability of the Cornerstone Facilities buildings was a practical starting point. Industrial space of this size, with the structural capacity to support heavy manufacturing operations, is not easy to find in rural Southern Indiana. The buildings were designed for manufacturing and retain the infrastructure, including heavy electrical service, loading docks, and open floor plans, that a steel tubing operation requires.

The Salem City Council demonstrated its support for the project by approving a tax abatement for E&H Tubing's expansion in March 2025. Tax abatements are a common tool used by Indiana municipalities to attract investment, and the council's approval signaled that local government is willing to work with manufacturers who bring jobs to the community.

The Washington County Economic Growth Partnership, led by executive leadership that has been actively promoting the county as a destination for manufacturing and distribution businesses, played a coordinating role in bringing the expansion together. The organization markets Washington County's advantages: proximity to Naval Surface Warfare Center, Crane Division; access to Interstate 65 via State Road 56 and State Road 60; available industrial sites; and a workforce with manufacturing experience.

For E&H Tubing, the Salem location also provides geographic diversification. Operating from a single facility in Brownstown concentrates risk. A second location in Salem, just 30 miles away, provides backup capacity and the ability to serve customers from multiple points, reducing delivery times and improving supply chain resilience.

The Ripple Effect on the Local Economy

In a county with a population of approximately 28,000 people, 40 new manufacturing jobs have a ripple effect that extends well beyond the factory floor.

Workers earning steady wages spend money locally, at grocery stores, gas stations, restaurants, and retail shops. They pay property taxes on their homes, supporting schools and county services. They use local healthcare providers, banks, and service businesses. Economists typically estimate that each manufacturing job supports between 1.5 and 3 additional jobs in the broader community through these indirect effects.

The $900,000 in annual payroll that E&H Tubing expects to generate in Salem translates into tangible economic activity. If even half of that payroll is spent locally, it represents nearly a half-million dollars in new annual revenue for Washington County businesses. Over the five-year lease term, the cumulative impact grows substantially.

Beyond the direct economics, the E&H Tubing expansion sends a psychological signal that manufacturing has a future in Washington County. When buildings that once housed thriving factories sit empty, they can become symbols of decline that discourage further investment. When those same buildings are put back to productive use, the narrative shifts from loss to renewal.

Housing Implications

New jobs create demand for housing, and Washington County's housing market is not well-positioned to absorb significant new demand without some adjustment.

Salem and the surrounding area have a limited inventory of homes for sale at any given time. The housing stock is older on average than in the more urbanized parts of Southern Indiana, and new construction has been modest. Forty new jobs at E&H Tubing will not create a housing crisis, but they will add to the existing tightness in the market.

For current homeowners in Washington County, the expansion is broadly positive for property values. More workers earning steady wages means more potential buyers in a market where demand already exceeds supply. Homeowners with properties in reasonable condition and at accessible price points may find that their homes are worth more than they assumed, simply because there are more people looking to buy in the area.

For homeowners in more difficult situations, whether dealing with deferred maintenance, inherited properties that need work, or financial pressures that make holding onto a home untenable, the arrival of new employment in the area can actually create opportunities. Investors and buyers looking to establish themselves near a new employer are often willing to purchase properties that need work, seeing value where others might see only problems.

The Bigger Picture for Washington County

E&H Tubing's expansion is not the only thing happening in Washington County's economic development story. The county is pursuing growth on multiple fronts, each of which contributes to the overall trajectory.

The City of Salem Airport is in the midst of a nine-phase development and renovation plan, supported by federal matching funds. The most significant element of the plan is extending the runway from its current 2,738 feet to 5,000 feet, a length that would accommodate light to medium-sized aircraft and, crucially, corporate jets. For a community trying to attract businesses and investment, the ability to offer direct air access to corporate decision-makers is a meaningful competitive advantage.

The Harrison County Community Foundation, while based in the neighboring county, has been funding projects that benefit the broader Southern Indiana region, including veterans housing and youth facilities. These quality-of-life investments contribute to the attractiveness of the area for potential residents and employers.

Indiana University's Center for Rural Engagement has partnered with organizations in Washington County on projects including a strategic plan to convert an existing structure in Salem into a children's facility, and an assessment of opportunities for small business development along the Monon South Trail. These university partnerships bring expertise and resources that small communities might not otherwise access.

Challenges and Realities

It would be misleading to present E&H Tubing's expansion as a silver bullet for Washington County's economic challenges. Forty jobs are significant for a community this size, but they do not solve the structural issues that rural Indiana communities face: population aging, young people leaving for larger cities, limited healthcare access, and infrastructure that needs constant investment.

The success of the Salem operation will depend on E&H Tubing's ability to find and retain workers in a competitive labor market. Manufacturing workers are in demand across Southern Indiana, and companies at River Ridge Commerce Center and elsewhere are competing for the same workforce. E&H Tubing will need to offer competitive wages and benefits to attract and keep the 40 workers it needs.

The five-year lease structure, with an option to purchase, provides flexibility for both the company and the community. If the Salem operation performs well, E&H Tubing is likely to exercise the purchase option and potentially expand further. If market conditions change or the operation underperforms, the company has the ability to adjust without a permanent commitment. That flexibility is realistic and appropriate for an expansion into a new market.

For Washington County, the key is to build on the momentum that E&H Tubing's arrival creates. One manufacturer moving in does not make an economic development strategy. But if the county can demonstrate that it is a welcoming, well-managed place to do business, with available space, cooperative local government, and a capable workforce, then E&H Tubing becomes the first chapter of a larger story rather than an isolated event.

David Thompson

David covers local housing policy, development news, and county-level issues across Southern Indiana and the Louisville metro. He connects legislation to real homeowner impact.