Job Creation

Paychex Expansion in Baton Rouge to Create, Retain 160 Jobs

Paychex has announced an expansion of the company’s operations in Baton Rouge, La. that will create a total of nearly 200 new jobs for the Capital Region and surrounding areas.

Paychex

Paychex (photo – paychex.com)

In February last year, the company relocated to a 14,000-square-foot office in anticipation of the Baton Rouge expansion. The facility serves as both a local office and as one of the company’s regional service centers.

Paychex has now announced that the expansion will include retention of 60 jobs and creation of 100 new direct jobs at its Baton Rouge location over the next five years. These are jobs with an average annual salary of $32,000, plus benefits.

Louisiana Economic Development estimates the project also will result in 97 new indirect jobs, for a total of nearly 200 new jobs for the region. Paychex also operates an office in New Orleans, as part of a network of more than 100 office locations across the U.S. All told, the company has more than 13,000 employees, including 130 located in Louisiana.

Gov. John Bel Edwards said in a statement that “The Paychex expansion will result in great new jobs for the people of the Capital Region, ensuring they can have a great career in the place they call home.”

Paychex Senior Vice President of Service John Gibson explained why they chose Baton Rouge for the expansion. “Baton Rouge has proven to be a great location for us to support our clients and the continued growth of Paychex,” said Gibson. “The access to a high-quality workforce and the support of the local and state governments makes this an ideal location for this expansion.”

In order to secure the expansion for East Baton Rouge Parish, the state offered a competitive incentive package that includes the services of LED FastStart, the state’s workforce development program. Paychex is also expected to utilize incentives under Louisiana’s Quality Jobs Program.

Adam Knapp, president and CEO of the Baton Rouge Area Chamber, said in the release that this announcement is illustrative of the value that professional service firms see in doing national business out of an operations base in the Capital Region.

Baton Rouge Mayor-President Melvin “Kip” Holden added that “I’m thrilled that Paychex, with its large corporate footprint nationwide, has chosen to expand its operations right here in East Baton Rouge Parish.”

Rochester, NY-based Paychex, Inc. (NASDAQ: PAYX) is a leading provider of integrated human capital management solutions for payroll, HR, retirement, and insurance services. The company serves approximately 590,000 payroll clients across 100 locations and pays one out of every 15 American private-sector employees.

3D Systems Expansion in Lawrenceburg, Tennessee to Create 50 New Jobs

3D Systems is planning an expansion of its Lawrenceburg, TN facility to increase operational capacity as well as grow the company’s footprint in the region.

3D Systems

3D Systems (photo – 3dsystems.com)

The company provides comprehensive 3D products and services, including 3D printers, print materials, on demand manufacturing services and digital design tools. The Lawrenceburg facility is part of the company’s on demand parts manufacturing service, Quickparts, providing advanced prototyping and manufacturing solutions through cloud-based fulfillment.

Supported by the city of Lawrenceburg, Lawrence County Chamber of Commerce, Tennessee Department of Economic and Community Development, and TVA, the company is investing $2.9 million and expects to create more than 50 new jobs in Lawrence County over the next five years.

Ziad Abou, senior vice president, on demand parts, 3D Systems, said in a statement that “We look forward to expanding the reach of our expertise in Lawrenceburg, and to growing the advanced manufacturing and prototyping potential within Tennessee and beyond.”

Tennessee Department of Economic and Community Development Commissioner Randy Boyd responded in kind, noting that “We thank 3D Systems for expanding in Lawrenceburg and adding to our growing manufacturing workforce that employs more than 333,000 members of Team Tennessee.”

Lawrence County Mayor T.R. Williams highlighted the collaboration that helped secure this prestigious Lawrenceburg economic development project. “We are also fortunate to have had continued good teamwork with TNECD, the Lawrence County Chamber of Commerce and the South Central Tennessee Development District who all worked seamlessly together to lead this project to fruition,” said Mayor Williams.

TVA Senior Vice President of Economic Development John Bradley likewise said that “We are proud to partner with the city of Lawrenceburg, the Lawrence County Chamber of Commerce and Tennessee Department of Economic and Community Development to celebrate this innovative company’s success and to help further TVA’s mission of service to support existing business and industry growth in the Valley.”

Rock Hill, SC-based 3D Systems (NYSE:DDD) co-founder Chuck Hull was the one who invented Stereolithography, the first 3D printing process, back in 1983. This technology uses a photopolymer resin and UV lasers to build objects layer-by-layer, and was quickly adopted by the automotive industry and other manufacturers as a means to accelerate the prototyping process.

3D Systems has since spent its 30-year history enabling professionals and companies to optimize their designs, transform their workflows, bring innovative products to market and drive new business models.

Detroit Economic Development Corp Site Secures Flex-N-Gate Facility to Supply Ford

Flex-N-Gate, a top global auto supplier of OEM automotive products, announced plans to build a new plant in Detroit, MI to supply parts to the Ford Motor Company.

Flex-N-Gate Detroit

Flex-N-Gate Detroit (photo – detroitmi.gov)

Supported by a state grant and the sale of 30 acres of land in the I-94 Industrial Park approved by the Detroit Economic Development Corporation, the company will invest $95 million and create up to 650 new jobs in Detroit over the next three years.

Potential additional investment could push the project to at least $100 million, and at full capacity, create a total of up to 750 jobs.

Furthermore, Urbana, IL-based Flex-N-Gate has committed to meeting Detroit-based hiring and contracting thresholds and to develop a comprehensive hiring plan in conjunction with the City’s Human Rights Department and Detroit Employment Solutions, Corp.

Mayor Mike Duggan said in a statement that “The fact that Flex-N-Gate has committed to such a strong local hiring and contracting plan shows the company’s deep level of commitment to being a partner with the community.”

Governor Rick Snyder likewise said that “We’re proud that Flex-N-Gate is investing in Detroit, and in the people of Detroit.”

Flex-N-Gate owner Shahid Khan said that building a new plant from the ground up within the Detroit city limits was made possible thanks to their partnership and collaboration with Ford, the City of Detroit and the State of Michigan. “Their collective support and vision to convert a neglected urban area into a manufacturing center that will create hundreds of new, sustainable and well-paying jobs here in Detroit has been nothing short of spectacular,” said Khan.

The site in question is located in the 189-acre I-94 Industrial Park, which is under control of the Economic Development Corporation of the City of Detroit. The first major new tenant in the park, LINC Logistics, opened a new $30-million, $500,000-square-foot facility immediately adjacent to the Flex-N-Gate site earlier this year.

Also, the Flex-N-Gate project is the culmination of a collaborative effort among the city of Detroit, the Detroit Economic Growth Corporation, and the Michigan Economic Development Corporation. Yesterday, MEDC announced Michigan Strategic Fund approval of a $3.5-million Business Development Program grant to incentivize the project. At the same time, the Detroit EDC approved the sale of 30 acres in the industrial park to Flex-N-Gate.

MEDC CEO Steve Arwood said in the release that “The expansion of Flex-N-Gate’s presence in Michigan demonstrates the broad range of productive possibilities for private investors and job creators when local and state economic development teams work with one of the state’s bedrock automotive companies and a privately owned auto supplier.”

New Amazon Fulfillment Centers in California and Illinois to Create 3500 Jobs

Amazon.com, Inc. (NASDAQ: AMZN) today announced plans to open three new fulfillment centers, of which two will be in California and one in Illinois.

Amazon

Amazon (photo – Amazon.com, Inc.)

The two California fulfillment centers in Tracy and Eastvale, both approximately one million square feet in size, will create more than 1,500 new full-time jobs.

This increases Amazon’s California presence to nine fulfillment centers, nine million square feet of operations and approximately 14,000 full-time hourly associates.

Panorea Avdis, director of the California Governor’s Office of Business and Economic Development (GO-Biz), said in a statement that “With tens of thousands of employees across the state, Amazon is a major driver of both state and local economies. We are thrilled that Amazon has decided to continue to expand its operations in California.”

Michael Maciel, Mayor of Tracy, highlighted the community development benefits that Amazon will bring, noting that beyond their obvious economic impact, Amazon has shown itself to be a truly great corporate neighbor. “From associates volunteering in the community to Amazon’s recent donation of STEM supplies to Central Elementary school, the company proves its commitment to our community every day,” said Mayor Maciel.

Ike Bootsma, Mayor of Eastvale, added that “We are very excited about the local employment opportunities the Amazon facility will create and we welcome Amazon to the City of Eastvale.”

Meanwhile, Amazon also announced plans to open its second fulfillment center in Joliet, IL. The project will create more than 2,000 full-time jobs at the new 700,000-square-foot facility, in addition to the 1,500 full-time employees currently working at its existing Joliet facility.

Akash Chauhan, Amazon’s vice president of North American operations, said in the release that “We have found an abundance of talent in Joliet and we are excited to bring a new fulfillment center to the city and create 2,000 great full-time jobs with benefits.”

Chauhan added that the community and elected officials throughout the city and state have been very supportive of Amazon, and thanked them for helping make this project possible.

Illinois Governor Bruce Rauner said in a statement that “This expansion is a vote of confidence in the state’s new way of doing economic development in Illinois with the ILBEDC working alongside the Department of Commerce and Economic Opportunity.”

ILBEDC is the newly formed Illinois Business and Economic Development Corporation, created to take over and more effectively fulfill many of the economic development functions of the IL Department of Commerce.

Joliet Mayor Bob O’Dekirk likewise noted that Amazon’s confidence in their community demonstrates that Joliet can attract the best employers in the e-commerce industry sector.

John Greuling, president and CEO of the Will County Center for Economic Development, added that “The new jobs this project will bring provide tremendous career opportunities for residents throughout the region.”

Rhode Island Economic Development Incentives Secure Ivory Ella Relocation

The Rhode Island Commerce Corporation Board of Directors has approved incentives for a new hotel project, the redevelopment of an old mill, and the relocation of jobs by a socially-conscious online retailer that helps save elephants.

Ivory Ella

Ivory Ella (photo – ivoryella.com)

Ivory Ella is an online retailer that strives to introduce virtuous aspects of commercial and charitable practices into its business, and subsequently donates 10 percent of their net profits to wildlife conservation non-profit Save the Elephants, and other such causes.

The company will relocate 40 of its current jobs from Connecticut to Westerly, RI. Out of these 40 jobs, nineteen are being incented under a Rhode Island economic development program called the Qualified Jobs Incentive Tax Credit.

Furthermore, the company has committed to creating at least another 20 new jobs over the next three years, bringing the cumulative total to 60 jobs. All told, the Board approved approximately $362,055 in tax credits under the Qualified Jobs Incentive Tax Credit Program for Ivory Ella.

Ivory Ella CEO and Founder Ryan Duranso explained in a statement that they evaluated nearly 40 locations in numerous communities, focusing the search on the region around our existing locations in Connecticut.

“Incentives and programs, including the Qualified Jobs Incentive Credit, the Rhode Island Governor’s Workforce Board and Westerly Real Jobs all were important factors in our decision,” said Duranso.

Duranso also mentioned that the facility they are moving into in Westerly, formerly housing The Paragon, offered room to expand, a supportive building owner and a very welcoming community.

Governor Gina M. Raimondo likewise noted that “Companies are choosing to relocate and grow in Rhode Island because our state is a great place to live, work, and do business.”

The RI Commerce Board also approved $3 million in its first Tax Increment Financing agreement for a $24.5 million hotel project – the Homewood Suites Hotel –Exchange Street LLC. This is a 120-room hotel project with ground floor retail located in downtown Providence, RI.

Finally, the Board also approved approximately $3.6 million in Rebuild Rhode Island tax credits to be issued over five years to support the adaptive reuse of the historic but vacant Pontiac Mills complex along the Pawtuxet River in Warwick into approximately 200,000 square feet of mixed-use development. This is a $34.6 million redevelopment project.

RI Commerce Secretary Stefan Pryor added that “The projects announced today demonstrate that our economic development tools are continuing to bring new jobs and new investment to our state.”

Ohio Approves State Incentives For UPS, Amazon and Other Projects

At its latest meeting, the Ohio Tax Credit Authority approved state assistance for seven projects that are set to bring $193 million in investment and create 839 new jobs and retain 2,025 jobs statewide, resulting in $31.4 million in new payroll.

Ohio jobs

Ohio jobs (photo – americaspower/flickr)

Of these, two are Greater Cincinnati economic development projects involving headquarter expansions in the Ohio cities of Blue Ash and Springdale.

Advanced Testing Laboratory, Inc., which provides scientific sourcing solutions for the consumer products, pharmaceutical and medical device sectors, is expanding its corporate headquarters and contract laboratory facility in Blue Ash, OH.

The $6.5 million expansion by Advanced Testing Laboratory will result in the creation of 54 new jobs and retain 84 existing jobs, in the process generating $2.2 million in new annual payroll and retaining $4.6 million in existing payroll. To support the expansion, the Ohio TCA has approved a 1.156 percent, five-year Job Creation Tax Credit (JCTC) for this project.

Ultimus Fund Solutions, LLC, a provider of mutual fund services, is planning to support ongoing strategic growth efforts and ventures into new business segments at its Cincinnati headquarters located in Springdale, OH. The company is investing $100,000 into this project, and expects to create 100 new jobs and retain 140 jobs, in the process generating $6 million in new annual payroll and retaining $7.1 million in existing payroll. The TCA has approved a 1.547 percent, seven-year JCTC for this project.

Kimm Coyner, vice president of business development and projects at regional economic development organization REDI Cincinnati, said in a statement that “We know our regional economy thrives when a range of industries chooses to locate and grow here.”

Other projects that have been approved for state assistance by the Ohio TCA are as follows:

United Parcel Service, Inc. – A UPS expansion in Columbus, OH is expected to create 75 full-time jobs. The TCA approved a 1.232 percent, six-year JCTC for this project.

Amazon.com.dedc, LLC – A new Amazon project in the City of Twinsburg, OH is expected to create 150 full-time jobs. The TCA approved a 1.113 percent, six-year JCTC for this project.

Bleckmann USA, LLC – Bleckmann operates logistics and distribution services to the retail and e-commerce industries throughout Europe. The company’s new project in the Village of Johnstown, OH is expected to create 200 new jobs. The TCA approved a 1.178 percent, seven-year JCTC for this project.

Dollar Shave Club, Inc. – This online retailer’s new project in Grove City, OH is expected to create 185 full-time jobs. The TCA approved a 1.222 percent, seven- year JCTC for this project.

Pulse Flow Technologies, Inc. – This company, which produces compression therapy equipment, is undertaking a new project in the City of Willoughby, OH that is expected to create 75 full-time jobs. The TCA approved a 1.539 percent, five-year JCTC for this project.

Cognizant Project in Des Moines, Iowa With Over 1000 Jobs to Revitalize Gray’s Landing Development

The Iowa Economic Development Authority board has awarded direct financial assistance and tax benefits to eight projects expected to result in the creation of 1,275 jobs, retention of 53 jobs and over $43 million in new capital investment for the state.

Cognizant

Cognizant (photo – Biswarup Ganguly/wikimedia)

The largest one by far is a Des Moines economic development project by Fortune 500 company Cognizant Technology Solutions. The company is proposing a two-phase project in Des Moines that includes the expansion of their Business Process Services delivery center. Cognizant expects to make a capital investment of $9 million and create more than 1,000 jobs over the next five years.

The IEDA board awarded the company direct financial assistance of $812,000 as well as tax benefits via the High Quality Jobs Program (HQJP) for creating at least 1,014 jobs, of which 116 are incented at a qualifying wage of $26.72 per hour. The City of Des Moines is expected to provide matching local incentives for the project.

Cognizant will be establishing their new facility in two buildings in the Gray’s Landing development. The 160-acre Gray’s Landing area is located directly south of the Central Business District, and is bounded by Martin Luther King, Jr. Parkway to the north.

The Gray’s Landing redevelopment project was initiated to replace a former heavy industrial Brownfield site with a mixed-use urban village and bring new value to the downtown area, but the office part of the project has been languishing without any major projects.

As the first major employer in the development, the Cognizant Technology Solutions project that will occupy two buildings and bring over 1,000 new jobs to the area is expected to kick off the long-awaited revitalization and bring more projects to Gray’s Landing and the area connecting it to downtown Des Moines. Gray’s Landing developer Sherman Associates is expected to build and lease the space to Cognizant.

Apart from the Cognizant project, other companies that received approval of state assistance from the IEDA Board are as follows:

Rite-Hite – The company is proposing an $8.9 million investment to expand the existing Rite-Hite Dubuque facility, consolidating its Dubuque area businesses within one facility. The board awarded Rite-Hite direct financial assistance in the amount of $44,000 and tax credits via HQJP to create 24 new jobs, of which 11 are incented.

Dexter Laundry, Inc. – The company is proposing a $6 million modernization of its existing facility in Fairfield, IA and has been awarded tax credits via the HQJP.

MetaCommunications, Inc. – The company’s proposed project would expand operations in Iowa City with a $1.6 million capital investment. The project would create 105 new jobs and retain 53, with 97 of the new jobs and 44 of the retained jobs incented at a qualifying wage of $23.24 per hour. The IEDA board awarded the company $775,000 in direct financial assistance.

Rosenboom Machine and Tool Inc. – Rosenboom is proposing a capital investment of $16.1 million for an expansion of its Sheldon, IA operations. The project is expected to create 54 jobs, of which 17 are incented at a qualifying wage of $19.44 per hour. The IEDA board awarded the company tax benefits via the HQJP.

Scientific Games Corporation – The company’s proposed project for which it was awarded tax benefits via the HQJP would include an expansion and upgrade of existing space in Des Moines and Cedar Falls. The Des Moines-based expansion has a capital investment of $300,000 and is expected to create 20 jobs, of which 17 are incented at a qualifying wage of $26.72 per hour. The $400,000 capital investment expansion in Cedar Falls is expected to create 31 jobs, of which 21 are incented at a qualifying wage of $16.79 per hour.

Ziegler Industries, Inc. – The company is proposing to relocate its operations from Illinois to Keokuk, IA, and is making a capital investment of $840,000 for building acquisition, site preparation and building remodeling. The project is expected to create 27 jobs, of which 19 are incented at the qualifying wage of $18.91 per hour. The IEDA board awarded this project tax benefits via the Targeted Jobs Withholding Tax Credit program.

Minnesota Investment Fund Incentives Help Secure $100M Kraft Heinz Expansion For New Ulm

The Kraft Heinz Company is making an investment of $100 million at its New Ulm food manufacturing plant in southern Minnesota.

Kraft Heinz

Kraft Heinz (Photo – The Kraft Heinz Company)

Supported by a forgivable loan being provided by the Minnesota Department of Employment and Economic Development (DEED), the company is investing $100 million to expand its existing plant in New Ulm and add four new production lines.

The project is expected to create 50 new jobs, and also supports retention of 90 jobs. The new jobs being created will have an average starting wage of $22.16 per hour, plus benefits.

Kraft is already the third-largest employer in the city with 376 existing full time equivalent positions at its New Ulm plant, which has been operating since 1955.

The New Ulm City Council had earlier this year adopted a resolution to authorize the submittal of an application to DEED for financial assistance from the Minnesota Investment Fund (MIF) to assist the Kraft Heinz Foods Company with facility improvements.

DEED is therefore supporting the project through a $450,000 forgivable loan that will be forgiven if the company meets hiring and investment goals, and it also requires a local match of New Ulm economic development incentives.

MIF Funding awards are disbursed to local governments and then provided as loans to businesses. Last year, this Minnesota economic development program awarded $11.2 million in loans to 21 businesses. Those loans resulted in more than 1,700 jobs and attracted $1.4 billion in private funding.

Minnesota Lt. Governor Tina Smith said in a statement that the Minnesota Investment Fund helps generate well-paying jobs all across our state. “I thank Kraft Heinz for their continued partnership and for choosing to expand their operations in New Ulm,” said Lt. Gov. Smith.

New Ulm Mayor Bob Beussman likewise said that “The city of New Ulm would like to thank Kraft Heinz for their significant investment in our community.”

DEED Commissioner Shawntera Hardy noted that The Kraft Heinz food manufacturing plant has been an institution in New Ulm for more than 60 years. The Kraft Heinz Company (KHC) formed when Kraft Foods and H.J. Heinz merged last year, creating the fifth-largest food and beverage company in the world with annual sales of $27.4 billion.

Matt Hippe, New Ulm plant manager, noted in the release that “This expansion is a tribute to the strong work ethic and dedication of the New Ulm workforce, both past and present.”

FedEx Ground Distribution Center in Allen Township, Pennsylvania to Create 680 Jobs

A Lehigh Valley economic development project in the form of a FedEx Ground hub that has been in the works for years has finally been announced publicly.

FedEx Ground

FedEx Ground (Rob Young/Flickr)

FedEx Ground has purchased 253 acres in Allen Township, PA and will construct an 800,000-square-foot distribution center and related structures as part of a new Mid-Atlantic hub.

The project was first announced back in 2013, and has been going through a series of challenges and approval requirements, including an Environmental Assessment required by the FAA to release federally-obligated land for non-aeronautical development. The latest and final approval gained was the Lehigh-Northampton Airport Authority Board of Governors clearing the sale of the land to the company.

FedEx Ground will now invest more than $227.5 million in the project, and expects to create 282 new full-time jobs over the next three years, along with 398 permanent part-time jobs. The project will also help retain 1,652 existing employees statewide. Not to mention over 300 construction jobs while the facility is being built.

This is just the first phase of the project, which could be further expanded in a second phase to 1,100,000 square feet, consolidation of the three existing Lehigh Valley facilities, and creation of 3,000 new jobs for the community at full operation.

FedEx Ground, which already has nearly 80,000 employees in the United States and Canada, is a wholly owned subsidiary of FedEx Corporation, which has more than 340,000 employees worldwide.

Governor Tom Wolf said in a statement that “The significant investment FedEx is making in Pennsylvania by establishing a new mid-Atlantic distribution facility that is expected to create 680 new jobs is just one example of the type of success that is happening all throughout the commonwealth.”

The company is receiving a significant package of Pennsylvania economic development incentives supporting their investment and job creation plans. The funding proposal from the Pennsylvania Department of Community and Economic Development includes a $1,130,000 Pennsylvania First Program grant, along with $846,000 in Job Creation Tax Credits tied to the creation of the new jobs, and $126,900 in WEDnetPA funding for employee training.

The Governor’s Action Team of economic development professionals worked on this project in collaboration with the Lehigh Valley Economic Development Corporation. The LVEDC has a mission to market the economic assets of the Lehigh Valley and to serve as a regional shared services and resource center to help start, attract and grow businesses.

Bell Helicopter Relocates 505 Assembly to Quebec, Canada

Bell Helicopter, a Textron Inc. (NYSE: TXT) company, announced plans to optimize manufacturing capabilities across several of its manufacturing facilities.

Bell 505

Bell 505 (photo – bellhelicopter.com)

As part of this optimization program, the Bell 505 Jet Ranger X final assembly in Lafayette, LA will relocate to the company’s Mirabel Assembly and Delivery Center in Quebec, Canada.

The Lafayette facility will instead receive the Bell 525 Relentless cabin subassembly that will be relocated from Amarillo, TX, and the Northrop Grumman MQ-8C Fire Scout unmanned aerial vehicle (UAV) modification work relocating from the Bell Helicopter facility in Ozark, AL.

Bell Helicopter President and CEO Mitch Snyder said in a statement that “Mirabel is a vital part of Bell Helicopter’s long term growth strategy and this move confirms our commitment to our Mirabel workforce and infrastructure.”

Snyder also made it a point to note that they remain committed to Louisiana, where he said they have received tremendous support from the state and local government.

Louisiana Governor John Bel Edwards said in the release that “We are very pleased the work for the Bell 525 and the MQ-8C Fire Scout is moving to the Lafayette facility.”

In a release issued by the Canadian government, Honorable Navdeep Bains, Minister of Innovation, Science and Economic Development, said that Bell Helicopter Textron Canada is a source of pride and is a key player in Quebec’s world-class aerospace cluster. “By bringing new highly skilled jobs to Quebec, Bell Helicopter Textron Canada is working to ensure the aerospace industry’s position as one of the most innovative and export-driven in Canada,” said Minister Bains.

Bell Helicopter Textron Canada, a subsidiary of Textron Inc., has been operating in Quebec since 1983. This latest relocation project is expected to create more than 100 highly skilled jobs in Quebec, while securing the 900 or so existing jobs at the Mirabel facilities. To secure the relocation, the governments of Quebec and Canada will adjust certain conditions of their current loans with Bell Helicopter Textron Canada.

In return, Bell Helicopter Textron Canada will relocate assembly of the Bell 505 to Quebec, and also commits to relocating the manufacture of certain components of its Bell 429, Bell 505 and Bell 525 models to Mirabel. These components are currently being manufactured by sub-contractors. Furthermore, the company has also committed to carrying out flight testing, certification and final assembly of its next commercial model in Mirabel.

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