Job Creation

Amazon Web Services to Add 500 Jobs in Fairfax County, VA

Amazon Web Services, Inc., (AWS) will be opening a new office in Fairfax County, Virginia to handle an anticipated boost in demand for its cloud services from federal agencies.

AWS cloud

AWS (photo – amazon.com)

As part of the expansion, AWS will be adding 500 new high-paying jobs to support IT engineering and services for commercial and government customers.

This announcement comes a day after Amazon announced that its government cloud computing service AWS GovCloud had received an Agency Authority to Operate (ATO) from HHS under the Federal Risk and Authorization Management Program (FedRAMP) requirements.

What this means is that all federal agencies can now move forward quickly with evaluating and authorizing use of AWS for their applications.

Teresa Carlson, vice president of Worldwide Public Sector, AWS, said that more than 300 government agencies already use AWS services. She said that the FedRAMP compliance would now allow government agencies to use a streamlined process from AWS when moving their applications to the cloud.

Carlson added that they looked forward to employing another 500 Virginians, and also noted that they appreciated the local and state support that made this investment possible.

Gerald L. Gordon, Ph.D., president and CEO of the Fairfax County Economic Development Authority (FCEDA), said that AWS was the perfect example of the kind of company that can take full advantage of Fairfax County’s tech community and skilled workforce.

In order to secure the project, FCEDA worked with the Virginia Economic Development Partnership (VEDP), and got the company approved for a $500,000 grant from the Governor’s Opportunity Fund. The Virginia Department of Business Assistance will provide AWS with support and funding for recruitment and workforce training.

The county has additionally agreed to spend a matching amount for infrastructure improvements for the new AWS office in the Herndon area.

Amazon Web Services, Inc., was launched in 2006 as an Amazon.com company (NASDAQ:AMZN) offering a low-cost and scalable infrastructure platform on the cloud. Today, they offer more than 30 different services with data centers in the U.S., Europe and four other countries.

Danos Announces $30M Expansion and HQ Relocation in Louisiana

Larose, Louisiana-based Danos, a strategic services and construction partner for oil and gas companies, announced that it will be investing $10 million to relocate their corporate headquarters to Gray, Louisiana, along with another $20 million for building a new manufacturing facility.

Danos jobs

Danos jobs (photo – danos.com)

The exact site for the new fabrication and manufacturing unit has not been finalized, and Danos is evaluating several port locations in Louisiana.

As part of the expansion and new corporate headquarters investment, Danos will create 426 new jobs over the next five years.

Out of this, 326 will be corporate positions with average annual wages of $75,000, not including benefits. The rest are manufacturing jobs with average annual wages of $65,000,also not including benefits.

Louisiana Economic Development (LED) estimates that the investment and direct new jobs will create 871 indirect jobs, making for a total of 1,300 new jobs.

By securing the headquarters relocation and manufacturing plant projects, Louisiana has also managed to retain 400 existing Danos jobs, and another 200 construction jobs that are expected to be created. The company will retain a fabrication unit located at the existing headquarters in Larose.

Before they settled down on the Terrebonne Parish site for their headquarters, Danos’ site selection process included many potential sites across the Gulf Coast, including locations in Texas, Mississippi and Alabama.

CEO Hank Danos said their family business had deep roots in South Louisiana, and the culture and heritage of the region was important to who they were as a company.

In order to secure the project, LED’s Business Expansion and Retention Group worked with Danos and has offered the company a $1.5 million grant under the Economic Development Award Program.

The company will also be eligible for workforce training support and tax incentives under the Quality Jobs and Industrial Tax Exemption program.

Vic Lafont, president and CEO of the South Louisiana Economic Council, said that this is the third generation of the Danos family’s continued service to the community. He said the company had survived both manmade and natural disasters, and has continued to prosper and grow.

Steve Vassallo, CEO of the Terrebonne Economic Development Authority, said it was another indication of how dramatically the economy has improved. He added that creating new jobs makes it that much easier to recruit the next company they go after.

GE Aviation to Invest $27M for Lean Lab in Newark, DE

GE Aviation announced that it will be investing $27 million to develop a “lean lab” at its facility in Newark, Delaware, where it makes advanced CMC (ceramic matrix composites) components for aircraft engines.

GE Aviation

GE Aviation (photo – geaviation.com)

The investment will create 70 new high-paying jobs for engineers and technicians over the next five years. The 110,000 square-foot facility in Newark already has 80 existing employees.

Lean labs allow the company’s engineering and manufacturing personnel to work together to prove a component’s readiness for manufacturing.

The production technology and processes used to make CMC components will be developed and tested at Newark before being moved into the manufacturing units for mass production.

CMCs are expected to be a critical part of aircraft component manufacturing because they are lightweight and allow engines to operate at higher temperatures, which ultimately results in more environment-friendly aircraft with higher fuel efficiencies and reduced emissions.

The first commercial test for CMCs is in GE’s LEAP jet engine, which is being used in a host of the latest aircraft models including the Airbus A320neo and Boeing 737 MAX. GE also plans to use CMCs in their GE9X engine, which is going to be a part of the Boeing 777X program.

The demand from jet engine makers for CMC components is expected to increase tenfold over the next ten years.

Jeff Wessels, plant leader at Newark, said the Newark team would play a vital role in developing the next generation of aircraft engines, and they were proud of it. He also said this investment was a testament to GE’s commitment to this technology.

Delaware has approved $1.1 million in incentives for the expansion. GE Aviation will get a $305,000 performance-based grant from the Delaware Strategic Fund for its job creation commitment, in addition to $810,000 for building renovations and equipment purchase for the expansion.

DE Gov. Jack Markell said that GE Aviation hits many of the targets Delaware was aiming for, including new economy jobs and global reach.

Cincinnati, Ohio-based GE Aviation is a unit of General Electric Co. (NYSE: GE), and produces jet and turboprop aircraft engines, along with components for commercial and military aircraft. The company has 39,000 employees worldwide and generates annual revenues in excess of $18 billion.

GM Announces $44.5M Logistics Center in Lansing, MI

General Motors Co. (NYSE: GM) announced a $44.5 million investment at the Lansing Grand River Assembly plant in Lansing, Michigan. GM plans to build a new logistics optimization center.

GM Lansing Grand River Assembly plant

GM Lansing Grand River Assembly plant (photo – gm.com)

The new logistics center will create 200 new jobs at the plant, which already has around 1,600 employees.

The $44.5 million investment will be used to build a 400,000-square-foot building alongside the plant. The logistics center will enable GM to sequence and assemble parts to enable flexible manufacturing.

The center will improve efficiency and save money, including on reduced transportation of parts and improved quality because of reduced parts handling.

The Lansing Grand River Assembly plant currently produces the Cadillac ATS, along with three Cadillac CTS models including the wagon, sedan and coupe.

In Dec 2012, GM announced plans to move production of the next-generation Chevrolet Camaro from its Canadian plant in Oshawa, Ontario to Lansing.

The logistics center will be operational by 2015, at around the same time that production of the Camaro is expected to begin.

The plant’s existing employees worked in two shifts to produce 76,785 vehicles last year. Considering that GM sold more than 80,000 Camaros in the U.S. last year, production at the Lansing plant will soon be double its current output. Investments and new jobs for the Camaro have not yet been announced.

GM has recently made an $88 million investment announcement in May 2011 and another $190 million in Oct 2010 for continued production of the next-generation Cadillac CTS and ATS respectively at the Lansing Grand River Assembly plant.

Earlier this year, GM had filed paperwork with the City of Lansing asking for $4 million in tax incentives for a future expansion of the Grand River plant.

GM’s Lansing Regional Plant Manager Tony Francavilla said the plant would not have been so successful without support from the community, city council and Mayor Bernero.

Lansing Mayor Virg Bernero said that their hometown car company had done it again with this latest investment. He said GM was building the best automobiles in the world, and the city was thrilled with their key role in the company’s strategy for competing and winning in the global marketplace.

Reinsurance Group of America Breaks Ground on $140M Headquarters

Reinsurance Group of America (NYSE: RGA), one of the world’s largest life reinsurance companies, broke ground for its $140 million global headquarters in Chesterfield, Missouri.

RGA

Photo – RGA/wikipedia

The company has committed to adding 300 new jobs over the next five years as moving into the new 405,000-square-foot facility facilitates RGA’s growth.

The plan to build a global headquarters and add 300 jobs was first announced in November last year. In order to secure RGA’s relocation and expansion project, St. Louis County offered the company a 50 percent property tax and personal property tax abatement.

In addition to the local incentives, the company is eligible for state tax incentives worth $10.5 million, based on its commitment to create 300 new jobs and invest $140 million.

The incentives offered will not only create new jobs, but also save the 800 existing RGA jobs in the St. Louis region, most of which are located at the existing leased offices in Chesterfield.

The new 17-acre site for the global headquarters across from Chesterfield City Hall is just a couple of miles away, and construction of the two five-story office buildings, connecting two-story atrium lobby, parking garage and other infrastructure is expected to be completed by the end of next year.

Although the current design calls for development of 405,000 square feet, the site can accommodate future expansions to add more space up to a total of 650,000 square feet.

Missouri Governor Jay Nixon said it was always exciting to see companies that have already been located in the state for a long time make more investments. He added that RGA’s expansion was more evidence that efforts to foster a stable and pro-business environment were paying off.

RGA reinsures life insurance policies sold by insurers, and is a Fortune 500 company with 1,655 employees located across 25 countries. As of the end of last year, the company had assets worth $40.4 billion and had life reinsurance worth $2.9 trillion in force. RGA generated revenues worth $9.8 billion last year.

ACC Report – Economic Benefits of Chemical Industry Investments

The Washington, D.C.-based American Chemistry Council (ACC) has released a report analyzing the economic impact of 97 announced chemical industry projects, with a specific focus on investments tied to affordable natural gas from shale.

American Chemistry Council

American Chemistry Council (photo – americanchemistry.com)

The report, titled “Shale Gas, Competitiveness, and New U.S. Chemical Industry Investment – An Analysis of Announced Projects,” examines 97 projects that together account for $71.7 billion in potential investments announced through the end of March 2013.

By 2020, these projects will have created a total of 530,000 new and permanent jobs. This includes 46,000 direct jobs in the chemical industry, along with another 264,000 jobs with suppliers and 226,000 induced jobs.

All this will generate $20 billion in local, state and federal tax revenues, along with 1.2 million temporary jobs in between now and 2020, when these projects are in the construction phase.

ACC President and CEO CAL Dooley said that the U.S. had become a magnet for chemical sector investments, which he said was a testament to the positive environment created by shale gas and the bright outlook for natural gas for decades to come.

Dooley added that the most exciting part about it was that half of the announced projects were led by non-U.S. firms, which means the country is about to capture a large part of the rest of the world’s market share.

The report also notes that much of the investment is geared towards production plants that would supply export markets, which would help in improving the US trade deficit.

Other highlights from the report include:

- The $71.7 billion investment will increase chemical industry output by $66.8 billion;

- The associated hike in supplier activity will add $100 billion in indirect economic output; and

- The 310,000 direct and indirect jobs created will together earn payrolls totaling $23.8 billion.

The report concludes that barring “ill-conceived policies” to restrict access to shale gas resources, there will be a significant chemical industry manufacturing expansion in the U.S.

The report authors add that there is concern about the quality and quantity of workers required for the skilled manufacturing and construction jobs that will be created. They say the government and industry need to work together to ensure that a trained workforce is prepared to build and work in the soon to come chemical industry manufacturing renaissance.

Read the full ACC report on chemical industry investments – Download (pdf) 

Primerica Opens Global Headquarters in Duluth, GA

Executives of financial services marketing company Primerica, Inc. (NYSE: PRI) were joined by state and local economic development officials for the ribbon cutting and grand opening of the company’s new global headquarters in Duluth, Gwinnett County, Georgia.  .

Primerica headquarters in Duluth, GA

Primerica headquarters in Duluth, GA (photo – Primerica)

The consolidation and relocation of their 10 separate facilities in Gwinnett County into a new and single global headquarters was first announced in Sept 2011.

Duke Realty, which built the facility and leased it to Primerica, broke ground on the construction for the “built-to-suit” facility in Nov 2011.

The new 365,000-square-foot complex will be housing 1,600 of the company’s employees in Gwinnett County, and has excess capacity to house another 200 employees.

Gov. Deal said that the company’s decision to select Gwinnett County for its global headquarters speaks volumes about the pro-business environment.

John Addison, chairman of Primerica Distribution and co-CEO, thanked the Governor, Gwinnett County and Gwinnett Chamber Economic Development for their support and assistance during the move.

The county has offered Primerica $2.3 million in property tax abatements over a six-year period that begins next year. As per the Georgia Department of Economic Development, the company is also eligible for state tax credits worth $1,250 for every new job created. Primerica has agreed to create at least 35 new jobs over a five year period.

Nick Masino, senior vice president of Gwinnett Chamber Economic Development and Partnership Gwinnett, said that Primerica was a key partner in helping strengthen the community’s growth and quality of life.

Primerica, Inc. was spun out of Citigroup in 2010 with an IPO. Rick Williams, chairman of the board and co-CEO said that the new global headquarters was a culmination of their successful public offering.

He added that being in a single complex instead of having the workforce scattered around in 10 different buildings would improve efficiency, and allow them to provide better service and support to the sales force and to customers.

Primerica is the fourth largest employer in Gwinnett County, and the largest independent financial services marketing company in the U.S., with 90,000 representatives that generated revenues worth $1.19 billion last year.

Iluka Resources Plans Mineral Sands Mining Development in VA

Perth, Australia-based mining company Iluka Resources (ASX: ILU) announced a proposed mineral sands mining development in Dinwiddie County, Virginia.

Iluka Resources mining operations in Virginia

Iluka Resources mining operations in Virginia (photo – iluka.com)

The company will initially be investing $67 million on machinery and equipment for the mining and concentration facilities.

To-date, the company has already invested $20 million on the project, and subsequent development costs are likely to push the total project cost up to $120 million.

Iluka’s project will create 86 new jobs with a total payroll impact of $34 million over the next 11 years. It will also create 490 construction jobs.

Iluka already has two mining operations in Virginia, located in Brink and Concord. The mined material is currently moved to a separation plant in Stony Creek which produces minerals such as zircon.

The proposed plant in Dinwiddie County includes mining and concentration facilities to produce zircon and titanium. Virginia zircon is apparently highly sought by high-end sanitary-ware and ceramic tile manufacturers.

Governor McDonnell said that Iluka had been a valuable employer for the last 16 years, and their new decision to add a new sands mine and invest in new equipment was a testament to the abundance of natural resources and infrastructure available.

Iluka also had mines in Florida and Georgia, but ceased those operations in 2005 and 2006 respectively. The company has since been evaluating new mineral sands deposits in Aurelian Springs, North Carolina and Dinwiddie County, Virginia for development.

Company officials indicated they were able to move ahead with the Dinwiddie County site first because of Virginia’s business-friendly environment.Matthew Blackwell, president and general manager, U.S. Operations, Iluka Resources, said that they appreciated the fast and thorough responses provided by officials and regulatory agencies while the company was considering the project.

The Virginia Economic Development Partnership (VEDP) worked with local officials in Dinwiddie County to secure the project. The company has been offered a $300,000 grant under the Virginia Investment Partnership program, along with another $525,000 from the Virginia Tobacco Commission.

The Virginia Department of Business Assistance will additionally provide Iluka with funding and support for recruitment and workforce training.

Digital Marketing Firm ExactTarget to Expand Atlanta Operations

ExactTarget (NYSE: ET) will be expanding its operations in Atlanta, Georgia to add 225 jobs and relocate their regional headquarters with an investment of $1.25 million.

ExactTarget

ExactTarget (photo – exacttarget.com)

The announcement was made by Georgia Gov. Nathan Deal after months of speculation about the true identity of the project that was previously only known as “Project Orange.”

ExactTarget is a digital marketing firm offering SaaS (Software as a Service) solutions to customers that help them plan, automate and optimize data-driven marketing and improve the ROI on marketing campaigns.

This expansion has been in the works ever since the Indianapolis, Indiana-based ExactTarget acquired Atlanta-based B2B marketing automation company Pardot last year. They immediately started negotiating with state and local economic development agencies about a proposed expansion of their offices in Atlanta.

InvestAtlanta and the Georgia Department of Economic Development (GDEcD) teamed up to secure the project. The City of Atlanta has offered ExactTarget $200,000 in incentives through its Economic Opportunity Fund, and the company is eligible for tax credits from the state worth $2.9 million based on its job creation commitments.

ExactTarget will be moving its expanded operations and regional headquarters into the same Buckhead building as Pardot.

All this doesn’t mean it was a done deal right from the start. The company reportedly considered other sites in Indianapolis, Charlotte, Chicago and other locations.

Brian P. McGowan, President and CEO of Invest Atlanta, said that Atlanta’s success in recruiting these high-paying jobs despite competition from other cities is a testament to Atlanta’s position as a tech hub that continues attracting high-tech jobs.

GDEcD Commissioner Chris Cummiskey said they had a great team working on the project, and Georgia was the right place for companies that thrive on innovation for growth.

Atlanta Mayor Kasim Reed likewise said that the city was a great place for technology growth, and offered a culture of innovation and a diverse talent pool that ExactTarget will need while expanding its operations.

Gov. Deal said that Georgia’s talented workforce and low costs, together with its mature IT infrastructure, provided companies like ExactTarget a competitive edge in the marketplace.

ExactTarget has around 1,800 employees across the world, and posted a loss of almost $21 million last year, taking into account the fact that they spent $95.5 million on acquiring Pardot and another $21 million for iGoDigital.

Medidata to Invest $20M for Expansion in NYC

Medidata Solutions (NASDAQ: MDSO) announced a consolidation and expansion of their operations in New York. The company provides a cloud-based platform for clinical development solutions in the life sciences sector.

Medidata

Medidata (photo – mdsol.com)

Medidata will be spending $20 million to consolidate all their NYC operations into a single facility in West Soho, Manhattan that will also house their global headquarters.

The new lease covers three floors and offers 98,500 square feet of space. As part of the expansion, the company is adding 250 new jobs.

The expansion project secured by New York also saved 271 existing jobs that would otherwise have been relocated out of the state. Medidata has additional North American locations in Edison, New Jersey and Conshohocken, Pennsylvania.

In order to make sure the company stayed put in New York, Empire State Development (ESD) offered Medidata $2.75 million in performance-based tax credits.

ESD President and CEO Kenneth Adams said that life sciences and high-tech industries were critical for being competitive in a global economy, and Medidata’s choice to grow in New York further cemented the state’s reputation as a location where innovative companies are able to grow and thrive.

Medidata Solutions CEO Tarek Sherif said that the company had drawn on New York’s deep talent pool and resources to grow into an industry leader in clinical technology solutions for the life sciences sector. He added that they were committed to keeping New York as their global headquarters as the company continues growing.

Medidata’s cloud-based platform optimizes the entire process of clinical trials from conceptualization to conclusion, and helps reduce the overall cost of clinical development.

New York Gov. Andrew M. Cuomo said that they had focused on promoting innovative industry clusters that create high-paying jobs, and he said he was happy Medidata was taking advantage of that and expanding their operations.

Medidata Solutions was founded in 1999, and has since grown to include 20 of the world’s top pharmaceutical companies among their customer base, in addition to government facilities, academic institutions, research organizations and others.

The company went public in June 2009, and generated revenues worth $218.3 million last year. They already have more than 900 employees located in facilities across the United States, Japan and the United Kingdom.

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