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Top Economic Incentive Deals for Manufacturing Projects in the First Quarter of 2017

by Josh Bays, on Apr 25, 2017 4:38:11 PM

The procurement of economic incentives is a critical component of a successful site selection process, and a competitive economic incentive package can be the final decision factor in selecting the preferred location for a manufacturing operation. Site Selection Group, a full-service location advisory and economic incentives
womenmoneymn-750xx725-409-0-22.jpgfirm that helps companies find the optimal location for their manufacturing facilities, has researched the top incentive announcements for manufacturing facilities in the first quarter of 2017.

 Per our research, Site Selection Group uncovered more than 195 economic incentive announcements for manufacturing operations. The average number of jobs created or safe-guarded was 113 per project, and the average incentive awarded per job was nearly $29,000. The total incentive amount for these public announcements is more than $225 million.

Top manufacturing incentive announcements

The table below ranks the top economic incentives by economic incentive dollars (Source: Incentives Monitor).  Although not a comprehensive list, it is a representative sample of the more publicized manufacturing projects of the first quarter.  

 

Company City State Incentive ($M) Jobs Created or Retained Capex ($M)
F&S Produce Rosenhayn New Jersey $28.1 440 $0
Ford Motor CompanyCo. Flat Rock Michigan $20.4 700 $1,000
Bridgestone Firestone Wilson North Carolina $14.0 16 $344
J&K Ingredients Paterson New Jersey $11.7 82 $1
The JM Smucker Company Longmont Colorado $10.6 500 $340
Ford Motor CompanyCo. Multiple locations Michigan $10.6 3,700 $1,000
Master Metal Polishing Paterson New Jersey $9.3 65 $1
Builders FirstSource Winslow Township New Jersey $6.8 112 $12
Piping Rock Health Products Aurora Ohio $4.7 346 $19
Antolin Shelby Shelby Charter Twnshp. Michigan $3.6 430 $61
Moog Elma New York $3.6 42 $33
Alevo Concord North Carolina $3.5 200 $251
Sterilite Davenport Iowa $3.1 500 $73
Four Season Farm Suffield Connecticut $3.0 40 $0
Newstead Ranch Multiple locations New York $3.0 55 $64
Vitro Architectural Glass Wichita Falls Texas $3.0 50 $55
Clearwater Paper Shelby North Carolina $2.9 180 $330
Corning Optical Commun. Newton North Carolina $2.6 210 $67
Appalachian Harvest  Pikeville Kentucky $2.5 124 $50
Forest River Manufacturing Multiple locations Indiana $2.5 425 $7
Maxon Precision Motors Taunton Massachusetts $2.2 112 $11
Corning Optical Commun. Midland North Carolina $2.1 200 $109
Automotive Lighting Independence Twnshp. Michigan $2.0 362 $35
Conifex Timber El Dorado Arkansas $2.0 120 $80
Keter Plastics Belen New Mexico $2.0 175 $36
Pratt & Whitney Columbus Georgia $2.0 500 $386

Economic incentives play major role in manufacturing site selection process

Due to the high economic impact of manufacturing projects, these projects often garner some of the most creative economic incentive packages proposed by state and local agencies. More than any other type of project, issuing agencies have the willingness to offset the upfront capital expense associated with infrastructure, real estate, and machinery and equipment for manufacturing projects. It’s important to keep in mind that thinking outside of the traditional economic incentive box can be helpful with the negotiation process so the client and the community can work together to create the best incentives package for both parties. Often, this requires the company or their consultant to accurately understand the project’s liabilities so an economic incentive package can be customized to maximize value.

 

SSG-Incentive-Monitor.jpg 

 

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Topics:Manufacturing

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