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
firm 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|
|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|
|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.