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Friday, May 24, 2024

Construction company to build Chatham plant, add 157 jobs

A residential construction company plans to build a manufacturing plant in Siler City that will hire as many as 157 workers, spending nearly $40 million on the project.

A company spokesman said that Innovative Construction Group plans to have the plant finished in 2027 and have a final size between 150,000 and 200,000 square feet.

Innovative Construction Group, which is based in Jacksonville, Florida, provides design services, manufactures wall panels, roof trusses and floor systems, and offers on-site installation to provide a full frame shell construction process. Its customers include developers, general contractors and professional builders.

Although wages will vary depending on the position, the average salary for the new positions in Chatham County will be $52,949. The current average wage in Chatham is $50,302.

These new jobs could create an annual payroll impact of more than $8.3 million for the region when the facility reaches full operations in 2029, according to the state.

“Many people and organizations came together to make today’s decision possible, but we know the work is just beginning,” said N.C. Rep. Robert Reives, D-Chatham. “All of our local, regional, and state partners will continue to support ICG as this company ramps up its operations in North Carolina.”

The project is being facilitated, in part, by a Job Development Investment Grant approved by the state’s Economic Investment Committee on Tuesday. Over the 12-year term of this grant, the project is estimated to grow the state’s economy by $463.2 million.

Using a formula that considers the new tax revenues generated by the new jobs, the agreement authorizes the potential reimbursement to the company of up to $873,750, spread over 12 years.

State payments only occur following performance verification by the Departments of Commerce and Revenue that the company has met its incremental job creation and investment targets.

The project’s projected return on investment of public dollars is 92%, meaning for every dollar of potential cost to the state, the state receives $1.92 in state revenue.

Because the company chose a site in Chatham County, classified by the state’s economic tier system as Tier 3, the company’s agreement also calls for moving $291,250 into the state’s Industrial Development Fund’s utility account. The account helps rural communities finance infrastructure upgrades to attract future business.

Atlanta-based Pulte bought Innovative Construction Group in 2020. In 2022, the company opened a similar plant in Florence, South Carolina, that was a $35.6 million investment expected to create 179 new jobs.

Chris Roush
Chris Roush
Chris Roush is executive editor of Business North Carolina. He can be reached at croush@businessnc.com.

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