HIT TARGET, WIN MONEY
A record number of economic promises were made in North Carolina last year. Companies pledged to invest more than $24 billion and create 35,531 jobs.
Many of those projects are tied to state economic incentive grants, paid out only if companies hit job creation and investment targets.
It’s up to the Economic Investment Committee, part of the N.C. Department of Commerce, to track the deals and determine whether payouts are warranted. Companies usually have 12 years to follow through.
Here’s a snapshot of a dozen committee decisions in mid-November. The wins far outweighed the misses.
Sheetz, a Pennsylvania-based convenience store chain, set a 2012 target of 254 jobs and $29.5 million of investment in Burlington. It has created 255 jobs, invested $29.9 million, and pays an average wage of $65,195 — more than double the target. The state provided an annual payment of $166,600, part of a $1.9 million, 12-year grant.
Gildan Yarns, a Canadian company, pledged 501 jobs across Bladen, Rowan, and Davie counties in 2013. It has added 504, invested $272 million, and retained 810 positions. Average wages hit $47,036 — 145% of the target — earning the company $291,550 this year from a $3.5 million, 12-year grant.
Tech giant Cisco promised 550 jobs in Research Triangle Park in 2014, paying $72,700 each. It delivered 549 jobs, retained 6,000-plus employees, and now pays $220,577 on average. The state granted $1.1 million of a $12.9 million incentive.
London-based Ernst & Young, or EY, committed in 2017 to add 375 jobs and make an $8.2 million investment in Charlotte. The business consulting firm added 469 positions paying on average $144,887, or 174% of its target wage. It also retained 1,484 positions and its target investment. The state awarded $300,750 this year from its $3.2 million, 12-year deal.
Fresenius Kabi’s 2017 Wilson expansion aimed for 445 jobs and a $150 million investment to expand its syringe factory. The company delivered 439 jobs, invested $331 million, and retained 162 positions, with average wages of $81,311, almost 162% of the target wage. The German-based company received $708,300 from a $7.2 million, 12-year grant.
Austrian manufacturer Egger Wood Products pledged 400 jobs and a $300 million investment in Davidson County in 2017. It created 420 jobs, invested $415 million, and pays $65,483 on average. It received $468,000 from its $5.3 million, 12-year incentive.
Design Foundry pledged 202 jobs and a $3.1 million investment in Hickory for an upholstered furniture facility. It delivered 233 jobs and the state responded with a $125,972 award, the annual amount of the $1.5 million incentive agreement.
Paper product manufacturer Cascades Holdings promised 66 jobs and $58 million investment in Scotland County in 2018. The state awarded Cascades $78,000, part of a $468,000 economic grant, after it created 67 jobs invested $77.4 million.
Chick-fil-A Supply pledged in 2020 to invest $52 million to create 140 jobs in Alamance County. It received $121,500, part of a $1.5 million, multi-year grant, after investing $55.9 million and adding 166 jobs in Mebane.
Not all companies hit the mark. Credit Karma pledged 400 jobs in Charlotte in 2020, but created only 254. The state withheld $1.7 million, even though the jobs pay $319,312 on average, 204% of the target wage.
Atlantic Building Components filled 60 of 85 positions pledged in Robeson County and got a partial $42,575 payment. Reidsville-based pet food company Farmina opened just 19 of 92 planned roles due to construction delays and received no grant funds. All three companies report they plan more hiring and will become eligible for payouts. ■