This year marked a record for job announcements in North Carolina, with more than 33,000 job creation pledges so far, state officials say. Those job announcements come with promises from companies to invest almost $23 billion in projects across 47 counties.
Many of the projects include a state economic incentive grant, paid out only if the companies hit job creation and investment targets.
Last month, the state’s Economic Investment Committee made decisions on whether companies deserved payouts on agreements made as far back as 2012, when Beverly Perdue was governor.
The actions tilted toward paying out. Most of the state’s economic incentive grants are spread out over 12 years, so there’s a continuity to the ones that move forward.
Note: This is also just decisions rendered in one meeting, held Nov. 18, and is meant as a recap of some recent hits and misses.
Here’s a look:
* Sheetz pledged in 2012 to invest $29.5 million and create 254 jobs to establish a distribution and food manufacturing facility in Burlington. Since then, the Altoona, Pennsylvania-based convenience store operator has created 255 jobs there and invested almost $29.9 million.
The new jobs pay an average wage of $65,195, 210.7% of the target wage of $30,934. The current average wage in Alamance County is $51,573. The Economic Investment Committee agreed to pay Sheetz $166,600, part of a $1.9 million economic grant spread over 12 years.
* Gildan Yarns announced in 2013 it would invest $258 million in expanding its yarn spinning manufacturing facilities in Bladen and Rowan counties and establish a new facility in Davie County. The investment came with a promise to create 501 jobs across the three counties.
Since then, Gildan Yarns, a subsidiary of Canada-based Gildan Activewear, has created 504 jobs and invested $272.2 million, 108% of the target investment. The new jobs pay an average wage of $47,036, or 145.7% of the target investment of $32,279. The current average wages for Bladen, Davie and Rowan counties are $46,867, $50,136 and $53,931, respectively.
Gildan also retained 810 jobs through the investment. The state awarded Gildan $291,550, part of a $3.5 million economic incentive agreement spread over 12 years. Gildan acquired Winston-Salem-based Hanesbrands for $2.2 billion earlier this year.
* In 2014, Cisco announced it would expand its workforce in Research Triangle Park by 550 jobs at an average pay of $72,700.
Since then, the San Jose, California-based networking company has added 549 jobs and retained more than 6,000 workers. Cisco had about 4,700 workers at the time of the announcement. Pay for the new jobs averages $220,577 or more than 303% of the target wage of $72,700. The current average wage in Wake County is $76,643.
The state granted Cisco $1.1 million, part of the original $12.9 million economic development.
* In 2017, Ernst & Young announced it would invest $8.2 million in Charlotte to create 375 jobs and expand its presence in the Queen City. Since then, EY has added 469 jobs, or 125% of the target, and invested $8.7 million.
EY has also retained 1,484 jobs in the city. The new jobs pay an average annual wage of $144,887, or 174% of the target wage of $83,251. The current average wage in Mecklenburg County is $86,830.
The state awarded EY a payment of $300,750. The total incentive package is worth $3.2 million spread over 12 years.
* In 2017, Fresenius Kabi announced a $150 million investment to create 445 jobs to expand its healthcare facility in Wilson, where it makes ready-to-administer syringes. Since then, the German-based company with U.S. headquarters in Illinois has added 439 jobs, slightly less than its target, and invested $331.3 million, 220.9% of its goal. The company also retained 162 positions in Wilson.
The new jobs pay an average wage of $81,311, almost 162% of the target wage of $50,225. The current average wage in Wilson County is $54,067.
The state awarded Fresenius $708,300, an annual payment that’s part of a 12-year, $7.2 million economic incentive agreement.
* In 2017, Austria-based Egger Wood Products pledged to invest $300 million to create 400 jobs in Davidson County to locate its first U.S. manufacturing site, a particleboard facility in Linwood.
Since then, the company has added 420 jobs through a $415.3 million investment, or 138.4% of its target. Those jobs pay an average wage of $65,483 or 167% of the target wage of $39,121. The current average wage in Davidson is $53,759.
The state awarded Egger $468,000 as part of the $5.3 million deal that the two sides agreed upon in 2017.
* In 2018, Design Foundry pledged to create 202 jobs in Hickory and invest $3.1 million to open an upholstered furniture facility. Since then, the Hickory-based company has created 233 jobs paying an average wage of $60,297, or 103% of the original salary target. The current average wage for Catawba County is $54,280.
The state awarded Design Foundry $125,972, the annual amount of the $1.5 million incentive agreement.
* In 2018, Canadian-based Cascades Holdings announced it would invest $58 million to create 66 jobs in the Scotland County community of Wagram. The company manufactures paper products, such as hand towels, bathroom and facial tissue, and napkins.
So far, Cascades Holdings has created 67 jobs with an average annual wage of $82,003 or 167.5% of the target average wage of $48,958. The current average wage in Scotland County is $46,708. Cascades invested $77.4 million, or 133.5% of its target.
Cascades has also retained 267 jobs at other facilities in Lenoir and Richmond counties. The state awarded Cascades $78,000, part of a total economic grant of $468,000.
* In December 2020, Chick-fil-A Supply announced it would invest $52 million to create 140 jobs in Alamance County.
Since then, Chick-fil-A Supply has added 166 jobs in Mebane, 118.5% of the target, and invested almost $55.9 million. Average wages for the jobs are $77,126 or 123.5% of the target wage of $62,429. The current average wage in Alamance County is $51,573.
The state awarded Chick-fil-A a grant of $121,500, its annual part of a $1.5 million economic grant.
Companies don’t always fulfil job creation pledges.
Credit Karma pledged in 2020 to create 400 jobs with a $13.2 million investment in expanding its East Coast headquarters in Charlotte. The Oakland, California-based credit monitoring company actually invested $60.3 million, but only hired 254 workers, about 63% of its target.
The state withheld a grant payment this year because Credit Karma did not hit job-creation goals. “The job shortfall was primarily attributed to Credit Karma’s revenue growth not reaching anticipated levels,” Alex McHarrie, head of corporate accounting, wrote to the state. “The company remains committed to growing in North Carolina and intends to continue hiring in North Carolina in 2025, hoping to meet its minimum eligible position target in coming years.”
The average wage for Credit Karma’s 254 new jobs is $319,312, almost 204% higher than the target wage of $156,605. The current average wage in Mecklenburg County is $86,830.
This marks the second year that Credit Karma has failed to meet job creation targets. The state and Credit Karma agreed on an economic incentive grant of $20.3 million, spread over 12 years. Based on that, Credit Karma missed on collecting almost $1.7 million this year.
In 2022, Atlantic Building Components pledged to create 85 jobs in Robeson County to manufacture floor and roof trusses.
The Moncks Corner, South Carolina-based company has created just 60 jobs at an average pay of $66,626, 140.6% of the target wage of $47,364.
The state awarded Atlantic Building a partial payment of $42,575, about half of what it would have received as part of the $1,045,000 agreement.
Atlantic Building told the state it expects to be in compliance with the terms of the grant in 2026, noting that since 2022, it has lost a significant customer, seen sales decline and higher interest rates since the pandemic lowering housing starts.
In 2020, Italian pet food company Farmina announced plans to create 92 jobs in Reidsville. Construction problems kept the plant from opening until June, and it had only employed 19 workers.
The company did not receive any of the $1.8 million economic incentive grant, but says it expects to be compliant in 2026. The average wage for the 19 new jobs is $84,625, 181.1% higher than the target wage of $46,722.