Here’s a glimpse of how companies are doing at following through on promises to create jobs and invest dollars in North Carolina communities. This information is based on Economic Investment Committee decisions made last week.
It’s up to the Economic Investment Committee, part of the N.C. Department of Commerce, to keep track of economic incentives the state pledges based on a company’s promise to create jobs.
Parexel pledged in 2019 to create 264 jobs paying an annual average salary of $110,511 in Durham as part of a move to locate a second U.S. headquarters in Durham. The state promised to pay the contract research and services company serving the biopharmaceuticals industry about $4.2 million over 12 years.
Since then, Parexel, which had been based in Massachusetts, has created 312 jobs paying an average annual wage of $187,008, both well above the job creation and wage targets. The company has retained 632 workers in the state.
The EIC awarded Parexel a payment of $376,500 for 2024, its annual portion of a 12-year state grant that could total almost $4.2 million.
This next one dates back to 2011, when Bev Perdue was governor. North Carolina-based software developer Red Hat promised to create 300 jobs at an average wage of $83,082 and invest $8 million to expand its Raleigh headquarters.
The company, which was acquired by IBM for $34 billion in 2019, has followed through. It has created 356 jobs paying an average annual wage of $379,651 (457% of the target) and invested $14.1 million in the expansion. It also retained 1,168 jobs.
The EIC awarded Red Hat a payment of $827,250 for 2024, its annual portion of a 12-year state incentive package totaling about $15 million.
Austin, Texas-based Dimensional Fund Advisors pledged in 2015 to create an East Coast headquarters in Charlotte with a $105 million investment that would create 316 jobs at an annual salary of $147,025.
Since then, the company that creates investment solutions from academic research has created 286 jobs at an annual salary of $214,338, while investing $157.3 million. Dimensional Fund Advisors’ job creation total fell within 90% of the target, so it hit its job creation goal.
The EIC awarded Dimensional Fund Advisors a payment of $1 million for 2024, its annual portion of a multi-year state incentive package that could total $10.3 million.
Japan-based packaging company American Fuji Seal pledged in 2020 to create 46 jobs with an annual wage of $48,744 in Hickory. Since then, the company has created 91 jobs with an average annual wage of $51,716.
The EIC awarded American Fuji Seal a payment of $34,200 for 2024, its annual portion of an incentive package that could total $765,000 over 12 years.
Honeywell’s 23-story building in Uptown Charlotte is proof that it relocated its headquarters from New Jersey.
In 2018, the Fortune 100 promised to create 750 jobs at a minimum annual average wage of at least $278,560 and invest $248.1 million.
Since then, the company has created 1,101 jobs at an annual wage of $310,677. The company also invested $277.5 million.
The EIC awarded Honeywell a payment of almost $4.1 million for 2024, its annual portion of an incentive package that could total $42.4 million over 12 years.
Not all of the deals have worked out, though.
Aluminum beverage packaging company Ball Corporation pledged in 2020 to create 220 new jobs in Cabarrus County, paying an annual average wage of $70,555 and investing $383.8 million to join Red Bull and Rauch’s beverage manufacturing hub in Concord.
Red Bull and Rauch have broken ground on a 2.3-million-square-foot production site, but don’t expect to begin operations until 2028 and not be at full production until 2030, according to Cabarrus County Economic Development.
Ball did not create any positions in 2024, but expects to meet its target numbers in the coming years, according to a letter from Ball President Kathleen Pitre to the EIC. Ball was eligible to receive a payment of $251,000, but did not receive any money from the EIC.
Cabinet-manufacturer American Woodmark pledged in 2022 to create 62 jobs and expand its operations with a $36.2 million investment in Richmond County.
The Winchester, Virginia-based company hit its investment goal, but did not create any new jobs. Instead of retaining 948 jobs, its headcount decreased to 744 workers. It missed out on receiving a payment of $52,000 for 2024.
The company blamed poor home sales for a decline in its product. If home sales return to normal levels, the company expects to hire more workers and hit its targets.