Thursday, August 28, 2003
Major Projects to Create More Than 942 Jobs, Nearly 800 Manufacturing-Related
Governor Jennifer M. Granholm announced today that three companies plan to expand or relocate their business operations here in Michigan instead of at competing locations in other states. These projects are expected to create more than 942 new jobs for Michigan workers, nearly 800 of them directly related to manufacturing facility expansions.
“While we continue to diversify our economy with new jobs in other sectors, we also recognize that manufacturing is the bedrock of Michigan’s economic success,” Granholm said. “Nurturing the state’s manufacturing industry is an essential component of my plans for economic development and growth.”
The three projects will provide a total of more than $30 million in revenue to the state over the life of the Single Business Tax credits, resulting in a net positive gain for the state of more than $23.5 million. The projects are expected to generate more than $391 million in personal income during that time.
Fisher & Company plans to build a world-class metal fabrication facility in Sterling Heights. The plant will be built in phases and will eventually accommodate more than 180,000 square feet of manufacturing space. It is estimated that the company’s operations will generate a total of 379 jobs in the state by the year 2019, including up to 181 directly by the company.
An MEDC incentive package, including a Single Business Tax credit valued at $3.2 million over 13 years, helped Fisher & Company choose Michigan over a competing site in Tennessee. In addition, the city of Sterling Heights is considering a 50 percent abatement of the company’s new real and personal property for 11 years. The local tax abatement has an estimated value of $778,000.
MS Truck Body Corp., a manufacturer of truck bodies and service parts, will relocate its parts business and is considering relocating one or more of its other business operations from Pennsylvania to an existing facility in Sturgis. The completed move is expected to create 420 new jobs for Michigan workers, including up to 264 directly by the company. A Single Business Tax credit worth more than $1.1 million over a 5-year period is part of an incentive package that helped persuade the company to relocate and expand in Michigan. The city of Sturgis is also considering a tax abatement valued at $95,100 to encourage the expansion.
Up to 143 new jobs, including 80 directly by the company, will be created when USF Technology Services, Inc. expands into Grand Rapids Township. The company is a wholly owned subsidiary of USF, providing information technology infrastructure for USF and its operating companies. The new facility in Grand Rapids Township will serve as a centralized information technology center consolidating operations that are currently located in nine states.
USF Technology Services was offered an incentive package, including a Single Business Tax credit valued at more than $2.1 million over 10 years, to expand in Michigan. Grand Rapids Township has approved a high technology tax abatement with an estimated value of $457,000 to further convince the company to consolidate and expand in Michigan.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.
Combined Project Estimates
Combined Economic Analysis
(All estimates in 2003 dollars)
|TOTAL JOBS CREATED|| 942|
| Direct|| 525|
| Indirect|| 417|
|NET POSITIVE STATE REVENUE IMPACT|| $ 23,570,000|
| Revenue Foregone|| $ 6,559,000|
| Revenue Gain|| $ 30,129,000|
| Average Wage Range|| $510-1,402/wk.|
| Personal Income Generated Over|
Life of the Tax Credit Agreement
| $ 391,635,000|