Projects
GAIN Division
Manufacturing Plant
Engagement Overview:
A major wood products manufacturing company engaged a Bedford consultant to identify potential locations for a new 400,000 sq. ft. manufacturing facility, slated to employ up to 884 personnel in the Southeastern United States.
About The Client
The client is one of the largest U.S. cabinet manufacturer. Due to increased demand for their products and capacity utilization issues at existing facilities, company management asked Bedford consultants to identify the optimal location for a new manufacturing facility in the Southeastern United States.
Bedford GAIN Services
Bedford’s consultants worked with senior management to identify crucial location factors for the proposed facility. As labor availability is critical to the success of this manufacturing plant, Bedford conducted a broad based regional screen of over 300 counties in the area of search to identify those with potentially large pools of manufacturing workers. Utilizing our proprietary database, Bedford was able to select five semi-finalist areas for further consideration by company senior management. Bedford consultants conducted confidential one-on-one interviews with employers in each of the semi-finalist areas as well as with labor market experts in Georgia and North Carolina to identify potential sites which would be assured of long-term labor availability. A decision-matrix combining operating cost projections, operating conditions and living conditions for management personnel was created with objectively ranked each of the semi-finalist communities. Following a discussion with senior management, Bedford organized a confidential tour of each of the semi-finalist sites with company representatives from engineering, facilities, human resources and operations. Following these on-site meetings, Bedford worked with the senior management team to isolate two finalist locations for ultimate consideration. Several rounds of incentives negotiations were conducted resulting in written incentives offers to the company for over $27 million in benefits.
Estimate of Benefits & Savings:
Bedford consultants were successful in negotiating a number of tax credits, abatements and incentives for this client, including the following:
- State job creation tax credits: $7.875,000
- Ports activity bonus: $13,500,000
- Training tax credit: $442,000
- Accelerated property depreciation: $260,330
- Local property tax abatement: $971,836
- State recruitment services: $884,000
Actual Client Savings:
Total tax credits and incentives delivered to the client: $27,216,291