Safariland Production Realignment
2015 Consolidation of Production Lines
Since its divestiture from BAE systems in 2012, Safariland has implemented a strategy of expanding its portfolio of brands and pursuing acquisitions aligned with its mission of “Together, We Save Lives”. In 2013, Safariland acquired Mustang Survival, Med-Eng and Tactical Command Industries, all with operations in the U.S. A consolidation of U.S. operations was necessary.
The decision was made to relocate WV production into Jacksonville, adding 30 production jobs, and requiring a capital outlay of $1.1 million.
The Challenge
Improve operating cost efficiencies and cash flow with government–funded incentives.
SCOUT Economics’ Consulting Role
Developed a strategic plan for a “managed competition” among host communities eager to offer incentives to grow Safariland’s local presence.
Prepared and presented economic and fiscal impact analyses
demonstrating the importance of Safariland’s existing presence in the host communities.
Projected incentives package value under alternate scenarios
and time-frames, including the after-tax impacts of capital grants, tax credits, abatements, utility discounts and training grants.
Negotiated incentives packages in Alabama and Florida on
behalf of Safariland.
The Incentives Results
$405,000 over 5 years in return for 30 new production jobs and $1,100,000 in capital costs.
$13,500/new job
37% of capital cost funded with government incentives
COX Automotive DEALERTRACK Headquarters Relocation
HQ and Software Development Relocation
Headquartered in Nassau County since its founding, rapid expansion across the U.S. necessitated additional space for headquarters and software development activities.
The $100 million project resulted in a new 233,000 square foot corporate Headquarters and the creation of more than 350 new jobs in Nassau County.
Challenge
Retaining key headquarters and IT personnel was a top priority – making a
long-distance move unlikely. Nonetheless, a competition among several states was necessary to leverage an aggressive incentive package from New York State and Nassau County.
SCOUT Economics’ Consulting Role
Identified a short-list of viable locations in North Carolina, Texas, Utah, New Jersey and New York.
Developed a strategic plan for a “managed competition” among communities eager to offer incentives to attract the Project.
Prepared and presented economic and fiscal impact analyses demonstrating the importance of Dealertrack’s presence in the candidate communities.
Projected incentives package value under alternate scenarios. Negotiated incentives packages in five alternative states on behalf of Dealertrack.
The Incentives Results
$47 million in combined New York State and Nassau County IDA benefits.
Incentives value = 47% of project capital costs.
Dutchland Plastics Expansion in Upstate NY
New Plant in Canastota, NY
In 2017 Dutchland Plastics was asked to leave its facility in Sherrill, NY at a time of increased demand for product in the Northeast. A site along the Erie canal was found in the nearby Village of Canastota and a build-to-suit facility was commissioned under a long-term lease with Dutchland. This solution would allow for the retention of the entire workforce (25 staff) to remain with the company.
Meeting product demand required the addition of some 40 positions. Challenge Improve operating cost efficiencies and cash flow with government–funded incentives in the face of the worst state and local fiscal crisis in decades.
SCOUT Economics’ Consulting Role
Developed a strategic plan for a “managed competition” between Wisconsin and New York.
Prepared and presented economic and fiscal impact analyses demonstrating the importance of Dutchland’s existing presence in the host communities.
Projected incentives package value under alternate scenarios and time-frames, including the impacts of capital grants, tax credits, abatements, utility discounts and training grants.
Negotiated incentives packages in Wisconsin and New York on behalf of Dutchland.
The Incentives Results:
$1.6 million over 15 years
Remington Rifle Manufacturing in Huntsville, AL
VALUE OF GOVERNMENT CONTRIBUTIONS: $265 MILLION
After acquiring numerous brands, Remington needed to rationalize their footprint in the U.S. Former Chrysler Plant near the airport, with 500,000 sf of high-end manufacturing space and 250,000 sf of offices. $120 million in new equipment for advanced manufacturing and R&D.1600 new positions were to be brought in over a period of 10 years. Incentives Secured:
• Former Chrysler Plant And Grounds $75,000,000
• Capital Investment Tax Credits (statutory) $120,000,000
• TVA Power Credits $11,000,000
• Recruitment And Training $15,800,000
• Property Tax Abatement $6,600,000
• Capital Grant $18,000,000
• Payroll Increment Out-year Bonus $18,500,000
Church & Dwight Manufacturing and R&D in York, PA
VALUE OF GOVERNMENT CONTRIBUTIONS: $11 MILLION (of which $10 million is discretionary)
With their market demand expanding rapidly and an aging plant in New Jersey the Company required a footprint realignment that entailed a greenfield manufacturing and distribution facility in the MD, NJ, WV, PA region.
$128 million was spent to construct and equip 1.1 million sf of manufacturing/warehouse space. 320 New Jobs created.
Incentives Secured:
Opportunity Grant $900,000
Job Creation Tax Credits (statutory) $918,000
Training Assistance $200,000
Infrastructure Development Program $1,250,000
Transportation Assistance Program $1,500,000
York Water Infrastructure Assistance $1,100,000
Enhanced LERTA Property Tax Exemption $4,800,000.
SCOUT Economics Professionals Role
Comprehensive Site Selection scope of services.
Developed and implemented a “managed competition” among host communities eager to offer incentives.
Economic and fiscal impact analyses demonstrating the importance of the Project in the host communities.
Projected incentives packages values under alternate scenarios and time-frames, including the after-tax impacts of capital grants, tax credits, abatements, utility discounts and training grants.
Negotiated incentives packages in short-list communities.
IQOR Headquarters Relocation St. Petersburg Florida
Headquarters relocation from New York, NY to St. Petersburg, FL.
50 headquarters/C-suite employees and retention of 1,600+ Florida operations staff.
Provided comprehensive Site Selection, Incentives Strategy, and Government Relations Services.
Incentives Value/New Position: $26,000.
NSI-SCOUT Economics Professionals Role
Six major cities in relevant time zones were measured against 8 specific Location Factors.
Prepared and presented economic and fiscal impact analyses demonstrating the importance of IQOR’s Project in the host communities.
Developed a strategic plan for a “managed competition” among candidate communities.
Projected incentives packages values under alternate scenarios and time-frames.
Negotiated incentives packages in short-list communities.
SCOUT Economics Professionals Role
Every City in relevant time zones were measured against 8 specific Location Factors.
Prepared and presented economic and fiscal impact analyses demonstrating the importance of Remington’s Project in the host communities.
Developed a strategic plan for a “managed competition” among candidate communities.
Projected incentives packages values under alternate scenarios and time-frames.
Negotiated incentives packages in short-list communities.
ECONOMIC IMPACT OF GLOBAL AUTOMAKERS ON THE U.S. AND SELECT STATES
For the past six years, the trade organization, Autos Drive America (formerly Global Automakers) has published annual reports on the positive contributions made to the U.S. economy by the international automakers that produce autos and light trucks within the U.S. SCOUT Economics provides the economic impact analysis and econometric modeling in support of the reports’ conclusions.
The 2020 report can be found here: https://www.autosdriveamerica.org/impact-reports/ . The reports also offer detailed impacts for select high-impact states, including: Alabama, California, Georgia, Indiana, Kentucky, Mississippi, Missouri, Ohio, South Carolina, Tennessee, Texas, and West Virginia.
According to the report, in CY 2019:
International automakers invested more than $92 billion into U.S. operations and contributed $290 billion to the gross domestic product.
International automakers, dealers, and suppliers supported nearly 2.5 million American jobs.
International automakers built almost half of the cars and light trucks made in America.
International nameplate dealers were responsible for 56 percent of new vehicle registrations in the U.S.
More than half of all U.S. new vehicle dealership jobs were created by international nameplate dealers.
Economic activity by international automakers and dealers in America generated $67 billion in federal, state, and local tax receipts and other revenues.
Other Industry Experience
