Both national and international businesses are looking to build new manufacturing plants in the US, and Tennessee is likely to benefit. Last year, foreign companies like Volkswagen, Gestamp and Yangeng expanded to Tennessee and more are expected to move here in 2017.
Rockline Industries, a Wisconsin-based company, plan to open a $40 million, 435,000-square-foot manufacturing plant in Morristown that will begin operations in 2018. The consumer products manufacturer will form a new subsidiary, Iatric Manufacturing Solutions, to specialize in FDA-regulated wet wipes, a product that has been in high demand in recent years.
“Manufacturing is one of Tennessee’s top industries, employing over 333,000 Tennesseans, and I am grateful that Rockline will expand this growing sector by creating 250 new jobs in Hamblen County” said Bob Rolfe, Commissioner of Tennessee Department of Economic and Community Development, “The pipeline in Tennessee right now for new projects is probably as grand as it has ever been.”
In a 2016 report by Brookings, Tennessee ranked first in the US for growth in advanced industry jobs, growing by 4.6% p.a. from 2013 to 2015 (the national average was 2.46%). Advanced industry companies include sectors like manufacturing and technology and are defined as those that spend over $450 per worker per annum on R&D, and employ at least 20% of their workforce in STEM jobs.
Governor Bill Haslam stated that, “Our goal has been to make Tennessee the number one location in the Southeast for high-quality jobs, and this recognition by Brookings shows we’re making tremendous progress by adding highly-skilled jobs faster than any other state in the country.” Tennessee’s goal is to create 25,000 new jobs this year, 4000 more than last year.
Did you know that up to 80% of manufacturers do not realize that they may be eligible for the R&D tax credit, a credit worth around $10 billion per annum? If you are unsure about whether you qualify, contact Swanson Reed R&D Tax Advisors for an obligation-free assessment.
