Terex

[ljbab728]

This is very good news, indeed.

Terex to upgrade Oklahoma City operations | News OK

Equipment manufacturer Terex Corp. plans to invest about $40 million to upgrade its Oklahoma City facility after selling several product lines that had been built here.

The company will add new machinery and other equipment at its local manufacturing plant, where it could add as many as 1,500 new jobs by 2017. Officials said the project fits with Terex's efforts to make its manufacturing operations more efficient.

[Plutonic Panda]

I saw that, very cool!

[catch22]

That's good. Manufacturing is a good place to add jobs for OKC. OKC has never had a huge manufacturing base, like much of the Southeast does. This will be some welcome diversification, even if they are focused on manufacturing for the energy industry.

[bradh]

It's not just for the energy industry, I thought most of their equipment was road building machinery?

[catch22]

It's not just for the energy industry, I thought most of their equipment was road building machinery?

You're correct, I was thinking of a different company.

[adaniel]

That's good. Manufacturing is a good place to add jobs for OKC. OKC has never had a huge manufacturing base, like much of the Southeast does. This will be some welcome diversification, even if they are focused on manufacturing for the energy industry.

For what its worth, OKC was recently named as having the third fastest growing manufacturing sector in the nation.

EDIT: Actually we are fourth in the nation among big cities. Sorry about that....here is a link:

http://www.forbes.com/sites/joelkotk...ing-boomtowns/

[catch22]

That's good. Historically we have not been.

[HangryHippo]

Forgive my ignorance, but what does it mean that they've "sold several product lines that had been built here"? Is this the equivalent of finishing up a model year of cars and then upgrading the plant for the next year's model? Or are they upgrading but with no product to produce yet?

[ljbab728]

Terex approved for substantial job creation incentives.

Oklahoma City company approved for up to $22.6 million in state job creation incentives | News OK

The Oklahoma Commerce Department has cleared heavy equipment manufacturer Terex Corp. to reap up to $22.6 million in job creation incentives from the state for adding more than 1,500 jobs to its Oklahoma City plant over the next 10 years.

Terex plans $40 million in building improvements and new machinery at its Oklahoma City plant over the next four years as part of the expansion. The company already has posted some job openings in Oklahoma City and plans to ramp up production here early next year, Gelston said.

[LakeEffect]

Forgive my ignorance, but what does it mean that they've "sold several product lines that had been built here"? Is this the equivalent of finishing up a model year of cars and then upgrading the plant for the next year's model? Or are they upgrading but with no product to produce yet?

They stopped building road-building machinery here and are going to focus on crane building.

[onthestrip]

Terex approved for substantial job creation incentives.

Oklahoma City company approved for up to $22.6 million in state job creation incentives | News OK

I will say that 1,500 jobs is quite a bit but 22.6mil plus the 2 mil OKC kicked in brings it to $24.6million for these jobs. Pretty expensive stuff. It may be a good deal but the one horrible thing about the Quality Jobs Program is that there is no claw back provision. Oklahoma makes out quarterly payments to Terex and if Terex decides to stop building machinery, move or fires employees 2 years into it, the state has no way of getting that money back.

[HangryHippo]

I will say that 1,500 jobs is quite a bit but 22.6mil plus the 2 mil OKC kicked in brings it to $24.6million for these jobs. Pretty expensive stuff. It may be a good deal but the one horrible thing about the Quality Jobs Program is that there is no claw back provision. Oklahoma makes out quarterly payments to Terex and if Terex decides to stop building machinery, move or fires employees 2 years into it, the state has no way of getting that money back.

This is a good point and at first glance, a claw back provision seems like a wise addition to this program.

[GoThunder]

I will say that 1,500 jobs is quite a bit but 22.6mil plus the 2 mil OKC kicked in brings it to $24.6million for these jobs. Pretty expensive stuff. It may be a good deal but the one horrible thing about the Quality Jobs Program is that there is no claw back provision. Oklahoma makes out quarterly payments to Terex and if Terex decides to stop building machinery, move or fires employees 2 years into it, the state has no way of getting that money back.

Huh, so we just dish out the money and hope we don't get screwed? What could possibly go wrong?

[Bellaboo]

I will say that 1,500 jobs is quite a bit but 22.6mil plus the 2 mil OKC kicked in brings it to $24.6million for these jobs. Pretty expensive stuff. It may be a good deal but the one horrible thing about the Quality Jobs Program is that there is no claw back provision. Oklahoma makes out quarterly payments to Terex and if Terex decides to stop building machinery, move or fires employees 2 years into it, the state has no way of getting that money back.

The headline says 'reap up to 22.6 m'.....this number is contingent under certain guidlines. That 22.6 from the state is the amount if 1,500 jobs for 10 years is attained.

[catch22]

Pretty sure they have to prove the employment to get the funds.

Hire 100 people, submit the paperwork, the receive the money.

I believe you are thinking it works like this: get the money, hire the employees

[Bellaboo]

My wife is involved with the company she works for on Quality Jobs. It's an after the fact payment from the state, it's a payroll tax rebate.

[onthestrip]

The headline says 'reap up to 22.6 m'.....this number is contingent under certain guidelines. That 22.6 from the state is the amount if 1,500 jobs for 10 years is attained.

No it isnt. Oklahoma doesnt wait 10 years to start making payments (but yes, to get full amount Terex has to employ them for 10yrs). But as far as I know the payments start as soon as the employees are hired. So while Oklahoma pays out an incentive based on 1,500 employees working for 10 years, there is no guarantee that Terex keeps them employed for 10 years or even 1. Nearly $900million has been paid to businesses by Oklahoma for this program.

Also, we pay incentives to already existing companies who threaten to move. So even when there are no new jobs, we dole out millions.

You can see how questionable it is here:
Oklahoma makes "Quality Jobs" payment to companies that aren't creating new jobs (Guest Post: Mark Lash) » Oklahoma Policy Institute
Prosperity Policy: Quality control needed | The Journal Record

[onthestrip]

My wife is involved with the company she works for on Quality Jobs. It's an after the fact payment from the state, it's a payroll tax rebate.

Its not a rebate, its quarterly CASH payments from the state.

[Pete]

Here are more details on the plans and incentives for Terex:


Background
9528 West I-40 Service Road

The Company plans to add 1,526 new jobs in Oklahoma City over the
next four (4) years. These jobs reflect a new business presence in
Oklahoma City by the Company and are the result of a production
expansion plan. The average first year wage for these new jobs is
estimated to be $41,358. After evaluating options for the location of this
business unit, Terex Corporation decided to expand manufacturing
operations in Oklahoma City due to the efficiencies and infrastructure of
this location, along with the quality of the local area workforce and
availability of state and local business incentives.

Company Background
Terex Corporation is a diversified global manufacturer of a broad range
of equipment for the construction, infrastructure, quarrying, mining,
shipping, transportation, refining, energy, utility and manufacturing
industries. The company currently has more than 15,000 employees. The
company is headquartered in Westport, CT. Terex Corporation reports in
five business segments: Aerial Work Platform; Construction; Cranes;
Material Handling & Port Solutions; Materials Processing.

Project Background
The Greater Oklahoma City Chamber and the City have worked with the
Company on this project since the late-Winter / early-Spring of 2013. In
evaluating its location options for their manufacturing facility, Company
management met with City and Chamber staff to discuss the needs of
their planned operation. Based in part upon local incentives (city and
state), the company decided to expand its manufacturing capacity in
Oklahoma City.

Economic Impact
The total estimated economic impact of this project is $457,823,149 over
the first three year period (based on total project impact, including capital
investment, wages, state and local taxes). The estimated local sales tax
and property tax revenue is expected to be $1,257,415 over the first four
year period and $629,489 annually from the fifth year forward.

SIP Incentive
The companion agreement includes a local incentive package of
$2,000,000 based on the following information provided by the
Company:
• Incentive based on the creation of 1,526 new jobs over four (4)
years.
• Estimated average annual wage of $41,358 (first year wage).
• Estimated first year additional payroll of $4,880,244, ramping up
to $66,638,894 by the end of the fifth year.
• The Oklahoma City operation will be the company’s
manufacturing facility for Cranes, Material Processing,
Construction and Aerial Work Platforms.
• The company plans to invest $41 Million in building upgrade and
equipment, etc.
• This project is an opportunity to expand manufacturing capacity
within the Oklahoma City facility.
• There is the potential for additional future growth.
• The Company considered a number of alternative locations for
these jobs. The state and local incentives were important in
positioning Oklahoma City as a competitive location for this
operation.

On October 22, 2013 (Item, IV.A.) OCEDT authorized the General
Manager or his designee to negotiate an economic development
agreement for the creation of 1,526 new jobs in Oklahoma City.

Approval of the attached joint resolution authorizes the allocation of
GOLT Bond proceeds and or investment proceeds to support the
companion economic development agreement with Terex Corporation.

Estimated Cost Not to exceed $2,000,000

Source of Funds Oklahoma City Economic Development Trust - GOLT Bond Proceeds
OCEDT/110/5709/0400599/ED0138/52010030)

[ljbab728]

I'm thinking this easily trumps the Macy's jobs we lost out on to the Tulsa area even if it would have been nice to have both.

[Jeepnokc]

From the Oklahoma Commerce Department website:




The program provides quarterly cash payments of up to 5% of new taxable payroll directly to a qualifying company, for up to ten years.

A company must achieve $2.5 million in new taxable payroll for any four consecutive quarters during the first 12 quarters in the program and have an average wage equal to or above the average county wage in which the company is locating or expanding.

Once the company achieves the threshold, it may remain in the program for the remainder of the ten-year period. Once the threshold is achieved, a company must maintain the $2.5 million payroll, including the average wage requirement, to qualify for incentive payments during any quarter.

All businesses must offer basic health insurance coverage to all employees, and 80% of employees must work at least 30 hours per week.

Quality Jobs Program - Oklahoma Department of Commerce

It is basically a rebate program. They pay the money in for payroll taxes and they get cash back each quarter. Even if it is a wash on the taxes, the net gain is still there when you consider that all that extra income from the newly created jobs will be spent by the people receiving the wages for living expense, thunder tickets, hockey, buying houses, etc. I do like the fact that it has to be equal or more than the average wage and they have to provide medical insurance.

[GaryOKC6]

Not to mention that these are manufacturing jobs. Studies show that 100 manufacturing jobs created will add 150 jobs in other sectors of business.