Incentives, FedEx and the unlikely link to RF Micro
Earlier today, Guilford County Commissioners Chairman Kirk Perkins gave us a little insight into his thinking on almost $1 million in incentives that FedEx Ground is seeking Thursday.
"It's about putting out the welcome mat," he said, referring to incentives. Though he wasn't committing to any yes votes on the money, he said that while a tax rebate might be the issue (a company doesn't see a dime until they meet hiring and investment minimums, then pay their taxes), the show of support from a local government may be the tipping point for getting a business here.
"They want to be welcomed and embraced," Perkins said.
FedEx would get $952,500 over three years. The county would still make about $600,000 over that time. In the first year, the company expects to hire 80 people with an average salary of $40,584, but eventually FedEx expects to swell the workforce to 470. Many of those are apt to be part-time workers, loading trucks.
Some may argue that Guilford County, the state and federal government have embraced FedEx enough with their package for locating the company's East Coast air hub at Piedmont Triad International Airport. And to ask a FedEx Ground spokesman, the project that's in-progress at the airport and the potential FedEx Ground hub would have nothing to do with one-another.
Last year, commissioners denied a package to RF Micro. This year, the homegrown microchip maker cut back a business operation and moved jobs to China. Though the link between incentives and cutbacks appears to be a matter of coincidence more than anything else.
And Perkins said the RF Micro call is unlikely to embolden the board to deny other incentives in the future.
"Sometimes you can look smart and just be lucky," he said.
Similarly, in the RF Micro story, we quoted Mike Burton, a principal for equity research for ThinkPanmure in San Francisco:
"This doesn't mean they're cutting 350 jobs and doing manufacturing in China. I don't think they go into these decisions thinking they want to lay off people in North Carolina at all," Burton said. "It seems to me this company has been adamant in saying that it wants to stay in North Carolina. Some investors may have wanted them to do more to increase profits."
Comments (2)
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Do any of the county commissioners own FedEx stock? Would you ask them?
Posted on July 17, 2008 10:22 AM
Or not...
Posted on July 18, 2008 12:51 PM