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Location, Incentives Spur Growth in Nevada

Starbucks, Ocean Spray among companies expanding in the state.

  [ 1/1/2003 ]  By: Ken Krizner, Managing Editor   Related Link...  Print This Article  Reprint/License This Article  

Two of the foremost names in the beverage industry are expanding operations in Nevada.

Starbucks Manufacturing Corp. will build its third U.S. roasting plant in the Carson Valley Business Park in Douglas County after the Nevada Commission on Economic Development granted about $2 million in tax abatements and deferrals.

Construction has begun on the Carson Valley Roasting Plant and Distribution Center (CVRP). The facility will eventually occupy as much as 300,000 square feet.

It will house equipment and operations to receive, roast, package and ship Starbucks coffee, and to receive, store, bundle and ship other Starbuck products to retail stores in Southern California and other Southwest markets. There will also be a tasting room.

Meanwhile, Ocean Spray Cranberries Inc., which operates a juice-producing plant in Henderson, has entered into a strategic alliance with Nestle USA to create the largest co-packaging operation in the world.

Beginning this month, resources will be committed to staff an OSC-Nestle Alliance Can Packing line that will be moved to Henderson from the existing plant in California. The alliance is supported by a $500,000 state economic incentive.

Ocean Spray first moved to southern Nevada because of its central location, lucrative outbound transportation rates and quality work force, according to the company.

A food industry company, Ken's Foods, a producer of salad dressings and sauces, chose to locate a state-of-the-art manufacturing, distribution and customer service center in the Las Vegas Valley because of its central location, work force and the cost of living.

Jim Sutherby, treasurer of Ken's Foods, said an important factor in locating to Nevada was its "willingness to partner with Ken's Foods in assisting in its success."

Japanese Company Chooses Nevada

Location, employment resources and favorable tax incentives convinced Tsuda Surface Technologies Inc. to choose Nevada in establishing a presence in the United States. The company, a 90 percent-owned subsidiary of Japan's Tsuda Industrial Co., is renovating an existing warehouse facility in Henderson.

Tsuda received more than $100,000 in tax abatements and deferrals for the project.

Location was a decisive factor for other companies that announced plans to locate in Nevada.

PME Babbitt Bearings chose to locate its newest shop in Minden. The company, with locations in Atlanta and Cincinnati, specializes in the manufacture and repair of large industrial babbitted bearings.

Its customers are electric generating plants and large industrial plants requiring specialized maintenance in a fast turnaround.

"From Nevada, we will be able to provide bearing services for Colorado and all states west, " said Dan Reagan, president of the company.

Proximity to the western United States was important to Johns Manville, a Denver-based manufacturer of premium-quality building and specialty products.

Ninety-four percent of the product will be shipped outside of Nevada, and the state's geographic location is central to the 11-state western United States, said Michael Slee, plant manager.

The company received tax deferrals for its new manufacturing plant, which will be located in Fernley. The primary product at the new facility will be rigid foam roof insulation panels.

Companies Move Headquarters to Nevada

The accessibility of Las Vegas from any point on the globe was a major factor in Inta-Aussies South Pacific's decision to locate its international corporate headquarters the city. The company is a travel wholesaler specializing in Australia and South Pacific travel.

Equipment Management Technology chose to relocate its corporate headquarters from California to Las Vegas. The company provides advanced technology products and services to Boeing, Northrup Gruman and Lockheed.

The company was granted sales and use abatements, sales and use tax deferrals and business tax abatement for relocating to Las Vegas. Other factors included low-cost housing for employees, and the proximity to the aerospace customers, said Vito Longo, president of Equipment Management.

Incentives were instrumental in Gizmo Wireless Inc. and Sunterra Corp. to relocate their corporate headquarters to Nevada.

Gizmo, a wholesale distributor of wireless communication products, is relocating from Dublin, Calif., to Reno.

Abatement incentives were instrumental in the decision to relocate, as was the business climate and economy, said John S. Henry, Gizmo's operations manager.

Sunterra, the world's largest vacation ownership company, recently consolidated its corporate headquarters and U.S. operations and moved from Orlando, Fla., to Las Vegas. In addition to the tax incentives offered by Nevada, Sunterra chose to locate to Las Vegas because of its central location for its U.S. footprint from Hawaii to Florida, and the quality of the employment pool in southern Nevada.

FACTS & CONTACTS

State: Nevada

DEMOGRAPHY AND ECONOMY

Population: 2 million

Capital: Carson City

Three Largest Cities: Las Vegas, 484,196; Reno, 133,850; Henderson, 199,104

GSP: $74 billion

Per Capita Income: $29,860 ('01)

Percentage of Private Manufacturing Labor Force Organized: 9.8%

Right to Work State: Yes

Unemployment Rate: 4.5% (Oct. '02))

Average Hourly Manufacturing Wage: $18.58

Population Age 25 and Over With Bachelor's Degree or More: Las Vegas, 17.3%; Reno, 23.7%; Henderson, 17.3%

Corporate Income Tax Rate: None

Percentage Employment by Sector: Construction, 9%; manufacturing, 4%; mining, 1%; service industries, 42%; transportation/public utilities, 5%; wholesale/retail, 21%

Primary Industries: Gaming/hospitality, mining, agriculture, tourism, manufacturing, distribution, construction

Targeted Industries: Manufacturing, advanced technology, global logistics

BUSINESS ASSISTANCE

Worker Training Programs: Train Employees Now (TEN)

Enterprise Zones: 1 - Las Vegas

Foreign Trade Zones: 2 - Las Vegas, Reno

FOR MORE INFORMATION CONTACT

Bob Shriver, executive director, Nevada Commission on Economic Development, 108 E. Proctor, Carson City, NV 89701, (800) 336-1600, fax: (775) 687-4450, Web: www.expand2Nevada.com

 



 
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