Where does the largest publisher of yellow pages directories turn to for the new location of its corporate headquarters? North Carolina, a state in which it already has a significant presence. A state grant program also helped with the decision.
In April, R.H. Donnelley opened its new corporate headquarters in Raleigh with 140 employees. The company expects to add 135 more positions during the next several years.
The state’s Job Development Investment Grant (JDIG) was instrumental in R.H. Donnelley’s decision to locate in Raleigh.
The JDIG was created by the North Carolina legislature in 2003 as a way to promote business growth in the state. The grants go only to companies that will bring more revenue into the state than it will cost for the grant, or to companies that would otherwise not relocate to the state.
The legislature approved the JDIG program because the state figures to take in more money than it gives out during the life of the grant. According to figures from the state of North Carolina, the R.H. Donnelley project will:
* Generate a gross state product of nearly $403 million over 10 years.
* Produce a cumulative state economic impact of $5 million.
* Contribute $1.1 million to the state’s Industrial Development Fund earmarked for infrastructure improvements that are required for investment into a Tier 5 urban county.
Using a state-developed formula, it is estimated that the R.H. Donnelley project will produce a gross state product of $325 million during the 10-year timeframe of the grant. Each year that R.H. Donnelley meets the required performance targets outlined in the grant for jobs and investment, the state will provide a grant equal to 65 percent of the personal state withholding taxes derived from the creation of new jobs.
If R.H. Donnelley creates and keeps the 275 jobs it plans to create during the next decade, the agreement could yield maximum benefits to the company of as much as $4.3 million.
“The economic incentive grant from JDIG was pivotal to our decision to relocate to Raleigh,” said David C. Swanson, chairman and CEO of R.H. Donnelley.
R.H. Donnelley was already very familiar with North Carolina. The company has operated a printing plant in Morrisville since 1995, where it employs 240 people, along with six sales offices around the state. Executives considered sites in four other states before deciding on North Carolina.
“With our acquisition of Sprint Publishing and Advertising earlier this year, we became a significantly larger organization, and consolidating corporate functions is the logical next step in the evolution of the combined organization,” Swanson said. “We’ve maintained a significant operation in Morrisville since 1995 and long recognized that the area is regarded as one of the country’s best places to live and work. These are important elements to our employees and their families and instrumental in helping us recruit future employees as we grow.”
Goodrich Grows in Monroe
R.H. Donnelley’s story is a familiar one in North Carolina. Companies that locate in North Carolina often decide later to move more of their operations to the state. And the state often helps out through an innovative program or by removing levels of bureaucracy.
Goodrich Corp., a Fortune 500 company and supplier of systems and services to the aerospace industry, announced recently that it would add 300 new jobs to a site in Monroe, N.C. Goodrich is based in Charlotte.
The project is expected to cost $11 million. Goodrich will add 150 new jobs by the end of 2004 and 150 more during the next five years. The company is shifting operations from New Jersey and Ohio for the expanded Monroe site.
“We’re looking forward to being a part of the community and to creating a world-class aerospace customer services operation,” said Bill Walthall, president of customer service for Goodrich. “The move to this facility will better position us for growth and allow us to further enhance our competitiveness in the global aerospace industry.”
Workers at the Monroe site will repair and remanufacture Goodrich aerospace components, and the facility will also hold inventory of parts for use at other Goodrich facilities.
Goodrich Corp. is also receiving JDIG assistance. Every year that the company meets minimum grant requirements, the state will give the company a grant for 66 percent of the state withholding taxes generated from new jobs.
If Goodrich creates all the jobs called for during the 10-year period, the company could realize nearly $2.7 million in savings.
Company Grows in Research Triangle Park
Certainly, one of the most famous and renowned business locales in North Carolina — and the entire United States for that matter — is the Research Triangle Park. The list of businesses in the RTP reads like a Who’s Who of innovative companies.
One of the latest to announce growth plans in the RTP is Nortel. In February, officials said the company would open an interoperability lab in the RTP. The lab will serve as one of Nortel’s hubs for interoperability work with partners and customers.
When the facility opened in April, it allowed Nortel to perform interoperability testing with its third-party vendors. According to Nortel officials, the lab will serve as a place for Nortel and its partners to rigorously test new communication advances before they go to market.
“By testing interoperability with other vendors, we apply Nortel Networks’ carrier-grade experience in the lab to facilitate system integration before real-world deployment,” said Sue Spradley, president of Wireline Networks for Nortel. “Interoperability testing allows us to help service providers drive top-line revenue opportunities, while making it more cost-effective for service providers to expand their businesses and offer new services.”
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