Gov. Bev Perdue announced today that MSC Industrial Direct Co., Inc. (NYSE: MSM) (MSC), one of the largest direct marketers and premier distributors of Metalworking and Maintenance, Repair and Operations (MRO) supplies to industrial customers throughout the United States, will establish co-headquarters in Davidson. The company plans to create 400 jobs in North Carolina by the end of 2017, and invest more than $31 million into its Mecklenburg County facility. The project was made possible in part by state grants from the Job Development Investment Grant and the One North Carolina Fund Award.
“Creating jobs is something I work on every day,” said Gov. Perdue. “Companies like MSC quickly recognize that North Carolina has the business climate and top notch workforce that makes this a place where they can thrive.”
In business since 1941, MSC has set the industry standard for quality, selection and customer service as the leading direct marketer and distributor of more than 600,000 metalworking and industrial products. The company, currently headquartered in Melville, New York, operates through a network of customer fulfillment centers and branch offices located throughout the United States.
“This co-location strategy will support and prepare for MSC’s strong future growth trajectory,” said David Sandler, Chief Executive Officer of MSC. “After conducting a national search, the Charlotte area provided the most compelling opportunity to strategically and cost-effectively grow our business. We are grateful for the efforts and leadership of Governor Perdue and other North Carolina officials for working with us to make this co-location possible. We look forward to building our presence in the Davidson community and to beginning this exciting new chapter for MSC.”
MSC currently employs 64 people in North Carolina at branch offices located in Asheville, Camp LeJeune, Charlotte, Greensboro and Raleigh. The new facility in Davidson will house many corporate functions including, but not limited to, executive management, IT, accounting, human resources, product management, and marketing.
“MSC knew exactly where to go to find a skilled, educated workforce,” said Sen. Malcolm Graham, of Charlotte. “Our past investments in education have helped develop exactly the kind of workers that businesses need today.”
Compensation will vary by job function, but the minimum average compensation for the new positions is expected to be more than $79,000 plus benefits. The average annual wage in Mecklenburg County is $51,792.
To help facilitate this location, the company has been awarded a grant of up to $1.05 million from the state’s One North Carolina Fund. This fund assists the state in industry recruitment and expansion by providing financial assistance through local governments to attract business projects deemed by the governor to be vital to a healthy and growing state economy. One North Carolina Fund grants require a local match, and this grant is contingent upon approval of local incentives.
Today, the state Economic Investment Committee voted to award a Job Development Investment Grant (JDIG) to MSC Industrial Direct. JDIGs are awarded only to new and expanding businesses and industrial projects whose benefits exceed the costs to the state and which would not be undertaken in North Carolina without the grant.
Under the terms of JDIG, the company is eligible to receive a grant equal to 70 percent of the state personal income withholding taxes derived from the creation of new jobs for each of the 12 years in which the company meets annual performance targets. If MSC meets the targets called for under the agreement and sustains them for 12 years, the JDIG could yield as much as $11.7 million in maximum benefits for the company.
In addition, up to $3.92 million could be added to the state’s Utility Fund for infrastructure improvements in economically distressed counties. When a JDIG is awarded in the state’s more economically prosperous counties such as Mecklenburg, 25 percent of the grant is allocated to the Utility Fund to encourage economic development in less prosperous counties.
Other partners who assisted with this announcement include: The N.C. Department of Commerce, N.C. Community Colleges, Mecklenburg County, Town of Davidson, Lake Norman Regional Economic Development Corporation, Charlotte Chamber, Charlotte Regional Partnership and Duke Energy.
For more information about MSC, including job opportunities, visit www.mscdirect.com.