American Woodmark Corporation (NASDAQ: AMWD), one of the nation’s largest manufacturers of cabinets, will expand its operations in Hamlet, North Carolina creating 131 jobs in Richmond County.
“Strong rural communities like Hamlet provide manufacturing companies a great environment for expansion and growth,” said Governor Cooper. “From our skilled workforce to our superior transportation network, American Woodmark knows North Carolina well and their decision shows that we have the right ingredients for success.”
Founded in 1980, American Woodmark, with headquarters in Winchester, Virginia, became a public company in 1986. Today, the company operates 18 manufacturing and distribution centers and eight primary service centers across North America, distributing products under more than a dozen brand names across the country. American Woodmark’s expansion project in Hamlet will help the company meet growing demand, increasing the company’s finished goods production capacity for its east coast networks.
“Our company strategy is focused on Growth, Digital Transformation and Platform Design or “GDP,” said Scott Culbreth, President and Chief Executive Officer of American Woodmark. “After a comprehensive review of our platform, we identified the need for additional capacity in our stock kitchen and bath cabinetry platform. By expanding in the United States, we will strengthen our overall supply chain and allow for incremental capacity in both categories on the east coast, which is one of the largest repair/remodel and new construction markets.”
Although wages for the new jobs will vary depending on position, the average salary will be $44,748, which is above the current average wage in Richmond County of $38,035. The state and local area will enjoy an additional impact of more than $5.8 million each year from the new payroll.
“North Carolina’s rural workforce keeps companies like American Woodmark a step ahead,” said North Carolina Commerce Secretary Machelle Baker Sanders. “As our First in Talent strategic plan for economic development makes clear, North Carolina will continue to provide our workers with the education and training they need to support manufacturers in our state.”
American Woodmark’s project in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Over the course of 12 years, the project is estimated to grow the state’s economy by $185.8 million. Using a formula that takes into account the new tax revenues generated by the new jobs, as well as a capital investment of $36.2 million, the agreement authorizes the potential reimbursement to the company of up to $1,086,000, spread over 12 years. The company’s capital investment will be funded through American Woodmark’s direct capital investment and amortized lease costs. Payments for all JDIGs only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.
“There’s no better endorsement for the state’s business climate than when an existing industry chooses to expand in North Carolina,” said N.C. Senator Tom McInnis. “We’re proud that American Woodmark is bringing new jobs and investment to Hamlet, to Richmond County, and to the people of our region.”
In addition to the North Carolina Department of Commerce and the Economic Development Partnership of N.C., other key partners on this project were the North Carolina General Assembly, the North Carolina Community College System, Richmond County and Richmond County Economic Development.