~ Project continues recent growth of Kentucky’s manufacturing sector ~
Frankfort, KY — Gov. Andy Beshear announced manufacturing packaging company Summit Packaging Solutions LLC will locate its first Kentucky facility in unincorporated Boone County with a more than $18.3 million investment that will create 69 direct full-time jobs and 185 contracted positions.
“As our economy continues to surge ahead despite the challenges of the pandemic, Summit’s decision to expand into Northern Kentucky is great news for our state and the citizens of Boone County,” Gov. Beshear said. “The creation of more than 250 high-quality jobs means new opportunities for area residents, and I appreciate Summit for its investment in Northern Kentucky.”
Summit’s new 276,000-square-foot Operations Center of Excellence will improve the company’s ability to serve the Midwest market in support of new and existing customers in the region. In addition to 185 contracted production line jobs at the Summit operation, the nearly 70 direct full-time positions will include assembly and production, maintenance, management and supervisor roles. Company leaders expect the facility to be operational by November.
The region’s extensive transportation network, availability of a skilled workforce and strong community partnerships contributed to the company’s decision to locate in Northern Kentucky.
“We are excited to build a new Operations Center of Excellence in Northern Kentucky,” said Adam C. Walker, Summit’s CEO. “This new location will allow us to attract world-class talent that will help us to continue inventing for customers for years to come. The team did a great job of selecting this site, and we look forward to becoming an even bigger part of the community.”
Established in 1984, Summit was acquired by a holding company founded by Walker in 2014. The company since has grown with multiple acquisitions, now operating assembly operations in Georgia, New Jersey and Pennsylvania, with corporate offices in Georgia and Ohio. Summit’s services include customization, assembly of full pallet displays, PDQs, kits, permanent and temporary displays, multipacks, shrink-wrapping and banding, labeling, print-registered bundle wrapping and distribution, and transportation.
Summit’s commitment adds to Kentucky’s expansive manufacturing presence, which includes nearly 5,000 facilities. Since the start of 2020, manufacturers have announced over 200 new-location and expansion projects in the state, with $10 billion in new investment and the over 13,500 announced jobs.
Boone County Judge/Executive Gary Moore welcomed Summit to unincorporated Boone County.
“After a national search, I’m thrilled that Summit Packaging Solutions chose to launch a new manufacturing facility in Boone County,” Judge/Executive Moore said. “Summit is an excellent addition to Northern Kentucky’s consumer products goods (CPG) industry base.”
Northern Kentucky Tri-ED CEO Lee Crume applauded Summit’s decision to locate in the Cincinnati region.
“Northern Kentucky provides logistics and manufacturing advantages to businesses who serve CPG companies and the majority of consumers in the United States,” Crume said. “Summit is an excellent example of a company wanting to be closer to its CPG customers and choosing a location that has strong creative services, operations and supply chain talent.”
Summit’s investment and planned job creation furthers recent economic momentum in the commonwealth, as the state builds back stronger in response to the effects of the pandemic.
In September, Gov. Beshear, Ford Motor Co. Executive Chair Bill Ford and CEO Jim Farley and Dong-Seob Jee, president of SK Innovation’s battery business, announced the single largest economic development project in the history of the commonwealth, celebrating a transformative $5.8 billion investment that will create 5,000 jobs and places Kentucky at the forefront of the automotive industry’s future.
Year-to-date, private-sector new-location and expansion announcements include over $8.7 billion in total planned investment and the creation of 12,000-plus full-time jobs across the coming years. Through July, Kentucky’s average incentivized hourly wage is $23.47 before benefits, a 6.2% increase over the previous year.
In July, thanks to strong fiscal management by the Beshear administration, the state budget office reported that the commonwealth ended the 2021 fiscal year with a general fund surplus of over $1.1 billion – the highest ever in the commonwealth – and a 10.9% increase in general fund receipts to $12.8 billion.
In May, Moody’s Analytics published a positive economic outlook for Kentucky, noting mass vaccination as the driving force behind a sustained recovery in consumer services. The state’s recovery, Moody’s said, benefited from earlier reopening efforts and increased demand for manufactured goods over services. The report also found Kentucky’s manufacturing industry outperformed the nation’s since the national downturn last year.
Fitch Ratings in May improved the state’s financial outlook to stable, reflecting the commonwealth’s solid economic recovery. The state’s April sales tax receipts set an all-time monthly record at $486.5 million, as did vehicle usage tax receipts at over $64 million.
In March, Site Selection magazine’s annual Governor’s Cup rankings for 2020 positioned Kentucky atop the South Central region, and third nationally, for qualifying projects per capita. The commonwealth also placed seventh overall in total projects, the highest of any state with a population under 5 million. Site Selection also recently placed Kentucky in a tie for fifth in its 2021 Prosperity Cup rankings, positioning the state among the national leaders for business climate.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in September preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $750,000 in tax incentives based on the company’s investment of $18.3 million and annual targets of:
- Creation and maintenance of 69 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $34 including benefits across those jobs.
- By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, Summit can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.
For more information on Summit Packaging Solutions, visit 1TeamSummit.com.
A detailed community profile for Boone County can be viewed here.
Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov and LinkedIn.
Read about other key updates, actions and information from Gov. Beshear and his administration at governor.ky.gov, kycovid19.