WS Chronicle

By Tevin Stinson 

The Chronicle  

During their meeting on Monday, April 21, the Winston-Salem City Council approved two economic development projects that will create about 70 jobs and millions of dollars in taxable capital. 

Both projects received support from Greater Winston-Salem, Inc., which focuses its efforts on economic development, talent recruitment, retention, and career readiness. The organization designed to help local businesses grow was formed in 2020 when the Winston-Salem Chamber of Commerce and Winston-Salem Business, Inc. joined forces.  

What We Know 

Two companies will receive funding from the City to help build manufacturing facilities, Project Renaissance and Project Beaver.  

Project Renaissance is led by GMAX Industries, a New York-based manufacturing company that specializes in disposable medical supplies serving the hospital systems, healthcare providers, and medical device companies. Their facility in Winston-Salem will focus on making medical gauze and disposable syringes.  

The company currently depends on manufacturing operations outside of the country and is looking to bring production back to the United States. They are asking the City for $153,135 to reduce its capital overlay associated with the facility. The total project will cost about $15 million and will create 42 jobs with an average wage of $57,500.  

“Positions will include production, equipment, production repair, warehouse, quality control, and administrative staff,” said Ben Row, assistant city manager, when discussing the proposal. He also mentioned that the project will create $306,270 in tax revenue for the City over five years.  

Ellis Keifer, Greater Winston-Salem, Inc. vice president of economic development, said this investment would help establish Winston-Salem as a hub for healthcare and medical manufacturing. She mentioned Project Renaissance is also looking to partner with Forsyth Tech Community College to provide workforce training. Project Renaissance is expected to create $582,366 in tax revenue over five years.  

“This project not only grows our tax base but creates meaningful opportunities for over 40 individuals and families in Winston-Salem,” Keifer said.  

Project Beaver is led by an international non-woven manufacturer that produces material for the automotive, geotextiles, and construction industries. The company currently has a 70,000 sq. ft. facility in the Union Cross Industrial Center, a 99-acre development-ready site. The site has successfully completed the certification process from the State of North Carolina as well as winning the Austin Consulting/Duke Energy “Shovel-Ready” Site Designation Award for the Food and Beverage Industry.  

According to Rowe, the company is considering two options, opening an 80,000 sq. ft. facility near the Union Cross site, or purchasing another company located in the Midwest. In their proposal, Project Beaver is seeking $291,183 to help reduce capital overlay associated with the new facility. Total project cost is expected to be $31 million.  

When complete, the facility will create 28 new jobs with positions in machinery, operations, warehouse staff, maintenance workers, and administrative staff. The average wage will be $47,321. The project is expected to create $582,366 in tax revenue over five years.  

According to Rowe, the City provided financial assistance to this company in 2018 to help with expansion. They are scheduled to make their last payment to the City next fiscal year, which begins in July.  

Keifer said the fact that Project Beaver is considering expansion here underscores the strength of the local workforce and the value they place on doing business in Winston-Salem. She also mentioned that the company already has a relationship with Forsyth Tech to create opportunities for workforce development.  

“This project reinforces our regional manufacturing base and helps retain a global company with deep roots in our community,” Keifer said.  

The Growing Need for Jobs 

Once a hub for manufacturing and skilled trade jobs, like many cities across the country in the late ‘90s and early 2000s, we saw a shift. Companies like R.J. Reynolds, HanesBrands and others moved their production facilities elsewhere, taking their jobs with them and leaving thousands trying to figure out how to provide for their families. Employment in North Carolina’s manufacturing sector declined by 400,000 between 1993 and 2010.  

While the state has evolved from an economy based on tobacco and textile, there is still a need for manufacturing jobs and that need is growing. North Carolina’s growth careers in manufacturing often involve installing, maintaining, and repairing increasingly technical equipment. That growth will call for even more skilled workers, industrial maintenance technicians, logisticians, engineers, as well as information system managers and software developers.  

According to the National Association of Manufacturers, world trade in manufactured goods grew to nearly $15.3 billion in 2022 and by 2033 3.8 million manufacturing jobs will be needed.  

We will have to wait to see the long-term effects of tariffs put in place by President Donald Trump. The country seems to split on how it will impact American workers. Some companies believe that it will reignite the U.S. manufacturing industry, while others say that time is long gone.  

What’s Next? 

North Carolina General Statue authorizes cities to make appropriations for economic development. Project Renaissance and Project Beaver are consistent with Winston-Salem’s public policy justification to stimulate the local economy through the creation of jobs and investment. Forsyth County and the State of North Carolina are also considering financial incentives for both projects.  

Taxable capital investment for both projects is expected to exceed $45 million. Project Beaver is expected to total $31 million ($12 million in real property and $19 million in machinery and equipment), while Project Renaissance is expected to total $15 million ($1.5 million in real property and $13.5 million in machinery and equipment). 

The City’s assistance for both projects is based on an amount equal to 50% of the net new property taxes expected to generate over its first five years.  

The first annual incentive payment will be on July 1, following the first full year’s property tax payment by the company for the facility, machinery, equipment and business personal property.