The office of Gov. Roy Cooper announced today that Service Offsite Solutions, a supplier of offsite homebuilding materials, will invest $11.8 million to build a new manufacturing facility in Sanford, creating 235 new jobs.
Cooper called the expansions “a great economic development win for North Carolina” in a press release today.
“Companies know our capable workforce, central location and great quality of life are benefits to helping the homebuilding industry meet the high demand in North Carolina,” he said.
Service Offsite Solutions builds precision framing components for “turnkey residential construction.” The company manufactures floors, roofs and walls in an offsite plant and ships them to home construction sites. The expansion in Sanford will increase the company’s footprint by more than 240,000 square feet, used for manufacturing, warehouse and distribution.
The company’s vice president of operations, Jeff Thompson, said Service Offsite Solutions is “changing the way residential framing is done in the Carolinas.”
“Our process delivers a framed house, dried in, with all the punchwork completed in less than half the time it would take for traditional stick framing, often in as little as two days,” he said. “We use state-of-the-art equipment from around the world to manufacture precision panelized components to be installed by our own crews at the jobsite. This is an installed, turnkey service for our customers that accelerates the timeframe for the entire construction of the house. It truly is a paradigm shift for the future of homebuilding.”
According to Cooper’s press release, the North Carolina Department of Commerce led the state’s efforts to support Service Offsite’s expansion in North Carolina. Salaries for the new positions will vary. Once all the positions are filled, the average annual salary for all new positions is $50,470, which is above the Lee County average salary of $42,516. The project could create a potential annual payroll impact of more than $11.8 million per year.
Service Offsite Solutions expansion 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 the 12-year term of the grant, the project is estimated to grow the state’s economy by more than $452 million. Using a formula that takes into account the new tax revenues generated by the 137 new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $2,051,250 spread over 12 years. 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.
Service Offsite Solutions is locating to Lee County, classified by the state’s economic tier system as Tier 2, the company’s JDIG agreement also calls for moving $683,750 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities across the state finance necessary infrastructure upgrades to attract future business.
In addition to the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina, other key partners in the project include the North Carolina General Assembly, the North Carolina Department of Transportation, the North Carolina Community College System, the North Carolina Railroad Company, County of Lee, Sanford Area Growth Alliance, City of Sanford and Duke Energy.