Raleigh, N.C.
Today Governor Josh Stein announced Hoffman & Hoffman, Inc., a supplier of commercial HVAC systems and products, will create 131 jobs in Guilford County. The company will invest $40 million to expand its corporate headquarters and manufacturing operations in the city of Greensboro.
“We are grateful that Hoffman & Hoffman is deepening its roots in North Carolina,” said Governor Josh Stein. “Companies that do business here know better than anyone the benefits of operating in our state, and they know they can count on our skilled workforce, our robust transportation network, and our excellent quality of life as they grow.”
Hoffman & Hoffman (H&H), along with its subsidiaries, is an employee-owned company that has served the HVAC and building automation industries with comprehensive building management systems since 1947. The North Carolina-based company provides commercial and industrial HVAC and filtration systems, building controls technology, commercial hydronic systems, and aftermarket services in the southeastern United States and beyond, including operations in Europe. H&H uses cutting-edge technology to create comfortable, safe spaces for its clients. This expansion will consolidate the corporate headquarters’ operations to one location and add more warehouse space.
“The Hoffman family of companies continues to grow because our employee-owners never lose sight of the people we serve,” said Jim Bingham, CEO of Hoffman & Hoffman, Inc. “When we put our customers at the center of every decision, success follows.”
“I’m excited to welcome Hoffman & Hoffman’s continued investment in the Triad,” said N.C. Commerce Secretary Lee Lilley. “Manufacturers like this need a strong and stable business climate to be successful, and we’re committed to providing the partnerships that support this company’s next phase of growth.”
While wages vary by position, the annual average salary for the new positions is expected to be $72,176. The average wage in Guilford County is $60,195. These new jobs could create an annual payroll impact of more than $9.4 million for the region.
H&H’s expansion in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) that was approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by $487 million. Using a formula that takes into account the new tax revenues generated by the new jobs and the capital investment, the JDIG agreement authorizes the potential reimbursement to the company of up to $1,110,600, spread over 12 years. State payments occur only following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets.
The project’s projected return on investment of public dollars is 129 percent, meaning for every dollar of potential cost to the state, the state receives $2.29 in state revenue. 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.
Because Hoffman & Hoffman chose to expand in Guilford County, classified by the state’s economic tier system as Tier 2, the company’s JDIG agreement also calls for moving $123,400 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 2 county such as Henderson, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state.
“This is another great win for Guilford County and the entire state,” said Senate President Pro Tempore Phil Berger. “These good-paying jobs are further proof that North Carolina has the right formula for companies to thrive and contribute to the economic vitality of our communities.”
In addition to the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina, other key partners in this project include the North Carolina General Assembly, N.C. Commerce’s divisions of Workforce Solutions and Rural Economic Development, the North Carolina Community College System, Guilford Tech Community College, Duke Energy, the Guilford County Economic Development Alliance, Guilford County, GuilfordWorks, the Greensboro Chamber, and the City of Greensboro.
