Osmundson Mfg. Co. To Locate in Graves County With $12.5 Million Investment, Create 80 Full-Time Jobs
Project will be agritech manufacturing company?s first Kentucky location
FRANKFORT, Ky. (Dec. 8, 2022) ? Today, Gov. Andy Beshear highlighted continued momentum of the state?s agritech and manufacturing sectors as Osmundson Mfg. Co. will locate a new facility in Graves County with a $12.5 million investment that will create 80 quality Kentucky jobs over the coming years.
?Once again, we are reminded that Kentucky?s unprecedented economic growth and momentum shows no signs of slowing down,? said Gov. Beshear. ?I am thrilled to welcome Osmundson to the commonwealth as yet another quality company that will bring well-paying jobs and an economic boost to a Western Kentucky region still recovering from last year?s devastating tornadoes. I want to thank the company?s leadership as well as local and state officials for making this investment possible and helping to create a better Kentucky.?
The company?s investment will include the purchase of nearly 35 acres to construct a 150,000-square-foot facility, which will house two hot production lines and support cold workstations that will produce 20-inch and larger disc blades for both the agriculture and construction industries. Construction on the building is scheduled to begin in 2023 and is expected to be completed by 2025.
?Osmundson is excited about the expansion of our business and the opportunities that come with this new facility and from being a part of the Mayfield community,? said Heather Bruce, president of Osmundson. ?We believe this expansion will set us up for another 120 years of success and we?re committed to building that together through the involvement and support of a great community.?
Osmundson Mfg. Co. is a fifth-generation, family-owned manufacturer of high-quality, high-performance tillable blades and cultivation tools. Osmundson blades are 100% American-made and have been for nearly 120 years. Founded in 1903 as Osmundson Spade, the company developed a revolutionary spade that resists breakage. The ?unbreakable spade? now sits on display in the Smithsonian. Osmundson Spade grew to become Osmundson Mfg. Co. through the evolution of agriculture. The company currently employs approximately 100 employees at their 142,000-square-foot headquarters and production facility in Perry, Iowa.
Osmundson adds to Kentucky?s impressive manufacturing presence, which includes nearly 5,000 facilities that employ around 250,000 residents. According to the National Association of Manufacturers, over 13% of the commonwealth?s workforce is in manufacturing, well above the national average of 8.5%.
Graves County Judge/Executive Jesse Perry is thankful for the opportunities the company will bring to the community as they continue to rebuild from last year?s tornadoes.
?We are so very thankful that Osmundson Mfg. Co. has chosen to invest in our community,? said Judge Perry. ?Osmundson Mfg. Co. is a great company that will provide our community with opportunities for new development. After the devastation that we have been left with since the tornado, we are hopeful that this investment will aid in the rebuilding process. It?s an exciting time to see Graves County grow again. Thank you, Osmundson Mfg. Co. for choosing Graves County to be your destination for your new facility.?
Mayfield Mayor Kathy O?Nan expressed her gratitude to the company for their willingness to locate and bring quality jobs to Mayfield and Graves County.
?The announcement of the expansion of Osmundson Mfg. Co. to Mayfield is truly an answer to our prayers. Following the devastating tornado of last December, I firmly believed that there was a company somewhere who would say to us exactly what they have said, ?We want to help your community rebuild,?? Mayor O?Nan said. ?With this $12.5 million investment and the creation of 80 new jobs, the Osmundson family is bringing even more than a financial commitment to us ? they are bringing hope ? and we are most grateful and excited for their future with us!?
Jason Lemle, president of the Graves County Economic Development Council, is encouraged by the future of the community and for what is to come for Graves County.
?Osmundson?s culture, history and values align with the very being of Graves County, family, community and vision,? said Lemle. ?From the events of Dec. 10, 2021, Graves County has made significant strides toward the future of our community and what we might look like. This new expansion and new business from another part of the country further cements that we are making the necessary steps to create a better and brighter future for our community and its people. We are honored to have Osmundson select Graves County for the future of their business, and we look forward to supporting them for decades to come.?
John Bradley, Tennessee Valley Authority (TVA) senior vice president of economic development, looks forward to Osmundson?s success in the region.
?TVA and West Kentucky RECC congratulates Osmundson Mfg. Co. on its decision to establish operations in Graves County,? said Bradley. ?Helping to attract and retain jobs and investment in the region is fundamental to TVA?s mission of service. We are proud to partner with the Kentucky Cabinet for Economic Development, Graves County Economic Development, Graves County and the City of Mayfield to further that mission and look forward to Osmundson?s future business success.?
Osmundson Mfg. Co.?s investment and planned job creation furthers recent economic momentum in the commonwealth, as the state builds back stronger from the effects of the pandemic.
In 2021, the commonwealth shattered every economic development record in the books. Private-sector new-location and expansion announcements included a record $11.2 billion in total planned investment and commitments to create a record 18,000-plus full-time jobs across the coming years. Kentucky?s average incentivized hourly wage for projects statewide in 2021 was $24 before benefits, a 9.4% increase over the previous year.
New job creation is accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2021 was $24 before benefits, the second-highest mark over the past seven years. Wages have continued to rise in 2022, with an average incentivized wage of $26.71 through November.
Gov. Beshear has now secured the best two-year period in state history for economic growth. Gov. Beshear has announced 41,237 full-time jobs and 728 private-sector new-location and expansion projects totaling, $22.89 billion in announced investments during his administration.
Gov. Beshear has also announced the two largest economic development projects in state history. In September 2021, Gov. Beshear and leaders from Ford Motor Co. and SK Innovation celebrated a transformative $5.8 billion investment that will create 5,000 jobs in Hardin County. And in April of this year, the Governor was joined by leadership at Envision AESC to announce a $2 billion investment that will create 2,000 jobs in Warren County. These announcements solidify Kentucky as the EV battery production capital of the United States.
Kentucky?s success has been noted by both S&P Global Ratings and Fitch Ratings, which have upgraded the state?s financial outlook to positive in recognition of the commonwealth?s surging economy. In addition, Site Selection magazine placed Kentucky at 6th in its annual Prosperity Cup rankings for 2022, which recognizes state-level economic success based on capital investments.
Kentucky has posted record low unemployment rates, holding at or below 3.9% since April 2022 ? the longest period in state history.
In July, the Governor reported the highest annual growth rate in 31 years. And for the second year in a row, Kentucky?s General Fund budget surplus has exceeded $1 billion. Also in July, Gov. Beshear reported that the state?s rainy-day fund is up to a record balance of $2.7 billion, significantly higher than the $129 million balance the fund had when the Governor took office.
Kentucky reported August 2022 General Fund receipts hit an unprecedented high for any August on record, marking 21 straight months of growing revenues for the state.
Data from the U.S. Bureau of Labor Statistics showed Kentucky lead the entire nation in job growth for the month of August and tied with New Hampshire for the largest jump in employment growth for September.
In September, Kentucky reported August 2022 General Fund receipts hit an unprecedented high for any August on record, marking 21 straight months of growing revenues for the state. September was also the third highest revenue month on record with more than $1.4 billion reported, marking the seventh month this year with collections topping $1 billion.
And from September 2021 to September 2022, Kentucky added 81,700 new jobs. Except for a four-month recovery period after the initial COVID-19 shock, this is the largest number of new jobs added in 20 years.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1.5 million in tax incentives based on the company?s investment of $12.5 million and annual targets of:
- Creation and maintenance of 80 Kentucky-resident, full-time jobs across 15 years; and
- Paying an average hourly wage of $36.07 including benefits across those jobs, and an average base pay of $21.74 not including benefits.
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, Osmundson Mfg. Co. can receive resources from Kentucky?s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.
For more information on Osmundson Mfg. Co., visit osmundson.com.
A detailed community profile for Graves 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, Instagram @CEDkygov and LinkedIn.
Read about other key updates, actions and information from Gov. Beshear and his administration at?governor.ky.gov,?kycovid19.ky.gov?and the Governor?s official social media accounts?Facebook,?Twitter?and?YouTube.
###
|
