UT: Top Trucking Company, Prime Inc., Rolls into UT, Invests $40M
18 Jun, 2015
Prime Inc., along with the Governor’s Office of Economic Development, announced that Prime will open new operations in Utah, creating more than 100 new jobs and more than $40 million in capital investment.
“We’re thrilled to welcome a company of this caliber to the state,” said Val Hale, executive director of GOED. “Prime Inc., like many companies before them, has discovered that Utah is a choice location for western U.S. operations. Beyond location, we also look forward to showing Prime how our nation-leading business environment can support its growth.”
Prime Inc., a trucking company founded in 1970, is headquartered in Springfield, Missouri. It is one of the largest trucking companies in the world, serving both the United States and Canada. The company’s fleet includes nearly 6,000 trucks and more than 11,000 trailers. Known for investing in their employees, Prime offers fully benefited positions in fleet management, dispatching and mechanics. The company also provides multiple training and certification programs for employees. The new Utah location will serve as a western hub for company operations.
“We are excited to announce the expansion of our western regional operations in one of the most beautiful cities in America, Salt Lake City,” said Robert Low, founder and CEO of Prime Inc. “We value the strong partnership and support within the community because it will enhance our growth. Salt Lake City is integral to our operational growth initiatives. We plan to build our facilities with our associates—our most important asset—in mind. With the best truck drivers on America’s roads today supported by an exceptional hiring base available in the Salt Lake City area, Prime anticipates great success in this venture.”
Prime Inc. has indicated that their expansion will create up to 129 jobs over the next five years. The total wages, including medical benefits, in aggregate are expected to exceed 125 percent of the Salt Lake County average wage. The projected new state wages over the life of the agreement are expected to be approximately $36,146,090. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be approximately $2,083,405 over five years. The expansion will generate an expected capital investment of $40 million.
“Prime Inc.’s decision to establish a new facility in Salt Lake City, the crossroads of the West, will give them much greater access to their western U.S. clients,” said Jeff Edwards, president and CEO of Economic Development Corporation of Utah. “Salt Lake City’s central location for distribution will put Prime Inc. within a one- to two-day drive to half of the nation’s population.”
As part of a contract with Prime Inc., the GOED Board of Directors has approved up to a maximum tax credit of $312,511 in the form of post-performance Economic Development Tax Increment Finance (EDTIF) incentives, which is 15 percent of the new state taxes Prime Inc. will pay over the five-year life of the agreement. Each year, as Prime Inc. meets the criteria in its contract with the state, it will earn a portion of the total tax credit incentive.