UT: Black Diamond to Stay in Salt Lake City, Adding 160 Jobs
16 Feb, 2015
Black Diamond Equipment and the Governor’s Office of Economic Development (GOED) announced Black Diamond will expand their manufacturing operations in Utah, adding up to 160 jobs to the community and producing an expected capital investment of $7.7 million.
“We are more than happy to support companies that are working to bring more jobs home,” said Val Hale, executive director of GOED. “We are especially excited that Black Diamond has selected Utah for their re-shoring and native expansion. The outdoor recreation cluster is near and dear to our hearts in this state, and we are grateful for the contribution Black Diamond makes.”
Black Diamond Equipment is a manufacturer of specialized outdoor equipment for climbing, skiing and mountain sports, and they are right at home in Utah’s outdoor industry. The company has global offices in Sweden, Austria, Switzerland and China. They are owned by Black Diamond, Inc., which also owns POC Sports. The company will relocate the jobs of POC Sports North American headquarters from Colorado to Utah.
“As Black Diamond celebrated its 25th anniversary in business, the same foundational tenets that brought us to Utah when we founded the company remain resolute today,” said Peter Metcalf, Black Diamond CEO and founder.
“As the global leader in the design and manufacture of paradigm-changing products for the sports we serve, we require a location that resides on the asset side of our balance sheet. After looking elsewhere, and in working with GOED, we have decided it is in the best interest of the company, its employees, and the State of Utah, for Black Diamond to grow in Utah. With Utah's brand-defining outdoor landscapes, Utah is clearly the best place to consolidate our global manufacturing operations and invest in bringing new jobs to the state as we re-shore operations.”
Black Diamond has indicated that the expansion will create up to 160 jobs over the next seven 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 $48,404,121. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be $2,354,980 over seven years.
“When Black Diamond decided to bring manufacturing back to the U.S., they could have gone anywhere, but they chose to make a continued investment in Utah because of their proven record of success in the state,” said Jeff Edwards, president and CEO of the Economic Development Corporation of Utah. “It is evidence that Utah can compete not only on a national level but a global level. We believe other outdoor product companies will follow Black Diamond’s lead and take a closer look at the state.”
As part of the contract with Black Diamond, the GOED Board of Directors has approved up to a maximum tax credit of $353,247 in the form of post-performance Economic Development Tax Increment Finance (EDTIF) incentive, which is 15 percent of the new state taxes Black Diamond will pay over the seven-year life of the agreement. Each year as Black Diamond meets the criteria in its contract with the state, it will earn a portion of the total tax credit incentive.
About the Utah Governor’s Office of Economic Development (GOED) business.utah.gov
The Governor’s Office of Economic Development (GOED) charter is based on Governor Gary Herbert’s commitment to economic development statewide. Utah’s economic development vision is that Utah will lead the nation as the best performing economy and be recognized as a premier global business destination. The mandate for this office is to provide rich business resources for the creation, growth and recruitment of companies to Utah and to increase tourism and film production in the state. GOED accomplishes this mission through the administration of programs that are based around targeted industries or “economic clusters” that demonstrate the best potential for development. GOED utilizes state resources and private sector contracts to fulfill its mission. For more information please contact: Michael Sullivan, 801-538-8811 or firstname.lastname@example.org.
About Black Diamond www.blackdiamondequipment.com
Black Diamond Equipment is a manufacturer of equipment and clothing for climbing, skiing and mountain sports. By consistently building innovative, standard-setting products and actively preserving the mountain/canyon environment, Black Diamond Equipment has assumed a leadership role in the international outdoor community.