Vermont Business Magazine The Vermont Agency of Commerce and Community Development (ACCD) has released its statutorily-required report on the impact of the Vermont Enterprise Fund, showing that in addition to creating hundreds of direct and indirect jobs, the $1.7 million in investments will more than pay for themselves by returning $3.5 million in state revenues over the next five years.According to the report, the allocation of funding from the Enterprise Fund for three projects will help retain Vermont’s largest private sector employer and one of Central Vermont’s largest employer’s, as well as recruit a new employer to the Northeast Kingdom.
The VEF investment will leverage private sector investments in Vermont totaling over $92 million including new payroll and capital expenditures over the next five years. The projects will also create 248 direct full-time jobs. This investment and job creation will result in about 326 indirect and induced jobs, for a total job creation impact of 574 jobs. The net increase in state revenues over five years would exceed $3.5 million, according to the report.
“I firmly believe that the Vermont Enterprise Fund is an economic development resource that we must continue to make available to new and expanding companies,” GovernorPeter Shumlin said. “This fund is exactly the type of Vermont-scale business growth tool that we need in our great state.”
On January 8, 2016, the Emergency Board approved, based on therecommendation of Governor Shumlin, to allocate$1 million from the Vermont Enterprise Fund to support the continued growth of GlobalFoundries, which employs about 3,000 in Vermont.GlobalFoundries will be investing $72 million dollars in capital expenditures as well as converting 100 temporary jobs to full time permanent jobs at higher wages and with better benefits. This commitment further solidifies GlobalFoundries’ presence in Vermont, Shumlin said.The Enterprise Funds will be used to make investments in efficiencies at the Essex facility.
Also onJanuary 8, 2016, the Emergency Board approved$200,000 forComposites BHS, a Sherbrooke-based manufacturer, which has selected StJohnsburyfor its expansion into the United States. The company will locate in the StJohnsbury-Lyndonville Industrial Park in an existing building.
Brenan Reihle, CEO ofGW Plastics. VBM file photo.
Last October, GW Plastics in Bethel/Royalton received $500,000 from the fund.GWwill add up to 73 new jobs and BHS Composites will create approximately 75 over 5 years.Both of these companies, the governor said, considered other states for their expansions.GWcurrently employs over 300 full-time workers and is the largest manufacturing employer in the region. Due to ongoing growth, the company has no available manufacturing space in its Vermont locations. The expansion need is being driven by a recently awarded contract with a new customer. The governor saidGWhad several options for growth, including current facilities in Texas, Arizona, Mexico, China, and had looked at a site in New Hampshire.
Commerce Secretary Patricia Moulton said, “As an economic development professional, having the VEF available to help close deals is incredibly valuable.We will never compete with other states’ deal closing funds, but our strong suite of incentives, including the Enterprise Fund, VEGI and the Vermont Training Program, is proving to be very valuable.”
The Vermont Enterprise Fund was established in 2014 to allow the state to act quickly to attract or retain jobs around the state. According to the governor, the fund now has a balance of $400,000.