Wednesday, February 05, 2014

Caterpillar Created 364 Full-Time Jobs At Its New Plant, Report Filed By Oconee County Official States

Agreement Required Only 100

During 2013, Caterpillar created 364 of the 1,400 full-time jobs it has said it eventually will have at its newly-opened manufacturing plant on the Oconee County and Clarke County border just east of Bogart.

That figure comes from a report Rick Waller, chairman of the Oconee County Industrial Development Authority, filed on Jan. 30 with the Georgia Department of Community Affairs OneGeorgia Authority.

Entrance To Plant

The 364 full-time jobs created in the June 5, 2012, to Dec. 31, 2013, period is 264 more than Caterpillar was required to have during 2013–its first year of operation–by the memo of understanding it signed with the two counties in February of 2012.

By the end of 2032, according to that MOU, Caterpillar is to have created 1,100 full-time jobs, though the company used the 1,400 figure in its press release announcing its decision to locate its manufacturing plant in the two counties, and most media reports have used that higher figure.

Local Investment: $19.4 Million

Waller, in his report to the state, said the two counties had spent $19,369,772 to bring the Caterpillar plant to the area, though they had proposed to spend $18,069,830 in its application for state funds.

The industrial development authorities of the two counties bought the land and built roadways and water and sewer lines for the project.

The report by Waller stipulates that the $19.4 million figure does not include OneGeorgia Authority funds.

The Wall Street Journal reported at the time of the plant’s announcement that Caterpillar will receive more than $75 million in incentives from the state of Georgia, Athens-Clarke County and Oconee County.

Caterpillar Investment: $107.4 Million

Waller’s report states that Caterpillar invested $107,407,527 in calendar year 2013 in the project, out of a proposed $160 million.

Caterpillar said in its press release that it would invest “about $200 million” in the facility, and that same figure was used by Georgia Gov. Nathan Deal in his announcement of the project.

Caterpillar also estimated that 2,800 additional full-time jobs will be created in the U.S. among suppliers at other non-Caterpillar companies that will provide parts for the new facility.

So far, no new companies have moved to Athens-Clarke County or Oconee County to supply Caterpillar.

Plant Opened In October

Caterpillar moved the manufacturing for small track-type tractors and mini hydraulic excavators to Georgia from a plant in Japan, saying it wanted to be closer to its customers.

The grand opening of the Caterpillar plant was held on Oct. 31.

The MOU signed by the company with the two counties obligated it to file it first employment report by the Jan. 31 date.

I obtained a copy of that report from Oconee County Economic Development Officer Rusty Haygood today.


Anonymous said...

This was a large investment of taxpayer dollars to bring in this facility. However, these jobs are in the private industry and hopefully will provide a nice ROI for this area and the state.

Anonymous said...

So between the county and state governments, the tax payers spent more than $260,000 per job created. Priceless! Corporatism at its finest. Those connected get the labor of the tax payer for free courtesy of our masters in the government. Our government picking winners and losers... small business, the engine that kept the old American economy working, are quickly being taxed and regulated out of business while the connected corporate and government class consolidate power. It won't be much longer...