Link investor

State grants incentives for new jobs in Covington, Union

On Thursday, two growing businesses in Covington and Union got preliminary approval for state incentives.

BM2 Freight Services will invest $2.3 million and create 56 jobs in Covington, while Automotive Service Products Inc. will expand its presence in Kentucky with an investment of $8 million to move to Union, creating 25 additional jobs, according to an announcement from Governor Andy Beshear’s office. .

In Covington, BM2 currently occupies the entire fifth floor of downtown RiverCenter I along the Ohio River. The company plans to expand by renting an additional half-floor in the same building where it will occupy more than 24,000 square feet in total.

The company is a family-owned, independent logistics company that provides transportation services to customers across North America by connecting them to a network of more than 30,000 carriers. It was founded in 2008.

“BM2 is pursuing aggressive growth objectives by providing strategic transportation solutions and services to our customers in North America,” BM2 President Sarah Newman said in a statement. “Our priorities are service, communication and integrity. We are excited to expand our headquarters and add new jobs to Covington. We appreciate the support we have received from Kentucky, the City of Covington and the Northern Kentucky Tri-ED.

“Our distribution and logistics business is experiencing continued strong growth,” Beshear said in the announcement. “It’s no surprise that given Kentucky’s unique location and resources, businesses continue to choose the Commonwealth to meet the demands of a growing consumer base. I am thrilled that BM2 Freight Services is expanding its operations here in Kentucky and want to thank the company management for believing in what this great state has to offer. I look forward to their continued success.

As part of its expansion at RiverCenter, BM2 will convert its new floor to accommodate 56 new employees, primarily Logistics Account Manager positions. This would bring the company’s number of employees to 154, according to the announcement.

Other local officials also welcomed the news for BM2.

“It’s fantastic to see a very successful local business grow and create new jobs in Northern Kentucky,” Kenton County Judge/Executive Kris Knochelmann said. “BM2 has been named to the Cincinnati Business Courier Fast 55 list and the Inc. 5000 list multiple times. Congratulations to the company’s leaders for their growth.

“Covington is committed to helping its businesses thrive and grow,” said Covington Mayor Joe Meyer. “We are proud to partner with the Commonwealth and BM2 to not only help this dynamic family business grow, but to create more jobs for our residents and accelerate the tremendous momentum of our local economy. The City’s support for its businesses doesn’t stop at a ribbon cutting, it continues as long as they need us. We congratulate BM2 on its continued success.

“Given our proximity to more than half of consumers in the United States within a day’s drive and the number of manufacturers we have in the Cincinnati area, logistics management is a high growth industry. said Lee Crume, CEO of Northern Kentucky. Tri-County Economic Development Corporation (Tri-ED). “We applaud BM2’s decision to expand into Covington and add new, high-paying jobs to Northern Kentucky.”

The company was pre-approved by the Kentucky Economic Development Finance Authority (KEDFA) on Thursday for a 10-year incentive deal under the Kentucky Business Investment Program. The performance-based agreement can provide up to $600,000 in tax incentives based on the company’s investment of nearly $2.3 million and annual goals of:

  • Created and maintained 56 full-time jobs in Kentucky over 10 years; and
  • Paying an average hourly wage of $28.61 including benefits for these jobs.

By achieving its annual objectives over the term of the agreement, the business may be eligible to retain a portion of the new tax revenue it generates. The company can claim eligible incentives against its income tax and/or employee contributions.

Union hails job growth

Automotive Service Products Inc. (ASP) also received preliminary approval for state incentives on Thursday, which includes an $8 million investment to relocate to Boone County, creating 25 additional jobs.

“Kentucky continues to see growth and momentum in some of its most important industries,” Beshear said. “The manufacturing sector plays a huge role in the Commonwealth economy, and that’s thanks to companies like Automotive Service Products. To see a business choose Kentucky over other places to grow is a testament to our state’s resources, unique location, and skilled workforce. I would like to thank the leadership of Automotive Service Products for their continued dedication to this state and wish them every success in the future.

The new operation will be located in a 55,000 square foot building on 8 acres in Union. New jobs include management, sales, production and administrative support roles. Construction of the new facility is expected to begin in January and be completed in December 2023. The company currently operates in Burlington.

“We are excited to remain in Boone County, where our company was founded and has been in business for 36 years,” said Jeff and Kellie Koenig, owners, Automotive Service Products, in an announcement. “Through high-quality service and a partnership with our customers in the automotive industry led by our exceptional team, our business has achieved significant success which is reflected in this expansion. Thank you to Kentucky State, Boone County, and Northern Kentucky Tri-ED for their support and guidance throughout this process.

Founded in 1986, ASP is a wholesale supplier and manufacturer of commercial printing. The company provides a wide range of services, including in-house commercial print manufacturing, custom products such as license plates, decals and office forms, as well as warehousing and fulfillment. ASP’s customers range from one-man businesses to multimillion-dollar corporations, according to the announcement.

The company operates three distribution centers across the United States, located in Nevada, Ohio and Burlington.

ASP currently employs 35 people locally, a number that is now expected to grow to 60.

Local officials also welcomed the news from the ASP.

“I am thrilled to see a local family business growing in northern Kentucky while serving a national customer base,” said Boone County Judge/Executive Gary Moore. “Congratulations to the Koenig family on their success and a new custom building.”

“The Cincinnati area provides excellent access to the majority of US consumers and to the distributors and businesses served by ASP,” said Crume of Tri-ED. “We appreciate ASP’s decision to expand into the same northern Kentucky community where the company has operated for more than 35 years.”

ASP has received preliminary approval from KEDFA for a 10-year incentive agreement under the Kentucky Business Investment Program. The performance-based agreement can provide up to $250,000 in tax incentives based on the company’s investment of $8 million and annual goals of:

  • Creation and maintenance of 25 full-time jobs in Kentucky over 10 years; and
  • Paying an average hourly wage of $28.61 including benefits for these jobs.

Additionally, KEDFA has approved ASP for up to $40,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows licensed companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development, and electronic processing.