Bluegrass Times

FRANKFORT, Ky.  – On September 28, Gov. Andy Beshear highlighted new economic growth coming to Adair County as Phillips Tank & Structure (PTS), a nationwide tank construction contractor, announced plans to build a $2.76 million fabrication shop that will create 20 new full-time jobs in the Columbia area.

“Phillips Tank & Structure is a great example of the quality companies that are choosing Kentucky to locate their businesses,” said Gov. Beshear. “Our economy is thriving, and PTS is a valued addition to that momentum. I want to congratulate the company on its new fabrication facility in Adair County and thank its leadership for choosing to invest in the commonwealth and our incredible workforce.”

PTS is acquiring 6 acres owned by the Adair County Economic Development on Development Drive in Columbia, a property previously approved for $460,000 in state support in the first round of the Kentucky Product Development Initiative. The project will include a 15,000-square-foot fabrication shop, a 5,000-square-foot tool house/garage and 5,000 square feet of office space. The project will also include the acquisition of various construction and fabrication shop equipment. PTS and wholly owned subsidiary Steel Valley Fabricators (SVF) will share the space and work together to service their different markets in the region. Construction is expected to begin in March 2024 and be completed by December 2024.

“We have been searching for suitable locations to expand our branch offices,” said PTS Vice President Jeff Sassic. “The available state and county incentives made Adair County, Kentucky, a very attractive option that was difficult to pass up. The Adair County Economic Development representatives were wonderful to deal with and made the process as easy as possible. We are excited to join the Adair County community. We look forward to contributing to the growth and development of the local economy.”

Conway-Phillips Holding LLC, doing business as Phillips Tank & Structure (PTS), is a nationwide contractor engaged in engineering, designing, repairing and constructing above-ground storage tanks in the petroleum, chemical, agricultural, U.S. defense and other industries. PTS has been in business since November 2012 and has grown into a nationally recognized tank contractor with over 16 field crews and 150 employees. PTS is headquartered in Braddock, Pennsylvania, with branch offices in Texas, California and Hawaii.

Steel Valley Fabricators LLC (SVF) is a regional full-service welding and metal fabricating shop that provides custom parts and weldments for customers in various industries. SVF is a wholly owned subsidiary of PTS and was established in November 2019. SVF is also headquartered in Braddock, Pennsylvania, with a branch office in California. SVF employs 38 workers between the two locations.

Adair County Judge/Executive Larry Russell Bryant showed his excitement for the project and spoke on the job opportunities PTS will provide: “I am so very pleased that Phillips Tank & Structure has selected Adair County as the home for their regional hub and will help continue the momentum of economic growth in Green River Commerce Park. PTS will not only be a great addition to the Commerce Park; but they will also provide an excellent workforce pathway to the students who participate specifically in our welding program at Adair County High School. Along with the Adair County Fiscal Court, the Columbia City Council and the Economic Development Authority, Phillips Tank & Structure will be an instrumental partner in making dreams for our Commerce Park become a reality.”

Columbia Mayor Pamela Hoots talked about future growth for Columbia: “On behalf of our entire EDA team, we are excited that Phillips Tank & Structure has chosen to locate in Columbia, Kentucky. PTS’s $2.76 million investment and creation of 20 well-paying jobs furthers the momentum of recent announcements in Green River Commerce Park. As their company grows, we are happy that they have chosen to grow with us!”

Columbia-Adair County Economic Development Authority Chairman Larry Walker thanked the partners that made the project possible: “The City of Columbia is excited to welcome Phillips Tank & Structure to our community. We appreciate the work of the EDA Board in administration of this project.”

PTS’s investment and job creation builds on recent economic momentum in the commonwealth.

Last month, Gov. Beshear reported that General Fund receipts for July 2023 totaled $1.1 billion, marking the 11th straight month with revenues over $1 billion. The Governor also recently announced that his administration secured the largest General Fund budget surplus and Rainy Day Fund, as well as the most jobs filled in state history.

The General Fund budget surplus at the end of fiscal year 2023 was more than $1.55 billion. Nearly all of the $1.55 billion surplus will go into the commonwealth’s Rainy Day Fund, bringing the fund to a record balance of $3.7 billion – a 2,700% increase since Gov. Beshear took office in 2019.

This year, the Governor announced that Kentucky set the record for the longest period with the lowest unemployment rates in state history.

Since the beginning of his administration, Gov. Beshear has announced nearly 900 private-sector new-location and expansion projects totaling over $27.5 billion in announced investments, creating 48,000 jobs. This is the highest investment figure for any governor in state history.

The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 was $26.78 before benefits, the second-highest mark since 2010 and an 11.5% increase over the previous year.

The Governor also secured the best two-year period in state history for economic growth and announced the two largest economic development projects in state history. In September 2021, Gov. Beshear and leaders from Ford Motor Co. and SK On celebrated a transformative $5.8 billion investment that will create 5,000 jobs in Hardin County. In April 2022, the Governor was joined by leadership at AESC to announce a $2 billion investment that will create 2,000 jobs in Warren County. These announcements solidify Kentucky as the EV battery production capital of the United States.

That position was strengthened even further in May 2023, when the Governor and leaders at Toyota announced a $591 million investment across multiple projects as the company’s largest manufacturing operation in Georgetown introduced its first battery electric vehicle. Growth within the EV sector continued into June as Gov. Beshear joined INFAC North America to break ground on the company’s $53 million investment to support EV-related production in Campbellsville.

Over a two-month period this year, Kentucky secured two credit rating increases from major agencies. On May 12, Gov. Beshear announced that his administration obtained the first state-level credit rating upgrade in 13 years and the first-ever upgrade from Fitch Ratings. On June 29, Gov. Beshear announced the commonwealth received its first-ever rating increase from S&P Global Ratings. Yesterday, Moody’s Investors Service upgraded Kentucky’s credit outlook from stable to positive.

Site Selection magazine recently placed Kentucky first in the South Central region and top-5 nationally in its 2023 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects. The publication also placed Kentucky second nationwide and first in the South Central region for its annual Governor’s Cup ranking for 2022, which recognizes state-level economic success based on capital investments.

Gov. Beshear announced a new “Supply Kentucky” initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) today preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $550,000 in tax incentives based on the company’s investment of $2.76 million and annual targets of:

• Creation and maintenance of 20 Kentucky-resident, full-time jobs across 15 years; and
• Paying an average hourly wage of $23.32 including benefits across those jobs.

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.

In addition, PTS can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

For more information on Phillips Tank & Structure, visit PhillipsTank.com.

A detailed community profile for Adair County can be viewed here.

Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.

Original source can be found here.