SteelFab Inc. has announced plans to invest $19 million and create 38 new jobs in Cumberland County, expanding the steel fabrication company’s operations in Fayetteville. This project will be partially funded by a performance-based grant of $125,000 from the One North Carolina Fund.
The OneNC Fund provides taxpayer money to local governments for economic development. Companies do not receive money up front and must meet hiring and investment targets to receive payments. Local governments are required to match OneNC grants, and awards are contingent upon that match.
“SteelFab takes in nearly $400 million a year in revenue, by some industry estimates,” Brian Balfour, VP of research at the John Locke Foundation, told the Carolina Journal. “The state handing it $125,000 of taxpayer money makes virtually no noticeable difference in their bottom line. Such giveaways are pure political gamesmanship, so government bureaucrats and the governor can issue a press release for promising jobs that may or may not materialize, taking credit for an investment most likely to occur anyway. The state should end this practice of taxpayer handouts to politically selected corporations and instead focus on reducing taxes across the board for businesses, and allow them to compete for consumer dollars rather than lobby for taxpayer dollars.”
Operating facilities and 17 offices across the United States, SteelFab is the largest structural steel fabricator in the nation. The company uses state-of-the-art technology to fabricate up to 2,000 tons of material, which is then assembled and delivered for both industrial and commercial projects. Three fabrication bays, two prep bays, two shape lines, an office, and a break room will be included in a 108,000-sq-ft expansion.
“SteelFab looks forward to substantially growing our business in Fayetteville,” Rob Burlington, region president of SteelFab, Inc., said in a press release. “The grants from Fayetteville Cumberland County Economic Development Commission (FCEDC) and the State of North Carolina were extremely helpful in helping us realize our goal of a new manufacturing facility and growing workforce. We are excited to continue our tradition as a North Carolina-founded, privately owned steel manufacturer supplying projects in communities across the state and the East Coast.”
Wages will vary by position, but the average projected salary will be $70,106, exceeding Cumberland County’s average salary of $47,175 by almost $23,000, according to the release.
“North Carolina is a place where businesses like SteelFab can grow,” Gov. Josh Stein said in a press release. “Cumberland County is home to a world-class workforce, legacy of manufacturing excellence, and convenient East Coast location. We’re grateful that SteelFab is doubling down on Cumberland.”
The North Carolina Department of Commerce and the Economic Development Partnership of North Carolina (EDPNC) are major partners on this project, along with the North Carolina General Assembly, Commerce’s Division of Workforce Solutions, the North Carolina Community College System, Fayetteville Tech Community College, Cumberland County, the City of Fayetteville, and the Fayetteville Cumberland County Economic Development Corporation.