Two companies expanding in Covington and Union won preliminary approval for state incentives on Thursday.
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 $8 million investment to relocate to Union, creating an additional 25 jobs, an announcement from Gov. Andy Beshear’s office said.
In Covington, BM2 currently occupies the entire fifth floor of RiverCenter I downtown along the Ohio River. The company plans to expand by leasing 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 and operated third-party logistics company that provides transportation services to customers throughout North America by connecting them with a network of over 30,000 carriers. It was founded in 2008.
“BM2 is pursuing aggressive growth goals by providing strategic transportation solutions and services to our customers in North America,” BM2 President Sarah Newman said in an announcement. “Our priorities are service, communication and integrity. We’re thrilled to be expanding our headquarters and adding new jobs in Covington. We appreciate the support we have received from Kentucky, the City of Covington and Northern Kentucky Tri-ED.”
“Our distribution and logistics sector are seeing continued strong growth,” Beshear said in the announcement. “It is no surprise that given Kentucky’s unique location and resources, companies continue to choose the commonwealth to meet the demands of a growing consumer base. I am thrilled that BM2 Freight Services will expand its operations here in Kentucky and want to thank the company’s leadership for believing in what this great state has to offer. I am looking forward to their continued success.”
As part of its expansion at RiverCenter, BM2 will convert its new floor to allow for room for 56 new employees, mainly logistics account manager positions. That would expand the company’s employee count to 154, the announcement said.
Other local officials also welcomed the news for BM2.
“It’s fantastic to see a highly successful, locally founded company expand and create new jobs in Northern Kentucky,” said Kenton County Judge/Executive Kris Knochelmann. “BM2 has been named to the Cincinnati Business Courier’s Fast 55 list and the Inc. 5000 list multiple times. Congratulations to the company’s leaders on their growth.”
“Covington is committed to helping its businesses thrive and grow,” said Covington Mayor Joe Meyer said. “We’re proud to partner with the commonwealth and BM2 to not only help this vibrant, family-owned company expand but also create more jobs for our residents and accelerate the stunning momentum of our local economy. The city’s support of its businesses doesn’t end with 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 the consumers in the United States within a day’s drive, and the number of manufacturers we have in the Cincinnati region, 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 in Covington and add new, high-paying jobs in Northern Kentucky.”
The company was preliminarily approved by the Kentucky Economic Development Finance Authority (KEDFA) on Thursday for a 10-year incentive agreement 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 targets of:
- Creation and maintenance of 56 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $28.61 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.
Union to welcome job growth
Also receiving preliminary approval for state incentives on Thursday was Automotive Service Products Inc. (ASP) which plans an $8 million investment to relocate within Boone County, creating an additional 25 jobs.
“Kentucky continues to see growth and momentum from some of its most important industries,” Beshear said. “The manufacturing sector plays a huge role in the commonwealth’s economy, and that is because of companies like Automotive Service Products. Seeing a company choose Kentucky over other locations to expand is a testament to the resources, unique location and skilled workforce in our state. I want to thank the leaders at Automotive Service Products for their continued dedication to this state and wish them all the success in the future.”
The new operation will be located in a 55,000-square-foot building on 8 acres in Union. The new jobs include management, sales, production, and back-office support roles. Construction on the new facility is expected to begin in January and be completed in December 2023. The company currently operates in Burlington.
“We are delighted to stay in Boone County where our company was founded and has been in business for the past 36 years,” said Jeff and Kellie Koenig, owners, Automotive Service Products, in an announcement. “Through high-quality service and partnership with our customers in the automotive industry driven by our outstanding team, our company has experienced significant success that is resulting in this expansion. Thank you to the State of Kentucky, Boone County and Northern Kentucky Tri-ED for their support and guidance through this process.”
Founded in 1986, ASP is a wholesale supplier and trade print manufacturer. The company provides a wide range of services, including in-house trade print manufacturing, custom products such as license plates, decals and office forms and warehousing and fulfillment. ASP’s clients range from single-person sole proprietorships to multimillion-dollar corporations, the announcement said.
The company operates three distribution centers across the United States, located in Nevada, Ohio, and Burlington.
ASP currently employs 35 people locally, a number now expected to grow to 60.
Local officials also welcomed ASP’s news.
“I’m excited to see a home-grown, family-owned company expand in Northern Kentucky while serving a nationwide customer base,” said Boone County Judge/Executive Gary Moore. “Congratulations to the Koenig family on their success and a new custom building.”
“The Cincinnati region provides excellent access to the majority of U.S. consumers and the distributors and companies that ASP serves,” said Crume, of Tri-ED. “We appreciate ASP’s decision to expand in the same Northern Kentucky community where the company has operated for more than 35 years.”
ASP 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 targets of:
- Creation and maintenance of 25 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $28.61 including benefits across those jobs.
Additionally, KEDFA approved ASP for up to $40,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.