Economic Development Spotlight: Cummins, Inc.
In December 2014, the EDGE Board of Directors approved a 15-year PILOT for Cummins, Inc. The goal was to retain the company as they outgrew their Memphis facility. Now, in its third year of the EDGE PILOT program, Cummins is thriving and has exceeded its commitment for jobs, wages, and capital investment.
To secure the PILOT from EDGE, Cummins committed to hire 70 new employees at $37,800 per year (excluding benefits) while retaining 897 existing positions at $36,639 per year (excluding benefits); invest $9.4 million in real and personal property combined; and spend at least $473,413 per year with certified minority/women-owned business or certified locally owned small businesses (totaling $7.1 million across the 15-year term).
As of December 31, 2017, Cummins had hired 185 new employees at $47,500 per year (excluding benefits) and invested more than $14.9 million in real and personal property combined. For the year, the company spent $713,296 with certified minority/women-owned business or certified locally owned small businesses.
“Cummins is one of our many outstanding PILOT partners,” said Tracy Buckley, EDGE’s Manager of Economic Development Programs. “By successfully retaining Cummins in 2014, the community has reaped the benefit of their success with more than two and a half times the number of new jobs expected, at wage rates 26 percent higher than forecast.”
Cummins Inc., designs, manufactures, distributes, and services a broad portfolio of power systems. The company’s products range from diesel and natural gas engines to hybrid and electric platforms, as well as related technologies, including battery systems, fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, currently, Cummins employs approximately 58,600 people world-wide. The Memphis division provides services for Alabama, Arkansas, Louisiana, and Mississippi.