The deal, supported by various incentives from Sarasota County government that will likely top $1 million, marks the biggest single spurt of job growth in the region since onset of the Great Recession.
“That is very encouraging news for people who are out of work — there is light at the end of the tunnel,” said Florida Sen. Nancy Detert, R-Venice.
There already have been some positive signs in the employment picture. The region’s jobless rate fell to 11.9 percent during October, its lowest level in three months. The decline also marked the first time since September 2006 that the unemployment level had dipped when compared with the same month in the previous year. It also was the fourth straight month that the North Port-Sarasota-Bradenton metropolitan area added 1,000 or more jobs, putting it among the leaders statewide.
The positions added by PGT are still minuscule compared with the numbers out of work and the tens of thousands of jobs lost in the recession. The new positions are less than 1 percent of the region’s 45,091 unemployed.
Nonetheless, officials were enthusiastic. “I think it will help our unemployment rate,” said Kathy Baylis, president of the Economic Development Corp. of Sarasota County.
Southwest Florida’s gain is a loss for Salisbury, N.C. The Venice firm is consolidating its plant there with its local operation, which now employs 739. PGT opened the Salisbury plant in 2003 and moved to a larger one in 2006.
“We continue to make good progress in executing our strategy during a very difficult economic and market environment,” said Rod Hershberger, PGT’s chief executive, in a statement on Friday. “Transitioning to a centralized location optimizes our manufacturing capacity and logistics.”
Hershberger could not be reached for comment. Spokeswoman Debbie LaPinska said he was in North Carolina meeting with employees.
“This is a very trying time for our company and employees,” LaPinska said.
PGT will consolidate the plants during the next 60 days and have the process completed by the second quarter of 2011.
PGT’s decision marks the latest move in a tug of war between Southwest Florida — and the broader Sunshine State — and North Carolina, which has been seeking to replenish jobs lost with the disappearance of its furniture industry.
The Tar Heel State has offered generous financial incentives to companies and has been particularly successful in luring boating manufacturers from Florida, which once dominated the marine landscape.
Late last month, North Carolina drew Donzi Marine from Manatee. The parent of the storied boatmaker is consolidating three brands of fishing and speed boats at the Beaufort County city of Washington. Manatee’s few dozen remaining Donzi employees were notified that they would be laid off by the end of the year.
Donzi’s departure leaves only one international player in the region — one that also was courted successfully by North Carolina. Chris-Craft Boats, which expanded to that state in 2006, reconsolidated in Manatee 18 months later with the downturn in the boating industry.
With PGT, there was great secrecy surrounding talks about its move. The public company did not want news to leak before it could tell employees in North Carolina “face to face,” said Jeff Maultsby, Sarasota County’s manager of business and economic development.
Maultsby was one of only two county employees who knew of the discussions, which started about three weeks ago. County commissioners were told late this week that an unnamed company would be adding 400 jobs, was seeking $600,000 in incentives and would also be asking for tax abatement on new equipment.
They also were told that the average wages the company would pay the new workers would be $29,750, well below the county average of $35,665. Maultsby noted that the U.S. government figure for average wages in Sarasota County is two years old and has likely fallen.
He also noted that PGT was a special case: “It’s a big situation, to be able to work with one of our home-grown companies and bring those jobs back. We need them here.”
The PGT deal is by far the largest of 19 the county has struck during the last 14 months since creating a $5 million economic incentive fund that has since been doubled. The other 18 promised nearly 1,300 jobs, but a majority were to be created over a three- to five-year span. Previously, the largest was Tervis Tumbler, which says it will create 214 jobs over three years.
PGT also is unique because of its immediate impact and because of its size. Earlier this year, in an annual ranking published earlier this year of Sarasota County’s largest employers, PGT was the second largest corporate employer behind only Publix, and was the largest Sarasota County-based private employer.
The incentive deal with the company will likely top $1 million, including $600,000 from the county and the tax breaks PGT will be seeking. The company will be asking county commissioners next year to waive property taxes on $16 million in equipment it will be adding in the Venice plant. Sarasota County voters approved a referendum earlier this year granting commissioners the power to waive taxes on new business equipment in cases where companies promise to create jobs. Venice voters passed a similar measure.
PGT will be asking the county to waive taxes on the new equipment for 10 years, the maximum allowed, Maultsby said.
The company has been hit hard by the recession because of its close linkage with the housing industry, but it has been showing signs of stability in recent months. In November, PGT posted its second consecutive quarter of rising sales, at $47.2 million, a 13.4 percent percent increase.
Combined with the previous quarter, it was the first positive movement since 2006.
Even with the addition of 400 employees, PGT will still be well below its boom-time work force of 2,600. The company cut more than half those jobs during the recession.