Chapin International to Create 200 Jobs with New Danville Facility, Mount Vernon Expansion
FRANKFORT, KY (STL.News) Gov. Andy Beshear announced Chapin International Inc., a manufacturer of compressed air sprayers, plans to add 200 full-time jobs with an expansion of its recently opened Rockcastle County facility and a new location in Boyle County, two projects totaling nearly $16.7 million in new investment.
“Time is money for businesses growing in Kentucky, and Chapin International is setting a record pace for growth in the commonwealth,” Gov. Beshear said. “Last fall, I was proud of the effort at the state and local level to help Chapin establish its new home in Mount Vernon, and I am even more thrilled to see the company already announce new growth in the commonwealth. Chapin shares our vision to create quality jobs for Kentuckians for years to come, and I thank its leadership for believing in our state and our talented workforce for not one, but two significant new investments here.”
Chapin leaders will invest $8.25 million and create 100 jobs in Boyle County with the acquisition of a 496,000-square-foot facility on the South Danville Bypass. The company also will increase investment in its Mount Vernon operation to $13.9 million and double job creation at the facility to 200 full-time positions.
The company produces and distributes metal compressed air sprayers for a variety of uses, including industrial concrete sprayers, professional landscaper/contractor backpack sprayers, ATV sprayers and specialty hose-end and handheld sprayers. Chapin’s growing Kentucky presence positions the company to better serve customers throughout North America.
Chapin announced the Rockcastle County location – its first in Kentucky – last September with an initial $5.5 million investment to create 100 full-time jobs. That announcement highlighted Kentucky’s speed to market strength, as the project came together in under 10 days, and the 175,000-square-foot facility in the Rockcastle Business Park began operation in late 2020.
“Chapin is excited to continue our growth in Kentucky. In just one year we have met our five-year employment goal of 100 people in Rockcastle County,” said Jim Campbell, CEO of Chapin Intentional. “The addition of another 500,000 square feet in Danville, Kentucky, will allow us to continue our growth at a quicker pace. Our Kentucky employees are proving to be the biggest asset to this new plant, with good attendance and a willingness to get the job done. We are accomplishing our goals ahead of schedule. With the help of these employees, we will be well positioned to strengthen our competitiveness and grow further in the global market.”
A subsidiary of Chapin Manufacturing Inc., Chapin International’s business dates back to 1884, when Ralph E. Chapin saw a need for improved containers for kerosene storage while working at a hardware store he operated with his brother-in-law in Oakfield, New York. Demand for the product led to the start of a manufacturing business in nearby Batavia, New York, which quickly expanded to produce 55-gallon storage tanks and pumps, and eventually compressed air sprayers and hand sprayers. The company’s headquarters has since grown to a 700,000-square-foot operation that produces thousands of sprayers each day with additional facilities in Michigan and Ohio, in addition to its recently established Kentucky location.
Chapin’s expanded presence in Kentucky will allow the company to better capitalize on the state’s strategic location to get products to consumers quickly. As the logistics center of the eastern U.S., the commonwealth is located within 600 miles of two-thirds of the nation’s population. Kentucky is home to three global air-cargo hubs, with 20 interstates and controlled-access parkways, over 2,600 miles of freight rail and more than 1,900 miles of navigable waterways.
Those logistical advantages help contribute to Kentucky being a major manufacturing center. Approximately 4,500 manufacturing facilities operate in the commonwealth, with nearly 260,000 current or announced jobs, accounting for one in six private-sector jobs. Kentucky ranks among the leading manufacturing states with more than 13% of its workforce in manufacturing, compared to 8.5% nationally, according to the National Association of Manufacturers.
Rockcastle County Judge/Executive Howell Holbrook said the job creation will greatly benefit the local region.
“Chapin began production at their Rockcastle County facility at the end of last year, and currently have approximately 100 employees,” Judge/Executive Holbrook said. “The plans to expand production in Rockcastle County will create roughly 100 new jobs. We are excited to see this kind of growth in our county and appreciate Chapin for being part of our community.”
Jeff VanHook, executive director of the Rockcastle County Industrial Development Authority, praised Chapin’s expansion plans.
“I appreciate the focus that the Cabinet for Economic Development staff devote daily to our communities to improve the quality of life for every citizen of this commonwealth. I can’t begin to express my gratitude to Chapin for the confidence shown in our region and the workforce of this great state over the past year,” VanHook said. “Many state and local leaders all worked together to push this project forward and clear or hurdle any potential barriers. I extend gratitude to the Governor’s office, legislators, cabinet leadership and staff, local and regional leaders and private partners that all played their roles in this announcement. It is an exceedingly happy outcome for our area, and the results of this highly collaborative effort will have substantial financial implications for local households, our state and onward into the world economy for many years.”
Boyle County Judge/Executive Howard Hunt said he looks forward to a long-lasting partnership with Chapin.
“Boyle County prides itself in being a ‘Historically Bold’ community,” Judge/Executive Hunt said. “We are excited that Chapin International has the opportunity to make its own history here in Danville-Boyle County, Kentucky.”
Danville Mayor Mike Perros welcomed the company’s new facility.
“Danville is well-known as Kentucky’s City of Firsts, and we believe that Danville promises to be a business location of many successful firsts for Chapin International in our commonwealth,” Mayor Perros said.
Jody Lassiter, president and CEO of Develop Danville Inc., said Chapin’s arrival in Boyle County will create long-term growth opportunities.
“We warmly welcome Chapin International as the newest corporate citizen of Danville-Boyle County’s strong and diverse business community,” Lassiter said. “In addition to its planned capital investment and job creation, Chapin will breathe new life into an older existing industrial facility. We are committed to Chapin’s success and growth here.”
Chapin’s investment and planned job creation furthers recent economic momentum in the commonwealth, as the state builds back stronger following the effects of the pandemic.
Last month, thanks to strong fiscal management by the Beshear administration, the state budget office reported the commonwealth ended the 2021 fiscal year with a general fund surplus of over $1.1 billion – the highest ever in the commonwealth – and a 10.9% increase in general fund receipts to $12.8 billion.
Year-to-date, private-sector new-location and expansion announcements include $2.65 billion in total planned investment and the creation of 5,800-plus full-time jobs across the coming years. Through July, Kentucky’s average incentivized hourly wage is $23.47 before benefits, a 6.2% increase over the previous year.
In May, Moody’s Analytics published a positive economic outlook for Kentucky, noting mass vaccination as the driving force behind a sustained recovery in consumer services. The state’s recovery, Moody’s said, benefited from earlier reopening efforts and increased demand for manufactured goods over services. The report also found Kentucky’s manufacturing industry outperformed the nation’s since the national downturn last year.
Fitch Ratings in May improved the state’s financial outlook to stable, reflecting the commonwealth’s solid economic recovery. The state’s April sales tax receipts set an all-time monthly record at $486.5 million, as did vehicle usage tax receipts at over $64 million.
In March, Site Selection magazine’s annual Governor’s Cup rankings for 2020 positioned Kentucky atop the South Central region, and third nationally, for qualifying projects per capita. The commonwealth also placed seventh overall in total projects, the highest of any state with a population under 5 million. Site Selection also recently placed Kentucky in a tie for fifth in its 2021 Prosperity Cup rankings, positioning the state among the national leaders for business climate.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1.05 million in tax incentives based on the company’s investment of $8.25 million and annual targets of:
- Creation and maintenance of 100 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $24.95 including benefits across those jobs.
KEDFA also on Thursday approved a modification to Chapin’s existing 10-year incentive agreement under the Kentucky Business Investment program. The performance-based agreement can provide up to $3.75 million in tax incentives based on the company’s investment of $13.9 million and annual targets of:
- Creation and maintenance of 200 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $22.40 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, Chapin can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.