Load Covering Solutions to Create 30 Jobs, Construct Manufacturing Facility in Cadiz
FRANKFORT, KY (STL.News) Load Covering Solutions Ltd., a producer and distributor of tarp systems for commercial trucks and trailers, plans to construct a $2 million plant in Trigg County and create up to 30 quality jobs for Kentuckians across the coming years, Gov. Andy Beshear announced.
“With construction of its first Kentucky facility, Load Covering Solutions will add to Kentucky’s long list of high-quality manufacturers located throughout the state,” said Gov. Beshear. “The company’s announcement continues our strong economic momentum, marking another step forward in creating career opportunities for Kentuckians in every corner of the commonwealth. I thank Load Covering Solutions’ leaders for selecting our state to power the company’s continued growth, and I welcome LCS to Kentucky.”
Amid rising U.S. demand for the Canada-based company’s products, LCS leaders plan to build a 12,000-square-foot manufacturing and installation shop in Interstate 24 Business Park. Operations at the shop will include production, assembly, service and repair of its retractable tarpaulin systems. It also will provide related accessories such as lumber, steel, general flat tarps and general cargo control-related equipment. Customers in the transportation industry use LCS’ products to quickly cover and uncover their cargo.
The new facility also will house sales and marketing personnel. Company leaders anticipate beginning construction this fall and beginning operations by late summer 2022.
With LCS anticipating continued growth, the company chose the Cadiz location in part because of the capability to expand at the facility in the future. Kentucky appealed to LCS because of the state’s proximity to the Interstate Highway 24 corridor and access to the Midwest and Mid-South markets linking Illinois, Indiana, Missouri, Kentucky, Tennessee, Alabama, Georgia and surrounding states.
Kentucky’s incentive programs also played a deciding factor in choosing the commonwealth over other states competing for the project.
“The helpful and courteous staff at both Southwestern Kentucky Economic Development and the Commonwealth of Kentucky were instrumental in making this a good home for Load Covering Solutions,” said Brian Petelka, president of Load Covering Solutions. “We are excited to be opening our new U.S. facility in Kentucky and anticipate a warm embrace from all the surrounding existing and future customers, based on the enthusiasm we have seen so far. Our penetration into the U.S. market will be greatly enhanced through our expansion into Kentucky making our product that much more accessible to customers.”
Established in 1979 in Ontario, Canada, LCS produces a range of highly specialized covers for its customers, which include the U.S. Army, Air Force and Navy, government contractors such as Lockheed Martin, Northrup Grumman, leaders in aviation and space exploration companies, as well as a wide range of fleets, owner/operators, trailer manufacturers and their dealer networks, and general commercial businesses.
LCS features several unique models of covering systems for open deck trailers that provide a safe, efficient, low-effort way for operators to cover and uncover loads in minutes. These systems are custom made to fit flat beds, drop decks, truck bodies, B-trains and a wide range of utility trailers including deckovers, fender trailers and hotshot goosenecks. Additionally, the company manufactures flat and fitted tarps for a variety of other purposes and trailer types.
The company’s U.S. subsidiary, Load Covering Solutions Inc., USA, is based in Buffalo, New York.
LCS will become one of nearly 40 Canadian-owned facilities operating in Kentucky. Since the start of 2020, Canada-based companies announced projects creating over 400 full-time jobs in Kentucky with over $280 million in new investment.
Trigg County Judge/Executive Hollis Alexander said LCS is a great fit for the area’s business community.
“Load Covering Solutions is exactly the type of business we’ve been wanting to recruit to Trigg County,” Judge/Executive Alexander said. “A family owned, Canada-based company, LCS will be providing up to 30 jobs and a significant capital investment. They’ll be creating opportunity for our regional economy while establishing the first international company in the Interstate 24 Business Park. Trigg County is thankful that LCS chose our region to invest and is committed to supporting the company and its leaders, Brian and Linda Petelka, with an awesome quality of life in our award-winning community.”
Cadiz Mayor Todd King said the region is prepared to help LCS sustain its strong growth.
“We are thrilled to welcome Load Covering Solutions to the Interstate 24 Business Park,” said Mayor King. “With the recent opening of our water treatment facility, Load Covering Solutions is choosing a site that is ready for continued growth. Easy access to Interstate 24 and an awesome workforce will help LCS with their early success. However, we look forward to working with company leadership to ensure their success for generations to come in our community known for a less taxing, more relaxing way of life.”
Carter Hendricks, executive director of the South Western Kentucky Economic Development Council, said Cadiz and Trigg County’s business-friendly environment appealed to the company.
“The SWK EDC has had the privilege of working with Load Covering Solutions for over two years helping the company understand doing business in the United States, exploring site options and navigating the various government programs available to the company,” Hendricks said. “Through our ongoing discussions, it became clear that Cadiz-Trigg County is the perfect location for LCS’s North American operations. Additionally, Brian and Linda Petelka’s love of Trigg County and their desire to invest in a business-friendly community made the Interstate 24 Business Park the perfect fit for their light manufacturing and retail operations. This announcement is truly an exciting day for Cadiz-Trigg County as it represents another investment in the business park and highlights the various strengths of doing business in South Western Kentucky, a region positioned to help business and industries of all sizes succeed. We thank Brian and Linda Petelka for their investment in the region and look forward to working with the company leadership in the years to come.”
John Bradley, TVA senior vice president of economic development, said the organization is glad to support LCS and economic development efforts in the region.
“TVA and Pennyrile RECC congratulate Load Covering Solutions on its decision to locate operations in Trigg County,” said Bradley. “Supporting companies that create job opportunities and investment in the valley is fundamental to TVA’s mission of service. We are proud to partner with the Kentucky Cabinet for Economic Development and the South Western Kentucky Economic Development Council to help further that mission and celebrate this announcement.”
LCS’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.
In July, 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.
Kentucky’s year-to-date private-sector new-location and expansion figures include over $2.8 billion in total planned investment and the creation of 6,600-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) in August preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $600,000 in tax incentives based on the company’s eligible investment of $1.67 million and annual targets of:
- Creation and maintenance of 30 Kentucky-resident, full-time jobs across 15 years; and
- Paying an average hourly wage of $26 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, Load Covering Solutions 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.
For more information on Load Covering Solutions Inc., visit loadcovering.com.