A specialty manufacturer will expand in Davis County, adding 223 jobs over the next decade.
ACS Manufacturing LLC made the announcement after being approved for a tax credit incentive of up to nearly $1.7 million over that time. The tax credit was approved by the Governor’s Office of Economic Opportunity board at its June meeting.
Established in 1995, Texas-based ACS designs, engineers and fabricates backup power systems used in data centers, hospitals and utilities. It performs complex structural, electrical and manufacturing work to design, build, test and commission its enclosures and related power generation products.
Its facility in Denison, Texas, is one of the largest in the industry, with nearly 300,000 square feet on 36 acres. In addition to Texas, the company has operations in South Carolina and will have Utah serve as a hub to serve customers on the West Coast.
“As demand for our products continues to accelerate at a rapid pace, expanding our manufacturing operations in Utah is a strategic step forward,” Dan Knox, CEO, said in a prepared statement. “Utah offers a unique and compelling business environment, including its proximity to key customers and a deep pool of highly skilled labor. But what truly sets Utah apart is the exceptional work ethic of its people. We’re excited to invest in a region that shares our commitment to quality, innovation and excellence in everything we do.”
Rhett Neuenschwander, and ACS board member and partner at Salt Lake City-based Tower Arch Capital, an investment firm that announced last fall that it had recapitalized ACS Manufacturing in partnership with Knox, told the GOEO board that ACS has a backlog from large data center operators and hyper-scaling companies that tops $500 million. Production to meet that backlog will take place in 2026-28 and a little bit past that, and obviously the backlog is growing,” he said.
“In order to meet that demand, that’s why we needed to create a third facility. Utah is a great market, a great location for us,” he added.
In addition to Utah, the company had considered sites in Arizona, Idaho and Nevada for the expansion.
Neuenschwander said the new jobs will include high-end welders and electricians.
“The outlook is very bright,” he said. “We’re really excited about the company going forward and excited about the potential of being here in Utah and being able to continue to build, and build a big operation in Clearfield.”
The $31.45 million Utah project is expected to generate new total wages of over $120.4 million and new state tax revenue of nearly $8.4 million over 10 years. The average wage of the new jobs is projected at $73,851.
“Utah’s manufacturing sector is a key driver of our state’s economic resilience and prosperity,” Jefferson Moss, GOEO executive director, said in a prepared statement. “Companies like ACS Manufacturing are at the forefront of positioning Utah as a technological advancement and innovation hub. Its growth creates high-quality jobs, strengthens our communities, and bolsters the state’s economy.”
“ACS Manufacturing will play a key role in supporting important industries across the state by manufacturing critical support systems right here in Utah,” said Ryan Starks, executive director of the Economic Development Corporation of Utah. “We appreciate our strong partnerships in Northern Utah and the support from GOEO in providing an incentive to help bring this project to life.
“ACS Manufacturing has an important role in providing redundant and reliable systems. Additionally, they are creating high-wage jobs and delivering significant value to the community of Clearfield in Davis County.”
Spencer Brimley, Clearfield’s assistant city manager, told the GOEO board that the city is a manufacturing community “and we’re grateful that ACS has seen the value in coming to this community. [We’re] excited for them and want to make sure that we support them in whatever way possible in their continued success and growth.”
“Clearfield City is thrilled to welcome ACS Manufacturing’s expansion,” Clearfield Mayor Mark Shepherd said in a prepared statement. “This expansion will bring 200-plus new jobs to our city and is a testament to our shared vision to strengthen Clearfield. We’re honored to be the home of the expansion and look forward to their continued success.”
GOEO does not provide upfront cash incentives. Each year that an incentivized company meets the obligations in its contract with GOEO, it will qualify to receive a portion of the new, additional state taxes the company paid to the state.