A surface transportation, delivery and logistics company will grow by 95 jobs in a nearly $19 million expansion project in Tooele County.
J.B. Hunt Transport Inc. will add the jobs over eight years.
“We’re seeing escalating operating costs, and in this current economic climate, we’re looking for opportunities to expand in areas that promote our operational efficiency and cost management, and that helps us achieve our vision of being the most efficient transportation network in North America,” Juli Dorrough, the company’s vice president of tax, told the Governor’s Office of Economic Opportunity board at its September meeting.
“Our goal in Utah is to create a logistics hub in rural Utah, and such expansion would afford us close proximity to western markets and access to a growing labor force, with institutions such as Utah State [University] supporting logistics and supply chains programs.”
The board approved a tax credit incentive of up to $416,764 over eight years for the expansion.
J.B. Hunt provides supply chain solutions in North America, aiming to meet shipping needs of businesses from the first mile to final delivery. Services include dedicated contract services, intermodal shipping, truckload and final-mile services. The company has had operations in Utah for 10 years.
GOEO documents indicate that the project will result in new state tax revenues of nearly $2.8 million over eight years. The incentivized jobs are expected to have total wages of $36.8 million during that time, with the new jobs paying an average of $85,729.
“We have a very diverse workforce here in our city and in our valley, and we believe that bringing J.B. Hunt here and these additional jobs will be a great asset to our community,” Tooele Mayor Debbie Winn told the GOEO board.
“Transportation is a cornerstone of Utah’s economy, linking businesses, communities and markets worldwide,” Jefferson Moss, GOEO executive director, said in a prepared statement. “With its strategic location and skilled workforce, Utah is a hub for logistics innovation. Companies like J.B. Hunt create quality jobs, strengthen our supply chains, and fuel long-term growth.”
Based in Arkansas, J.B. Hunt Transport Services Inc. reported net earnings of $128.6 million, or $1.31 per share, for the second quarter. That compares with $135.9 million, or 41.32 per share for the same quarter a year earlier. Revenue totaled $2.93 billion, flat with the year-earlier quarter.
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.