State awards incentives for new jobs in Covington, Union

Two companies expanding in Covington and Union received preliminary government stimulus approval Thursday.

BM2 Freight Services will invest $2.3 million and create 56 jobs in Covington, while Automotive Service Products Inc. will expand its footprint in Kentucky with an investment of $8 million to move to Union and add 25 jobs create, according to an announcement by Gov. Andy Beshear’s office.

In Covington, BM2 currently occupies the entire fifth floor of RiverCenter I in downtown Covington on the Ohio River. The company plans to expand by renting an additional half floor in the same building, totaling more than 24,000 square feet.

The Company is a family-owned and operated third-party logistics company that provides transportation services to customers across North America by connecting them to a network of over 30,000 carriers. It was founded in 2008.

“BM2 is pursuing aggressive growth goals by providing strategic transportation solutions and services to our customers in North America,” BM2 President Sarah Newman said in an announcement. “Our priorities are service, communication and integrity. We are excited to expand our headquarters and create new jobs in Covington. We appreciate the support we have received from Kentucky, the City of Covington and Northern Kentucky Tri-ED.”

“Our distribution and logistics sector continues to experience strong growth,” Beshear said in the announcement. “Not surprisingly, given Kentucky’s unique location and resources, businesses continue to turn to the Commonwealth to meet the demands of a growing consumer base. I am excited that BM2 Freight Services is expanding its operations here in Kentucky and want to thank management for believing in what this great state has to offer. I look forward to their continued success.”

As part of its expansion at RiverCenter, BM2 will remodel its new floor to accommodate 56 new employees, primarily in logistics account manager positions. That would bring the company’s workforce to 154, the announcement said.

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Other local officials also welcomed the news for BM2.

“It’s fantastic to see a highly successful, locally based company in Northern Kentucky expand and create new jobs,” said Kris Knochelmann, Judge/General Manager, Kenton County. “BM2 has been named to the Cincinnati Business Courier’s Fast 55 list and the Inc. 5000 list multiple times. We congratulate the leaders of the company on their growth.”

“Covington is committed to helping its businesses thrive and grow,” said Covington Mayor Joe Meyer. “We are proud to partner with the Commonwealth and BM2 to help this dynamic family business not only expand, but create more jobs for our residents and accelerate the breathtaking dynamism of our local economy. The city’s support for their businesses doesn’t end when the ribbon is cut—it lasts as long as they need us. We congratulate BM2 on its continued success.”

“Given our proximity to more than half of consumers in the United States within a day’s drive and the number of manufacturers we have in the Cincinnati area, logistics management is a rapidly growing industry,” said Lee Crume, CEO of Northern Kentucky Tri -County Economic Development Corporation (Tri-ED). “We welcome BM2’s decision to expand in Covington and create new, high-paying jobs in northern Kentucky.”

The company was provisionally approved for a 10-year incentive agreement under the Kentucky Business Investment Program by the Kentucky Economic Development Finance Authority (KEDFA) on Thursday. The performance-based agreement can provide up to $600,000 in tax incentives based on the company’s nearly $2.3 million investment and annual goals of:

  • Creation and retention of 56 full-time Kentucky resident positions for 10 years; and
  • They pay an average hourly wage of $28.61 including benefits for these jobs.
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By meeting its annual targets during the term of the contract, the company may be entitled to keep some of the new tax revenue it generates. The company may claim eligible incentives on its income tax liability and/or wage assessment.

Union wants to welcome job growth

Also on Thursday, Automotive Service Products Inc. (ASP) received preliminary government incentive approval, which plans to invest $8 million to relocate within Boone County and create an additional 25 jobs.

“Kentucky continues to see growth and momentum in some of its key industries,” Beshear said. “Manufacturing plays a big part in the Commonwealth economy and that’s thanks to companies like Automotive Service Products. Seeing a company choose Kentucky over other locations to expand is a testament to our state’s resources, unique location and skilled workforce. I would like to thank the leaders of Automotive Service Products for their continued commitment to this condition and wish them every success in the future.”

The new facility will be located in a 55,000 square foot building on 8 acres in Union. The new positions include management, sales, production and back office support roles. Construction of the new facility is scheduled to begin in January and be completed in December 2023. The Company currently operates in Burlington.

“We are excited to remain in Boone County, where our company was founded and has been in business for 36 years,” Jeff and Kellie Koenig, owners of Automotive Service Products, said in an announcement. “Through quality service and partnership with our customers in the automotive industry, driven by our outstanding team, our company has achieved significant successes leading to this expansion. Thank you to the State of Kentucky, Boone County and Northern Kentucky Tri-ED for their support and guidance through this process.”

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Founded in 1986, ASP is a wholesale supplier and manufacturer of commercial printed matter. The company offers a wide range of services including in-house production of commercial printing, custom products such as license plates, stickers and office forms, and warehousing and fulfillment. ASP’s customers range from one-person sole proprietorships to multi-million dollar corporations, the announcement said.

The company operates three distribution centers in the United States located in Nevada, Ohio and Burlington.

ASP currently employs 35 people on site, the number is now expected to increase to 60.

Local officials also welcomed the news from ASP.

“I’m pleased to see a local family business expanding in northern Kentucky while serving a nationwide customer base,” said Gary Moore, Judge/CEO of Boone County. “Congratulations to the Koenig family on their success and a new custom building.”

“The Cincinnati region provides excellent access to the majority of US consumers and to the distributors and businesses that ASP serves,” said Crume of Tri-ED. “We appreciate ASP’s decision to expand into the same northern Kentucky community where the company has served for more than 35 years.”

ASP has received provisional approval from KEDFA for a 10-year incentive agreement under the Kentucky Business Investment Program. The performance-based agreement can provide up to $250,000 in tax incentives based on the company’s $8 million investment and annual goals of:

  • Creation and maintenance of 25 full-time Kentucky resident positions for 10 years; and
  • They pay an average hourly wage of $28.61 including benefits for these jobs.

In addition, KEDFA approved ASP for up to $40,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA enables qualifying businesses to reclaim Kentucky sales tax on construction costs, building equipment, equipment used in research and development, and electronic processing.