Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowFastenal Co., a supplier of industrial and construction supplies, plans to invest $11 million to build and outfit a 160,000-square-foot addition to its Indianapolis warehouse, and hire another 60 employees by the end of 2016.
Fastenal, based in Winona, Minn., has requested two six-year tax breaks from the city on the northwest-side building addition and new equipment. The Metropolitan Development Commission will consider the request on Wednesday.
Fastenal intends to make its facility north of 56th Street on Guion Road the main distribution point for more than a dozen other regional distribution centers, according to the firm’s request to the city. Fastenal estimates that 80 percent of its merchandise eventually would pass through the facility en route to other North American distribution centers.
The proposed addition, including 34 truck-dock doors, would cost the firm $8 million to construct, according to Fastenal. It also would install a $3 million state-of-the-art logistics system to streamline the unloading of shipments, repackaging items and preparing them for delivery.
The project would ensure the retention of the center’s existing 200-person workforce, and spur the firm to hire 60 more employees by the end of 2016, it said.
The Guion Road complex, which measures about 885,000 square feet, has been in operation for more than 20 years and is Fastenal’s only distribution center in Indiana.
Both tax abatements would extend over six years. The real property abatement on the addition would save Fastenal $521,895 over six years. The firm still would pay $367,698 in taxes over that period, and then about $148,000 annually after the tax break expired.
The personal property abatement on the equipment would save Fastenal $118,363 over six years. Fastenal still would pay $64,320 in taxes over that period, and then about $23,800 annually after the tax break expired.
The 200 existing jobs at the facility pay an average wage of $13.39 per hour, Fastenal said. The 60 new jobs would pay an average of $12.48 per hour.
Please enable JavaScript to view this content.