Huntington Ingalls Gives Bonuses to 40,000 Workers
Huntington Ingalls Industriesthe largest military shipbuilder in the United Statesis planning a generational investment in its business and its employees, thanks to tax reform.When tax reform came around, we knew we wanted to reinvest in our business, explained Bill Ermatinger, executive vice president and chief human resources officer at Huntington Ingalls. We put it on a whiteboard to see who our stakeholders were, and we came up with four: employees, customers, communities and shareholders.
Huntington Ingalls set out to do just that. First on the agenda? Rewarding its nearly 40,000 employees in shipyards across the country.
We decided our employees would benefit most from an immediate cash bonus, said Ermatinger. Every single employee received $500. Thats a lot of money. We got hugely positive feedback from our employees. One of our hourly employees at our Pascagoula, Mississippi, shipyard said, Ive been hearing about trickle-down economics for years. And finally, something trickled down!
Huntington Ingalls also made a significant incremental contribution to its pension fundadding $200 millionas a way of providing for its employees futures. While many pension funds across the nation face insolvency, Huntington Ingalls is well funded.
We built upon what weve already been doing, said Ermatinger. We invest $100 million in workforce development and $40 million in educational reimbursement each year so we can invest in our employees. Our employees and our customers will also benefit from what Huntington Ingalls dubbed a generational capital infusement in its facilities.
Before tax reform, the shipbuilder had planned to increase capital spending by $1.5 billion by 2020. But now, the company has upped that number by a whopping $300 millionto $1.8 billion. That means more jobs being createdand it will also help U.S. taxpayers, because savings will be passed along to Huntington Ingalls client: the U.S. Navy.
Huntington Ingalls also plans to increase dramatically the amount of money it spends in its communities. In fact, because of tax reform, the company has tripled its corporate giving.
We decided we needed to make an investment in the communities we live in, said Ermatinger. Even for the people who dont work for us.
Whether it be United Way, the Boys and Girls Club, the food bank, the Red Crossyou name it, said Ermatinger. If Huntington Ingalls is in the community, they saw a benefit.
Huntington Ingalls significant investments in workers, facilities and communities comes as a direct result of tax reform.
Because of tax reform, were able to do a heck of a lot more than we thought we would, said Ermatinger. I can assure you: without tax reform, most of these things would not have been possible.
I am always asked: Are you going to make these kind of huge investments every year? And my answer is, we dont know what the future holds, but we already have made these commitments that far exceed HIIs tax-reform benefits beyond one year.
Keeping Our Promise: Tax Reform Slam Dunk Means Bonuses, New Jobs for Wilmington, N.C.s, Atlantic Packaging
The slam dunk tax reform bill is leading to big bonuses, new jobs and a huge nationwide investment says the team at Wilmington, North Carolinas, Atlantic Packaging.
The 75-year-old family-owned business specializes in commercial packaging for some of the biggest companies in the country. Thanks to tax reform, theyre making sure to pass along the savings to their employees, who Wes Carter, president of Atlantic Packaging, describes as their number-one asset.
Immediately after tax reform passed, we decided to hand out bonuses right away, said Carter. We knew this is a once-in-a-generation opportunity. The culture of our company is all about our people. We think that the quality of our people is what differentiates us in the marketplace and makes us a unique supplier. For us, handing out bonuses was an investment in our most valuable resource: our people. Companies create culture by having happy, dedicated employees, who want to have a long-term career at a quality organization. Giving bonuses didnt even take any debatewe all knew it was the right thing to do.
As a result of tax reform, Atlantic Packaging employees will be joined by many new coworkersbecause tax reform has allowed the company to add jobs, grow the number of facilities and take their company nationwide.
Tax dollars will help us grow our business, Carter said. Atlantic is positioned to become a national company, enhancing our ability to service our clients across North America. Tax reform will help us open new facilities and hire new employees nationwide.
Thats exactly what Atlantic Packaging is doing. A new $10 million packaging center in Charlotte opened last fall and is now the most advanced package testing facility in the world. Carter also plans to invest in new equipment that will increase productivity and efficiency, including new printing presses and die-cutters for Atlantics manufacturing operations.
All of that takes cash, said Carter. Were able to make these investments, in part, because of tax reform.
The increased number of facilities means that Atlantic Packaging plans to add up to 20 to 30 jobs a year for the foreseeable future as demand continues to increase. In 2018 alone, the company already has created 25 new jobs and completed a strategic acquisition in the Northeast.
Carter told the 51勛圖厙, Weve hired sales and sales support people in Kansas City, in Los Angeles, Dallas, Texas and in Portland, Oregon. We opened a new facility in Memphis, Tennessee and in Greenville, South Carolina. Certainly, tax reform has given us the additional confidence to push ahead with these strategic moves.
I know tax reform became a partisan issue in Washington, but to me, it was pretty plain and simple, said Carter. Because we are all operating in a global economy, U.S. companies need a fair and competitive tax code to remain healthy and vibrant. To me, tax reform was a slam dunk. Its already proving itself by bringing jobs and major corporate investment back to the United States. The future for American manufacturing is really bright, and thats the first time in my career I can say that. Ive never seen so much confidence in the marketplace.
Keeping Our Promise: Tax Reform Helps Louisiana Manufacturer Raise Wages and Invest in Facilities
Thanks to tax reform, Complex Chemical Company Incorporated of Tallulah, Louisiana, is hiring more workers, raising wages and making critical new investments that will help grow its business.
Travis Melton, Complex Chemicals vice president of sales and marketing, said that his companys first order of business after tax reform passed was to give an immediate raise to every single one of its 120 employees. Its the first time in several years that the company was able to give such substantial, across-the-board pay increases.
Melton also explained that tax reform is helping Complex Chemical reinvest in its business and accelerate its expansion plans.
Weve had an expansion in the works for two years, Melton said. Because the corporate tax rates have been reduced, its easier for us to move forward with this expansion and another one we have around the corner. Tax reform helps move these investments.
One of the biggest additions is the installation of a new distillation column, which Melton says will help increase production capabilities and leave the door open for future expansion. Right now, Complex Chemicals facilities are operating at maximum capacity.
To staff its growth, Complex Chemical plans to hire new workers in the coming monthsoffering high-paying, highly skilled jobs that will help operate the new expanded facility.
Melton is optimistic about the future, largely as a result of tax reform.
For the first time in 20 to 25 years, you have some major players in the U.S. natural gas industry announcing new facilities in the United States, he said, referring to Complex Chemicals suppliers. They decided to do their expansion here because the tax bill makes it worth it. That means more readily available byproduct, which we purchase. And more byproduct allows us to increase the amount of product we sell.
Tax reform is having a major impact, Melton addednot just for Complex Chemical, but for its suppliers and the industry as a whole. Its like throwing a rock in the middle of the pondthe ripples hit all sides of the pond.