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Area Development - Site Selection, Facility Planning and Workforce Development

RXO Expands Mecklenburg County, North Carolina, Operations

12/13/2024
Freight transportation broker RXO plans to expand its operations in Mecklenburg County, North Carolina. The $13.7 million project is expected to create 216 jobs.

The project will be facilitated, in part, by a Job Development Investment Grant approved by the state’s Economic Investment Committee and formally awarded to RXO Corporate Solutions LLC. Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by nearly $498 million. Using a formula that takes into account the new tax revenues generated by the new jobs and the capital investment, the JDIG agreement authorizes the potential reimbursement to the company of up to $1,636,500, spread over 12 years.

State payments only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets.

“RXO is thrilled to renew our commitment to Charlotte and expand our operations here,” said Drew Wilkerson, Chief Executive Officer of RXO. “North Carolina’s strategic location, robust infrastructure, and skilled talent pool make it a vital hub for the transportation industry, and we're proud to be a part of its continued growth.”

The project's projected return on investment of public dollars is 131 per cent, meaning for every dollar of potential cost, the state receives $2.31 in state revenue. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.

Because RXO chose a site in Mecklenburg County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving $545,500 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 3 county such as Mecklenburg, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state.

“Following an extensive and rigorous site evaluation process, I’m proud that RXO selected North Carolina for this expansion project,” noted North Carolina Commerce Secretary Machelle Baker Sanders. “Success in economic development requires teamwork and the willingness to invest in the things that keep us competitive, like our education and workforce training systems. We will always do what it takes to keep North Carolina a top business location.”

Partnering with the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina (EDPNC) on the project were the North Carolina General Assembly, the North Carolina Community College System, N.C. Commerce’s Division of Workforce Solutions, Mecklenburg County, and the City of Charlotte.

RXO operates an extensive global logistics network, connecting shippers with independent carriers for efficient transportation of freight via trucks, as well as other various means like ocean and air carriers.

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