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VOL. 130 | NO. 97 | Tuesday, May 19, 2015

Cummins Will Stay, Expand in Memphis

By Amos Maki

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Ending months of speculation, Cummins Inc. will remain – and expand – in Memphis, according to state and company officials.

Cummins and the Tennessee Department of Economic and Community Development said the company would invest $6.7 million to expand its current parts and distribution center in Memphis, creating 70 new jobs in the process.

“Our department isn’t just focused on recruiting new businesses to the state,” said ECD commissioner Randy Boyd. “We also work hard to nurture and support all of our existing industries, which is why it’s so rewarding to see Cummins Inc.’s continued growth.”

Cummins – a global power company that designs, manufactures, distributes and services diesel and natural gas engines and related technologies – has multiple operations in Memphis and has been involved with the Memphis community for more than 30 years.

“Memphis is home to our distribution business as well as our remanufacturing business, both of which are important to the success of our company,” said Norbert Nusterer, vice president of parts business for Cummins.

High-level state and local officials lobbied hard for Cummins to remain in Memphis, including Gov. Bill Haslam, Memphis Mayor A C Wharton Jr. and Shelby County Mayor Mark Luttrell.

“Retaining and growing Cummins’ distribution center was our primary concern for many months,” said Reid Dulberger, president of the city-county Economic Development Growth Engine. “Mayor Wharton and Mayor Luttrell were personally involved, meeting with local and corporate Cummins officials and coordinating directly with Gov. Haslam.”

The EDGE board in February granted Cummins a 15-year payment-in-lieu-of-taxes incentive to retain 897 local jobs and create 70 new jobs. The PILOT would save the company $12.9 million while producing a local tax benefit of $59.6 million.

Cummins plans to expand its current distribution operations into a 400,000-square-foot building at 5800 Challenge Drive, just across the street from the existing Cummins distribution facility at 4155 Quest Way.

In its PILOT application, Cummins said the landlord for the two buildings, ProLogis, would invest around $6.4 million in the buildings while the company would invest $3 million.

Memphis faced competition for Cummins, most notably from Mississippi. In its PILOT application, Cummins said it was “considering expanding in Memphis or relocating operations to the state of Mississippi.”

Cummins plans to begin the expansion in June, with final completion expected in December 2015.

The Cummins Distribution Center has been in Memphis since 1996 and employs a workforce of more than 800. It distributes a variety of products including component parts, rebuild kits and remanufactured engines worldwide. 

RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 103 137 4,008
MORTGAGES 84 131 4,521
FORECLOSURE NOTICES 7 19 700
BUILDING PERMITS 178 368 9,636
BANKRUPTCIES 50 110 2,995
BUSINESS LICENSES 40 73 1,964
UTILITY CONNECTIONS 31 66 1,190
MARRIAGE LICENSES 17 40 754