Anixter Inc., a global distributor of technology, electronic, network and security products, has announced plans to invest $4.23 million and add 103 full-time jobs as it relocates to the newly constructed Turner Development Center on Fortune Drive.
Anixter's new offices will occupy 21,000 square feet of the newly built 38,500-square-foot center. Anixter leaders said growth projections prompted the expansion. The project will create a centralized, Kentucky-based sales team to provide seamless service for the company's East Coast customers. The new space will also bring the opportunity to add at least three new Anixter technologies to Kentucky, including audio visual, wireless communication and power services.
“Anixter is excited to have Lexington as the home of our new East Coast sales hub for our Network & Security Solutions segment. As a company that is constantly adapting to meet the changing needs of our customers, we found the same spirit of investment and growth here in Lexington.” said Anixter President and CEO Bill Galvin in a release announcing the move. “We look forward to continuing to build relationships in Kentucky and enhancing our service to customers across the East Coast region.”
Anixter International employs more than 9,300 people and distributes products for network and security, electrical and electronic and utility power applications globally. The company helps build, connect, protect and power valuable assets and critical infrastructures. It also works to lower the cost, risk and complexity of its customers’ supply chains.
For its approximately 130,000 customers, Anixter supplies nearly 600,000 products and keeps over $1 billion in inventory at 316 warehouses/branch locations in over 300 cities across approximately 50 countries. Founded in 1957 and headquartered near Chicago, Anixter trades on the New York Stock Exchange under the symbol AXE.
“The expertise and products supplied by Anixter support manufacturing, service, and tech companies within Kentucky and beyond,” said Gov. Matt Bevin. “Anixter’s decision to greatly expand their presence and employment in Kentucky is positive affirmation of our strong pro-business climate, unmatched distribution and logistics infrastructure, and our highly trained workforce. We are grateful to Anixter for their significant investment and job creation in the Bluegrass State, and we look forward to watching the company continue to grow in the years ahead.”
Lexington Mayor Linda Gorton also welcomed Anixter’s expansion in Lexington.
“Attracting new employers and supporting our hometown employers are top priorities for us,” she said. “A growing economy and new jobs enable our city to afford quality of life investments, which in turn attract new companies that place a high premium on quality of life to Lexington.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority in December 2018 preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1.6 million in tax incentives based on the company’s investment of $4.23 million into the mill and annual targets of:
- Creation and maintenance of 103 Kentucky-resident full-time jobs across 10 years
- Paying an average hourly wage of $44 including benefits across those jobs
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.