Modern Litho Uses Local Tax Incentives to Buy XL 106 Press; Pledges to Create 50 New Jobs
JEFFERSON CITY, Mo. — April 25, 2016 — Ensuring vibrant, growing commercial printing companies makes good business sense for the local economies and job markets where they are located. The Jefferson City (Mo.) Council confirmed that fact last week when it approved an economic development tax incentive revenue bond that will enable Modern Litho to acquire a new, automated sheetfed offset press and eventually add 50 new jobs, reported the News Tribune.
According to the newspaper, the tax benefit during the course of the seven-year term of the abatement will amount to approximately $310,597, factoring in the depreciation of the press over that time period. Specifically, Modern Liho plans to install a 10-color Heidelberg Speedmaster XL 106 sheetfed offset perfector equipped with double coaters, which will shorten job turnaround times and increase Modern Litho's printing output capacity by about 30%.
“What we are doing is not the norm in the industry. Printing companies who are not investing and growing are withering,” Cassandra Atchison, marketing coordinator for Modern Litho, said to the News Tribune. “We are continuing to invest in the latest print technology and expanding our capabilities.”
As a result of the added pressroom capacity, Modern Litho has pledged to add 50 new jobs during the course of the next five years. That will amount to about a 25% increase over the 192 current employees working within Modern Litho's three production facilities, two here and one in St. Louis (formerly Midtown Printing). Ranked No. 181 on the 2015 Printing Impressions 400 with annual sales of $27.26 million, Modern Litho reported an 8% revenue increase in comparison to its previous fiscal year sales.
The tax incentive will permit Modern Litho to pay only 25% of the personal property tax that would normally be owed on the new press based on its value. Modern Litho reportedly acquired another new large press, replacing two older models, with a similar tax incentive approved in 2012.
The agreement forged between Modern Litho and Jefferson City, Mo., is a great example of how local printing companies and municipalities can foster economic growth through incentives that encourage business investment and modernization initiatives, which ultimately lead to job growth.