Incentives for Inmar Include Workforce Training and Clawbacks

April 26, 2012 at 3:37 pm

Winsten-Salem went through the common back-and-forth with the technology company, Inmar, on whether they would stay and expand in the city or relocate to another state. Usually these negotiations end up in a zero-sum game, in which the municipality– or several municipalities, if they are competing– throws incentives at a company until they stay, with questionable real benefits to the community. But in this case, it seems that Winsten-Salem may have struck a good deal.

In exchange for the $2.8 million in incentives, Inmar expects to create 212 new jobs and the company has said it is committed to hiring locally. One of the reasons Inmar was seeking to relocate is the lack of qualified workers in information technology, accounting, customer service, and operations. According to the National Skills Coalition, these types of “middle skills jobs”– those that require more than a high school diploma, but less than a 4-year college degree– make up a large share of the labor market in the state, and demand for these jobs will remain strong.  However, there is a gap in the demand and workers with the right skills. Inmar has said it will work with local colleges to train worker for jobs that the company is seeking to fill.

The deal with Inmar will also include “clawback” provisions, which means that the company will have to pay back all the money to the city if it does not deliver on its promises to invest $62 million and create 212 jobs with an average salary of $72,783 over five years. The median household income in Forsyth County is$46,749. Creating well-paying jobs and workforce training opportunities, with the safeguard of the clawback provisions, could provide and economic boost for Winsten-Salem, and the state overall.

The Governor is expected to make an announcement confirming this plan at 12:30 today.

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