a2b Fulfillment, Inc. Chooses Utah for Future Expansion

Pete CodellaNews

The Governor’s Office of Economic Development (GOED) today announced that a2b Fulfillment will expand operations to Ogden, Utah, adding up to 75 new jobs, $12.6 million in new state revenue and an estimated $840,000 in capital investment.

“We are excited to support Ogden in one of their proactive recruitment efforts,” said Val Hale, executive director of GOED. “Ogden is in a prime location to accommodate a2b Fulfillment’s expansion while enabling them to ship to their customers quicker. Expanding in Ogden will allow a2b Fulfillment to drive down prices and stimulate creative solutions to meet distribution requirements.”

a2b Fulfillment helps companies work smarter by providing its third-party logistics services including Order Fulfillment, Customer Care and Value-Added Services. The company’s specialized solutions are designed to improve the customer experience while reducing operating costs through a variable model.

“Utah is an excellent distribution location for servicing the west coast,” explains Ayal Latz, President of a2b Fulfillment. “We now will reach 94% of U.S. households in 2 days. The state has created a business-friendly environment, and boasts a strong, educated workforce. We intend to be a great asset to the community at large, by creating jobs, investing in the community and servicing the logistics needs of both our national clients and the businesses in Utah.”

a2b Fulfillment will create up to 75 jobs over the next five years. The total wages in aggregate are required to exceed 110 percent of the county average wage. Projected new state wages over the life of the agreement may be up to $33,426,021 million, which includes wages, salaries, bonuses and other taxable compensation. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be $12,685,151 over 15 years.

“As the crossroads of the West, Utah continues to be one of the best places for warehouse and distribution operations,” said Theresa Foxley, President & CEO of the Economic Development Corporation of Utah. “We look forward to the success a2b Fulfillment will find in Utah.”

a2b Fulfillment may earn up to 10 percent of the new state taxes they will pay over the five-year life of the agreement in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) tax credit rebate. As part of the contract with a2b Fulfillment, Inc., the GOED Board of Directors has approved a post-performance tax credit rebate not to exceed $54,647. Each year as a2b Fulfillment meets the criteria in its contract with the state, it will earn a portion of the total tax credit rebate.

The company is working closely with the local community to determine the best location for its expansion. Exact location will be announced at a future date.