Success Stories

Partnering for progress, connected for success.

Case Study: CGI Group

Russell Regional Business Technology Park
Russell County, Virginia

 

“This center allows us to offer high-quality, more cost-effective services onshore in the United States – a key element of our global delivery model for government, as well as commercial clients.”

– Michael E. Roach, CGI president and chief executive officer

CGI opened its first U.S. onshore information technology (IT) delivery center in in 2006 in temporary space provided by the Russell County IDA and moved to its current, permanent location in the Russell Regional Business Technology Park in Lebanon, Virginia, in 2007. Currently, the center is one of CGI’s largest U.S. offices with more than 400 employees.

Company Background

CGI is the world’s fifth largest independent IT and business process services firm. It has approximately 68,000 employees serving thousands of national and global clients from offices and delivery centers across the Americas, Europe and Asia Pacific. Website: www.cgi.com.

Strategy in Russell County

CGI chose to locate in Russell County as part of a long-term strategy to create full-service IT centers based in smaller U.S. communities. The company visited a number of sites outside Virginia but chose Russell County, citing the area’s available trained workforce; high-quality telecommunications infrastructure; and cooperative spirit as key factors in their decision.

Incentives Provided

CGI planned to invest more than $6 million in constructing its center and promised initially to bring more than 300 jobs with salaries averaging $50,000 annually to Russell County. An incentive package of more than $3.5 million was compiled with financial contributions provided by the Industrial Development Authority of Russell County, Virginia; the Town of Lebanon; the Virginia Coalfield Economic Development Authority; Virginia Tobacco Commission*; and the Commonwealth of Virginia, through its Governor’s Opportunity Fund and various other incentive programs (Workforce Investment Act, Workforce and Virginia Department of Business Assistance, State Corporate Income Tax Credits). The project moved forward with great assistance from Virginia Governor (now U.S. Senator) Mark Warner and his Secretary of Commerce and Trade.

In 2012, CGI added 100 new jobs to the Lebanon site, bringing the number of employees up to 400. Based on the promise of this addition, the company was given a second incentive package of $550,000, provided by the Industrial Development Authority of Russell County, Virginia Coalfield Economic Development Authority, and Virginia Tobacco Commission.

* Formal name of the Virginia Tobacco Commission is the Tobacco Indemnification and Community Revitalization Commission.

Click here to review a white paper about CGI’s plans for rural U.S. onshoring:
“Rural U.S. Onshoring of Information Technology; Quality Jobs, Greater Competitiveness, and Enhanced Security,” published October 2010 and developed in part through research commissioned by the CGI Initiative for Collaborative Government, a joint public policy project of CGI in partnership with researchers at George Mason University and CGI Federal.


Case Study: Steel Fab

Cumberland Plateau Regional Industrial Park
Russell County, Virginia

“This location is really a good opportunity to service the southeastern United States and the South. Oil and gas is really becoming big for us … On the pressure vessel group side, we’re really looking to grow this business.”

– Barry Berquist, president of Samuel Pressure Vessel Group

Samuel Pressure Vessel Group (SPVG), the Steel Fab Division of Samuel, Son & Co., moved into a building located in Cumberland Plateau Regional Industrial Park in 2014. The move made it possible for SPVG to expand its line of pressure vessel tanks, to add more employees, and to more efficiently meet the demands of a burgeoning oil and gas industry.

Company Background

Samuel Pressure Vessel Group (SPVG) is a leading fabricator of pressure vessels for North American and international markets. Parent company Samuel, Son & Co. has more than 100 steel service centers and manufacturing facilities for the distribution, transportation, processing, and manufacturing of metals and industrial products. Website: www.samuelpressurevesselgroup.com.

Strategy in Russell County

SPVG operated two plants in Abingdon, Virginia, but needed more production space due to a rise in oil and gas extraction in North America. The company considered locations outside of Virginia but decided moving current operations into a larger facility in Russell County would optimize production. The additional space allowed for adding a production line for larger pressure vessel tanks and new equipment for blasting and coating tanks.

Incentives Provided

SPVG invested $1.5 million to move to Russell County, bringing its 240 workers and promising to add another 50 employees. The Virginia Coalfield Economic Development Authority provided a $2.5 million loan to the Industrial Development Authority of Russell County to help finance the purchase of the building and its upfit. The building is being leased to SPVG. An incentive package of more than $260,000 was compiled with contributions provided through the Virginia Tobacco Commission’s* Tobacco Region Opportunity Fund, the Commonwealth of Virginia’s Governor’s Opportunity Fund, Russell County, the Town of Lebanon and Industrial Development Authority of Russell County. In addition, the Town of Lebanon and Industrial Development Authority also provided SPVG with a $2.2 million low-interest loan to help with moving expenses.

* The formal name of the Virginia Tobacco Commission is the Tobacco Indemnification and Community Revitalization Commission.