City approves tax incentive with Ram Company as the aerospace manufacturer prepares to add 38 jobs

A Ram Company employee inspects manufactured parts through a microscope at the company's headquarters in St. George, Utah, June 6, 2017 | File photo by Mike Cole, St. George News

ST. GEORGE — City officials have approved a tax incentive for a manufacturing company that is promising to add dozens of new jobs in St. George, a benefit to the area economy.

The Ram Company headquarters in St. George, Utah, Nov. 18, 2015 | File photo by Ric Wayman, St. George News

The Ram Manufacturing Company, otherwise known as Ram Pro, is in the process of completing an $11 million expansion to its facility in St. George. Along with the 71,000-square foot expansion, the company plans to provide 38 new jobs.

Read more: RAM Company builds for SpaceX, breaks ground on $11 million expansion

The company, which started out of a garage in St. George over 40 years ago, designs and manufactures solenoids, valves and manifolds for the commercial and aerospace industries used in the likes of military aircraft, space satellites and submarines.

Ram Company currently employs hundreds of people with average annual wages and benefit packages that are more than 50 percent higher than the Washington County average.

Citing the Ram Company’s “significant contribution to the local economy and tax base,” the St. George City Council approved a 10-year tax agreement with the company to incentivize its expansion and creation of new jobs.

Ram Company employees assemble manufactured parts, St. George, Utah, June 6, 2017 | File photo by Mike Cole, St. George News

The tax incentives will allow the company to be reimbursed for any increases to its tax base, based on a 2016 valuation of the company, as long as it maintains its competitive wage and benefit offerings.

“We think it’s a good deal for the city,” St. George City Attorney Shawn Guzman said during a City Council meeting Thursday.

“They could relocate anywhere in the country, especially in those areas like Houston or L.A. where the aerospace industry is based,” Guzman said, “but they’ve chosen to stay here in St. George, and this was an incentive to get them to stay here.”

The city has taken an active approach to keeping Ram Company’s operations in St. George. The City Council previously approved up to $10 million in industrial development bonds for the company’s advantage, enabling it to benefit from the city’s bond rating.

Read more: City approves $10M in bond financing to help manufacturer expand

Ram Company founders Melzie and Ray Ganowsky walk through their company’s facility hand-in-hand while giving a tour, St. George, Utah, March 17, 2017 | File photo by Mike Cole, St. George News

Founders Ray and Melzie Ganowsky started the Ram Company in 1974, growing from a tiny at-home operation to the major enterprise it is today, manufacturing for high-profile clients like SpaceX and the U.S. Postal Service.

The facility’s expansion is a major need for the company, currently operating out of a 55,000-square foot facility located at 3172 Deseret Drive that is tightly packed with equipment and employees.

The expansion is also in line with a major goal of city officials to bring in higher paying technology and manufacturing jobs.

Read more: City works with higher education to facilitate growing tech, industrial sectors

“Ram is an important part of our city’s economic fabric,” Mayor Jon Pike said previously. “We’re thrilled to see them earn so much success and are pleased with their decision to continue growing at home.”

Email: jwitham@stgnews.com

Twitter: @STGnews

Copyright St. George News, SaintGeorgeUtah.com LLC, 2018, all rights reserved.

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3 Comments

  • asianspa April 24, 2018 at 8:18 am

    Employee’s trained to use microscopes are important as they will need to use one to look at their Paycheck. This company is advertising that they pay $12 an hour in their recent job fair postings across social media, which is not close to livable. I don’t think EVERY job should be 15+ but it would be nice if we stopped incentivizing and awarding endless companies with no wage ladder. How about this the company must not have more than 20% of employee’s qualify for government assistance(Both state and federal) of any sort or there is NO incentive award for you. I consider myself a conservative and don’t understand why so many conservatives fall into the cronyism traps laid out by the globalist driven economic text books they studied in, the truly best way to keep government out of your life and keep taxes low is to NEVER give the government an excuse to tax you to begin with, yes that means paying a LIVABLE wage overall. 45% of Washington County qualifies as living in poverty, THIS has to stop but won’t if you keep electing corporate shill local politicians.

  • Striker4 April 25, 2018 at 1:05 pm

    It’s high profit and low wages minimal benefits and a high turnover

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