(Photo Credit: Lawrence Paper Company)
Bigger manufacturers like ExxonMobil, Pfizer, Lockheed Martin and Honeywell International have already announced a combined total of more than $62 billion in investments in the United States in the coming years due to the Tax Cuts and Jobs Act. The historic tax reform law has already sparked tremendous benefits for smaller manufacturers as well.
Lawrence Paper Company, a Kansas-based manufacturer that employs more than 300 people with facilities across the Midwest, is purchasing $5 million worth of new equipment, awarding a $500 bonus to each of its employees and expanding at least one of its current facilities due to the tax reform law:
The Lawrence Paper Company (LPC) will pay a special $500 bonus to each of its 300 employees and invest more than $5 million in new equipment because of the Tax Cuts and Jobs Act recently passed by the U.S. Congress and signed into law by President Donald Trump…
In order to prepare the company to handle the anticipated increase in business, Hill said LPC will expand its near-capacity plant in Fremont by 60,000 square feet and invest more than $5 million in new machinery at that plant. If the Lawrence and Hutchinson plants near their capacity, LPC will evaluate whether to expand at those plants.
During staff meetings at its corrugated plants in Hutchinson, Lawrence and Fremont, Nebraska, LPC President Justin Hill, Jr. told employees the new tax law may prove to have the greatest impact on them and their families, the company and the U.S. economy than of any bill passed in the last 30 years. “Most, if not all of you, are likely to see a decrease in the federal taxes withheld from your paycheck starting next month. But we believe the more significant long-term benefit to each of us will result from the lowering of tax rates on businesses,” he said. “This should free up income that can be reinvested in businesses, passed through to stockholders or paid to employees in the form of higher wages.”
The Lawrence Paper Company was founded in 1882 and spans three generations of ownership. The company is hardly alone in passing on tax reform savings to its business and employees. Ohio manufacturer Jergens is planning to raise wages due to the tax reform law, while another Ohio manufacturer, Sheffer Corporation, is delivering $1,000 bonuses to its workers.
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