Since tax reform was signed into law, manufacturers have detailed plans to spend their tax savings to boost their businesses, invest in their workforce and expand their facilities—just as manufacturers promised they would. Carpenter Technology announced just this week that it will invest $100 million in its Pennsylvania manufacturing facility thanks to help from the tax reform law.
The latest news? Maryland-based spices and flavors manufacturer McCormick & Co. announced on Tuesday that it plans to invest a portion of its tax reform savings back into its employees:
Spice and flavorings maker McCormick & Co. Inc. boosted sales and profit in the first quarter, benefiting from tax reform and its acquisition of the maker of French’s Mustard and Frank’s Red Hot sauce.
The Sparks-based company also announced that it would share some of that tax savings with eligible hourly employees in the form of $1,000 one-time bonuses. It also said it would accelerate hourly wage increases.
“We want McCormick to be a great place for people to come work and have engaging and fulfilling careers,” McCormick Chairman, President and CEO Lawrence Kurzius said in a statement. “The passage of the U.S. Tax Reform Act provides us an opportunity to demonstrate the power of people and for the company to show its commitment to the two-for-one spirit.”
The company employs nearly 11,700 people. McCormick added that, in addition to the investment back into its employees, it also plans to spend its tax reform savings to “to make strategic investments to drive growth, return cash to shareholders and pay down debt.”
This isn’t the first time Maryland workers have benefited from tax reform. Baltimore Gas & Electric announced in January that it planned to pass on $82 million in tax reform savings to its customers in the form of a bill reduction of up to 5 percent, and Baltimore-based developer St. John Properties Inc. awarded $1,500 cash bonuses to each of its 180 employees.
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