(The Center Square) – Lured with incentives of $2.8 million, 7-year-old commercial construction software company BuildOps says it will invest nearly three-quarters of a million dollars in a North Carolina hub.
Plans announced by the company, headquartered in Santa Monica, Calif., and state leaders are for 291 people to be employed in Raleigh within five years. Average annual salaries are expected to be $110,000.
The North Carolina Economic Investment Committee on Tuesday approved a Job Development Investment grant of up to $1.8 million over 12 years if BuildOps produces the number of jobs projected. That part of the package does not get paid unless incentives are met. Local incentives added another $87,300.
The Commerce Department said average salaries in Wake County, population 1.1 million, are $76,643.
Economists question the effectiveness of financial incentives to private businesses to expand or come to a new state. Comparisons in wages invite criticism because salaries of a few corporate leaders can skew the average higher while it would not have the same impact on the median wage.
Austin was a finalist for the location. BuildOps Inc. has hubs in Toronto and Los Angeles and Clay Smith, the company’s vice president of implementation, projects the Triangle location to eventually be largest.
BuildOps, billing itself as veteran-owned, sells software applications for contract management in the building industry. The apps handle dispatching scheduling, invoicing, financial reporting and other tasks.
“This expansion is an important step in our ongoing mission to revolutionize the commercial trade industry, and we look forward to becoming an integral part of the thriving Raleigh community,” Alok Chanani, co-founder and CEO of the company, said in a statement.
In the Raleigh location, the company hires will include “customer success” managers and sales staff, according to the Department of Commerce. The company will invest $711,000 on capital improvements.
Factors included in the decision to locate in Raleigh included cost of living, taxes, and ability to hire talent at local universities, the state said.
“North Carolina offers companies like BuildOps a deep pool of tech talent,” Gov. Josh Stein said in a statement. “North Carolina’s education and workforce training programs deliver the skilled people companies rely on to succeed in today’s competitive marketplace. We welcome this veteran-owned business to North Carolina.”
The technology sector in North Carolina has increased by 25% since 2018, faster than the national average, according to the state Commerce Secretary Lee Lilley.
“The state’s strong concentration of IT professionals has fostered an environment that attracts companies like BuildOps seeking the specialized, talented workforce North Carolina provide,” Lilley said.
