Ketchie, a 71-year-old family-owned machine shop based in Concord, N.C., is thriving, thanks to the benefits of tax reform.
Company president Courtney Ketchie Silver is quick to note that tax reform made a transformative impact on its business.
“Because of tax reform, our customers are expanding,” Silver explained. “They’re investing in new equipment, they’re expanding their shopfloors. There’s a general level of confidence, and that’s resulting in increased demand for Ketchie’s products.”
In fact, 2018 turned out to be Ketchie’s best year yet in its seven-decade history. 2018 sales increased a whopping 25 percent year over year.
“Because of this huge demand, Ketchie was able to make a number of capital investments,” Silver said. Overall, Ketchie pumped nearly $500,000 into capital equipment last year, which will help the company continue to meet demand for years to come.
The increased investment led to a hiring boom as well. In 2018, Ketchie expanded its workforce by 20 percent, with all new hiring taking place on the shopfloor rather than in the back office. That sort of single-year growth “has never happened before,” explained Silver. “Employees are excited to see the company grow.”
Existing employees are also benefitting through pay raises and quarterly bonuses. In order to continue to develop their employees, the company has worked with the local community college and has been the recipient of grant funding from the state of North Carolina. Ketchie has also joined the North Carolina Manufacturing Institute to promote manufacturing and help match individuals and employers in the area.
“As we’ve seen for the past year and a half since its enactment, tax reform is giving businesses the ability to reinvest in and expand their operations, and manufacturers are leading the way in this effort,” said Chris Netram, NAM vice president of tax and domestic economic policy, said. “Manufacturers have reported record levels of optimism for nine consecutive quarters in our Manufacturers’ Outlook Survey, and, through increased spending and investment, that optimism is helping fuel our entire economy.”
“It’s such a change from 2008, 2009,” agreed Silver, referring to 2019’s booming economic climate. “For the first time since then, people are confident. And their actions are following that confidence. Overall, I have a positive outlook for the year.”