On September 28th, 2016, Hill-Rom Holdings (NYSE: HRC) announced that it will bring over 100 new jobs to New York.
This expansion comes about through their commitment to optimizing manufacturing, research and marketing operations at their world-class Welch Allyn facility in Skaneateles Falls, New York.
Hill-Rom acquired Welch Allyn, a global provider of specialty medical assessment technology, in 2015, expanding their considerable portfolio of medical equipment.
What is Hill-Rom All About?
If you’ve been in a hospital for any reason, whether as a patient or caregiver, you’ve seen what Hill-Rom manufactures.
The medical technology company, known worldwide as a leader in general and specialized equipment, has its stamp on products that are used throughout the spectrum of healthcare.
You may have seen one of their sixteen types of hospital beds, accommodating the needs of everyone from surgery patients, to expectant mothers, to those receiving special treatment in the Intensive Care Unit. You may have seen one of their respiratory or wound care systems.
Home Nursing Products
And if you provide care for someone discharged home after a lengthy surgery or hospital stay, you are sure to be familiar with their home products, which include hospital beds and patient lifts.
Hill-Rom is a global provider of products that help individuals discharge home from the hospital to live safely with their families. Through important research initiatives such as their Progressive Mobility program, Hill-Rom shows that their products improve outcomes by helping patients go home sooner and recover quickly.
Besides creating important medical products, Hill-Rom is also a prominent job creator. They employ 10,000 people worldwide, in their parent company and six subsidiaries including Welch Allyn.
They have nearly doubled its size over the past two years through multiple acquisitions, including Welch Allyn, as well as organic growth in its legacy businesses. Hill-Rom and is subsidiaries are engaged in manufacturing, marketing, and research.
In addition, they also provide a valuable service to patients, families and medical professionals by translating their clinical expertise into caregiver education programs on topics like safe transfers and movement, wound care, and fall prevention.
Manufacturing Network Optimization
The additional 100 jobs in Skaneateles Falls, New York will support Hill-Rom’s continuing efforts to optimize their current manufacturing network of over 15 facilities.
The facility, which currently serves as Welch Allyn’s corporate headquarters, has maintained a significant presence in the region for over 100 years.
In fact, The Lodge at Welch Allyn, a conference center located on the property, is considered one of Central New York’s main destinations for weddings, conferences, and banquets.
Public and Private Sector Collaboration
Empowering this expansion was a successful joint collaboration between public and private sectors. Hill-Rom is poised to receive up to $12 million in state incentives and grants.
The company is eligible for up to $6 million in tax credits over a 10-year period through its participation in New York State’s Excelsior Jobs program.
This unique economic development program provides tax credits to businesses in strategically important industries such as high-tech, bio-tech, and clean energy.
Job Creation Quotas
The businesses must also commit to job creation quotas, qualifying capital investments and research and development expenditures.
In addition, the subsidiary company, Welch Allyn was awarded a NYS Upstate Revitalization Initiative Grant of $6 million based on their ongoing commitment to create 100 new jobs in Central New York.
Hill-Rom itself will invest over $4.2 million in capital funds to expand the Skaneateles Falls facility.
Medical Device Tax
Another important component behind this achievement was suspension of the Medical Device Tax, which had interfered with the expansion of medical manufacturing industry in the region.
U.S. Senator Charles E. Schumer led the effort to suspend the Medical Device Tax and worked closely with Hill-Rom and Welch Allyn during the transition process.
Schumer had previously contacted John J. Greisch, the president and CEO of Hill-Rom, to obtain re-assurance that the company would keep jobs in the region after their acquisition of Welch-Allyn.
Not only did the company keep jobs in the region but they worked with Senator Schumer and others to broker the deal that will bring 100 new jobs to the region.
Commitment to Bring High Paying Jobs to the Region
Governor Andrew Cuomo of New York State praised the deal, expressing his gratitude for Hill-Rom’s commitment to bring more high-paying jobs to the region, and speaking highly of the incentives offered through innovative public-private partnerships.
“For more than a century, Welch Allyn has been a key driver of the Central New York economy, and this expansion will create more than 100 new high-paying jobs for the region.
From Regional Economic Councils to the Upstate Revitalization Initiative, our strategic investments are generating momentum and economic growth across the state.
This expansion displays Hill-Rom’s unyielding commitment to Central New York, and the resiliency and rising power of the Upstate economy.”
Hill-Rom president and CEO John J. Greisch acknowledged his gratitude towards the collaborators in this effort, including state and local partners, who helped to make this expansion a reality.
“We are grateful to Governor Cuomo, Empire State Development, Senators Schumer and Gillibrand, Congressman Katko, State Senator DeFrancisco and Assemblyman Finch, as well as the Onondaga County Office of Economic Development and CenterState CEO, and their teams for their commitment and support to bringing well-paying jobs to Central New York.
Hill-Rom is delighted to be strengthening our presence in the area through these critical economic development programs.”