SALINA, KANSAS — A&B Tool & Machine, a precision manufacturing company based in Salina, is planning a significant expansion that will retain 14 current positions and create 10 new jobs, according to a recent economic impact report prepared by the State of Kansas.
The project represents a $9.2 million capital investment in new buildings and equipment and is categorized as a business retention and expansion project in the advanced manufacturing sector.
The analysis, conducted using the state’s Impact DashBoard model, projects that over the next 15 years, the combined impact of A&B Tool & Machine’s existing and expanded operations will support 37.6 total jobs, including direct and spin-off employment, and generate more than $35.4 million in local wages.
Local and State Impact
The expansion is projected to generate an estimated $4.29 million in net fiscal benefits for local and state taxing entities over 15 years:
- Saline County: $513,432
- City of Salina: $388,857
- USD 305: $531,213
- State of Kansas: $2.86 million
The report estimates that A&B Tool & Machine’s average annual wage for new and retained employees will be about $56,675, above county median levels.
Incentives and Return on Investment
To support the project, local governments are considering a mix of property tax abatements and sales tax rebates, totaling about $3.28 million across all jurisdictions. The analysis projects a rate of return between 10% and 28% for participating taxing entities, with the City and County payback periods estimated at around nine years.
For the City of Salina, incentives under consideration total $598,617, offset by $987,475 in projected benefits.
For Saline County, incentives total $770,592, with $1.28 million in projected benefits.
For USD 305, the report shows a 10-year payback on $1.02 million in abated property taxes.
Economic Ripple Effect
The state report also anticipates the project will attract 7.9 new residents to Saline County, resulting in roughly 0.5 new housing units and 1.5 new students entering USD 305 schools over the next 15 years.
The firm’s expansion supports the city’s strategic plan for advanced manufacturing, one of Salina’s targeted growth industries. The average total wage impact, including indirect and induced jobs, is projected at $2.3 million annually once the facility reaches full operations.
Background
A&B Tool & Machine has long served industrial and aerospace customers with precision machining, metal fabrication, and manufacturing services. The planned investment represents one of the larger private-sector expansions in Saline County’s manufacturing sector this year.
Editor’s Note:
This item is on the agenda for the SCEDO meeting that will take place tomorrow.
The Salina Community Economic Development Organization, Inc. agenda has been posted to the City of Salina website.
Meeting Date/Time: Thursday, October 23, at 9:30 a.m.
Location: Chamber of Commerce – Visit Salina Annex, 218 N. 7th St., Room B
For details, contact the City Clerk’s Office at (785) 309-5735.