, Nestlé Waters is exploring the possibility of building a bottling facility in Spring or Benner Township.
The study, which examines the impact of Nestlé Waters’ proposed capital investments, employment, tax revenue, and total impacts on the local economy, was conducted by Philadelphia-based economic consulting firm Econsult Solutions, Inc. The firm used economic impact modeling to measure the short- and long-term economic effects that Nestlé Waters’ bottling facility would have within Centre County and throughout the Commonwealth of Pennsylvania.
“Our study concludes that the bottling facility would have a significant positive impact on state and local economies starting with its construction phase and continuing into the future when the proposed facility is complete,” said Richard Voith, Ph.D, CRE, President of Econsult Solutions, Inc. “The operations of the Nestlé Waters bottling facility would both directly and indirectly support employment within Centre County through all phases of the project. It would also contribute to the state and local economies through the purchase of goods and services and payment of taxes, and add to the manufacturing revival of Pennsylvania.”
Projected Economic Impact During Construction Phase
Construction of the proposed Nestlé Waters facility would generate an estimated $33 to $36 million in positive economic impact within Pennsylvania, of which an estimated $30.1 to $32.2 million would be in Centre County. The construction spending would support 240 to 250 jobs within Pennsylvania, of which an estimated 230 to 240 would be in Centre County with income totaling approximately $12 million.
The $50 million capital investment to construct the facility includes approximately $22 to $23.5 million of direct construction spending in Pennsylvania. Collectively, these construction-related activities are expected to generate more than $858,000 in tax and fee revenue for the state, county, municipalities, and school district.
Projected Annual Economic Impact During Operations Phase
In Pennsylvania, operations would potentially generate $58 million in total annual economic impact and would support an estimated 140 jobs (direct, indirect, and induced) with over $8 million in annual earnings. Of these 140 jobs, an estimated 110 would be located in Centre County and 50 would be new direct good-paying jobs at the bottling facility. These 50 new jobs would have an average salary of $58,000 plus benefits, which would exceed both the state and Centre County all-industry average wages. In addition, each year after the factory opens, the company is projected to spend approximately $40 million in operating expenditures.
Nestlé Waters’ operations are expected to generate more than $712,000 in annual tax revenue for the state, county, municipality and school district. That includes:
Approximately $510,000 to the state in revenue generated by direct, indirect and induced economic activity;
Approximately $21,000 to Centre County from real estate taxes;
Approximately $22,000 to municipalities in Pennsylvania in direct local taxes; and
Approximately $159,000 to the school districts in Pennsylvania from direct local taxes.
As a rate-paying customer, Nestlé Waters will also pay the Spring Township Water Authority an estimated $525,000 annually to purchase spring water from their permitted source. That number is based on rates set by the water authority.
Beyond direct and indirect economic benefits, Nestlé Waters contributes annually to many community organizations across Pennsylvania, and also provides water donations both locally and across the country in times of need. Over the past 15 years, Nestlé Waters has supported initiatives that its neighbors care about with water and product donations, educational initiatives, and over $1.6 million in monetary support for Pennsylvania community organizations. In 2017 alone, the company reached 3,200 Lehigh Valley students through water and environmental education initiatives and supported community partners including Northwestern Recreation Commission and the Washington Township Volunteer Fire Company.
Nestlé Waters is planning to construct the proposed 200,000-250,000 square foot facility to achieve U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) certiﬁcation. LEED is a globally recognized symbol of sustainability that provides a framework to create environmentally friendly, highly efficient green buildings.
Rapidly growing consumer demand for bottled water has driven the economic growth of Nestlé Waters in Pennsylvania. Last year, the company completed a $79 million expansion of its $350 million Lehigh Valley bottling campus, bringing the company’s total statewide employment up to 600.
“We opened our first bottling facility in Pennsylvania more than 20 years ago and are strongly committed to both the people and the economy of our Commonwealth. Our employees don’t just work with the local community – they are an active part of the local community,” said Eric Andreus, Nestlé Waters’ Natural Resource Manager in the Mid-Atlantic. “We’re excited about the prospect of building the same strong relationships with the Spring and Benner Township communities as we have in the Lehigh Valley.”
About Econsult Solutions, Inc.
Econsult Solutions Inc. (ESI) provides insights into economic problems, policy questions, and strategic thinking. Our work focuses on providing customized economic expert services in real estate, transportation, economic development, and public policy and finance. In addition, we provide litigation support services in over 40 industries, as well as customized solutions and thought leadership to a variety of clients. For more information visit: www.econsultsolutions.com
About Nestlé Waters North America
Nestlé Waters North America offers an unrivaled portfolio of bottled waters for healthy hydration, including Deer Park®, Nestlé® Pure Life®, Perrier® and S. Pellegrino®. The company also owns and operates ReadyRefreshSM by Nestlé®, the largest home and office water delivery service by volume in the U.S. Based in Stamford, Connecticut with some 8,500 associates, we are committed to reducing our environmental footprint across our operations. As a natural resource company, we sustainably manage 47 spring sources and conserve nearly 21,000 acres of natural watershed area. We are also committed to creating shared value and being a good neighbor in the 140 communities where we operate in the U.S. For more information, visit us at www.nestle-watersna.com/en and follow us on Twitter: @NestleWatersNA.