A fast-growing manufacturer based in Fruita has been approved to participate in a program offering tax incentives for creating new jobs.
FHE USA joins 14 other companies participating in the Colorado Rural Jump-Start Program in Mesa County, the Grand Junction Economic Partnership announced.
“We are thrilled to see FHE among the Jump-Start participants,” said Robin Brown, executive director of GJEP. “FHE has been a cornerstone business in the Grand Valley for many years and, through Jump-Start, we are now able to give back a little to the company for its sustained commitment to the economic vitality of our community.”
The Colorado Economic Development Commission approved FHE for the Rural Jump-Start Program for the FracLock System the company developed for the oil and natural gas industry.
The program creates zones in Colorado in which eligible businesses are exempted from paying state and local taxes for up to eight years. Qualifying businesses are exempt from paying state income, use and sales taxes as well as county and municipal personal property taxes. In Mesa County, local government jurisdictions have offered additional incentives.
To participate, the core functions of businesses may not compete with existing operations. Businesses must create a minimum of five net new jobs in the county in which they’re located and establish a relationship with an institution of higher education — Colorado Mesa University in Mesa County.
FHE plans to add up to 30 jobs, including skilled workers and technicials as well as positions in administration and engineering.
FHE designs, engineers, assembles and services pressure control equipment for the oil and gas industry. The FracLock System combines new technologies to make well operations safer and more efficient.
“The FracLock introduces FHE to new markets nearly five times the size of our current customer base,” said Nick Snoke, president of FHE. “FHE is experiencing such good growth because we are innovating new products.”
FHE recently doubled the size of its operation in Fruita by constructing a second building. The company also operates locations in Ohio, Oklahoma and Texas as well as the United Arab Emirates.
FHE ranks among the fastest-growing private firms in the United States, according to the latest version of an annual list compiled for a national magazine.
FHE ranks 933rd on the Inc. magazine 5000 for 2019. The magazine compiles a list of the 500 and 5,000 fastest-growing companies based on revenue growth over the past three years. Companies apply for inclusion and report their revenues.
FHE reported $125.5 million in revenue for 2018, a 456 percent increase over 2015.
Out of 16 companies approved to participate in the Jump-Start program in Colorado, 15 operate in Mesa County, the first zone in the state.
In Mesa County, GJEP manages the project in conjunction with the Colorado Office of Economic Development and International Trade (OEDIT) and Colorado Mesa University.