AAON: Investing in Job Creation in Memphis

An economically distressed area of Southeast Memphis is poised to gain new life through a development that promises to bring not only an economic boost, but also critically important employment opportunities.

AAON, Inc. is a leading producer of heating, ventilation, and air conditioning systems for commercial and industrial indoor environments. The company is establishing a new manufacturing and warehousing facility in Memphis that will entail the acquisition and renovation of an existing 787,000 square foot building. The revamped facility will allow AAON to add additional production lines for its thermal management solutions and HVAC products that serve data center and commercial/industrial markets.

The new facility will provide a boost for a severely distressed area, not only in terms of economic development, but also job creation. The project is expected to add 750 high-quality jobs within its first three years of operation, with average income that exceeds the area’s living wage. New roles will include assembly labor, warehouse workers, maintenance mechanics, machine operators, and office and professional jobs.

Regions is proud to support projects like these, as they align with our commitment to investing in underserved communities and helping to create quality, accessible jobs for low-income households. Katia Izyumova, Regions New Markets Tax Credit relationship manager

The $200 million project is one of AAON’s largest company investments to date, and it is made possible in part through New Markets Tax Credit (NMTC) financing, provided by Regions Bank in partnership with three Community Development Entity partners: Pathway Lending CDE, River Gorge Capital, and Three Roots Capital. NMTCs are a critical source of funding that will allow AAON to invest in its employees and the local community in a meaningful way, following an established formula.

“In past projects, NMTC financing has enabled AAON to leverage Qualified Low-Income Community Investment (QLICI) proceeds to partner with local community colleges to provide manufacturing skills and leadership training to community residents,” said Katia Izyumova, Regions New Markets Tax Credit relationship manager. “AAON plans to follow a similar model with the Memphis facility, partnering with local colleges and workforce development organizations to offer skills and leadership training to community members and potential future employees, along with re-entry training for second chance employees.”

While the refurbished facility’s output will be HVAC equipment, what it stands to produce in terms of community impact may be far more meaningful. “Regions is proud to support projects like these, as they align with our commitment to investing in underserved communities and helping to create quality, accessible jobs for low-income households,” said Izyumova.

“Regions has a strong history in Memphis, both serving our community’s banking needs as well as engaging in many programs to lift up Memphians,” said Regions Market President David May. “This financing involving the NMTC work is a clear example of how, through our day-to-day business activities, we not only bringing complex solutions to the table, but they are also solutions that led to 300 new jobs for Memphians.”