News Article | 8/22/2023

Following incentive package vote, McMaster-Carr announces regional headquarters, distribution center in Fort Worth

An e-commerce industrial distribution company announced plans to invest $360 million in a new site in Fort Worth for a regional headquarters and distribution center following a vote by the Fort Worth City Council on Aug. 22. 

The council approved an $18 million incentive package for McMaster-Carr Supply Co., which plans to build the new center on a 117-acre site at 4894-4896 Litsey Road in north Fort Worth, just east of Alliance Airport, in the AllianceTexas development. 

The company would be a “strategic asset for Fort Worth to have as part of its industrial ecosystem,” said Michael Hennig, economic development manager for Fort Worth’s economic development department. 

McMaster-Carr, founded in 1901 and based in Elmhurst, Illinois, is a supplier to industrial and commercial facilities worldwide, specializing in same- and next-day delivery of maintenance, repair and operations supplies. The privately held company has additional distribution operations in Los Angeles, New Jersey, Atlanta and Cleveland. 

“By establishing distribution operations and holding a broad inventory in Fort Worth, we will provide our customers throughout the thriving Dallas-Fort Worth region a new level of fast delivery,” said Patrick McKenna, vice president, McMaster-Carr, in a statement. 

Under the agreement, the city will provide the company incentives valued at $18 million in the form of 10 annual grants equal to up to 85% of the maintenance and operations portion of new incremental city ad valorem taxes based on the increased value of business and personal property. The incentives would also include up to 50% of the new incremental city 1% sales tax revenues, according to city documents. And, if the company does not complete its plans in a timely manner, the economic agreement will be invalidated. 

In return, the company’s regional headquarters and distribution center would need to create 250 jobs with an average annual salary of $85,000 by the sixth year of operation, according to city documents.

Hennig told the council the company has a “strong reputation for paying above industry standard wages and has exceptional benefits for its workers.” 

The new regional headquarters and distribution enter will create $56.8 million in new incremental property and sales tax revenue, part of which will go to the $18 million in grants. It will create $38.8 million in net new incremental property tax revenue over the 10-year period after the project’s completion, according to the city documents. 

“As we continue to build on the industrial ecosystem in the Alliance corridor, McMaster-Carr’s investment in both our community and our workforce will make a significant positive impact on our growing city – and we’re excited to welcome them to Fort Worth,” said Robert Sturns, director of economic development for the city of Fort Worth, in a statement.

McMaster-Carr conducted a competitive site selection process for the location of what will be its sixth regional headquarters and distribution facility, according to the report from the city. 

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