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High-Tech Warranty-Service Provider Consolidates Operations in Memphis, Tenn.

Posted on: Wednesday, 12 October 2005, 09:00 CDT

By Amos Maki, The Commercial Appeal, Memphis, Tenn.

Oct. 12--When Jabil Global Services first started operations in Memphis as Circuit Test Inc. in 1992, the firm occupied a small, 15,000-square-foot building.

Over the next 13 years JGS grew and began bursting at the seams, occupying 240,000 square feet in three buildings at Corporate Park near Winchester and Perkins.

Now, JGS, a subsidiary of Jabil Circuits, is consolidating all of its operations into 350,000 square feet of space at the former Troll Publishing building in Southeast Memphis.

JGS is occupying a 300,000-square-foot building and an additional 50,000 square feet in an adjacent 200,000-square-foot building there. JGS also has first right of refusal on the remaining 150,000 square feet.

Holice Jeffries, president of Central States Realty, a division of Dunavant, represented JGS. Dan and Alan Wilkinson of Colliers Wilkinson Snowden represented the owner of the property, George Ablah of Wichita, Kan.

"There certainly is added efficiency from working out of one building as opposed to three," Jeffries said.

JGS, which employs about 850 people locally, plans to invest $4.9 million at the facilities on Pleasant Hill Road.

JGS, a St. Petersburg, Fla.-based company, was granted a seven-year tax freeze from the Memphis and Shelby County Industrial Development Board in August that will save the company $542,735.

JGS plans to hire 376 people with a median salary of $22,800.

JGS offers returns management and warranty repair services to Jabil customers like Hewlett Packard, DirecTV and Motorola.

JGS also handles logistics. For instance, if a customer needs a briefcase or airline adapter from HP, JGS will process the order and ship the material to the customer. JGS will then send all the related information back to HP.

"Our business philosophy is to pair with premier providers and hopefully provide them service that is so good that as they grow, we grow, "said Chip Bailey, director of operations for JGS Memphis.

That philosophy appears to be paying off. Jabil's expansion comes as one of its biggest customers -- Palo Alto, Calif.-based HP -- is undergoing an expansion of its own.

Hewlett Packard recently signed a lease to occupy the 789,000-square-foot Summitt Distribution Center II in Southeast Memphis. Summit Distribution Center was developed by Principal Development Co. of Iowa and Trammell Crow Co. of Dallas. Brad Kornegay and Buster Barron with Colliers Management Services represent Principal and TCC.

In 2003, the IDB awarded HP a 12-year tax abatement in exchange for its promise to invest $45 million in an assembly and distribution center for its North American business and a distribution center for commercial products in Memphis.

HP said it would employ 601 full-time workers assembling and distributing commercial laser printers. The current expansion is part of the 2003 plan.

INTERTWINED DEALS

Hewlett Packard signed a lease to occupy the 789,000-squarefoot Summitt Distribution Center II.

Jabil Global Services signs for a 350,000-squarefoot space.

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Copyright (c) 2005, The Commercial Appeal, Memphis, Tenn.

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JBL, HPQ,

Source: The Commercial Appeal

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