Charlotte’s AvidXchange Misses Job Creation Targets
In Charlotte, a lively fintech company called AvidXchange Holdings Inc. finds itself in a bit of a pickle after failing to meet its job creation goals as part of a major expansion deal. The company, which has become somewhat of a fixture in the city’s bustling Music Factory complex, aimed to create at least 775 jobs by 2023. However, it looks like this ambitious plan has fallen short, leaving state officials to take action.
The Deal and the Disappointment
Back in 2018, AvidXchange struck a deal that included a Job Development Investment Grant (JDIG) from North Carolina’s Economic Investment Committee. This agreement came with certain stipulations — one of which was to create a hefty number of jobs that would pay an average annual salary of $61,712. Aside from that, AvidXchange also promised to maintain 939 existing jobs.
Fast forward to yesterday, when the Economic Investment Committee held a meeting and ultimately decided not to authorize an annual payment for the JDIG associated with the 2018 agreement. Quite the blow for a company that was looking to push ahead with its ambitious goals!
AvidXchange’s Job Creation Journey
So, what’s the story? While AvidXchange successfully retained all its required positions, it only managed to create 169 new jobs — a far cry from the target set in the deal. What’s interesting is that those newly created jobs come with a generous average annual salary of $153,197, which certainly exceeds the original requirements. According to reports, the company has voiced some optimism regarding future growth, with plans to improve compliance with the JDIG agreement, despite ongoing challenges in the workforce arena.
In Their Own Words
In a letter addressed to the North Carolina Department of Commerce, Ryan Stahl, AvidXchange’s general counsel and senior vice president, elaborated on the situation. “We are working towards compliance with our 2018 JDIG agreement,” he noted. He also highlighted the lingering effects of the pandemic and the ongoing struggle to recruit talent in a competitive environment. “We are optimistic that our business will continue growing in 2024 and beyond,” Stahl added. That sounds encouraging!
Success in Previous Agreements
Despite the hiccup in the latest agreement, it’s worth noting that AvidXchange had a much better track record with their earlier deal from 2014. This agreement required the company to create at least 543 jobs by 2023, along with maintaining existing positions. Not only did they meet this target, but they absolutely crushed it by creating 690 new jobs with an impressive average salary of $137,143. That’s what we call a success story!
The Bigger Picture
As the company’s future remains bright amid challenges, it’s essential for Charlotte to keep an eye on how AvidXchange navigates the bumpy roads ahead. After all, signs of growth are palpable — AvidXchange even earned a spot on a recent list ranking the largest public companies in the region, coming in at No. 30. It goes to show that even when plans don’t pan out perfectly, there’s still room for progress and potential in the thriving landscape of Charlotte’s business community.
While the recent news may not be the best for AvidXchange, there’s still plenty of hope and optimism for what lies ahead. With their focus on innovation, customer service, and workforce development, it seems like AvidXchange is set on staying in the game. Charlotte will surely be watching!
