Sterling North America adds 10 times the number of jobs it promised in return for tax aid on a printing plant

A printer for Wall Street firms has added more than 10 times the number of jobs that it promised in 2021 in return for tax breaks to consolidate two buildings into one in Hauppauge.

Sterling North America Inc. now has 253 people on its payroll, up from 127 three years ago. That employment growth has led Suffolk County to give preliminary approval for tax incentives in support of the company’s plan for a fifth factory at 101 Corporate Dr., also in Hauppauge. 

“You promised 12 jobs [in 2021] and ended up turning in more than 100, which is awesome,” Joshua Slaughter, a member of the county's Industrial Development Agency board of directors, told a Sterling executive at a meeting last month. “This is certainly a success story.”

Minutes later, Slaughter, a union official, and the other IDA board members voted unanimously to grant the first of two approvals for nearly $600,000 in tax breaks for Sterling’s next production facility, which would be 41,000 square feet and cost $6 million to open.

The largest savings — $292,000, or 27.17% — would be on property taxes over 12 years. There also would be a sales-tax exemption of up to $307,050 on the purchase of construction materials and equipment, according to IDA records.

The agency's board is expected to consider granting final approval for the tax-aid package at its Thursday meeting.

Ed McAllister, owner and CEO of Sterling, said the firm prints documents for public companies, banks, insurers and other businesses in the metropolitan area. He said one of Sterling’s largest customers is Broadridge Financial Solutions Inc., which distributes documents to investors, counts votes at annual shareholder meetings and processes financial transactions. Broadridge is headquartered in Lake Success with production facilities in Edgewood.

“I know people say printing is going away,” McAllister said in an interview last month. “But from my seat, it is not."

Sterling's printing presses run around the clock but to fulfill increased orders, another building with additional presses is needed. McAllister said he's considered moving out of state because of Suffolk's high property taxes and would be forced to do so if not for the IDA's assistance.

"We’ve actively considered relocating, but I’m a Northport guy and I would much rather continue to grow here,” he said.

Asked what was behind the company’s hiring surge, McAllister said he’s purchased the assets of three other printers, taking on some of their employees and customers. 

In return for the tax breaks, McAllister has promised to add eight jobs by the end of 2026, but said, “I anticipate being far greater than that.”

All the new positions are hourly-wage earners, who would be paid $56,250 per year, on average, according to the application for IDA assistance.

Kelly Murphy, the IDA’s executive director, noted the agency would only be reducing the taxes on two of Sterling’s five facilities but that McAllister had pledged to preserve his entire workforce in return for the help.

“Sterling North America is the perfect example of the kind of company that the IDA wants to support,” she said in an interview. “They started in Suffolk County and they want to continue growing in the county.”

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.