$17MM New Markets Tax Credit (NMTC) Allocation Supports Manufacturing Expansion in Granite City, Illinois

The Steel Works (TSW), a family-owned steel processing company based in Granite City, Illinois, secured $17 million in New Markets Tax Credit (NMTC) financing to expand operations, increase production capacity, and create quality manufacturing jobs in a severely distressed census tract.

The NMTC financing will support equipment purchases, working capital, and workforce expansion as the company responds to growing customer demand across multiple industrial sectors. Planned equipment investments include press dies, air compressors, slitter knives, overhead crane improvements, and additional operational upgrades designed to improve efficiency and increase output capacity.

Working capital investments will primarily support inventory purchases needed to fulfill and process customer orders. Through these combined investments, The Steel Works expects to reach peak operational output by late 2028 while increasing its workforce by 168%.

The New Markets Tax Credit Program helps attract private investment into underserved and low-income communities by providing flexible financing for businesses and projects that create measurable economic impact. Manufacturing projects like The Steel Works demonstrate how NMTC financing can support long-term industrial growth, job creation, and regional economic development.

Founded in 1988, The Steel Works is a multigenerational, family-owned and operated steel processing company serving customers across the United States. The company specializes in precision slitting, edge conditioning, stamping, and storage services for coil and flat bar steel products.

TSW serves a diverse customer base across industries including agriculture, construction, transportation, mobile housing, and trailer manufacturing. Its products support applications such as center pivot irrigation systems, auger flighting, commercial trailers, utility trailers, and boat trailers.

In addition to steel processing services, The Steel Works manufactures and packages suspension components for OEM manufacturers producing single and tandem trailer assembly kits. These kits include components such as shackles, equalizers, and hangers used to mount trailer spring and axle assemblies. A recently added custom-built automatic welder further expands the company’s precision welding and fabrication capabilities.

The project is located in a severely distressed census tract in Granite City, where approximately 45.6% of residents live below the poverty line. Through this expansion, The Steel Works plans to create 32 full-time equivalent jobs while retaining an additional 19 positions.

Employees will earn average wages exceeding 122% of the MIT Living Wage benchmark for Madison County, Illinois. Sales positions offer commission opportunities, while production roles provide overtime opportunities to increase earning potential.

Approximately 88% of positions qualify as quality jobs, providing employees with access to medical, dental, vision, life, AD&D, and short- and long-term disability benefits. Importantly, 100% of positions are accessible to individuals without a four-year degree, reflecting the company’s emphasis on hands-on experience, workforce accessibility, and on-the-job training.

The Steel Works also employs individuals facing barriers to employment, including justice-involved individuals and people with disabilities, supporting broader workforce inclusion within the Granite City community and the surrounding Metro East region.

The Steel Works expansion demonstrates how New Markets Tax Credit financing can help established manufacturers scale operations, invest in workforce growth, and strengthen local economies in underserved communities.

Through strategic equipment investments, accessible quality jobs, and long-term operational growth, the project is expected to generate lasting economic impact in Granite City and the broader Southern Illinois manufacturing corridor.

Impact Marketplace served as NMTC advisor for the successful transaction closing, supporting financing execution alongside participating Community Development Entities (CDEs), Heartland Regional Investment Fund and Justine Petersen Housing & Reinvestment Corporation.