Cosmetics manufacturer launches company in Hansen

A new business supporting the cosmetics industry has announced its launch in Hansen. Artisan Labs, which describes itself as a cosmetic contract formulator and manufacturer, plans to construct and open a 12,000-square-foot manufacturing plant, with approximately 15-30 new jobs, in fall 2021. The company broke ground a couple weeks ago, said CEO Matt Bryant.

In the meantime, Bryant is hiring for the research and development side of the business (such as cosmetic chemists and laboratory technicians), then will begin hiring for warehouse operations, quality control and formula compounding.

And that’s just for phase one.

The 3-acre property for Artisan Labs will allow for the company to expand, even tripling plant size and more than doubling the workforce. Approximately $3 million is budgeted for the first one to three years.

“That expansion that we hope to do in the future is not accounted for in those figures,” Bryant said. “It also doesn’t account for the investment we plan to make in our people.”

Artisan Labs plans to partner with the College of Southern Idaho to provide internship opportunities, and plans to offer tuition support for workforce development. Within the next five years, the company is projecting to hire roughly 100 people.

Hansen has a population of approximately 1,300.

“You don’t always see that kind of investment in (our) smaller communities,” said Connie Stopher, executive director for Southern Idaho Economic Development. “Small rural communities have struggled to put investments in their communities (because they) don’t have existing tax dollars for new (projects).”

Wages will vary by position, with entry level beginning around $15 per hour. Bench chemists or lab techs will make in the range of $17-$20 an hour, and cosmetic chemists, with industry experience, will begin between roughly $55,000 to $60,000, Bryant said. As employees gain experience, Bryant anticipates wages will go up; a cosmetic chemist might make upwards of $85,000 annually within the first five years.

“We like to think we’re going to be a leader in terms of offering better wages for hourly employees as well — machine operators, warehouse material handlers, to compounders that would be … scaling up the product — those will be paid well as well,” Bryant said. “That will be the majority of positions in the company. We want to make sure they’re incentivized to come to us, and be rewarded for their efforts, and we want to make sure we retain our talent.”

“If this project can be successful in Hansen, I think that bodes well for other rural communities,” Stopher said. “(That) you don’t have to go to a big metro area for a company to be successful.”

Stopher added she feels there is a lot of opportunity for Artisan Labs to grow, and for the area to attract businesses that support the cosmetics industry, similar to how businesses involved in the supply chain came to the area following Chobani. Stopher also expressed gratitude for “all partnerships that made this happen,” including the City of Hansen, Idaho Commerce, Twin Falls County (and its commissioners), and Artisan Labs.

“Southern Idaho Economic Development, and Connie Stopher and Ervina Covcic have been amazing to work with,” Bryant said. “They’ve introduced us to the right people; they have been great at streamlining the process as we’ve gone through our site selection; they’ve been very resourceful. Being an advocate … they’ve been exceptional.”

Why Hansen? ‘It feels like home’

While Southern Idaho tends to be focused more on food and agriculture, industry standards and approval processes are similar to the cosmetics and over-the-counter topical drugs industry, Bryant said, and he feels those good manufacturing practices “will translate well into cosmetics manufacturing.”

“It’s going to be a really nice company to have here in the Magic Valley,” Stopher said. “I think it leverages a lot of the skills here … but it’s also diversifying our economy (and community).”

Bryant is excited to partner with educational institutions as well, including local grade school classes interested in a STEM-centered field trip.

“I think there’s a mutual interest with having some sort of support with STEM education in the high school,” Bryant said. “They can come to the R&D lab, can experience a day in the life of a cosmetic chemist, and could make their first product, such as lotion or cream; I’ve done that before and that’s exciting to see (their) faces light up.”

To help bring Artisan Labs to Hansen, Twin Falls County offered a local tax abatement incentive, or a property tax reduction, which allows for a business to abate a percentage of its property taxes for up to five years, as commissioner Jack Johnson explained. All counties in Idaho have the ability to abate property tax, Stopher said, and the stipulation is having taxable equipment or property totaling at least $500,000.

Typically Twin Falls County allows 100% property tax abatement in year one, then drops that percentage by about 10% each year over the next few years, Johnson said.

“We support the cities in our county that want to grow; however, we also have an eye on our agricultural ground,” Johnson said. “Hansen is a pretty small community, and this was something we could do in our own way to help. (Artisan Labs) will be a boost to the community.”

In addition, Artisan Labs qualified for the Tax Reimbursement Incentive offered by the state Department of Commerce, which allows qualifying businesses to receive a temporary tax credit of up to 30% on income, payroll and sales taxes.

“Withstanding those incentives,” Bryant said, “Hansen feels like home to me.”

Bryant added that he had considered Nevada, Utah and Wyoming, some of which also offered considerable incentives.

“In our site selection process, it was clear to me Idaho is very competitive, and they are a leader in attracting and retaining businesses,” Bryant said. “As we looked at all the options from a fit standpoint — of course the State of Idaho, Twin Falls County commissioners, Hansen’s mayor have all been supportive and easy to work with — we chose Hansen because it’s a great fit with the business culture (and) our values. We are about preserving the traditions and cultures of the community.”