General Electric to Leave Connecticut for Boston

Manufacturing company General Electric (NYSE:GE) is reportedly moving its headquarters to Boston. The headquarters will be moved to the Seaport District of Boston. In the past few years, GE has steadily been developing its software side of the business and most of its industrial products nowadays come loaded with digital sensors, which certainly is an effort to lead in the industrial internet genre. It said in a news release that it wanted to be “at the center of an ecosystem that shares our aspirations” and cited Boston’s proximity to higher-education institutions and a talented workforce.

In an announcement Wednesday, GE Chairman and CEOJeff Immelt said they’re “excited to bring our headquarters to this dynamic and creative city”.

“Of course I’m disappointed”. “I would argue Governor Malloy sort of suggested that’s the direction we should go and the Democratic leadership said ‘No”.

“He left this state because the unpredictable nature of our budgeting, the amount of deficits we have year-in and year-out and we don’t have control”, Fasano said.

GE said it has been considering a headquarters move for more than three years, and that the company began its formal review in June, with a list of 40 potential locations. A spokesman said approximately 800 people are employed at the Fairfield headquarters. The company said the package of incentives offered by the state of MA and Boston would help offset the cost of relocation.

The company is receiving $120 million through grants and other programs from the state, which Gov. Baker said on Wednesday is similar to what the state offers to other companies looking to locate in MA. It now employs almost 5,000 people in MA.

In late 2010, GE asked the state of MA for $25 million in tax credits in exchange for keeping 150 jobs at an aircraft engine plant in Lynn. Company officials informed Massachusetts Gov. Charlie Baker and Boston Mayor Martin Walsh Wednesday morning, a source told the Hartford Courant.

State Rep. William Tong (D-Stamford, Darien) said in a statement, the conglomerate’s decision “it’s not about taxation, it’s not about business taxes, it’s not about unitary/combined reporting, and it’s not about going to a lower tax jurisdiction”.

By packing up from a sleepy CT suburb the company is also tapping into an urbanization trend taking root with younger Americans, enabling it to attract engineers and executives who might be considering jobs in New York City and San Francisco.

Malloy continued, saying “Taken as a whole, there is no denying that CT has had more good days than days like today”.

“We’re moving in that direction, but you got there first”, he said.

The company has been conducting a nationwide search for a new headquarters since last summer when it announced a year ago that it was unhappy in with Connecticut’s tax policies. “Equally important, GE will continue to work with and support many smaller businesses throughout our state”. The full move is expected to be completed in several steps by 2018.

“There’s always been a lot of interesting startups and midsize companies”, Shah said.