GE to shift from CT to Boston

The Boston Globe is reporting that General Electric will announced Thursday its intentions to move its headquarters from Fairfield to Boston.

Fairfax, Connecticut had played host to General Electric headquarters since 1974. GE’s business has dramatically changed its business and focus-as evidenced by its sale of GE Capital-and it is transforming away from financial services into a very different company.

Yet Jeffrey Immelt, the chief executive, predicted last September that GE would be a “top 10 software company” by 2020.

Boston is home to some 250,000 students at more than 55 colleges and universities, including world-class research hubs like Massachusetts Institute of Technology and Harvard University.

Chairman and CEO Jeff Immelt said GE, one of the best known companies in corporate America, wanted to be “at the centre of an ecosystem that shares our aspirations”. “For two decades, we’ve had companies move out of our city”.

Gov. Dannel Malloy said he was “disappointed” at press conference in Middletown on Wednesday afternoon. “He said he’s uncertain how far that will go in getting Republicans elected, but he thinks they can get some traction from this for the upcoming legislative session”.

There is no single easy answer why GE made their decision to move, Brennan said, but while it may have begun with a debate over the state’s fiscal policy it certainly did not end there.

According to the article, Boston’s Mayor Martin J. Walsh and Massachusetts Governor Charlie Baker have been working hard over the past few months to “lure” GE to the city that has seen a lot of big businesses move in over the years.

“The potential impact over those 20 years would be $260 million, a little bit more than 10 times the total tax incentives that we are providing GE at this point”, Barros said.

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. The company also received $1 million in grants for workforce training, up to $5 million for an innovation center to forge connections between GE, innovators from MA research institutions and the higher education community as well as a joint relocation team to ease the transition for employees moving to Boston.

Steven Lanza, associate professor in the department of economics at the University of CT, said GE’s departure would be a moderate setback to the state.

GE said it plans to move its corporate headquarters from Fairfield, Conn.to Boston by mid-2016, a move that confirmed the worst fears of CT lawmakers. “I know many in CT share the disappointment and frustration”.

“They were certainly impressed with the large number of innovation companies that we have here, the high-technology environment that we have here”, said Rick Lord, the CEO of Association Industries of MA. The new headquarters will be located in Boston’s Seaport District with a temporary headquarters opening this year and a full move completed by 2018.

The move was mourned in CT, but MA officials rejoiced. The company has been based in Fairfield for more than 40 years.

“Governor Malloy even thought it was a good idea”, Fasano said. “Will any of these businesses be next to pack up and leave?” We will make them as carefully and consistently as we can.

Fasano says the Democratic-controlled legislature did not take GE’s tax concerns seriously and brushed off the idea of restructuring the state budget.