GE to Move Headquarters to Boston for Tech Gains

Although GE has been scouting new locations for three years and Boston was rumored to be on the shortlist, Stewart told CPE the announcement still came as somewhat of a surprise to many in the industry, but that it seems to be welcome news.

In the release announcing its move, expected to wrap up in 2018, the company cited the city’s “business ecosystem”, quality of life and “connections with the world”.

“Although GE has chose to locate its corporate headquarters in Boston, we remain in discussion with Rhode Island about locating GE jobs in the state in the future”.

Employees will have to move to a temporary Boston location in summer of 2016. They’re moving to Boston because that’s where digital industrial companies are…

Which isn’t nothing, but keep in mind that on Wednesday GE also announced that it would cut up to 6,500 jobs in Europe over the next two years. “Boston is delighted and honored to welcome General Electric and its employees to our community and we are confident that this is the start of a strong partnership”.

“It’s a punch in the stomach for the state of CT”, said state senator Tony Hwang, who represents Fairfield.

Such a move could boost interest in bringing Jet Blue to the Cincinnati/Northern Kentucky International Airport, because workers at Evendale-based GE Aviation would need to travel to Boston, where Jet Blue has major operations. The company will relocate to the Seaport District of Boston and will employ 800 people there.

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”.

“Governor Baker and Mayor Walsh should be commended for their creativity and diligence in bringing GE’s headquarters here and we congratulate them on this significant milestone in Massachusetts’s economic history”, Chris Anderson, the council president, said in a statement.

In September, the Business Journal reported four potential sites in Westchester were being pitched to GE, all within 40 miles of its Fairfield campus. “They are eating our lunch because fiscal instability and anti-business sentiment from the Democrat majority make CT unappealing and unwelcoming”. But increasingly, suburban office parks are losing out to urban environments that are more attractive to young, well-educated workers.

With GE moving to MA, it will become by far the state’s largest publicly traded company.

While some have suggested the company’s decision would likely take into account the state’s long-term liabilities and fiscal stability, Godfrey said he didn’t buy it. “It just doesn’t make any sense to me”, he said.

Other incentives offered include $1 million in workforce training grants, up to $5 million for an innovation center to connect GE with innovators from MA research institutions and universities, Seaport District transportation improvements, and employee relocation assistance.

“GE is rebranding its image and shifting its central business platform away from heavy industry and financial services to digital software and technology, changing the very structure and composition of its headquarters”, said Sen.

“GE was not bluffing”, he said, and the company’s decision is “reflective of not simply GE, but a number of other companies, hospitals and individuals in this state”.

The loss should drive CT officials to rethink the state’s tax rates, which are by and large above those of its neighbors, residents and experts said.