In their announcement, GE cited Boston’s higher education and its “diverse, technologically-fluent workforce”.
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“I don’t think it’s surprising that GE moved here”, said Lori Brock, Osram’s head of corporate innovation in the Americas.
“We had enough on the table to be competitive”, said Jay Ash, Baker’s secretary of economic development.
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.
Mr. Lanza said GE’s departure was unlikely to create a big hole in Connecticut’s budget, and the state would retain the same advantages it had used to recruit companies in the past, including its proximity to both New York City and Boston, along with a well-educated workforce.
When news first leaked last summer that GE was considering a move, fingers were pointed to the state’s budget that included increased taxes.
MA offered $120 million in grants and other incentives to help lure the company from CT, in addition to $25 million in property tax relief being offered by the city of Boston. The company employs 5,000 people in the state, including the 800 at its headquarters.
Political leaders from states including MA and NY have courted GE since the maker of locomotives, jet engines and oilfield equipment said in June it would consider moving because of tax increases in CT.
NY officials had hoped to attract GE, but the company said it not only is pulling out of CT but will be selling its offices at 30 Rockefeller Plaza in Manhattan. It sounds like the combination of Boston’s educational institutions and tech and life sciences businesses-along with state aid and tax incentives, of course-swung the decision in Boston’s favor.
Malloy continued, saying “Taken as a whole, there is no denying that CT has had more good days than days like today”.
“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 bulk of GE’s employees in CT are located outside Fairfield in offices of GE Capital, the lending unit that is being shrunk as the company shifts its focus to manufacturing. “Equally important, GE will continue to work with and support many smaller businesses throughout our state”.
But Murray said the move, when complete, should spell positive results for Worcester. “These same Democrats then had to backtrack, after they forced legislation upon companies without listening to them or even having a conversation about their perspective”, Fasano said in statement on Wednesday.
Here’s what we know so far about the move, with further details expected to emerge as GE moves ahead with its plans. Connecticut’s business community has expressed concern that the state would raise taxes to solve the pension issue.
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Licking his wounds, Connecticut Gov. Dannel Malloy released a statement that notes that GEs decision to leave the Nutmeg State should serve as a sign that the state should adapt to a changing business climate.
