GE moving corporate HQ to Boston

Discussion of General Electric locomotive technology. Current official information can be found here: www.getransportation.com.

Moderators: AMTK84, MEC407

GE moving corporate HQ to Boston

Postby MEC407 » Thu Jan 14, 2016 10:39 am

This isn't specifically related to the locomotive division but I thought some of you might find it an interesting read.

From Yahoo! Finance:

Yahoo! Finance wrote:General Electric Co said on Wednesday it will move its global headquarters to Boston, tapping the city's technology talent and likely lowering its tax bill as the industrial conglomerate seeks to lift profit and emphasize digital capabilities.

The maker of aircraft engines, locomotives, power turbines and household appliances will move to temporary quarters by next summer, and permanently settle about 800 workers in the Seaport district by 2018, GE said.
. . .
GE said the move would have no material financial impact, with costs offset by state and city incentives and the sale of its current headquarters offices in Fairfield, Connecticut, and its offices at 30 Rockefeller Plaza in New York City.
. . .
But talent also was a draw. GE said on Wednesday it had been thinking about a new location for more than three years and considered 40 potential sites this year. Those included Atlanta; Austin, Texas, and Nashville, Tennessee, according to people familiar with the matter.
. . .
The 124-year-old company is undergoing a major restructuring to emphasize digital and industrial capabilities. Earlier on Wednesday, GE said it would cut up to 6,500 jobs in Europe over the next two years, including 765 in France and 1,300 in Switzerland, as it restructures and integrates its acquisition of Alstom's energy business.

With 800 employees, the Boston headquarters will be the same size as Fairfield, but its makeup will change, GE said. The new office will employ about 200 administrators and 600 "digital industrial product managers, designs and developers," GE said.


Read the rest of the article at: http://finance.yahoo.com/news/general-e ... 28961.html
MEC407
Moderator:
Pan Am Railways — Boston & Maine/Maine Central — Delaware & Hudson
Central Maine & Quebec/Montreal, Maine & Atlantic/Bangor & Aroostook
Providence & Worcester — New England — GE Locomotives
User avatar
MEC407
 
Posts: 10695
Joined: Thu Mar 11, 2004 8:15 pm

Re: GE moving corporate HQ to Boston

Postby Engineer Spike » Mon Feb 15, 2016 12:46 am

I'm surprised that they didn't choose somewhere in the South. Taxachusetts , and Connecticut are both expensive places to live or do business. It must be some logistics, or something about where most other plants are based.
"Welcome all ye who enter; the show that never ends. Tingfield Sperminal Railway." (Graffiti on the entry to Mohawk Yard Office)
Engineer Spike
 
Posts: 1662
Joined: Tue Mar 16, 2004 3:24 pm

Re: GE moving corporate HQ to Boston

Postby MEC407 » Mon Feb 15, 2016 9:51 am

It's their corporate office, not a manufacturing facility. The article explains why they chose Boston.
MEC407
Moderator:
Pan Am Railways — Boston & Maine/Maine Central — Delaware & Hudson
Central Maine & Quebec/Montreal, Maine & Atlantic/Bangor & Aroostook
Providence & Worcester — New England — GE Locomotives
User avatar
MEC407
 
Posts: 10695
Joined: Thu Mar 11, 2004 8:15 pm

Re: GE moving corporate HQ to Boston

Postby Allen Hazen » Tue Feb 16, 2016 1:35 am

Given the Boston area's concentration of universities, it's probably a good place to be if you want to recruit "digital industrial product managers, designs and developers." (And, if you want to recruit any sort of young professionals, the urban amenities of Boston surely trump anything a bedroom suburb like Fairfield can offer!)
Interestingly, given the "Taxachusetts" reputation of the place, GE apparently thinks moving there will reduce its tax bill! (See third paragraph.)
---
Pity they didn't see fit to locate their new locomotive-building facility in Massachusetts! Evidently, after weighing the costs (tax and other) and the likely pool of available workers, etc etc etc, they thought Boston was a better fit for corporate headquarters and digital stuff.
Allen Hazen
 
Posts: 2340
Joined: Fri Mar 12, 2004 10:14 pm
Location: Edmonton, Canada (formerly Melbourne, Australia)

Re: GE moving corporate HQ to Boston

Postby MEC407 » Tue Feb 16, 2016 8:39 am

Another quote from the above-linked article:

The move also will lower GE's tax bill. Even though Massachusetts is often called "Taxachusetts," it ranked 25th in a 2016 Tax Foundation survey of positive business tax climates among U.S. states. Connecticut ranked 44th, near the bottom.


Massachusetts will provide up to $120 million in grants and other incentives and the city will provide property tax savings of up to $25 million.


GE has a reputation for paying very little in taxes, and that certainly won't change with the move to Boston.
MEC407
Moderator:
Pan Am Railways — Boston & Maine/Maine Central — Delaware & Hudson
Central Maine & Quebec/Montreal, Maine & Atlantic/Bangor & Aroostook
Providence & Worcester — New England — GE Locomotives
User avatar
MEC407
 
Posts: 10695
Joined: Thu Mar 11, 2004 8:15 pm

Re: GE moving corporate HQ to Boston

Postby YamaOfParadise » Tue Feb 16, 2016 1:01 pm

It sucks for Connecticut, but I really doubt they'd stay for long even if CT decided to bend over backwards for them; major business location these days is all about which states and municipalities are willing to give away more... and if those benefits of moving expire (read: tax exemptions), that cycle begins anew.

But yeah, Boston is one of the forefronts of technological development in the world right now, so it certainly makes sense for them to be moving there. While they focus on digital in their press release, the minds they can tap in MIT and Harvard and such can offer much more than that... it can easily bolster every division of their corporation.
Consider contributing detailed railway data to OpenStreetMap for use in OpenRailwayMap!
User avatar
YamaOfParadise
 
Posts: 373
Joined: Fri Dec 06, 2013 5:36 pm
Location: Middlesex County, Connecticut

Re: GE moving corporate HQ to Boston

Postby Rockingham Racer » Tue Feb 16, 2016 3:06 pm

Boston Logan has more flights than Fairfield, too! That was one of the reasons they wanted out of Fairfield. New Haven Tweed certainly doesn't fit the bill, and it's a long trek to the nearest field with international flights, which I guess would be JFK.
User avatar
Rockingham Racer
 
Posts: 2911
Joined: Wed Mar 17, 2004 9:25 pm


Return to General Electric

Who is online

Users browsing this forum: Google Adsense [Bot] and 4 guests