Worcester Business Journal

20 Worcester Business Journal • February 1, 2016 www.wbjournal.com GE move benefits Mass. taxes, politics, innovation G E's decision to relocate from Fai r f i el d, C on n . to Massachusetts may appear that the benefits will be Boston-centric, but the Fortune 10 company's move will resonate throughout the Bay State, revealing that our state's tax policy, innovation and even bipartisan political cooperation can be favorable to businesses. Thanks to the combined marketing of Gov. Charlie Baker and Boston Mayor Marty Walsh, along with their respective staffs and members of the business community, efforts has led the GE corporation to select Boston's Innovation District for its global corporate headquarters. This decision came after a very public initiative started back in June 2015, when GE Chairman and CEO Jeff Immelt first notified employees the company would be looking to relocate its headquarters and took a hard look at 40 different cities across the country. On Jan. 13, Immelt confirmed his decision, stating, "Today, GE is a $130-billion high-tech global industrial company, one that is leading the digital transformation of industry. We want to be at the center of an ecosystem that shares our aspirations. Greater Boston is the home of 55 colleges and universities. Massachusetts spends more on research and development than any other region in the world, and Boston attracts a diverse, technological- fluent workforce focused on solving challenges for the world. We are excited to bring our headquarters to this dynamic and creative city." While the economic benefits of GE's decision may be Boston-centric, the announcement by the eighth largest Fortune 500 enterprise that it is leaving its current corporate location of 42 years – because of significant and retroactive tax increases in Connecticut – goes a long way in removing the Taxachusetts brand that our state has been so unfairly saddled with for so many years. Immelt said GE was looking for long-term financial stability in a state, which by this decision to move, he found in Massachusetts. Given such a desire for long-term fiscal responsibility, we should expect GE will actively promote the need for good fiscal management at our state level, which could be a lasting benefit for all of the citizens of our state. Another outcome derived from the GE decision process was Baker was able to cooperatively work with Boston's mayor in order to propose a collaborative economic package that GE found acceptable. This type of collaboration was not found in either the competing cities of Chicago or New York. Despite representing different political parties, both Governor Baker and Mayor Walsh found the proper economic solution for GE and have set a standard for similar bipartisan solutions in the future economic opportunities, such as this, within the state. The recruitment of GE will also have a very positive impact on the state's overall manufacturing community as GE's mission to aspire to be the most competitive company in the world will impact all who do business with the conglomerate. In addition to the relocation of the GE corporate staff of approximately 200 people, there will be an additional 600 digital industrial product managers, designers and developers split between GE Digital, robotics and Life Sciences. A GE digital foundry will be created for co-creation, incubation and product development with customers, startups and partners. All of these interfaces will be subject to GE's "FASTWORKS" system that ensures quicker product cycles, quicker IT implementation and faster customer response than industry standards. As the personnel at the GE innovation center interface with local suppliers and partners, they will infuse the requirements of the FASTWORKS system through the local economy. This has to be a welcome change as it has the potential to change the competitiveness of the majority of the state's manufacturers who are focused on slower moving development processes, related to the Department of Defense and medical devices. GE is a leading example of efforts that are underway throughout the global manufacturers economy where the implementation of the next generation of manufacturing technologies, such as the Internet of Things (IOT), 3D printing, big data, robotics, etc. that GE is inventing for the next industrial era, to move, power, build and cure the world. Hopefully the company will accomplish much of this development in our state. GE's involvement in such new technologies will have an impact on the educational venues throughout the state, especially in the promotion of the science, technology, engineering and mathematics courses, as GE will be a very welcome addition to the STEM Council. The uniqueness of adding a company who imagines things others don't, builds things other can't, and delivers outcomes that makes the world work better must be viewed as an asset that can impact our entire state. n Jack Healy is president and CEO of the Massachusetts Manufacturing Extension Partnership. GUEST COLUMN BY JACK HEALY Achieving success and meeting goals can be challenging for any business. At Avidia Bank, you'll benefit from our complete line of cash management, merchant and on-line banking services combined with the experience, expertise and personal service that comes from years of building relationships at a local level. Partnering to make the success of your business, our business. Give our Business Banking Team a call today at 800-397-2225! 800-508-2265 l avidiabank.com Member FDIC l Member DIF

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