Malloy Offers More Nuanced Take On UTC Division’s Move To Charlotte
by Hugh McQuaid | Jul 11, 2012 11:59am
(9) Comments | Commenting has expired
Posted to: Business, Jobs, Labor, Local Politics
Gov. Dannel P. Malloy said Tuesday that news reports from North Carolina have “oversimplified” the negotiations that led to United Technologies Corp committing to move jobs from Connecticut to that state.
The company is in the process of acquiring Charlotte-based Goodrich Corp. Once the acquisition is complete, UTC plans to relocate its new Aerospace Systems unit headquarters, currently housed in Windsor Locks.
On Tuesday the Charlotte Observer quoted Charlotte Chamber of Commerce President Bob Morgan as saying UTC’s decision to move the division to that city was motivated by a desire for “political diversification.”
“They have all of their eggs in one basket politically, by having multiple divisions – all of which are in Connecticut,” the Observer reported Morgan saying. “They would like to diversify.”
Morgan’s claim the move was politically motivated has made waves here in Connecticut. In June the Hartford Courant reported North Carolina offered UTC $2.5 million in grants to relocate the 75 Connecticut jobs with a promise to create more than 300 additional positions. According to the Observer, the city of Charlotte added another $2.5 million in incentives to the pot.
In a statement, UTC spokesman John Moran, who was travelling overseas and could not be reached by phone, said the incentives factored into the company’s decision. He did not mention “political diversification” as a motivation.
“The Charlotte area was on our short list of attractive locations mainly because of the access to aerospace talent at Goodrich,” Moran said. “The location selection process was highly competitive, and the incentives provided by North Carolina were vital to our selection of the state for the headquarters. The state’s favorable business climate was also a consideration.”
Asked if Connecticut offered UTC any incentives to keep the division local, Malloy said he was in an “an ongoing discussion with United Technologies about just about everything.”
The governor was dismissive of the reports coming from North Carolina.
“I think there’s somewhat oversimplification in North Carolina about what happened about negotiations that led to the acquisition, I think those have been underestimated,” he said.
Malloy added that United Technologies has been a large employer in Connecticut that has been largely ignored by the state for much of the last decade.
“They didn’t have much of a relationship with state government over the last 10 years. I think if you talk to anybody in the hierarchy of United Technologies or any of the subdivisions they’ll tell you it’s a very different situation today than it was 18 months ago,” he said.
Morgan did not immediately return a call for comment regarding his statement.
(9) Comments
posted by: Matt W. | July 11, 2012 12:34pm
“Political Diversification” HAHAAH! Diversifying themselves right off of a sinking ship! They said it about as nicely as they could and it’s still a stick in they eye. That’s awesome!
posted by: joemanc | July 11, 2012 12:37pm
Malloy said UTC was ignored by the state over the past decade…I think he meant to say that no coporate welfare was extended their way!
posted by: DirtyJobsGUy | July 11, 2012 12:48pm
The new Boeing plant is in Charleston, the new Airbus plant will be in Alabama. The elected representatives in these states are not hostile to business or national defense. Hmmm. Clients closer, costs lower, support from Government vs a handout with big strings from Hartford. No brainer. Plus these are Right to Work states vs a toxic labor environment in CT.
posted by: justsayin | July 11, 2012 12:56pm
Malloy sums up the story well at the end. His and(democrat) involvement drove UTC to NC.
posted by: Noteworthy | July 11, 2012 1:24pm
Nuanced. Oversimplified. Ignored. Three verbs. Three lies and the governor’s nose grows ever longer. Those jobs pay $200k and more - across ten years, they’re estimating payroll of some $650 million with a multiplier for business impact that will well exceed a billion dollars.
It’s not an oversimplification to say Malloy, while playing the bon vivant again, this time in Houston, failed miserably in keeping a major employer here. All it took was a better business climate and a piddly $5 million - not $51 million. To say that UTC was largely ignored acoss the last ten years is yet another mistaken and tired effort to blame others.
Maybe old Dannell can spin this like he does the budget - almost balanced, almost stayed. In other words, Not and See Ya.
Oh yes, and one other point - those employees will have an extra $30,000 in their pockets because it costs nearly 15% less to live there.
posted by: SJAY | July 11, 2012 2:27pm
If the reported use of the term “political diversification” by the Chamber President is true it only demonstrates the shallowness of his understanding of business relocation decision process. He comes across as nothing but a political hack and all his other comments only serve to crystallize his myopic mentality on the subject. In fact, it appears from the full article earlier that the “political diversification” argument was the only one left to try and convince a skeptical city council to hand over the dough. It appears that UTC’s decision (if in fact such a decision has been made) was made for perfectly sound business/economic reasons…acquire a business unit that will enhance the activities of the company in a location that makes greater economic sense. The incentives in this case appear to be an unnecessary handout; but, hey, for Mr. Chamber of Commerce President it’s a lot easier and more diffuse for him to couch the process in terms of politics, ergo “political diversification”.
We don’t know what, if anything, CT offered to UTC, or even if UTC tried to get anything from CT. And yes, Governor Malloy is right…the last ten years under felon Rowland and CindeRella were definitely not about strengthening relationships between the state and its business community! Over the last 18 months Governor Malloy has stemmed the tide and continues to make vigorous efforts to undo the previous shortsightedness and incompetence. You can’t win ‘em all but if you’re gonna lose one here and there this Governor has shown that it won’t happen without a heck of a fight!!
posted by: Lawrence | July 11, 2012 9:35pm
SJAY, very well put. The problem is, you sound informed and reasonable, and your explanation makes complete sense.
But… don’t you KNOW the TRUTH? Can’t you SEE it in front of your own EYES?
CT has NO Fortune 500 companies or multi-millionaires or CEOs or new business growth because…um… the right-wingers say so?
Carry on…
posted by: Commuter | July 12, 2012 1:02am
Isn’t Goodrich’s headquarters already in Charlotte? So it would have been pretty shocking if UTC decided to pull all those people and assets out and move them to Windsor Locks or wherever. Costly, to say the least. This doesn’t look like a loss for Malloy, it looks like a fait accompli that we just heard about, thanks to some questionable comments from the local good ol boy that got printed in the local papers.
