UTC Passes Over Connecticut for New InvestmentsMarch 27, 2017
The question being asked now, like it is at so many other businesses, is will UTC's future be in Connecticut, or elsewhere?
United Technologies Corp. (UTC) is important for Connecticut’s economy. The defense conglomerate’s economic impact cannot be understated. That makes UTC’s decision to invest $300 million and at least 250 jobs outside of the state even more painful:
United Technologies Corp. said last week it would spend $300 million and hire 250 software engineers to create a digital research and development center in a tech-savvy neighborhood of Brooklyn.
Gov. Dan Malloy (D-Conn.) has long touted a positive relationship with the company, calling it one of the “most important relationships” that the state could have:
“Probably the most important relationship that we could have with any corporation in our state is with United Technologies.”
In 2014, Malloy pushed for huge tax breaks for UTC, in hopes of keeping the company in Connecticut and investing in the state:
The agreement, which require[d] legislative approval, also requires UTC to keep the corporate headquarters of its two main subsidiaries – East Hartford-based Pratt & Whitney and Sikorsky Aircraft of Stratford – for 15 and 5 years, respectively.
As the Hartford Courant pointed out, UTC’s choice to expand outside of the state seems reminiscent of General Electric (GE), which shipped its headquarters and jobs up to Boston last year. GE’s decision left many arguing the state’s business climate is dismal:
It is obvious a state’s business tax climate is in bad shape when it chases away a major employer to a neighboring state whose longtime nickname has been Taxachusetts.
The question being asked now, like it is at so many other businesses, is will UTC’s future be in Connecticut, or elsewhere?
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