Loss is not expected to affect UTC’s Connecticut workforce
The loss of United Technologies Corp’s Connecticut headquarters as part of a blockbuster merger with Raytheon Co. is a blow to a state that has lost a string of corporate headquarters in recent decades, but UTC’s Connecticut workforce is expected to remain a major force in Connecticut’s aerospace and manufacturing industries.
“Does the loss of UTC’s headquarters hurt the psyche of the state? Sure, it does,” David Griggs, president and chief executive of the MetroHartford Alliance, said Sunday night. “But we shouldn’t overlook that we have two tremendous manufacturers headquartered here. Pratt & Whitney will still be headquartered here. Otis will still be headquartered here.”
Griggs said he was in contact with the company throughout the day Sunday, and he was told that “the headcount for UTC in Connecticut that is in Connecticut will remain in Connecticut.”
In announcing their deal Sunday, the companies said the headquarters of the combined com
pany will be in the greater Boston metro area.
UTC employs approximately 19,000 people and about 100 top corporate jobs will shift to Boston under the merger.
U.S. Rep. Joe Courtney, a Democrat representing Connecticut’s 2nd District and a member of the House armed services committee, said there isn’t a lot of overlap between the two companies: Raytheon manufacturers missiles and systems and UTC makes jet engines.
Courtney said he expects UTC’s manufacturing facilities to remain a robust presence in Connecticut.
“You can’t lift that up and land it in Waltham,” he said.
But he said he is puzzled by the decision to move the combined company’s headquarters to Massachusetts.
“I’m disappointed in that given that UTC is the larger of the two entities and has more seats on the board,” Courtney said. “The logic of that doesn’t seem to add up.”
U.S. Rep. John Larson, a Democrat who hails from East Hartford, home to Pratt and Whitney, said he understands the proposed merger is bringing on a great deal of anxiety for UTC employees.
But Larson says the joining together of two New England-based defense powerhouses could make the combined company stronger and strengthen Connecticut’s economy, despite the psychological blow of losing UTC headquarters.
“It sounds at first blush is that their overall military operations will be strengthened by broadening their defense portfolio,” Larson said.
Asked about the state losing the corporate headquarters of another iconic company, Larson said: “Of course it concerns me. I would love to have their corporate headquarters in Connecticut. But we don’t get to decide that.”
The relocation of the UTC’s headquarters, now in Farmington, comes after General Electric’s headquarters move from Fairfield to Boston in 2016.
But Griggs said it would be a mistake to try to draw comparisons between the two. GE said it left Connecticut because it wanted to tap into the technological “ecosystem” of the Boston area and the talent pool for potential employees who could fuel innovation.
“This is a merger between two very large companies,” Griggs said. “The net effect to Connecticut is far less than GE, by everything that I have been informed of.”
U.S. Sen. Richard Blumenthal called for close scrutiny of the proposed merger, which still requires regulatory and other approvals.
“As a member of the Senate Armed Services
Committee, I am troubled by the possible impact on cost and competition of defense product, which may significantly affect American taxpayers,” Blumenthal said. “Of paramount interest to me is that the company match increasing defense and commercial contract commitments with additional jobs in Connecticut. I will be fighting to protect Connecticut jobs and workers every step of the way.”
State Sen. Derek Slap, a West Hartford Democrat and president of the Connecticut Technology Council, said he wants the state to make a pitch to keep the combined company’s headquarters in Connecticut.
“And beyond that, our state policies must promote growth,” Slap said. “The recent budget includes investments in workforce development programs and education — a nod to the fact that talent acquisition is an important factor for companies. Our workforce can compete with anyone, and it’s critical we make it clear that Connecticut is open for business.”