FARMINGTON, CT (WFSB) – New developments have emerged in the merger between United Technologies and Raytheon.
Governor Ned Lamont says he’s spoken with the head of UTC and the company is committed to keeping most of its workforce in Connecticut.
The merger includes relocating 100 corporate executives to Massachusetts.
UTC has a huge workforce, about 19,000 employees. They are the largest private employer in the state.
Lamont said he’s being told that’s not going to change, but it’s the perception that can make the state look weak.
“I have a pledge from United Technologies that Pratt and Whitney will continue to grow and expand here, adding 1,000 new hires over the next year,” Lamont said.
Lamont is putting a more positive spin on the merger between United Technologies and Raytheon.
Due to the merger, 100 high level jobs will be moving from UTC’s corporate headquarters in Farmington to Massachusetts.
It’s a small number compared to the overall workforce of 19,000, which UTC says will continue to manufacture jet engines here in CT at its Pratt & Whitney locations in East Hartford and Middletown.
“To me, it’s the perception that’s important. People who may be thinking of coming to Connecticut or thinking of staying in Connecticut, they’re really saying, ‘why is UT moving,’” said David Cadden, economist.
Economist David Cadden says the Boston area can be a more attractive location for corporate executives and millennials.
General Electric also moved its corporate headquarters out of CT.
The loss of 100 high paying jobs will have an impact on Connecticut’s real estate market, which already has a glut of higher priced homes for sale.
State lawmakers just slapped a conveyance tax on homes valued at $2.5 million.
Median home sale prices in Hartford county are down 2.3 percent from last year, compared to the Massachusetts market, where home prices are up over 4 percent.
UTC has also been given millions in state tax credits. Eligibility for the tax credits is based on employment, payroll, research and development, and capital investments.
Lamont said there’s no indication UTC plants to renege on what’s been agreed upon.
“It’s one of the biggest issues Connecticut has. It doesn’t have the cities people find exciting, affordable, and people want to love,” Cadden said.
Approximately 100 jobs are expected to leave Connecticut from UTC’s corporate headquarters next year.
The new company will be called Raytheon Technologies, with annual sales of $74 billion per year.