BOSTON—At a press event that featured a host of state and city dignitaries, GE executives said the company will invest $50 million in educational, workforce and civic initiatives in Boston. However, its real economic impact will be far, far greater, they say.

GE announced at the press event held at 60 State St. on Monday afternoon that its GE Foundation has committed $25 million to Boston Public Schools, $10 million to building out a diverse workforce population and $15 million to developing the next generation health care workforce and increasing training for specialty care.

The foundation's $25 million to the school system will provide students the opportunity to explore college and career possibilities and to understand the skills necessary for future employment. GE says it will also create “GE Brilliant Career Labs” with both physical and virtual locations to allow students a unique hands-on experience with advanced manufacturing technology and software to assist them through career planning and internships. The company also says it will also assist 100% of STEM high school teachers to better prepare students for college and their future careers

Among those who attended the event were Boston Mayor Martin Walsh and Massachusetts Gov. Charlie Baker. On March 25, GE announced it would be relocating its headquarters in Fairfield, CT to South Boston at 5 and 6 Necco Way. Many in real estate and political circles believe GE could be a game changer for the city's commercial real estate market and economy, which are both very strong at the moment.

At the press event, GE Chairman and CEO Jeffrey Immelt began to put a price tag on just how much the firm could mean to the City of Boston. “Together GE and Boston will lead the digital transformation of industry. To build a global digital company and community, we must invest to further educate our children in science and math and improve health care in underserved communities. GE's investments will create thousands of new jobs and support Boston's regional and economic activities,” Immelt said.

The Boston Redevelopment Authority will own the Necco Way buildings that are to be redeveloped. GE also plans to build a new state-of-the-art building at the 2.5-acre site. Immelt also said that GE would help improve the infrastructure in and around the property. Employees will move to a temporary location in approximately 45,000 square feet of space at 33-41 Farnsworth St. in Boston starting in the summer of 2016, with a full move completed in several steps by 2018.

GE officials point to a an economic impact study conducted by Oxford Analytic, which calculated that the company's move will add 4,000 new jobs in the Boston area between temporary construction jobs and permanent GE employees and vendors. The study also indicates that GE in Boston will bring another $776 million in new real estate demand; $260 million in new income (GE salary and indirect); and $28 million to local vendors.

GE's new headquarters in the Seaport District will house 800 GE employees; 200 from corporate leadership and 600 digital industrial product managers, designers and developers split between GE Digital, Current, Robotics and Life Sciences. The company also plans to establish a GE Digital Foundry for co-creation, incubation and product development with customers, startups and partners.

GE currently employs nearly 5,000 workers across the State of Massachusetts in businesses including aviation, oil & gas and energy management. In 2014, GE moved its Life Sciences headquarters to Marlborough, MA and in 2015 announced its energy services start-up, Current, would also be headquartered in Boston.

The company is receiving approximately $150 million in state and city aid in connection with its relocation and investment in the City of Boston. As part of the relocation, the company plans to sell its Fairfield, CT campus, as well as its offices at 30 Rockefeller Plaza in New York City.

General Electric

Instant Insights /

GE Says HQ Economic Impact Totals More Than $1 Billion

Related Stories

Recommended For You