Honeywell’s Global Restructuring: HQ Pulled From New Jersey, Despite Tax Deal
by: The Knowledge Group
Notwithstanding a $40 million corporate tax break from the state of New Jersey, Honeywell International Inc., now headquartered in Morris Plains, has picked Charlotte, North Carolina as its future base. Between now next September, Honeywell will relocate at least 150 senior management posts to Charlotte.
The tax deal with New Jersey, now in its fourth year, has a span of 10 years. It also stipulates that the company must stay in New Jersey for 15 years.
Thus, about a thousand Honeywell employees will keep working in the company’s six New Jersey offices. And about 800 of them will stay at Honeywell’s Morris Plains location.
Darius Adamczyk, chair and CEO, says the move is meant to consolidate senior management around Honeywell’s existing presence at the company’s Charlotte-based Safety and Productivity Solutions division. Charlotte is also nearer to Atlanta, where both the Honeywell Connected Enterprise division and the Honeywell Building Technologies initiative operate.
CEO Cites Charlotte, NC as Top Ten Destination
Adamczyk further notes that Charlotte is a “top-10 destination” among U.S. cities, offering a pool of talent needed for Honeywell’s long-term strategic focus on cutting-edge technology and software.
Northeast, take note. Honeywell is number 77 among the Fortune 500 largest U.S.-based firms, so the move will be taken as a wake-up call for legislators.
What did North Carolina do? This month its lawmakers pushed new, pro-business legal provisions through, more than doubling the per-job yearly tax relief cap to a whopping $16,000.
Charlotte is already the home of the headquarters of Bank of America and Duke Energy.
Consequences in New Jersey
Honeywell will continue to take advantage of its 15-year pact in the Garden State, as the company leaves most of its existing New Jersey workforce in place.
That said, Morris Plains will lose 750 high-value jobs.
Hardly good news for a state economy that’s predicted to lag behind the nation’s overall growth through 2025.
Related Webcast: Opportunity Zones: Opportunities and Challenges Explored
Live Broadcast Date/Time: Tuesday, December 11th 2018, 12:00pm – 2:00pm (EST)
CLE Credit Value: 2.0