Monday, December 3, 2018

Fortune 100 Honeywell Selects Charlotte for New Headquarters

Raleigh, N.C.
Dec 3, 2018

Honeywell, a Fortune 100 company providing software-oriented solutions for many of the world’s most complex industries, will locate its headquarters in Mecklenburg County, creating 750 by the end of 2024, including 150 that are currently based in New Jersey. The company’s move will bring more than $248 million in investment by the end of 2023.

“With our strong talent, robust infrastructure and unmatched quality of life, including our commitment to education and our low cost of living, North Carolina is the ideal headquarters choice for an elite company like Honeywell,” said Governor Cooper. “Charlotte is perfectly positioned to provide the education and training, infrastructure and amenities to attract and retain Honeywell’s top talent.”

With this project, Honeywell will relocate the company’s extended senior management team along with its Safety and Productivity Solutions business group headquarters. Honeywell will also establish a hangar at the Charlotte-Douglas International Airport to house the company’s headquarters aircraft and the associated flight and maintenance crew.

Honeywell invents and manufactures technologies that address some of the world’s most critical challenges around energy, safety, security, productivity and global urbanization. Honeywell blends physical products with software to support connected solutions that improve buildings, factories, supply chains, utilities and aircraft, and enable a safer, more comfortable and more productive world.

“As our new corporate global headquarters, Charlotte provides Honeywell with many advantages in support of our ongoing transformation and emergence as a premier technology company,” said Darius Adamczyk, Honeywell chairman and chief executive officer. “We selected Charlotte because it offers a great business environment along with access to a workforce that has the skillset Honeywell will need to be competitive over the coming decades. In addition, the location allows us to co-locate Corporate headquarters with our Safety and Productivity Solutions business, it is near our Honeywell Building Technologies and Honeywell Connected Enterprise businesses in Atlanta, and it offers our employees a great quality of life. At the same time, we will retain a large workforce in New Jersey.”

Salaries for the new employees in North Carolina will vary by position and experience. Once all positions are filled, the annual payroll impact will be more than $250 million.

The North Carolina Department of Commerce and the Economic Development Partnership of N.C. (EDPNC) led the state’s support for the company’s selection.

Honeywell’s headquarters location in Mecklenburg County will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee Monday evening. Over the course of the 12-year term of this grant, the project will grow the state’s economy by an estimated $7.9 billion. Using a formula that accounts for the new tax revenues generated by the new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $42,450,000 spread over 12 years. State payments only occur following performance verification by the Departments of Commerce and Revenue that the company has met its incremental job creation and investment targets. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.

Because Honeywell chose to locate in Mecklenburg County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving as much as $14,150,000 in new tax revenue generated through the grant into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 3 county such as Mecklenburg, the new tax revenue generated through JDIG grants helps more economically challenged communities throughout the state.  More information on the state’s economic tier designations is available here.

Partnering with N.C. Commerce and the EDPNC on this project were the North Carolina General Assembly, the North Carolina Community College System, Mecklenburg County, the City of Charlotte and the Charlotte Regional Business Alliance.

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