ENFIELD, Conn. — Lego Group’s latest announcement that it’s going to construct a brand new manufacturing unit in Virginia has centered consideration on the corporate’s North American headquarters in Connecticut, with some business watchers saying it might not be a superb signal for the corporate’s future within the state.
The Denmark-based international toymaker introduced final week it plans to speculate greater than $1 billion to construct a manufacturing unit in suburban Richmond, to open in 2025. The power would be the firm’s seventh globally and its first within the U.S.
An organization spokesperson stated the choice would don’t have any influence on the dimensions and scope of the Enfield headquarters, and a spokesperson for Democratic Gov. Ned Lamont informed Hearst Connecticut Media that Lego’s senior management had affirmed its dedication to maintain the workplace within the state.
“It’s commonplace for firms to speculate and broaden in a number of states — and so they achieve this for all kinds of strategic causes,” Max Reiss informed the information outlet. “Lego has been and continues to be a unbelievable associate with our state and we look ahead to strengthening this relationship now and into the long run.”
Nonetheless, the event raises the query of whether or not the headquarters would possibly ultimately transfer to Virginia, Fred Carstensen, a professor of finance and economics on the College of Connecticut, informed Hearst.
“They higher be fearful,” Carstensen stated of state officers. “Bodily proximity of a headquarters to manufacturing services is certainly an element corporations contemplate.”
Numerous components might have persuaded the corporate to find the manufacturing unit elsewhere, stated Donald Klepper-Smith, an economist with DataCore Companions.
“Financial growth nowadays speaks to value constructions,” Klepper-Smith informed Hearst. “Forty p.c of your long run job progress is a operate of the price of doing enterprise. And in the case of Connecticut, companies are being incentivized to look elsewhere.”