|After $38 million in improvements just three years ago Mass Mutual is leaving its Enfield location and consolidating operations across the border in Springfield.|
SPRINGFIELD: MassMutual Insurance is consolidating its operations in Springfield and a new $2500 million facility on Boston’s seaport. The company says the consolidation will result in a total investment in Massachusetts its home corporate location, of $300 million.
The Springfield corporate office will see 1,500 over the next four years to reach more than 4500 jobs there, and 500 at the Boston location.
MassMutual was founded in Springfield in 1851 and is owned by policy holders. It's No. 77 on the Fortune 500 list with $675 billion in assets under management.
While the move is a big win for Massachusetts, it underscores a potential lesson for Connecticut lawmakers that corporate sentiment can change about a state – to big impact.
According to the Boston Business Journal, two and a half years ago, Mass Mutual CEO Roger Crandall, provided a different view of the Commonwealth in a speech to the Greater Boston Chamber of Commerce. Charlie Baker the now very popular Repubican Governor had just been elected.
Crandall said then “every week he got calls from officials in other states about opening offices outside of Massachusetts. He listed off the problems with doing business in the Bay State, including high energy costs and slow population growth. A few of his comments may have startled any state officials in the crowd that day.”
He added, “don’t take for granted that the next 50 to 100 years for Massachusetts will be as good as the last 50 to 100 years,”
The paper added, “speaking of unnamed politicians whom he suggested took MassMutual’s presence for granted, he warned: They think you’ll never leave.”
MassMutual will close its offices in Enfield, Connecticut, in Charlotte, North Carolina, Somerset, New Jersey, Memphis, Tenn., and Johnstown, Pennsylvania. Most of 1,500 people that work in Enfield will move to Springfield. The Springfield consolidation is expected to take up to three years to complete and includes $50 million in expansion costs at the headquarters.
The status of the Enfield campus which was bought from the Phoenix Company in 2004 has not been decided yet. The property has extensive renovations in 20014 totaling $38 million and its currently appraised by the town at $49,412,980.
The Springfield Republican newspaper reports that additional facilities around the country will be consolidated into the Boston and Springfield locations but that offices in Amherst, Ma, New York city and Phoenix, AZ, are expected to remain because they “provide access to specific talent pools and business solutions.”