State hopes for GE no guarantee

How significant the decision by a technology division of General Electric Co. to come to Rhode Island ends up being for the local economy will of course depend largely on the number of new jobs created.

GE executives have committed to growing 100 jobs here in the first year. The state, however, has suggested that number could grow into hundreds of jobs in the future. But there are a number of variables that could play a role in determining whether that will come to fruition.

“It is not a certainty,” acknowledged Jeffrey S. Bornstein, GE chief financial officer, when asked whether the future jobs were guaranteed. “We have to make that opportunity.”

What that means is GE will take a wait-and-see approach to determine whether its burgeoning GE Digital tech division can successfully grow in the Ocean State and spur consequential business around it.

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“Creating an ecosystem around [GE Digital] that attracts other companies, other entrepreneurs and other people … I’d say is a big upside for Providence and the state,” Bornstein said. “This is not an issue of demand; there is absolutely demand for this kind of work. It’s a question of whether we can scale it up and make it real.”

The growth of jobs will also likely depend on what type of incentives the company can secure from the state. State officials largely accept right now that GE will receive about $5.6 million in incentives, contingent on whether it’s successful in producing the first 100 jobs. The incentives would come through the state’s Qualified Jobs Incentives and its First Wave Closing Fund, according to R.I. Commerce Corp. Secretary Stefan Pryor.

But it’s less clear what else the company might qualify for in the future, and whether it’ll be enough for GE to significantly add to the first 100 jobs. Pryor earlier this month told reporters the company still had to apply for the first round of incentives.

Gov. Gina M. Raimondo, who is recognized as the one who “quarterbacked” GE into coming to the state, has put it upon herself to see that Rhode Island does what it can to ensure future job growth. Both she and Bornstein agree access to talent to fill top-tier technology, engineering and design jobs will also likely dictate future local growth for GE.

Rhode Island is home to some of the top schools in the country, but some local employers have complained about difficulty finding skilled workers.

Raimondo has pledged, however, that GE will find the talent it needs locally.

“This is where their company is going, this is where the economy is going, and they’ve chosen us,” Raimondo said. “The rate-limiting factor to growth is probably talent. … We’re going to deliver the talent. If we deliver the talent … what I think you’re hearing is that it’s a limitless opportunity.” •

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  1. All I’ve heard so far is that GE is only looking at university students and colleges! There are many seasoned IT professionals that have been out of work and desperate here in RI, and nothing is mentioned of that talent pool…. Just look at the Tech-Collective’s ‘Tech Force Rhode Island’ program — we have an entire grant program to help the seasoned, professional, but displaced RI IT work force. I sincerely hope that the seasoned, well-established IT workers in this state trying to feed families and pay their mortgages are not completely overlooked for College Students instead. No one mentions the talent we have already – that can’t find jobs and haven’t been able to find jobs for years now. Never mind the new job-seekers in the STEM fields being churned out of the of universities here.