The LEGO Group’s plan to move its North American headquarters from Enfield to Boston marks the latest in a string of Connecticut corporate departures to Beantown.
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The LEGO Group’s plan to move its North American headquarters from Enfield to Boston marks the latest in a string of Connecticut corporate departures to Beantown.
“Boston is ranked one of the best cities in the world to attract and retain talent,” Skip Kodak, president of the LEGO Group in the Americas, said in a statement released Monday. “This, along with its world-class academic institutions, skilled workforce and great quality of life makes it an ideal location for our US head office.”
It echoes similar sentiments voiced in recent years by other Connecticut corporations — including GE and Alexion Pharmaceuticals — that announced plans to move their flag from Connecticut to Boston.
Two top business advocates say Connecticut has made strides in improving some of its competitive disadvantages to its northern neighbor, but acknowledge there is a lot yet to accomplish.
David Griggs, president and CEO of the MetroHartford Alliance, said LEGO was one of the first companies he met with after taking the helm of his Greater Hartford economic development group in 2018. Even then, there were warning signs that LEGO might depart the northern-Connecticut suburb of about 42,000 residents.
Once Enfield’s largest employer, LEGO trimmed hundreds of jobs from its North American headquarters beginning in 2007. Even so, the company’s statement Monday said there are 740 employees left in Enfield — all of whom are welcome to a job in Boston and relocation assistance.
The LEGO Group, which has called Enfield its regional home for more than 50 years, said it will move its Connecticut office to Boston by the end of 2026.
Griggs said LEGO’s struggle to attract talent to the Hartford area was “always their biggest challenge.”
Griggs chalks it up to a branding problem. Younger, top-tier talent wants to live in vibrant, urban areas. Hartford’s cultural, entertainment and quality-of-life strengths are not well recognized by people unfamiliar with the region, Griggs said. The MetroHartford Alliance has worked to change that narrative, but could use more resources, he said.
Boston also offers easier travel options from LEGO’s home office in Denmark, Griggs noted. A direct flight from Copenhagen to Bradley International Airport is not a likely possibility, he acknowledged.
Hartford’s revitalization efforts were humming along in 2019 before the pandemic saw the flight of the commuting masses, who still have not made anything approaching a full return. The city is working hard to build momentum again, and has seen its share of successes, especially with the addition of about 2,000 apartments over the past decade.
The Capital Region Development Authority has helped incentivize these apartments, often in amenity-rich buildings in the city center. They have been well-received, with occupancies generally over 90%. Hundreds of additional apartment units are in various stages of the planning and development pipeline.
Hartford has also committed more than $6 million in the past year to help launch new, first-floor retail ventures.
“Our goal is to not to have this LEGO experience repeat, and that’s why we are investing in ourselves,” Griggs said.
But it will take time for those investments to take root, he acknowledged.
Chris DiPentima, president and CEO of the Connecticut Business & Industry Association, warns against reading too much into the headlining arrival or departure of a single corporation.
Still, DiPentima connects LEGO’s departure to a problem squarely in the sights of CBIA’s legislative agenda this year — the state’s massive workforce shortage, evidenced by more than 100,000 job vacancies. CBIA is urging state lawmakers to beef up incentives for housing development on brownfields and in proximity to mass transit.
DiPentima said CBIA is also advocating for greater flexibility and increased reimbursements for a state program that offers tax credits to companies that reimburse employees for higher education debt.
Connecticut’s improved fiscal health puts it in a position to make needed investments in mass transit and urban revitalization, DiPentima said. Connecticut’s cities can aspire to offer amenities similar to those in Boston with the right state incentives and investments, he added.
“We will not have a Boston in Connecticut, but we can have a lot of little Bostons,” DiPentima said.
