Connecticut based global manufacturing conglomerate General Electric (GE), a $146 billion dollar company that makes everything from jet engines to light bulbs, has announced its intention to open a global shared services delivery center in Cincinnati, Ohio that will employ a projected 2,000 employees at an annual payroll of $142 million. General Electric already employs over 300,000 people globally, and over 16,000 people in Ohio, more than it employs in any other state. 7,500 are in the Cincinnati area, where GE has major aviation and finance business operations.
The Cincinnati area center will be a back-office operation handling supply chain management, information technology, finance, and human resources. The opening fits into General Electric’s global strategy to simplify its operations by consolidating functions like finance and information technology into global regional centers of excellence where processes and workflows can be standardized and optimized for efficiency. Ohio competed with other locations for the shared services delivery center that will complement the Monterrey, Mexico location as the second Americas site. Within Ohio, Cincinnati competed against other locales; “The Banks” location in downtown near the Ohio River was finally chosen by General Electric’s site selection committee, for a 10 story, 338,000 square foot facility. The Banks is an 18-acre development on the Ohio River between Great American Ball Park
and Paul Brown Stadium, home of the Cincinnati Reds baseball and the Cincinnati Bengals NFL teams, respectively.
“This is really a big day in terms of bringing a competitive U.S. center into the shared services mix” —GE SVP Shane Fitzsimons
“It was a tough competition,” Ohio Governor John Kasich said. “They could have gone to a lot of different places, and I think that the DNA of Cincinnati was a great help.” The site chosen by General Electric is designated as mixed use, with the office complex adding to 600 apartments existing or under construction, and over 20,000 square feet of retail space. The state provided a $51 million incentive package to induce General Electric to locate the center in Ohio.
“This is really a big day in terms of bringing a competitive U.S. center into the shared services mix and one that working with our partners we’re sure will be competitive and deliver what we need for our company, customers and shareholders alike,” said General Electric’s senior vice president Shane Fitzsimons, in charge of global shared services operations at a press conference last week. “We’ve worked closely with a number of the stakeholders in this project – the governor, the mayor, Hamilton County leaders – to bring GE’s global operations center to Cincinnati and Ohio.”
Continued Fitzsimons: “We’re excited to expand GE’s presence in Ohio. Ohio and GE have been working together for many years and Ohio is home to over 15,000 GE employees today. The Greater Cincinnati Area provides a pool of talent that will help us build a world-class Shared Services Center.”
The average salary for delivery center employees, according to General Electric’s Joe Allen, tapped to manage the center once it opens in 2017, will be $70,000. “We’re looking at all levels from entry level to mid-career so you’ll have a wide variety of pay scale.”