GE's New Research Center, Maybe More Than Meets The Eye (GE)

General Electric Co. (NYSE: GE) has now confirmed that it will open an advanced manufacturing technology and software center in Michigan called The Advanced Manufacturing and Software Technology Center. We had reports initially of 1,200 jobs being created, but the company puts this figure as growing to more than 1,100 GE employees over the next few years.

The center will include a GE R&D facility to house scientists and engineers to develop next generation manufacturing technologies.  GE said these efforts will be in renewable energy, aircraft engines, gas turbines, and other high-technology products. The work will include development of composites, machining, inspection, casting and coating technologies for GE’s Aviation and Energy businesses.

Another area covered is software development, data architecture, networking, business intelligence and program management to support GE’s business operations and will serve as a training hub for GE’s IT professionals.

The Advanced Manufacturing and Software Technology Center is expected to open later this year, and it will be located at the Visteon Village site in Van Buren Township,  about 25 miles from Detroit.  GE said it is a new $100 million facility with a 100,000 square-foot building that will be constructed on the site, and software and IT employees will be located in existing office space.

The state of Michigan is providing more than $60 million in incentives over the next 12 years to support the center.  The research employees at the Michigan facility will join 2,800 researchers and employees at GE’s four global research facilities.  GE also noted that it expects to partner with local universities on training programs for its employees at the center.

1,100 or 1,200 jobs is probably not the biggest news in the world during normal times or during good times.  Our data still shows GE having over 300,000 workers around the globe.  But right now, economists and investors keep trying to look for green shoots in the economy.  A facility construction or expansion from the likes of a GE is at least one small green shoot.

Jon C. Ogg
June 26, 2009