L3 will fold its operations businesses into red states. States that are friendly to business and have lower or no state income taxes, and lower corporate taxes. New York is doomed, and now so is new jersey.
8 replies (most recent on top)
I could see Amityville being folded into Clifton once the Van Nuys closure is done. The decision would be made by the same managers, and New York’s not exactly a business friendly state either. Honestly don’t think Clifton is imminently being sold off, maybe in 5-10 years though.
@c9
The Clifton site was sold many years ago by ITT. They purchased it back when the defense industry took an upturn after the Bill Clinton era ended. That company no longer exists in the defense industry, having spun off their defense business 10 years ago. L3 Harris is a defense contractor in name only. Their primary objective is to, in their own words "unlock value for our stakeholders". That just means making money for their partners. If consolidating their real estate holdings will benefit the company, aka the shareholders, that's what they are going to do. The long-term plan has always been to move as much of the operations to Florida as possible. the space coast has a well-trained labor pool in this industry. The tax environment in Florida is more business friendly than New Jersey both in terms of property taxes, income taxes and corporate taxes. The labor unions, the bargaining units if applicable, are friendlier to business than those in New jersey.
@bv I’d be surprised if they closed Clifton considering it was attempted once and they had to buy the building back. Closed areas are expensive to create which was the primary reason they couldn’t let it go last time. Clifton is also picking up the Van Nuys work, I wouldn’t be surprised if they get other sites stuff as well (like Amityville which they’re already partially handling). If they were going to close Clifton in the near future, I’d expect that work to have shifted to FL. Not sure it’s a long term solution, they need another large production contract to come in.
L3Harris sold its 38.87-acre Brevard County property for $13.75 million to Gallie Electric But L3Harris will remain a tenant at the South Wickham Road location. So, they're still going to pay rent for a little while.
All part of the stated plan to reduce the real-estate footprint along with reducing the workforce another 5% next year. Look for more property sales.
(The 1,000,000 sq. ft. , 78-year-old monstrosity in New Jersey has been in the crosshairs for quite a while.)
They're laying off buildings too
154 S WICKHAM RD MELBOURNE FL 32904
156 S WICKHAM RD MELBOURNE FL 32904
158 S WICKHAM RD MELBOURNE FL 32904
160 S WICKHAM RD MELBOURNE FL 32904
162 S WICKHAM RD MELBOURNE FL 32904
Parcel ID: 27-36-25-00-775