Arrow Electronics Inc., with $18.7 billion in annual revenues last year, announced today its is moving its global headquarters to Englewood and could create 1,250 additional jobs over the next five years.
Arrow is one of the largest company to ever call Colorado home. The company, which trades under the symbol ARW, has a market cap of about $3.5 billion.
Arrow Electronics is a Fortune 140 company, has customers in 52 counties that already has about 1,000 employees in Colorado.
“This is one of those moments when focus and discipline pays off,” said Gov. John Hickenlooper about Arrow’s move. “We haven’t been shy about working to retain, grow and recruit new businesses in Colorado. Today, we are proud to welcome Arrow Electronics’ global headquarters to its new Colorado home. We look forward to doing all we can to help the company prosper.”
Arrow Electronics’ global corporate headquarters is currently in Melville, N.Y. Effective Nov. 15, the company’s Englewood office will become its headquarters. The company currently has a facility at 7459 W. Lima St. in Englewood. That industrial-warehouse building has 281,755-square feet and Arrow has owned it since 1998, according to public records. At mid-day, Arrow’s stock was down about 4.5 percent to $30.24. In the past 52 weeks, the stock has traded between $25.71 and $47.50.
Serving 52 countries from Colorado
“This change puts Arrow Electronics firmly in the heart of this country’s epicenter for innovation,” said Michael J. Long, chairman, president and chief executive officer of Arrow Electronics. “We want our global corporate headquarters located in a state that’s committed to supporting business growth and is collaborative in spirit. Colorado is that place. As we embark on the next phase of our company’s history, we look forward to Colorado being the global headquarters for the 52 countries that we serve.”
Earlier this year, Hickenlooper mentioned at a real estate forum that a Fortune 150 company was thinking of moving its headquarters to Colorado, apparently alluding to the Arrow deal. (To read that article, please visit this InsideRealEstateNews.com link.)
Colorado’s Office of Economic Development and International Trade and will begin actively recruiting Arrow Electronics’ supply chain partners to also locate in Colorado or, at least, start doing business here. The company partners with more than 1,200 suppliers and 115,000 original equipment manufacturers around the world.
To help Arrow Electronics potentially grow its workforce in Colorado, the state’s Economic Development Commission last week approved tax credits of up to $11.4 million over five years for the creation of 1,250 more jobs.
The credits were made available through the state’s Job Growth Incentive Tax Credit Program approved by the Colorado General Assembly in 2009.
The Economic Development Commission has supported 11 businesses (including Arrow Electronics) in the past three years through the Job Growth Incentive Tax Credit Program and approved potentially $29.5 million in tax credits, supporting 3,258 net new jobs over the next five years. To date, tax credits totaling $521,738 have supported the creation of 422 net new jobs.
Arrow Electronics will join nine other Fortune 500 companies that have headquarters in Colorado, including Ball, CH2M Hill, DaVita, DISH Network, Level 3, Liberty Global, Liberty Media, Newmont Mining and Western Union.
Today’s announcement by Arrow Electronics, according to private and state economic development officials, because:
- Fortune 500 headquarters are a barometer for the breadth and depth of a state economy. For years, Coloradans have been rightly concerned about the small number of Fortune 500 companies based in Colorado. Today’s announcement by Arrow Electronics, coupled with Level 3′s consolidation in Colorado announced last week, creates two new Fortune 500 headquarters in the state.
- Fortune 500 companies have significant impact on regional economies because they tend to partner and do business with local companies.
- Fortune 500 headquarters tend to invest more in the community in the form of support for education, arts and other causes. In fact, companies spend 60 percent of their total philanthropy in the communities in which they are based.
- Fortune 500 companies help Colorado recruit companies of similar size and from similar industries.