Analog Devices is growing, both in Wilmington and nationally.
The company, Wilmington’s largest employer, recently received the OK from the town, state and Board of Selectmen on a new tax plan that gives the company $700,000 in waived permit fees and $4.3M in property tax relief on the value of new facility construction. The tax benefit will be distributed over not more than eight years, but at least five years.
In return, Analog pledges to create 50 new jobs by Dec. 31, 2024 and relocate 450 employees from its Norwood and Chelmsford locations to the Wilmington campus.
If the company fails to adhere to the agreement, representatives would be required to meet with the selectmen. If default continues, the board could seek decertification from the EACC (Economic Assistance Coordinating Council).
Originally, Analog sought a $17M tax break from the town.
Selectman Jonathan Eaton, who saw the original plan as a member of the Finance Committee, called the new plan “a win-win for the town and Analog Devices,” as it keeps jobs in town while also bringing in new ones.
The new construction will consist of a parking garage, a research and development building and a hub building containing meetings spaces and a cafeteria. The new global headquarters will be located on Elroy Road, off Woburn Street, just west of I-93.
The expanded facility will also feature state-of-the-art laboratories, design and manufacturing and cross-functional group collaboration space. In addition to 147,000 additional square feet for research and development, the global headquarters will include a 50,000 square foot Hub comprising a café, fitness facility and auditorium designed to enable and encourage employees from all departments and functions to gather, connect and engage.
At a groundbreaking ceremony held last month, the company hosted Jay Ash, Secretary of Housing and Economic Development for the Commonwealth of Massachusetts, Senator Bruce Tarr, Wilmington Town Manager Jeff Hull, and other dignitaries from the Commonwealth, Associated Industries of Massachusetts, the Town of Wilmington Board of Selectmen and Finance Committee. Following brief remarks from guests including Analog Devices’ Co-Founder and Chairman Ray Stata, executives and speakers participated in a celebratory groundbreaking. A pictorial history of the Wilmington facility was on display alongside renderings of the new facilities and renovations to existing structures that showcased light-filled spaces and greenery in and outside the buildings.
“We are committed to building the Analog Devices of the future,” said John Hassett, SVP of Global Operations and Technology at Analog Devices. “We have invested and upgraded our facilities globally to provide more modern, latest technological and work design advances, to support and foster the highest level of innovation. This new campus will be our global showcase – enabling us to highlight our best work, attract top talent and build new partnerships.”
With a presence in Wilmington dating back to 1981, Analog Devices is the longest-standing and largest manufacturer in the town. From underwriting local STEM scholarships to sponsoring athletics and contributing to environmental causes, Analog Devices has been a reliable partner and supporter to the local community.
“The strength of Massachusetts is exemplified by Analog Devices and its position at the forefront of technology,” said Secretary of Housing and Economic Development Jay Ash. “Congratulations on breaking ground on your new global headquarters, capping an incredible 53 years of innovation, with many more to come. We appreciate your contributions to the Commonwealth.”
In late June, the Massachusetts Economic Assistance Coordinating Council approved the Tax Increment Financing Plan for Analog during a quarterly meeting held in Worcester. The Town Manager, along with representatives from Analog Devices and Peter Milano of the Office of Business Development, attended the meeting.
Hull called the approval “. . . certainly good news for both the town and Analog.”
The Town Manager also noted Sen. Tarr sent a letter of support to the EACC. He said the letter talks about the strong points associated with the proposal and the prospect of jobs being brought to Wilmington.
Analog employs more than 1,500 people in Wilmington, and that number should reach nearly 2,000 when the company transfers over the 450 people from its Norwood and Chelmsford locations. The company also plans to invest $142.9M into the new project on Elroy Road. The company expects to move into the new building by 2020.
Who is Analog?
Analog Devices designs and manufactures analog, mixed signal and DSP integrated circuits to help solve engineering challenges. The company has been in existence for more than 50 years, has 125,000 customers, 4,700 patents worldwide and employs 15,000 people.
While the company grows locally, its status nationally is on the rise as well. According to an article on Yahoo! Finance, the company is showing no signs of slowing down.
“The chipmaker,” the article notes, “has strung together a series of impressive results over the past few quarters, recording terrific growth across all of its business segments thanks to the massive demand for its chips that are used for processing analog and digital signals between devices.”
Analog has seen a major increase in its stock portfolio jumping 32 percent to $1.5B during the second quarter. The company has also seen its net income nearly quadruple. But the article notes the most impressive aspect might be how Analog expects to carry this momentum forward and continue to grow.
The company’s biggest revenue driver, at 87 percent, is its industrial, automotive and communications businesses. Industrial alone makes up 52 percent of the top line.
On Wednesday, Aug. 22, the company plans to release its financial results for the third quarter of FY18. Overall, the company has seen a major rise in its stock price in the past 52 weeks from $76 a share to as high as $103 a share. The price is now trading around $96 a share. Clearly, since the company was becoming more profitable, it lessened the risk of expansion at its Wilmington campus.
As Analog grows, it can only positively impact the community. The more money the company makes, the more it expands; the more it expands, the more it hires; the more it hires, the more it hires from Wilmington; and the more it expands, the more tax money the town takes in (even with the tax decrease Wilmington gave the company).