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Spencer Technologies is investing $12M to consolidate its U.S. operations in Medway

November 26, 2018
Spencer Technologies exhibits at trade shows nationwide to let retailers know how they can handle their technological needs.

In the midst of its expansion and consolidation, Northborough retail tech provider Spencer Technologies explored possibilities for relocation in both Rhode Island and Massachusetts.

The privately-held, $80-million company ultimately landed on 10 Trotter Drive in Medway, spending more than $12 million to bring its national operations under one roof. A deciding factor was staying close to its Northborough facilities.

"Massachusetts was better for my employees in Northborough, and the State of Massachusetts provided incentives to stay in Mass.," said David Strickler, president and CEO.

The Massachusetts Economic Assistance Coordinating Council awarded Spencer $245,000 in September, prompting its relocation later this year.

"This move will be an economic boost for Medway and will deliver 200 new jobs in the area," said State Rep. Jeffrey Roy (D-Franklin). "And it is great that the company was able to take advantage of some state funding to facilitate the move. This is an example of the importance of the public-private partnerships the legislature has created, and that are designed to strengthen our economy."

Gap, Estee Lauder & Yankee Candle

Spencer Technologies was founded in 1972 and has grown into a global company with more than 400 employees and 200 technicians. Spencer operates in the United States, Canada, Mexico and Europe.

David Strickler, CEO & president, Spencer Technologies

"We are consolidating operations from other parts of the country to our new world HQ in Medway," said Strickler. "The company will benefit culturally and execute better if more of the 450 employees are under one roof; 150 of our employees are field technicians who are, by the way, the best in the industry."

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The deal for the state incentives calls on the company to move 128 jobs to Medway and create another 200. Strickler estimates 15- to 20-percent growth in employee count annually after the move.

In November, the company put on the market its 23,000 square-foot Northborough offices for $2.95 million with O'Brien Commercial Properties of Concord.

Spencer serves as a global retail technology service provider – buying, installing and servicing technologies in stores for retailers like Gap Inc. and Framingham-based TJX Cos. Equipment is built and programmed at a Spencer staging center and then installed by technicians in the actual location.

Roughly one-third of the Spencer employees moving into the Medway facility are field technicians.

By owning the equipment, Spencer establishes a long-term relationship with the retailer where it will regularly service the equipment.

"If we can't fix over the phone and need a new piece of equipment, we send a technician to the store with a part or a new device. We make the repair and send the defective unit back to our depot for repair and future use," Strickler said.

Strickler called Spencer's work a holistic life cycle tech service for retailers throughout North America and Europe. In addition to Gap and TJX, other clients include Burberry, Academy Sports + Outdoors, BJ's Wholesale Club, Caffé Nero, Peet's Coffee, Cycle Gear, L Brands (Victoria's Secret), Aeropostale, Estée Lauder, Zara, Carter's, Yankee Candle, Cole Haan, and Destination XL Group.

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Medway hub

Spencer's new building will invigorate Medway's urban renewal plan and bring a commercial building back to active use, Medway Town Selectman Dennis Crowley wrote in support of the state incentives.

Barbara Saint Andre, Medway's director of community and economic development, said the town is pleased to welcome Spencer.

"Across Trotter Drive from the Spencer site, Converting Technical Systems has broken ground and is constructing a new building for its business," she said, "while at the corner of Trotter Drive and Alder Street, O'Brien and Sons recently opened its new building."