Unmatched coverage
The Springfield News-Sun digs into important stories about jobs and the economy in Clark and Champaign counties, including recent stories about expansions at Navistar and Speedway.
By the numbers:
$22 million: Investment planned by EF Hutton America to move to Springfield
400: Jobs that could be created over five years
1904: Year EF Hutton America was founded
Many Springfield residents likely know EF Hutton by its iconic tag line, “When EF Hutton talks, people listen.”
But the company that’s pledging to invest $22 million, buy two major downtown buildings and bring 400 new jobs to Springfield isn’t the same business that was a perennial heavyweight on Wall Street until it vanished in a series of mergers in the late 1980s.
>>RELATED: Financial firm plans to move to downtown Springfield, add 400 jobs
EF Hutton America is a newly independent company that was incorporated in Colorado in 2007. A group of former company executives and family members of the company’s founder purchased the rights to the company’s name in 2014.
“We take our inspiration from the firm founded by Edward F. Hutton in 1904, 110 years ago — but we are a separate company,” the firm’s web page says.
The new owners are making a bet that the company’s name still resonates with consumers. Instead of Wall Street though, the company wants to set up its headquarters at the former Credit Life Building, a 10-story office tower in downtown Springfield.
And the firm, once one of the largest investment advisory businesses in the financial services industry, has a new business model. The company’s common stock is traded under the symbol HUTN.
Company leaders see an opportunity to use technology to change the way the financial services industry operates.
“This is an industry that’s undergoing substantial change,” EF Hutton America CEO Christopher Daniels said.
The firm launched a new product about nine months ago called Gateway, which Daniels said will serve as an online tool to connect consumers with independent service providers to offer advice in retirement planning, financial planning, tax, insurance, real estate and other financial advice.
“Our business model has similarities to other Internet-based systems that have greatly improved efficiency and information flow in their respective industries and marketplaces,” EF Hutton America’s investor relations site says.
Uber, Open Table and Angie’s List are some examples of businesses that have taken a similar approach. EF Hutton America will receive a portion of revenues from the service providers, and like Angie’s List, it will qualify the service providers who are listed on the network.
Local leaders said this week the move will bring foot traffic downtown, spur new investment and encourage other companies to take a closer look at moving to Clark County.
>>MORE JOBS COVERAGE: 70 jobs, up to $18M project proposed for Springfield industrial park
>>DETAILS:Navistar to add 300 jobs in Springfield with second GM deal
“We have a team in Springfield that is very focused on jobs and job-readiness and that’s paying off when we get an opportunity like this,” said Mike McDorman, president and CEO of the Chamber of Greater Springfield.
Daniels said Thursday the firm decided to set up its headquarters in downtown Springfield for a variety of reasons. Higher education entities like Clark State Community College and Wittenberg University will provide access to a potential pipeline of skilled workers. And the city is located between Dayton and Columbus, which could provide a larger pool of workers.
The company looked at other states like New Jersey and Florida as well, but said Ohio and Springfield offered a more business friendly environment and a package of incentives that better fit the company’s needs.
“You have talented people, it’s a state that’s business friendly and a community that seemed to be very supportive of the business we’re planning to develop,” Daniels said. “There’s a lot of things that go into a decision like that and it’s not necessarily one thing but a combination of things that make the difference.”
About the Author