Multi-State Analysis Finds Big Businesses Dominate in Receipt of State Financial Incentives

An analysis of more than 4,200 economic development incentive awards in fourteen states finds that large companies receive dominant shares: 70 percent of the deals and 90 percent of the dollars. The deals, worth more than $3.2 billion, were granted by programs that are facially accessible to both small and large companies. That is the key finding of Shortchanging Small Business, a study released by Good Jobs First and funded by the Kauffman Foundation and the Surdna Foundation.

“State economic development incentive programs—even those that are facially neutral as to company size or have very low qualifying barriers—are profoundly biased against small, local and entrepreneurial businesses,” the report stated.  “States, which legally enable and regulate incentives (even those administered by local governments) are failing to walk the talk when it comes to valuing small business job creators.”

The fourteen states where the awards were analyzed are Florida, Indiana, Kansas, Kentucky, Louisiana, Missouri, North Carolina, New Mexico, Nevada, New York, Pennsylvania, Vermont, Virginia and Wisconsin. “Our findings definitively confirm what many small businesspeople have long believed,” said Greg LeRoy, executive director of Good Jobs First and lead author of the study.

Connecticut, which launched a Small Business Express loan and grant program aimed specifically at companies with less than 100 employees, was not among the states analyzed in the study.

Priority for available funding in the Connecticut program is  given to those eligible applicants who (1) are creating new jobs and (2) are within Connecticut’s economic base industries, including but not limited to: precision manufacturing, business services, green and sustainable technology, bioscience, and information technology sectors.

From the program launch in January 2012 thru August 2014, published reports indicate that officials at the Department of Economic and Community Development indicated 1,160 businesses have received loans or grants, and have created 4,171 jobs in the state and retained 12,095 existing jobs.  At that time, a total of $234 million had been bonded in the program.  The average loan was approximately $175,000 per company, with a ceiling of $300,000 for any loan.  The total amount of money disbursed was $159.4 million, in three components: $14 million in revolving loans; $83.9 million in job creation loans and $61.4 million in the matching grant program.

In recent years, Connecticut has also provided significant incentives to larger companies that provide assurances of plans to expand operations and jobs.  The First Five program offers select companies approved by the Connecticut Department of Economic and Community Development (DECD) a package of incentives for creating at least 200 new full-time jobs. In addition to the incentives for the first 200 jobs within five years, participants continue to get tax credits for each net new job created after that.

Participating companies include Cigna, ESPN, NBC Sports, Alexion, CareCentrix, Deloitte, Bridgewater, Charter Communications, Sustainable Building Systems, Navigators, PitneyBowes and Synchrony Financial, according to published reports.

Earlier this year, it was reported that Consumer financial services company Synchrony Financial, headquartered in Stamford, plans to create 200 to 400 new full-time jobs in Connecticut. The state, through the First Five program, is providing financial support for the expansion project, with the company eligible for grants of up to $20 million based on hiring targets, with a $10 million grant for the first 200 new jobs in Connecticut.

In the Good Jobs First study, there is slight variation in the degree of big-business dominance among the states (80 to 96 percent of the dollars) but that is meaningless, the study authors contend, since the programs vary as do the industrial demographics of the states. The key finding, they stress, is how consistently the programs grossly favor big businesses.

The study, based on a close examination of the recipient companies, designates businesses as large or small based on their employment size as well as their total number of establishments and whether they are locally or independently owned.

“As a policy solution, we do not recommend simply reallocating deals and dollars,” said LeRoy. “These tax-break deals often mean little to small businesses. Instead, states should disqualify big businesses and use the savings to better fund public goods that benefit all employers and help small businesses with the persistent credit crunch.”

Short of disqualifying big businesses, the report recommends states spend much less on big businesses by using safeguards such as dollar caps per deal, dollar caps per job, and dollar caps per company.

Among the programs included in the analysis are the Vermont Employment Growth Incentive (VEGI), New York’s Excelsior Jobs Program, and the Wisconsin Economic Development Tax Credit.

Connecticut Not Alone; Six States Have Held Special Sessions on Budget

Connecticut, with a special legislative session a distinct possibility in the coming weeks, would not be alone in needing legislators to return to work on a state budget after their regular session had adjourned.  The states of Alabama, Alaska, Minnesota, Washington and Wisconsin all have conducted special sessions on budget issues this year, and New Mexico had a special session to discuss capital budget and supplemental appropriations, according to the National Conference of State Legislatures (NCSL). Alabama’s special session – the first in five years - was held over the summer, convening on July 13 and ending in disarray in mid-August, with a second special session on the state budget convened and concluded in mid-September.  Among the budget cuts, according to published reports: the Alabama Department of Environmental Management saw its appropriation drop from $1.2 million to $200,000, and the state’s hospitals, nursing homes, smokers and students took a hit.

Alaska’s two special sessions to deal with that state’s budget, as well as other issues, ran for just under a month, adjourning on June 11, costing the state nearly $900,000, according to published reports.  That state’s deficit was driven by lower-than-expected oil revenue.

Minnesota had a two day session in June to work on the state budget, capital investments, and other issues and Washington State had a series of special sessions in April, May and June.  Wisconsin’s special session on budget and other issues convened in July.  Some in that state are urging another special session be convened this fall.

A number of states have had special session on other issues, including Congressional redistricting, Medicaid expansion, prison construction and the state’s child support system.

Democratic legislative leaders and Republican legislative leaders are scheduled to meet with Connecticut Gov. Dannel Malloy on Monday, Oct. 26, for their first budget discussion, in the run-up to an anticipated special legislative session to close the state’s projected budget deficit.

There are two main types of legislative sessions in states across the country, according to NCSL —regular and special (sometimes known as extraordinary). A regular session is the annual or biennial gathering of legislators, the starting date (and often, the length) of which is set by constitution or statute. Unlike regular sessions, there is no specific timing for special (or extraordinary) sessions. They occur intermittently to deal with the specific issues or topics.  Usually, the scope of a special session—that is, the topics that may be taken up—is limited to the issues specified in the notice calling for the special session, the NCSL website explains.

In 34 states, including Connecticut, a special session of the legislature can be called by either the Governor or the legislature.  In 16 states, only the Governor has that authority.  Connecticut’s regular legislative session, according to the state constitution, runs from early January to early June in odd numbered years and early February to early May in even numbered years.

CBIA and reSET Go Head-to-Head Celebrating Business in Connecticut on Oct. 29

It’s not quite Christmas past and Christmas future, but observers of Connecticut’s business landscape will be forgiven if that’s the take-away from two simultaneous events the evening of October 29 in the state’s Capitol City of Hartford. The Connecticut Business and Industry Association, the state’s leading business membership organization, will be marking 200 years of “Connecticut innovation and ingenuity” at an historic anniversary gala at the Hartford Marriott Downtown, with MSNBC’s Joe Scarborough and Mika Brzezinski the featured guests.  Attendees will have an opportunity to “mix with Connecticut’s most successful and enterprising business leaders at this not-to-be-missed networking event,” according to the advance publicity.

The program is to be preceded by a brief CBIA business meeting. Governor Malloy is schedule to be among the speakers, along with CBIA President & Chief Executive Officer Joe Brennan. Tickets are now available for the celebratory event.

Meanwhile, across town at the Society Room, reSET, the Social Enterprise Trust, whose mission is advancing the social enterprise sector, will be highlighting the unfolding efforts of 12 impact businesses selected as honorees of the 2015 reSET Impact Challenge. Stressing social enterprise, the event has been described as “the future of business.”

The competition, now in its fifth year, recognizes the most innovative, impactful, and viable early stage ventures and start-ups from all industries. For the first time this year, the Challenge was opened to entrepreneurs throughout New England. Award winners will receive unrestricted seed capital, expert professional services, and public recognition. Nine of the 12 finalists are from Connecicut.

“This year’s short list was chosen from the over 100 enterprises that applied. That’s almost double that of last year, and a 700 percent increase since The Challenge launched in 2011. The talent pool gets stronger every year and narrowing it down this time around proved to be quite challenging,” said Rosie Gallant, Director of Programs at reSET.

A panel of expert judges will decide the overall winners who will be revealed at an open-to-the-public celebration, starting at 5pm.   To hear the honorees’ stories and to cast your vote for the “People’s Choice Award,” people are urged to visit www.TheImpactChallenge.org/PeoplesChoice.  The honorees are:

• Asarasi, Inc. (CT)
• BookBugs (NH)
• Beautiful Day / The Providence Granola Project (RI)
• Daily General Counsel (MA)
• Dream See Do (CT)
• FRESH Farm Aquaponics (CT)
• Harford Prints (CT)
• Hugo & Hoby (CT)
• LOTUS Alliance LLC (CT)
• Movia Robotics (CT)
• Parrot MD (CT)
• Planet Fuel Beverage Company (CT)

Connecticut Public Radio host John Dankosky will moderate a panel at the celebration about how social innovation is transforming industries. The panel will feature Disruptive Innovators Jean Hammond, co-founder and partner of LearnLaunch; Makaela Kingsley, director of Wesleyan’s Patricelli Center for Social Entrepreneurship; and a co-founder of tech startup Send Help Back Home.  Tickets to the celebration next month may be purchased at www.ResetImpactAwards.Eventbrite.com.

A separate Impact Venture Showcase will begin at 4pm, with eight early stage, impact-driven startups pitching to an audience of investors, advisors, and guests seeking both social and financial returns. Seating for this pre-celebration event is limited. Separate tickets are required, available at: www.ResetImpactAwards.Eventbrite.com.

With both events spotlighting innovation and ingenuity, the state Department of Economic and Community Development’s statewide theme, “Still Revolutionary,” comes to mind.

This year’s Challenge and Awards are being made possible by a large community of supporters, including a fair number who may also be represented at the CBIA celebration.  The reSET even sponsors include Aeton Law Partners; Bank of America; BNY Mellon; Cantor Colburn; Carter Realty; Central Connecticut State University; Clark Insurance; Comcast Business; Community Investment Corporation; Connecticut Department of Economic and Community Development; Connecticut Innovations; Farrell & Farrell Consulting Services; Fiondella, Milone & LaSaracina; Health Educated, Inc.; HealthyCT; HEDCO Inc.; Murtha Cullina; Powerstation Events; Pullman & Comley, LLC; Qualidigm; Quinnipiac University; Remarkable Technologies; Tariq Farid Foundation; The City of Hartford; The Hartford; The Walker Group; Travelers; Trinity College; and Updike, Kelly & Spellacy.

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CT’s Manufacturing Report Card Features Every Grade, From A to F

Connecticut’s report card on Manufacturing and Logistics is a mixed bag, according to data compiled by Indiana’s Ball State University Center for Business and Economic Data.  The state’s grades in nine categories range from an A in the Productivity and Innovation category to an F in Worker Benefit Costs. The other categories were Manufacturing Industry Health, Logistics Industry Health, Human Capital, Tax Climate, Expected Liability Gap, Global Reach and Sector Diversification. Overall the state received one A, one B+, one B, one C+, two C-, two D, and one F. 

Connecticut’s manufacturing industry is 8.1 percent of the state economy, according to the report. The total personal income in Connecticut is $203,703,411,000 and earnings from manufacturing total $16,591,678,000, the report stated.

The state’s top grade was in Productivity and Innovation.  The researchers described that category as “the value of manufactured goods per worker – productivity – as well as firm access to inventions and innovations,” which “is critical to the long-term performance of a firm and the industry as a whole.”  To measure productivity and innovation, they used manufacturing productivity growth, industry research and development expenditures on a per capita basis, and the per capita number of patents issued annually.  Connecticut was one of five states to earn an A; the others were California, Michigan, Texas, and Washington State.

Compared with 2009, Connecticut’s grades improved in the categories of Productivity and Innovation, Manufacturing industry Health, and Logistics Industry Health, and declined in Tax Climate and Human Capital.  In Tax Climate, the state dropped from a D last year to a D- on 2015’s report card. Sector Diversification, which received an A in 2011, dropped to a C the following year, and has been mired at a D in each succeeding year.

The report authors note that “states that concentrate their manufacturing activity in a single sector typically suffer higher volatility in employment and incomes over a business cycle and are also more likely to experience greater effects of structural changes to the economy involving a single sector.

Connecticut’s Tax Climate grade has been a steady D or D- since 2010, after earning a C in 2009.

In the Global Reach category, in which Connecticut received a B+, only South Carolina, Ohio, Indiana, and Delaware received a higher grade.  Connecticut’s grade matched New Hampshire, placing Connecticut in the top six in that category.  The Ball State researchers indicated that “the level of international trade (in both imports and exports) is a robust measure of competitiveness in the production, movement and distribution of consumer durable and non-durable goods.”

The university’s national report provided report cards to all fifty states in each of the categories.

The Center for Business and Economic Research is an economic policy and forecasting research center at Ball State University.  CBER research includes public finance, regional economics, manufacturing, transportation, and energy sector studies.

New Haven’s Square 9 Softworks Ranks #20 Among Nation’s Top 100 Inner City Businesses

The Inner City 100 are among the nation’s fastest-growing urban firms.  The list of the city-based businesses, thriving from coast to coast, is compiled by Initiative for a Competitive Inner City (ICIC) and featured in Fortune magazine.  The top firms range from a Philadelphia glass blowing outfit, to an Oakland-based 3D printing shop, from a high-end Brooklyn chocolatier to a New Haven software company, the only Connecticut company to earn a spot on the list. “America's urban core is filled with a wildly diverse array of fast-growing businesses,” Fortune points out in presenting this year's 100 fastest-growing inner city companies. Ranking at number 20 is Square 9 Softworks, a leading developer of innovative, business-centric software solutions, headquartered in New Haven. 

Education is paramount at Square 9 Softworks, the write-up by ICIC points out. The document management software maker “has led a number of tech-focused workshops for entrepreneurs in New Haven, as well as creating inner-city scholarships and business intern programs, while recruiting talent from local schools.”

According to ICIC, half its employees are under 35 and come from area universities, and Square 9 plans to nearly double its workforce in two years. Clients and partners include Priceline, New York Life Insurance Company, Ohio State University, and Konica Minolta. According to Fortune and ICIC, the company’s 5-year growth rate is 489 percent, with 2014 revenue of $7.45 million.

The companies listed on “Inner City 100” list among the fastest-growing American companies in any location. Although based in the inner city, these companies derive more than half their revenues from regional, national and international sales, the ICIC explains.  The median firm is 11 years old with over $8 million in annual revenue, 45 full-time employees and a five-year compound annual growth rate (CAGR) of 39 percent.

The Inner City 100 Companies, according to the website listing, are producing jobs in their local communities, competitive advantage for their business partners and profits for their investors. Across all sectors, Inner City 100 firms are more productive than their sector peers throughout the U.S., according to U.S. Census data.

The top 10 companies:  Bithenergy (Baltimore); BWI (Indianapolis); Caduceus Healthcare (Atlanta); Rise Interactive (Chicago); Business Resource and Security Services (Washington DC); StreamLink Software (Cleveland); Concrete Constructors, Inc. (Jackson, MS); Impact Makers, Inc. (Richmond,VA); Creative Business Solutions, Inc. (Washington, DC); and The Onyx Company (Chicago).

Square 9 Softworks is a privately held Connecticut-based corporation whose management team consists of tenured ECM industry professionals, according to the company’s website. Last month, Square 9 Softworks, announced that Buyers Laboratory LLC (BLI), the world’s leading independent evaluator of document imaging products and solutions, awarded Square 9’s “SmartSearch 4.2” the 2015 Summer Pick Award.

“SmartSearch is one of the few document management solutions that can be ideal for both large and small organizations,” said BLI Senior Editor, Jamie Bsales. “Unlike many document management systems, SmartSearch includes most functionality in the standard product, rather than requiring extra-cost add-ons. This makes SmartSearch much less expensive when matched feature-for-feature with other leading systems. Square 9’s SmartSearch has demonstrated to BLI its ability to satisfy complex business needs, streamline daily processes and increase productivity.”

Square 9 is fully owner managed and as such is not subject to the direction of the markets or private equity, the website emphasizes. As a privately held corporation Square 9 has assumed a long term position of expanded growth and profitability, realizing triple digit growth in each of the four years from 2008 – 2011 while recording profitability in sixteen straight quarters, the website points out.

The Initiative for a Competitive Inner City (ICIC) is a nonprofit research and strategy organization and the leading authority on U.S. inner city economies and the businesses that thrive there. Founded in 1994 by Harvard Business School Professor Michael Porter, ICIC strengthens inner city economies by providing businesses, governments and investors with the most comprehensive and actionable information in the field about urban market opportunities. It is led by CEO Steve Grossman, a former Massachusetts State Treasurer and gubernatorial candidate.

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Four CT Businesses Among Finalists in Martha Stewart American Made Competition

Four Connecticut small businesses owners and entrepreneurs are among the finalists selected in the Martha Stewart American Made contest, which highlights the creativity in design, crafts, food and style that is thriving nationwide.  Members of the public can vote on-line for their favorites, with the winners to be announced later this month.  The Connecticut-based finalists operate in Hartford, Bridgeport, East Lyme and Stafford Springs. “Made in America” means that “all or virtually all” of the product has been made in America—that is, all significant parts, processing, and labor that go into the product must be of U.S. origin. Products should not contain any—or should contain only negligible—foreign material. 

The descriptions of the Connecticut-based finalists:

• American Woolen (Stafford Springs - Design Finalist) is re-introducing excellence in domestic textile manufacturing and re-establishing the American "Metropolitan" style aesthetic. American Woolen occupies a red brick, textile mill in northeastern Connecticut. Originally constructed in 1853 and subsequently extended in 1919, the building offers textured surfaces and colors that provide continuous inspiration for our fabric collections.
• Paloma's Nest (East Lyme - Design Finalist) creates new traditions for modern families- heirloom gifts that celebrate wedding, baby, home & holiday. It is the creative work of husband and wife team Jose Vasquez-Corbalan and Caroline Colom Vasquez. Designing together since the day they met (literally designing furniture on cocktail napkins), the pair handcrafts each and every Paloma's Nest item in their coastal Connecticut studio from fine wood and clay materials.
• Raw Material (Bridgeport - Crafts Finalist) is one part street, one part rural Americana. The business’s DIY Knit Kits let anyone create luxe fashion with American-spun merino and alpaca yarn.  Raw Material is a collaboration between mill, woodworker and knitwear maker, using American fiber, spun in an artisan mill. The business works out of a studio in Bridgeport, CT in the American Fabrics Art Building.
• Hartford Artisans Weaving Center’s (Hartford - Crafts Finalist) mission is to promote the craft of hand weaving in a supportive and creative community to individuals with low or no vision or senior in age. People may enroll in the program to get out of the house, to learn a new craft, or to earn extra income; however, “they find far more at our center. They form social bonds, dispelling the loneliness and isolation so common among sight-impaired, blind, and/or senior people,” the website points out.

Creative entrepreneurs and small business owners were encouraged to enter the Martha Stewart American Made Choice competition. From all the published nominees, up to 1,000 finalists have been selected to compete for the American Made Awards across the categories of crafts, design, food, and style. Of these finalists, up to 500 will be handpicked by a panel of judges. From the entire pool of finalists, one winner will be selected. Voting ends on October 19, 2015 at midnight.  The Audience Choice Award Winner will be announced on or about October 23, 2015.

American Made “spotlights the maker, supports the local, and celebrates the handmade,” according to the competition’s website.  The program is made up of people and communities that have “turned their passion for quality craftsmanship and well-designed goods into a way of life.” The categories are Crafts, Design, Food and Style.

Martha Stewart and the executive editorial team of Martha Stewart Living will serve as category judges and oversee the selection process of the finalists. The judges will base their selections on the following criteria: Innovativeness, demonstrated creativity, and originality of idea; workmanship; appearance; and embodiment of an American made theme.

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Connecticut's Top 40 Technology Companies Earn Recognition for Growth

Connecticut's fastest growing technology company didn't exist a decade ago.  The overall 2015 winner in the annual tech competition  is New Haven-based Continuity, a software provider that delivers technology solutions that automate compliance management for financial institutions. Continuity led this year's companies with revenue growth of 1,142 percent since 2011. The relatively young company was founded in 2007 and is led by Andrew Greenawalt, its CEO and co-founder. The winners of the 2015 Marcum Tech Top 40, an annual awards program recognizing the fastest growing technology companies in Connecticut, were announced this month by Marcum LLP and the Connecticut Technology Council. Other 2015 category winners are:

• Revolution Lighting Technologies Inc., Stamford (Advanced Manufacturing)
• FuelCell Energy, Inc., Danbury (Energy/Environmental Technologies)
• Alexion Pharmaceuticals, Inc., Cheshire (Life Sciences)
• iSend, LLC, Middlebury (New Media/Internet/Telecom)
• Datto, Inc., Norwalk (IT Services)

The Marcum Tech Top 40, now in its 8^th year, recognizes technology companies with at least $3 million in annual revenue and a four-year record of growth, in six industry sectors. Both privately held and publicly traded companies are eligible.  This year, 14 were publicly traded; 26 were privately held.

Some of the companies named are familiar to state residents or the state's business community, others are less widely known.  Many are within just a handful of years from launch, others are longstanding industry leaders.  For top-ranked Continuity, it is Greenawalt's second go-around with a Tech Top 40 company, having been a founder of 2008-2011 finalist Perimeter eSecurity (now SilverSky).

"The annual Marcum Tech Top 40 is a highlight of the year for our national High Technology Services Group and our New England region, in particular," said Anthony P. Scillia, partner-in-charge, Marcum New England. "As always, the technology companies being honored this year are true innovators that provide a model of business success in an increasingly complex market environment. Marcum is extremely proud to partner with the Connecticut Technology Council on this outstanding program and enthusiastically congratulates all the finalists and category winners."

"Technology companies are challenged by a shared set of obstacles ranging from capital-raising and complex revenue reporting to intellectual property management and international expansion. The 2015 Marcum Tech Top 40 finalists and winners are best-in-class by all of these measures," said Michael Brooder, partner-in-charge of Marcum's Hartford office.

New Haven and Fairfield counties appear to be the state's center-of-the-tech universe, as each county had 14 winners; Hartford County had eight and Litchfield, Middlesex and New London counties had one each. (One company withdrew during the selection process.)

Bruce Carlson, CTC's President & CEO, said, "Each year, at the Marcum Tech Top 40 event we are reminded that technology companies are thriving in Connecticut. We need to support these companies and the others that are in the growth pipeline in order for Connecticut to achieve the job creation and economic growth we are all striving for. The CTC will continue to advocate for policies and programs that will help our technology community."

2015 Marcum Tech Top 40 Companies by Industry Category  (Company Name, Category, City)

• Amphenol Corporation, Advanced Manufacturing, Wallingford, 
• APS Technology, Advanced Manufacturing, Wallingford
• Barnes Group Inc., Advanced Manufacturing, Bristol
• Dymax Corporation, Advanced Manufacturing, Torrington
• Harman International Industries, Inc., Advanced Manufacturing, Stamford
• Hexcel Corporation, Advanced Manufacturing, Stamford
• RBC Bearings Inc, Advanced Manufacturing, Oxford, New Haven
• Revolution Lighting Technologies, Inc., Advanced Manufacturing, Stamford
• FuelCell Energy, Inc., Energy / Environmental / Green Technology, Danbury
• Proton OnSite, Energy / Environmental / Green Technology, Wallingford
• F3 Technology Partners, IT Services, West Hartford
• Gartner, Inc., IT Services, Stamford
• MResult Corporation, IT Services,
• SAI Systems International, Inc., IT Services, Shelton
• Southridge Technology Grp, LLC, IT Services, Brookfield
• The Network Support Co., IT Services, Danbury
• VLink, Inc., IT Services, South Windsor
• Alexion Pharmaceuticals, Inc., Life Sciences, Cheshire
• Protein Sciences Corporation, Life Sciences, Meriden
• Metrum Research Group, Life Sciences, Tariffville (Simsbury)
• Bio-Med Devices, Life Sciences, Guilford
• Chief Executive Group, LLC, New Media / Internet / Telecom, Greenwich
• HealthPlanOne, LLC, New Media / Internet / Telecom, Trumbull
• iSend, LLC, New Media / Internet / Telecom, Middlebury
• M2 Media Group, New Media / Internet / Telecom, Stamford
• Priceline Group Inc., New Media / Internet / Telecom, Norwalk
• Reality Interactive, New Media / Internet / Telecom, Middletown
• TVEyes Inc., New Media / Internet / Telecom, Fairfield
• Clarity Software Solutions, Inc., Software, Madison
• Continuity, Software, New Haven
• Core Informatics, Software, Branford
• Datto, Software, Norwalk, Fairfield
• Evariant, Software, Farmington
• Higher One Holdings, Inc., Software, New Haven, 
• Insurity, Software, Hartford
• Shoptech Software Corporation, Software, Glastonbury, Hartford
• Square 9 Softworks, Software, New Haven, New Haven
• SS&C Technologies, Software, Windsor, Hartford
• Tangoe, Inc., Software, Orange, New Haven

Three CT Companies Selected Among National Champions for Young Adult Hiring

The National Fund for Workforce Solutions has recognized three Connecticut companies - Starwood Hotels & Resorts Worldwide, Inc., Carey-Floyd Manufacturing, and Mallory Industries, Inc. - among 11 employers nationwide, spanning a variety of industries, as 2015 “Young Adult Employer Champions.” In its first year, the program was created to acknowledge employers who have made a lasting investment in young adult workers by promoting effective hiring techniques and providing access to onsite training and skills development opportunities that result in overall long term retention and career stability. 

Fairfield County’s Community Foundation nominated Starwood for the national award, as the Community Foundation was aware of Starwood’s deep commitment to internships for youth and young adults in Stamford, where the company is headquartered. Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 1,200 properties in some 100 countries and over 180,000 employees at its owned and managed properties.

“Fairfield County’s Community Foundation believes honoring local employers like Starwood is important as this global company in our backyard is doing exemplary work on the youth employment/internship fronts,” said Community Foundation President/CEO Juanita T. James.

Since 1981, Carey Manufacturing has been supplying catches, latches, and handles for military, aerospace, computer, electronics, telecom, automotive, and consumer applications. In addition to an expanding global sourcing network, the company owns and operates a 30,000 square foot manufacturing facility in Cromwell. Floyd Manufacturing has been a high-volume, precision machining operation for a growing number of manufacturers since 1987.

At an early stage, founders Edward Floyd and John Carey, recognized the need for a company that could produce high-quality machined components on a consistent basis, according to the company’s website.   Based on their knowledge and experience, they both formed an eight-person operation to supply high precision components for the aerospace and defense industries, which has grown to a 75-person company.

Mallory Industries, Inc., incorporated in Connecticut in 1956, became an ESOP company in 1999. Located in central Connecticut, in the Farmington Industrial Park on three acres of land, the company’s manufacturing core competency has always been perceived as a cam manufacturer. Components produced have been installed in life critical medical devices, numerous aircraft and various industrial equipment.

The 2015 Young Adult Employer Champions have made substantial commitments toward helping to create well-paying, labor market-driven careers for young adult workers in their regions, the organization explained. Through these investments, the 11 Champions have been able to “successfully engage with their local youth via industry partnerships.”   As a result of hiring young employees and providing career building opportunities, “they have seen a multitude of companywide successes, from improving retention and employee engagement to minimizing recruitment costs,” according to the National Fund for Workforce Solutions.

A primary focus area of Starwood’s Global Citizenship strategy is to provide general skills and job readiness training for unemployed and underemployed individuals. The training can promote economic growth of local communities and stimulate interest in growing sectors that will increase the pursuit of employment in hospitality and related industries.

At its Stamford headquarters, Starwood recognized two needs – a local need for digital media and IT talent and rising youth unemployment. Starwood partnered with the Stamford Mayor’s Youth Employment Program (managed by the Stamford Youth Services Bureau) and Sacred Heart University to provide high school students with customized training and internships in these fields.

The approach combines work-based and classroom learning, giving young adults a unique learning experience. Starwood also works with the Stamford Public Schools to implement year-round academic curriculum, giving students real-world educational experience so that they may expand their exposure to digital marketing. By working with its community partners, Starwood is able to expose young workers to hospitality, give them new skills and perspectives while simultaneously addressing an imperative need in the local community.

In addition to the three Connecticut headquartered companies, other 2015 Young Adult Employer Champions are:

• Sinai Hospital/LifeBridge Health, Baltimore, MD
• Suffolk Construction, Boston, MA
• PTR Baler and Compactor, Philadelphia, PA
• AugustaWestland, Philadelphia, PA
• Keats Manufacturing Company, Wheeling, IL
• Swiss Post Solutions, Inc., New York, NY
• Pointe Precision, Inc., Plover, WI
• OpenSquare, Seattle, WA

“We applaud the continuous efforts and steadfast commitment to our nation’s newest generation of workers seen in the outstanding endeavors of all of the 2015 Young Adult Employer Champions.” said Fred Dedrick, Executive Director of the National Fund for Workforce Solutions. “These Champions exemplify how investment in young adults can both transform individual lives and collectively change the landscape of our national workforce.”

The National Fund for Workforce Solutions, based in Boston, Mass., is a growing national partnership of employers, communities, workers and philanthropy. Together, they invest in more than 35 regional funder collaboratives to strengthen local economies by implementing demand-driven workforce strategies that create talent supply chains, close skill gaps and improve systems.

Manufacturing Businesses, Not Only GE, Being Courted to Move As Fewer Praise CT's Quality of Life

Connecticut’s state government has been working diligently to boost manufacturing and manufacturers in the state, but the latest statewide survey suggests there remain significant obstacles on the road to realizing the goal of growing and sustaining a vibrant manufacturing sector. Among manufacturers, 94 percent handle their production in Connecticut, according to the just-released 2015 Survey of Connecticut Businesses by the Connecticut Business and Industry Association and BlumShapiro. While the survey analysis describes that number as encouraging, it also notes that 28% have production facilities in other parts of the U.S., and 24% in other countries—“which means they may be more likely to consider expanding or shifting more of their production elsewhere.”

The report indicates that the “factors that drive site location include access to key inputs; proximity to suppliers and customers; access to skilled labor; cost of labor; occupancy costs; affordable energy; and where companies are in their life cycle (e.g., mature companies are often likely to disperse geographically to reduce costs).

Although the courting by Governors from across the nation of General Electric’s corporate management has garnered much media and political attention, it is certainly not the only company that is the subject of someone else’s attention.  The CBIA-BlumShapiro report said that one in three businesses surveyed have been approached about moving or expanding their operations to another state.

Of those, the analysis continued, “nearly one in four are planning on moving to that state, 29 percent are considering shifting significant production to another state within five years, and 31 percent are weighing expansion in another state within five years.

Although the report shows that 63 percent of businesses surveyed showed a profit this past year—the best this survey has seen since 2006 - the report indicated that “a primary area of concern” is the expansion of businesses over the next five years, and whether that expansion will take place in Connecticut or elsewhere.

Whether perception drives reality or reality is drives perception, the opinions stated by business surveyed are less than encouraging, according to the report.  Primary reasons cited for moving or expanding outside Connecticut are the state’s high costs (including taxes) and its “anti-competitive business environment,” reflecting an oft-stated CBIA viewpoint.  More than three-quarters say Connecticut’s business climate is subpar compared with other states in the Northeast, and the nation.

The report also noted the significant number of state companies that depend on other Connecticut businesses.  “The vast majority of companies surveyed (70 percent) are somewhat or highly dependent on larger Connecticut companies or businesses,” the analysis highlighted, “which raises concerns when tax hikes threaten to push large companies out of state.”

CBIA’s surveys consistently find that personal reasons also factor significantly in location decisions.  “Many business leaders point to Connecticut’s quality of life and the desire to work close to where they live as the main reason for locating and/or staying in-state. However, we are slipping here,” the report said.

In a survey of Hartford-New Haven-Springfield businesses conducted earlier this year, quality of life—traditionally the number-one benefit to operating a business in this region— surprisingly emerged as less of a competitive advantage today.  In fact, there has been a steady decline in the percentage of company leaders citing quality of life as the greatest benefit of operating a business here: 47 percent in 2009, 43 percent in 2011, 40 percent in 2013, and just over a third (35 percent) in 2015.

Innovation Summit Seeks Companies to Showcase Entrepreneurship, Connect with Investors

It is billed as Connecticut’s “ultimate gathering of entrepreneurship and innovation,” as the Connecticut Technology Council honors tech and non-tech startups representing early stage and emerging growth companies at The Innovation Summit, to be held on November 10 featuring a Pitch Fest, Funding Fair, Poster Expo, and Awards Ceremony. The well-attended annual event includes 100 exhibiting Tech Companies To Watch, 40 pitching companies, and more than 400 attendees. The Council has begun  accepting applications and will continue selecting companies, on a rolling basis. The application deadline is September 30.

The  Innovation Summit is held in conjunction with Angel Investor Forum, BEACON, Crossroads Venture Group, CURE and Connecticut Innovations.

One of the key features at the 9th Annual Innovation Summit will be the Funding Fair, where angels, VCs, investment bankers, lenders, family offices, private investors, and other resources are on-hand to offer individual guidance and advice to attendees. The Funding Fair also offers fledgling businesses opportunities to connect with incubators and co-working spaces.

“Our Tech Companies To Watch are the focus of this event making it crucial that we offer a variety of valuable opportunities to those selected,” said Bruce Carlson, President and CEO of the Connecticut Technology Council. “Connecticut’s growing companies are looking for resources that will enable them to thrive in today’s economy. This year’s Innovation Summit is the place for them to find everything they’re looking for; a one-stop-shop for talent, funding, mentors, and peer support.”

In the Pitch Fest, selected Tech Companies To Watch will deliver a three-minute pitch to a live audience of investors, entrepreneurs, and other interested parties, and panel of judges.  The TCTW Expo affords an opportunity for entrepreneurs to show off their companies and ideas to potential partners, customers, investors, and talent.  The awards will be presented to the next generation of high-growth companies in Connecticut, honored for their potential in their respective industry categories.

Workshops will be offered in a variety of focus areas. “We’ve added workshops, some of which will focus on funding, raising alternative forms of capital, and understanding each stage of financing. Other workshop will be geared toward growth company needs like marketing and talent recruitment,” said Carlson.

Companies will be notified by October 9 if they are selected to participate. There is no charge to apply, however there is a discounted registration fee of $90 for admission and an exhibitor table.  The Innovation Summit will be held on Tuesday, November 10, 2015, 10:00am - 5:00pm, at the Connecticut Convention Center, a new location for the event reflecting the need for a larger venue as the number of participating companies increases.

The Connecticut Technology Council is a statewide association of technology oriented companies and institutions, providing leadership in areas of policy advocacy, community building and assistance for growing companies. Speaking for 2,500 companies that employ some 200,000 residents, the Connecticut Technology Council seeks to provide a strong and urgent voice in support of the creation of a culture of innovation.

https://youtu.be/EKpko3oppMk