Award-Winning Accelerator Prepares for Next Cohort of Start-up Businesses

reSET, a Hartford-based non-profit organization supporting entrepreneurs, has opened applications for its highly regarded business accelerator program for 2018. Tailored for impact-driven businesses but available to early-stage ventures across all industries, reSET’s Impact Accelerator was a winner of the U.S. Small Business Administration Growth Accelerator Competition, and was the only Connecticut accelerator to receive the award, in 2015. Running from next January through May, the five-year old program will provide entrepreneurs with access to the knowledge and resources they need to grow their businesses and impact. Applications are being reviewed on a rolling basis; the final deadline is December 8, 2017.  Applicants are not limited to the Hartford area or Connecticut; in previous cohorts, participants have been from other states and nations.

reSET is a nonprofit organization whose mission is advancing the social enterprise sector. Its strategic goals are threefold: to be the “go-to” place for impact entrepreneurs, to make Hartford known as Impact City, and Connecticut the Social Enterprise state. reSET meets entrepreneurs wherever they are in their trajectory and aims to help them take their businesses to the next level.

The accelerator program has graduated 80 businesses to date. Recent participants have experienced success in advancing their businesses, including competitor acquisition, venture capital investment, and nationwide sales and recognition. 

Among the businesses are Almasuite, CareerPathMobile, Phood, Pelletric, Eureeka, Save America, and Genius Box. Kate Pipa, co-founder of Genius Box, which develops and sends science kits to elementary and middle-school age children, credits the Impact Accelerator with helping her business gain traction.

“reSET’s Impact Accelerator was a great stepping stone for getting introduced to and more involved in Connecticut’s startup scene.  Just being in reSET’s community allowed for access to workshops, mentors and service providers to answers questions and provide advice on different challenges that can come up when starting your business.”

Over the course of four weekend summits during the accelerator program, participants selected for the 2018 cohort will be connected to customers and industry-specific mentors. Up to 20 entrepreneurial teams will have access to:

• 20+ optional workshops covering a range of topics in business and social enterprise
• Numerous structured and unstructured opportunities to engage with investors and advisors
• 1-year reSET membership (includes access to co-working, programming and the on-site Entrepreneur-in-Residence)
• Exclusive discounts on business software packages and other resources

The accelerator will be free for accepted entrepreneurs and no equity will be taken from their operations. Graduates will also have an opportunity to compete for $20,000 in unrestricted funding at a culminating Venture Showcase in Spring 2018.

“As an entrepreneur myself, I have experienced the ups and downs of launching a new business,” said Jeremy Szechenyi, reSET’s Programs Manager. “Between reSET’s physical office and programs, we give entrepreneurs the resources and network that is critical to surviving and bringing their work to the next level.”

An information sessions will be held at reSET  (1429 Park Street, Hartford) on October 26 from 12:30-1:30pm, and November 15 from 5:30-6:30pm.  The sessions will be informal and meant to address prospective candidates questions.

reSET serves all entrepreneurs, but specializes in social enterprise ― impact driven business with a double or triple bottom line. In addition to providing co-working space, accelerator and mentoring programs, reSET aims to inspire innovation and community collaboration, and to support entrepreneurs in creating market-based solutions to community challenges.

Enfield, Backed by Western Mass., Goes After Amazon HQ2

The State of Connecticut is throwing its muscle behind Hartford and Stamford in their bids to become the home of Amazon’s second headquarters.  The Economic Development Council of Western Massachusetts, however, has issued a letter supporting a bid by the town of Enfield. In addition to Enfield, the cities and towns of Bridgeport, Fairfield, New Haven and Stratford submitted a joint proposal; Danbury also applied.

The bid by Enfield is perhaps the most ironic, as the Boston Globe pointed out in a front page article .  The central location being proposed is currently the Enfield Square Mall, which has seen its anchor stores – Macy’s, JC Penney’s and Sears – leave in recent years, followed by numerous smaller retailers.  The proposal is on the agenda of the next town Economic Development Commission, scheduled for Wednesday morning.  The Enfield proposal suggests Hartford, West Hartford, Windsor, Meriden and New Haven and Springfield as "potential satellite campuses" and stresses Enfield's place at the center of the Knowledge Corridor, which runs from Springfield to New Haven.

“It’s a scene repeating itself in dying suburban malls around the country,” the Globe reported, “a sweeping economic disruption known as the Amazon effect.”  Industry analysts have predicted that 20 percent of the 1,200 shopping malls in the U.S. will “meet their demise,” the Globe indicated.

Amazon.com has received 238 proposals from cities and regions across North America.  Amazon said Monday that 54 states, provinces, districts and territories in the United States, Canada and Mexico were represented in the bids. The number of applicants underscores the interest in the contest, which Amazon announced last month. The world’s largest online retailer said it would invest more than $5 billion and create up to 50,000 jobs for “Amazon HQ2”. The deadline for submitting proposals was last Thursday.

"There are no state boundaries for our region's workforce, company supply chains and students," Rick Sullivan, president and CEO of the Economic Development Council, wrote in a letter supporting Enfield.  The town is along the so-called "Knowledge Corridor," the economic region that includes Springfield as well as Hartford and New Haven, and follows the Interstate 91 corridor in Massachusetts and Connecticut.  The corridor is expected to benefit from the introduction of regular commuter rail service, being introduced next year; the Enfield proposal provides Amazon with a map of the new Hartford Line rail route.

The Enfield bid touts its proximity to higher education, Bradley International Airport and major highways, as well as arts and culture. Also highlighted are major businesses located in the community, including Lego, MassMutual, Brooks Brothers, and Eppendorf, according to published reports. The Enfield proposal opens with a stylized newsletter of the future, including facts about Enfield and the region, led by the headline “Internet Retail Giant Pumps Life Back into Dying Mall!”

"With a population of nearly 50,000, Enfield’s 33 square miles are at the center of the New England Knowledge Corridor, Enfield provides quick and easy access to several US Highways, airports and rail systems," the 12-page Enfield proposal explained.  "Tax Increment Financing (TIF) districts are being created in Enfield and surrounding towns to support new development and growth. Abatements and Regional Revenue Sharing are all available to sweeten the deal. Connecticut has the lowest corporate tax rate in the North East."

After having received more than a dozen potential bids, state economic development officials opted to promote Hartford and Stamford as its leading candidates to land the headquarters, developing a website to promote the two regions, under the headline “The Talent You Need.  The Lifestyle They Want.”  The submission noted that "if Connecticut were a country, we’d be the sixth most productive in the world—ahead of Germany, Japan and Hong Kong."

A letter of support jointly signed by the state’s seven-member Congressional delegation and included with the state’s submission did not indicate a preferred location in the state, advocating “full support of Connecticut as the home of your second headquarters.”  A similar letter was signed by legislative leaders of both political parties, along with the co-chairs of the state’s Commission on Economic Competitiveness.  That letter noted that “Connecticut has already made a major commitment to Amazon, with facilities in Windsor and Wallingford, and another planned for North Haven.”

The Hartford bid was supported by the Mayors of Hartford, East Hartford, and West Hartford, along with Chip Beckett of Glastonbury, Chair of the Capital Region Council of Governments.  A joint letter was included in the state’s overall package.  A similar letter supporting Stamford came from that city’s Mayor.

An additional letter of support for the state’s bid was signed by 57 business leaders from throughout the state, accompanied by another from nearly three dozen higher education leaders from public and private institutions.

It was, some have suggested, a show of unity that has been generally lacking during the four months that the state has operated without an approved state budget, the longest such period in the state’s history.

Some communities, most notably the joint proposal by the cities of Bridgeport and New Haven, along with their immediate suburban neighbors, didn’t make the state cut, but submitted proposals nonetheless.  The Enfield proposal touts the entire region, along the I-91 corridor.  Locations in Enfield, including the mall, are suggested, as are other communities north and south of the state line that could host various divisions of an Amazon headquarters, according to reports on the proposal.

Portions of artists renderings included in State of Connecticut proposal advocating for Stamford and Hartford.

Attracting International Start-Up Ventures to CT Takes State's Money and Business' Commitment

Connecticut’s efforts to attract innovative, early stage, start-up companies from around the world will be front and center on Friday at VentureClash, the state’s $5 million global investment challenge.  The mission is simple:  to provide early-stage companies worldwide with an opportunity to grow their business in Connecticut. Connecticut Innovations (CI), the leading source of financing and ongoing support for Connecticut’s innovative, growing companies, is the driving force behind VentureClash, which has attracted companies in digital health, financial technology, insurance technology and the Internet of Things.

The nine finalists, from seven countries, will present in front of a panel of expert judges, at the competition to be held at the Yale School of Management.  The challenge will provide one top winner with a $1.5 million investment. Up to two second-place winners will each receive a $1 million investment, and up to three third-place winners will receive awards worth $500,000 each.

Applications opened in March.  To be eligible, companies must have been in business for at least 12 months, have paying customers or customers who are actively testing the applicant’s product, and be focused in digital health, financial technology (Fintech), insurance technology (InsureTech) or Internet of Things (IoT).

Companies seeking the VentureClash funding must also “be willing to establish a Connecticut presence, which applies to domestic and international applicants,” according to the competition’s criteria.

Tim Armstrong, CEO of Oath, will be the keynote speaker at the event. Oath is a global digital and mobile company that reaches more than one billion global consumers and partners with the world’s leading global brands. Oath owns close to 50 mobile and internet brands, including Yahoo, AOL, HuffPost, TechCrunch, Tumblr and other leading brands as well as global commerce and advertising platforms that support thousands of partners across the globe.

The VentureClash finalists are:

• Bought By Many – A U.K.-based interactive members-only service, Bought By Many offers targeted insurance opportunities designed to help individuals find the right insurance efficiently and customized to their needs.
• Buzzmove – Buzzmove is the United Kingdom’s only price-comparison and instant-booking platform for all services related to moving and the right level of insurance needed to cover moving-related services.
• Davra Networks – Based in Ireland, Davra Networks provides a complete Internet of Things (IoT) platform that allows customers to define, build and bring to market vertical-specific IoT applications while collecting and easily sharing data.
• EAVE – U.K.-based EAVE is developing the next generation of hearing protection and communication technology utilizing noise cancellation and speech enhancement to eliminate noise-induced hearing loss.
• FRISS – Based in the Netherlands, Friss uses proprietary analytics software to provide state-of-the-art solutions in the fields of fraud, risk and compliance for the insurance industry.
• Peek Health, S.A. – Based in Portugal, Peek Health offers powerful three-dimensional preoperative planning software for orthopedic surgery that aims to help the surgeon better treat the patient while reducing costs and surgical times.
• SCADAfence – Based in Israel, SCADAfence is a pioneer in securing mission-critical industrial networks from cyber threats, reducing the risk of connecting multiple devices in industries like manufacturing, utilities, oil and gas.
• Tellspec – Headquartered in Toronto, Canada, Tellspec is a data company with the ability to scan food, offering non-destructive real-time food testing for quality control, authentication, safety and nutritional value.
• Vouchr – Based in Canada, Vouchr is a secure, payment-agnostic tool that allows users to bundle transfers of funds with photos, videos, social networking and gamification.

“VentureClash again attracted an impressive list of innovative, early-stage companies poised for growth,” said Matt McCooe, CEO of Connecticut Innovations. “The fundamental improvement in this year’s competition is the deep involvement of so many corporate partners. Many of Connecticut’s flagship companies engaged in the process to learn about, meet and help us select the competitors in VentureClash. The Connecticut-based companies are looking to CI to act as a tech scout, and to help identify fantastic talent and innovation from across the globe.”

Recognizing that it takes more than money to succeed, officials point out, the $5 million global business competition also includes access to a critical network of customers, investors, mentors and talent.

VentureClash 2017 has partnered with the following organizations for this year’s competition: Aetna; Bank of Ireland’s Startlab; Boehringer Ingelheim; Dream Payments; Fiondella, Milone & LaSaracina LLP; General Dynamics Electric Boat; Health Venture; ISG (Information Services Group); Magellan Health; Medtronic; Microsoft BizSpark Assets; Navigators; Pitney Bowes; RBS/NatWest; Shipman & Goodwin; Sikorsky & Lockheed-Martin; Stanley, Black & Decker; Stanley Ventures; Synchrony Financial; The Hartford; The Jackson Laboratory; Travelers; Updike, Kelly & Spellacy; Webster Bank; Yale University; Yale New Haven Health; and Yale Office of Cooperative Research (OCR).

A year ago, in the inaugural VentureClash, ten companies were selected as finalists from an initial field of 200.  The top prize winner, DreamPayments, was a financial technology company that provides a cloud-based mobile payment platform for merchants and financial institutions.  Based in Canada, the company was looking to expand its operations to the U.S.  In receiving the $1.5 million in funds from CT Innovations, they stated plans to hire up to 10 employee positions in Connecticut and add a business development professional to help assist with its U.S. growth plans.  The company is headquartered in Toronto, with operations also now in Stamford.  The company hired its first U.S. employee in March.

Connecticut Innovations is Connecticut’s strategic venture capital arm, providing funding and strategic support to early-stage technology companies. In addition to equity investments, CI provides grants that support innovation and collaboration through CTNext, and connections to its well-established network of partners and professionals.

To register to attend the 2017 VentureClash finals event, visit: www.ventureclash.com/event.

More CT Employers Expect Hiring to Increase for Remainder of Year; Hartford Region Lags State

Employers in Connecticut expect to hire at a modest pace during the fourth quarter of this year, which began on October 1, according to the ManpowerGroup Employment Outlook Survey. From October to December, 18 percent of Connecticut companies interviewed plan to hire more employees, while 7 percent expect to reduce their payrolls. Another 73 percent expect to maintain their current workforce levels and 2 percent are not certain of their hiring plans. This yields a Net Employment Outlook of 11%, which is below the national outlook projection.

“Hiring intentions are stronger compared to Q3 2017 when the Net Employment Outlook was 8%,” said ManpowerGroup spokesperson Betty Gooding. “The hiring pace is expected to remain stable compared to one year ago when the Net Employment Outlook was 12%.”

For the coming quarter, job prospects in the state appear best in Construction, Durable Goods Manufacturing, Nondurable Goods Manufacturing, Wholesale & Retail Trade, Information, Financial Activities, Professional & Business Services, Education & Health Services, Leisure & Hospitality and Other Services. Employers in Government plan to reduce staffing levels, while hiring in Transportation & Utilities is expected to remain unchanged, the survey found.

In an analysis of the largest metropolitan regions in the nation, three in Connecticut brought differing projections, with one slightly higher and the others slightly lower than overall expectations statewide.

In the Bridgeport-Stamford-Norwalk metropolitan statistical area (MSA), employers expect to hire at what is described as a “respectable pace” during this quarter, according to the Survey.  Twenty percent plan to hire more employees, which is offset by the 6 percent that plan to reduce payrolls, while 72 percent of employers expect to maintain current staff levels. Two percent indicate they are not sure of their hiring plans, which yields a Net Employment Outlook of 14% - higher than the expectation statewide.

In the New Haven-Milford MSA, 16 percent plan to hire more employees from October through December and 6 percent that plan to reduce payrolls. The Net Employment Outlook is 10%, just under the state outlook.  And in Hartford-West Hartford-East Hartford, 17 percent of employers plan to hire more employees, 8 percent that plan to reduce payrolls, while 70 percent expect to maintain current staff levels and 5 percent are not sure of their hiring plans. This yields a Net Employment Outlook of 9%.

Nationwide, of the more than 11,500 employers surveyed, 21 percent expect to add to their workforces, and 6 percent expect a decline in their payrolls during the final quarter of the calendar year. Seventy-one percent of employers anticipate making no change to staff levels, and the remaining 2 percent of employers are undecided about their hiring plans. When seasonal variations are removed from the data, the Net Employment Outlook is 17% nationwide.

This marks the 13th consecutive quarter with an Outlook of +15% or stronger, according to Manpower Group.  Compared with this time one year ago, hiring prospects are slightly stronger in the Northeast and remain relatively stable in the other three regions.  The Northeast Region includes Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.  Employers across all sectors report favorable hiring intentions, with those in durable goods manufacturing reporting the strongest intentions in the past 10 years.

For the final quarter of the year, employers in Delaware, North Carolina, Wisconsin, Minnesota, Montana, Oregon, South Carolina and Utah report the strongest Net Employment Outlooks. Among the 100 largest metropolitan statistical areas, the strongest job prospects are expected in Cape Coral, Fla.; Oxnard, Calif.; Charlotte, N.C.; Stockton, Calif.; Deltona, Fla.; Grand Rapids, Mich.; Madison, Wis. and McAllen, Texas.  The Net Employment Outlook is derived by taking the percentage of employers anticipating an increase in hiring activity and subtracting from this the percentage of employers expecting a decrease in hiring activity, taking into account seasonal adjustments.

Neighboring States Bring in Millions in Toll Revenue; CT Remains Toll Free

The Connecticut House of Representatives debated for nearly six hours the issue of reinstating tolls on Connecticut highways, but did not vote.  Connecticut remains a toll-free state, for residents and those driving through the state. How much money might the state receive in toll revenue if tolls were imposed?  The Office of Legislative Research, responding to a legislative inquiry, has surveyed neighboring states and issued a report this past week.

Toll revenue ranged from $20.4 million in FY 16 (Rhode Island) to $1.57 billion in calendar year 2016 (New Jersey), according to the legislature’s research office. In Massachusetts in FY2016, toll revenue was $395 million; in Maine $133.8 million in calendar year 2016; in New Hampshire a total of $130.7 million. 

The New York Thruway Authority and New Jersey Turnpike Authority each collect tolls on their respective highways, the Office of Legislative Research (OLR) report noted. In addition, the Port Authority of New York and New Jersey collects tolls on its bridges and tunnels connecting those two states (the George Washington, Goethals, and Bayonne bridges, the Outerbridge Crossing, and the Lincoln and Holland tunnels). In calendar year 2016, the Port Authority collected $1.86 billion in toll revenue.

Tolls were eliminated by lawmakers more than three decades ago in 1983, following a horrific accident at the then-Stratford toll booths, in which six people were killed. The last Connecticut highway toll was paid at the Charter Oak Bridge in Hartford on April 28, 1989.

In their final year of operation in the mid-‘80’s, Connecticut Turnpike tolls brought the state $56.4 million, the Merritt and Wilbur Cross Parkways 11.3 million, and the three bridges in the Hartford area, $4.7 million, according to a previous OLR report issued in 2009.

Technology, however, has made traditional toll booths obsolete, and Massachusetts recently removed its toll booths, switching to an overhead electronic system – thus maintaining the revenue without extending the dangers and the highway back-ups inherent with the toll plazas.  Connecticut residents driving through Massachusetts on the MassPike have noticed the striking difference.

Despite projections of budget deficits in coming years, the legislature did not vote on imposing tolls as a means of raising revenue this year.    It was estimated that 30 percent of the tolls would be paid by out-of-state drivers and 70 percent by Connecticut residents.  Federal rules require that toll revenue from interstate highways must be used for maintenance or improvements on those highways.  The legislature’s Transportation Committee had voted 19-16 in favor of the tolls bill, which led to the House debate on the proposal.  It was pulled before a vote could be held.

The 2009 OLR Report also noted that according to annual data compiled by the Federal Highway Administration, in 2007 almost 32.5 percent of all the vehicle miles traveled (VMT) in Connecticut occurred on its Interstate highways. Nationally, only 24.4% percent of all VMT occurs on Interstate System. Connecticut's Interstate VMT percentage is higher than many other states, including, at the time, Massachusetts, New York, New Jersey, and Pennsylvania.

The most recent OLR Report did not estimate what Connecticut might earn in toll revenue; it merely reported on the most recent earnings of neighboring states that impose tolls on their major roadways.

CT Ranked 36th in Construction Jobs Added During Past Year

Connecticut ranked 36^th in the nation in the number of construction jobs added between July 2016 and July 2017, one of 36 states (and the District of Columbia) that added construction jobs during the 12-month period. The analysis by the Associated General Contractors of America of Labor Department data found that firms in parts of the country that build infrastructure projects are seeing less demand for their services amid overall declines in public-sector spending. Only 100 construction jobs were added in Connecticut during the past year, moving the states employment level in construction industries from 58,800 to 58,900, reflecting growth of two-tenths of one percent.

“Despite growing private-sector demand, it appears that construction employment in some parts of the country is being brought down by declining public-sector investments,” said Ken Simonson, chief economist for the association.  “Some of these declines will be offset thanks to recently enacted state infrastructure funding increases, but stagnant federal investments are not helping.”

Among the New England states, Rhode Island ranked third in the nation, with a 12-month gain of 12.7 percent, New Hampshire ranked fourth with 11.8 percent growth in construction jobs, and Maine ranked sixth, with a 9.3 percent increase.

California added the most construction jobs (51,000 jobs, 6.6 percent) during the past year. Other states adding a high number of new construction jobs for the past 12 months include Florida (35,800 jobs, 7.5 percent); Louisiana (13,900 jobs, 9.8 percent); Oregon (11,900 jobs, 13.2 percent) and Texas (10,400 jobs, 1.5 percent). Oregon added the highest percentage of new construction jobs during the past year, followed by Nevada (12.8 percent, 9,700 jobs).

Thirteen states and the District of Columbia shed construction jobs between July 2016 and July 2017 while construction employment was unchanged in North Dakota. Iowa lost the highest number of construction jobs  (-4,400 jobs, -5.4 percent), followed by Illinois (-4,300 jobs, -2.0 percent) and North Carolina (-2,500 jobs, -1.2 percent).  South Dakota lost the highest percentage for the year (-5.6 percent, -1,400 jobs) followed by Iowa and Mississippi (-3.9 percent, -1,700 jobs).

Association officials have continued to urge Congress and the administration to make needed new investments in the country’s aging infrastructure to offset declining public-sector investments in construction. In particular, they urged officials to consider including new infrastructure investments as part of a tax reform measures expected this fall, the association indicated in a news release.

State’s Money Woes Earn National Spotlight

The cover of the national magazine depicts a waterfront home in Mystic Seaport, under the headline that reads “The fiscal mess in America’s richest state.”  Connecticut, without an approved state budget for all of July and August and nearly half of September, is earning some notice.  And it is not particularly friendly. The article, in the September issue of Governing, begins with the question, “How could the nation’s wealthiest state become a fiscal basket case?”  The answer is complex, and the magazine devotes a full six pages to walking through how the state got into this mess, and how it might navigate its way out.

Along the way, the magazine suggest that the state “may be too rich for its own good,” pointing out that “long blessed with a disproportionate number of high-income residents, the state has entertained lavish spending habits for decades.” It also cites statistics that underscore the problems and challenges:

• Over the past 20 years, job creation numbers have ranked in the bottom five among the 50 states
• Connecticut has the nation’s second-highest rate of income inequality, after New York
• The state has lost population for three years running
• Last year, Greater Hartford ranked fourth and New Haven fifth in population loss among the nation’s 100 largest metro areas

The ineffective state spending cap, approved by voters more than 20 years ago but routinely circumvented since, is cited as a contributor to the fiscal cliff the state sits on, along with an overreliance on the income tax, political infighting, increased taxes, the lack of regionalism and a host of other decisions made by Governors and legislatures for decades.

One glaring example cited:  “Connecticut, which is home to 3.6 million people, has 111 police dispatch centers.  By comparison, Houston, which as 2.3 million residents, has just one emergency dispatch center, which handles fire as well as police.”

With a circulation of 85,000 in print and a widely viewed website, Governing is described as "the nation's leading media platform covering politics, policy and management for state and local government leaders." It is among the most widely read and most influential among government leaders - with an audience that also includes "journalists, academics, advocates and activists."

The article did point to some silver linings, past and present.  “Connecticut clearly has the means to change course. Not only is its median income still high, but the state boasts assets such as proximity to Boston and New York, amiable coastlines and river valleys, and notable institutions of higher education.  In addition to the continuing presence of a thriving financial sector, Connecticut is home to aerospace and defense contractors and other advanced manufacturers who can’t hire help fast enough, as well as a growing medical and life sciences sector.”

On the other hand, the publication points out, “Connecticut is 80 percent white, but its population of white children under the age of 10 is falling faster than in any other state.  Racial and ethnic minorities already make up more than 50 percent of infants and toddlers and are about to become a majority of 3- and 4-year olds.”  There is, the publication adds, “a pronounced achievement gap among racial groups and by geography.”

The conclusion reached by the Governing article?  “Connecticut is not in a death spiral but it has failed to position itself to react to changing demographics and location preferences… it’s clear that what’s worked so well for Connecticut in the past isn’t working now.”

Summed up House Speaker Joe Aresimowicz, one of many political leaders, including the Governor and legislators from both political parties, as well as city officials and economic analysts, who were interviewed for the article: “We are the land of steady habits and the world has changed around us.”

NY Settlement with Outlet Mall Owner Eliminates Non-Compete Extending into Southwestern Connecticut

Most Connecticut residents are likely unfamiliar with Woodbury Common, an outlet mall in the town of Central Valley in Orange County, New York brimming with 240-plus retailers.  Due to a contract provision with those retailers that prevented them from opening another location within a 60 mile radius of Woodbury Common, however, the impact of that mall may have been felt throughout southwestern Connecticut for decades. A settlement in pending litigation reached between the New York Attorney General’s Office and Simon Property Group (SPG), owner of Woodbury Common, and announced late last month, could open the door to new retail outlet opportunities in Southern and Western Connecticut – regions that had long been under the restrictions.

"No business should be allowed to stifle an entire industry at the expense of consumers—but for years, that's exactly what Simon Property Group did to New Yorkers," said New York Attorney General Schneiderman. "Simon's anticompetitive conduct blocked competition and drove up prices for New York consumers. That ends today. I am pleased this agreement will allow for new shopping outlets to finally open within New York City, and make affordable shopping more accessible for residents across the region."

While Schneiderman focused on New York, the possible consumer benefits from the agreement extend further.  The region under the now-eliminated restrictions extends beyond New York into Connecticut, including much of Fairfield County – including Norwalk, Stamford, Danbury and Bridgeport - and extending nearly into New Haven.  (The straight line distance from Central Valley, NY to New Haven is 62 miles; to Milford is 55 miles.)

In a press release, Simon said Woodbury Common's 60 mile radius provision has been used since 1985, well before SPG acquired Woodbury Common as part of its 2004 acquisition of Chelsea Property Group. The statement pointed out that Woodbury's radius provisions have been upheld as lawful, reasonable and consistent with industry practice in the courts, as recent as 2010.

“While we have agreed to reduce the reach of the radius provisions in Woodbury Common leases, these provisions will continue to cover Woodbury Common's essential trade area, extending to all of Manhattan,” the company noted.

Simon Property Group described Woodbury Common as “an economic engine for Orange County, the lower Hudson Valley, and New York State,” indicating that “it regularly granted exceptions to radius provisions and understands the importance of competition and consumer choice in the market.”  In Connecticut, SPG operates two properties in southeastern Connecticut - Clinton Crossing Premium Outlet in Clinton and Crystal Mall in Waterford.

Reached via the New York State Thruway at exit 16 in Harriman, Woodbury Common Premium Outlets features “the most sought after, high-end fashion and designer retail brands in the world,” SPG said in its news release, highlighting stores including Tory Burch, Nike, Celine, Bottega Veneta, Polo Ralph Lauren, Michael Kors, Burberry, Coach, and The North Face.

As part of the settlement, Simon Property agreed to revise their existing leases with Woodbury Common retailers to remove the radius restrictions; not to engage in exclusionary tactics, including radius restrictions, for the next 10 years; and pay a $945,000 fine to New York State.

Even as negotiations proceeded on the settlement, Woodbury Common announced last month that 10 new retailers would be opening at the premium outlet mall, including Zadig & Voltaire, a high-end French ready-to-wear brand, and Sayki, a Turkish menswear designer.  The outlet mall also recently completed extensive multi-million dollar renovations. Simon Property Group, based in Indianapolis, owns nearly 100 outlet malls around the world and is an S&P 100 company.

Women in Manufacturing Bring Summit to Hartford Next Week

The 800-member Women in Manufacturing (WiM) professional organization will hold their annual Summit at the Connecticut Convention Center in Hartford, September 13 - 15, 2017. This annual Summit is geared toward women who have chosen careers in manufacturing and want to share perspectives and network with others in the industry. It is expected to attract more than 300 professional women in manufacturing, with titles ranging from production to CEO. Attracting hundreds of women in manufacturing from across the country, WiM's annual Summit is the only national conference of its kind. This networking and educational event features manufacturing plant tours, professional development tracks, industry roundtables, keynote presentations and social events to expand participants' networks.

Plant tours that have been organized as part of the conference agenda include visits to Kaman Corporation, CNC Software, Hartford Flavor Company, TRUMPF Inc., and Pratt & Whitney, all on the opening day of the conference on September 13.

Break-out sessions will focus on Technology, Leadership & Professional Development, Operational Excellence, and Diversity & Inclusion.  Speakers at conference-wide sessions will discuss topics including “Engineering Young Women,” “Developing Your Personal Brand,” “Recruiting A Pipeline for Skilled Labor Positions,” “Empowering Women Through Sales,” and “The growing Digital Intensity of Manufacturing.”

Speakers will include Jonna Gerken, Manager, PCME Group, Pratt & Whitney and the president of the Society of Women Engineers, and George Saiz, President & CEO of The Association for Manufacturing Excellence.

The Board Chair of Women in Manufacturing is Sheila LaMothe, Vice President of Strategic Initiatives for Goyer Management International, a Florida-based company.  Previously, she spent 15 years responsible for the marketing and public relations activities for TRUMPF Inc. in Farmington, CT, initially serving as Marketing Manager before becoming Associate Director of Marketing & Public Relations. She founded the WiM Connecticut Chapter and served as chapter chair until her relocation to Florida.

Among the host committee members is the Connecticut Business and Industry Association.  The New Haven Manufacturers Association and the Waterbury Regional Chamber’s Manufacturer’s Council are among the Supporting Partners for the Summit.

This is the organization’s first summit to be held in the Northeast.  The Summit location moves around the country giving attendees the opportunity to experience manufacturing and develop their networks throughout the United States.  The  6^th annual summit was held last year in Nashville, TN.  Previous events were held in Minneapolis, MN; Schaumburg, IL; Dearborn, MI; Milwaukee, WI; and Cleveland, OH.

How Connected is Connecticut? State Ranks 6th in the USA

Internet access is as good in Connecticut as just about anywhere else in the country.  A new report on the Top Connected States in America ranks Connecticut as the 6th most connected state in the nation. The analysis, by USDish.com, found that the top 10 states showing excellent connectivity to broadband all value connecting rural citizens to the resources they need to succeed economically, both in school and at work. “Overall we found that the most important factor in these states’ ability to connect rural citizens to the internet were the use of government funded broadband task forces, infrastructure maintenance, and local support. The states that listened to the community were more likely to connect them to proper resources and economic growth flourished.”

While Connecticut ranked 6^th overall, the state’s ranking varied in each of the categories of the analysis:  Connecticut ranked 10th in Access, 1st in Rural Access, 12th in Speed, and 21st in Support (by government).

Analysts compiled and ranked the report using data from the American Community Survey, conducted by the U.S. Census Bureau, the EducationSuperHighway non-profit, Fastmetrics, the National Conference of State Legislatures (NCSL) and the Institute for Local Self-Reliance.

Connecticut ranked 10^th in Access, 1^st in Rural Access, 12^th in Speed, and 21^st in Support.  The top five states for Rural Access were all in the Northeast – Connecticut, Massachusetts, New Hampshire, New Jersey, and Rhode Island. “Perhaps the emphasis on education and communication makes it easier to access the internet as a student, even in a rural area like Connecticut,” the analysis stated.

The analysis points out that a main reason why people don’t have access to broadband internet is due to a lack of income. Cited is a Pew Research poll that found 23 percent of people making under $30,000 per year don’t use the internet, possibly because of the high price for something they don’t consider a basic need. Most rural schools across the country still lack access to fiber and pay more than twice as much for bandwidth.

In contrast, Minnesota, New Hampshire, Oregon, and Maryland all have state government broadband task forces which promote the expansion of internet access throughout their rural areas, the analysis points out.

For internet access per state, the USDish team analyzed the percentage of school districts meeting a minimum of 100 Kbps per student.  They also examined the percentage of those with an internet subscription, and the total percentage of users with any access to the internet at all, be it in the form of a community library, town hall, or school.

Speed was analyzed by the average Mbps per state, and they evaluated states on whether they had a stimulus project, broadband task force, or whether the state had barriers preventing them from expanding the connectivity of those living in the area (i.e. laws, infrastructure support, prohibitions, etc.). As for rural area access, data on the number of households that had broadband internet in both urban and rural areas was used.  USDish.com is an authorized retailer of DISH Network.