Hartford Business Journal

8 Hartford Business Journal • September 3, 2018 • www.HartfordBusiness.com Reporter's Notebook Matt Pilon | mpilon@HartfordBusiness.com Health Care/Bioscience, Startups & Entrepreneurs, Government/Law and Energy PROFESSIONAL SERVICES Kask shepherding BlumShapiro into technological age A t BlumShapiro, the largest New Eng- land-based accounting shop by revenue, advances in technology are adding new capabilities and shifting how the com- pany does business, Chief Executive Officer Joseph Kask said during a recent interview at the firm's West Hartford headquarters. Kask, who was named CEO in 2016, said he increasingly views his industry's traditional core offerings like ac- counting, audit and tax services, to be merely the starting point in wooing clients these days. Accounting firms must compete in other ways. The difference- maker, BlumShapiro is betting, will be lever- aging fast-advancing technology that can help deliver core ser- vices more quickly and efficiently, and process client data in search of new insights that can help decision-making. Advisory services, whether tech-fueled or other- wise, are a big focus at the firm, including back- office outsourcing and cybersecurity. Last year, BlumShapiro named a chief innova- tion officer, Michael Pelletier, who is probing tech opportunities for the 500-plus employee firm. Here are a few examples of recent develop- ments, according to Kask: • BlumShapiro this year deployed artificial intel- ligence software to more quickly scan and pro- cess lengthy leasing documents, which will help clients prepare for new industry standards for documenting equipment and real estate leases. • The firm developed a program that uses ma- chine learning to analyze historical data and other variables to help manufacturing clients more accurately forecast their parts-invento- ry needs in real time, so that they don't leave excess capital sitting on a storeroom shelf, but also don't run out. • Pelletier has also built internal systems that col- lect employee input and help prioritize tech ini- tiatives, as well as catalog employee skill sets in order to quickly put together multidisciplinary teams as needed, ac- cording to Thomas DeVitto, BlumShapiro's chief marketing officer. BlumShapiro, which booked just under $80 million in revenue last year, according to Ac- counting Today's annu- al ranking, is following in the footsteps of the industry's biggest play- ers, which have been investing in AI, process automation and other tech in recent years. Though Kask couldn't give an exact figure, he said BlumShapiro has invested hundreds of thousands of dollars into its innovation effort, with more to come. "It's never happened before, so quickly, that programs have been developed at such a price point that smaller firms can deploy the same technology," Kask said. The trend has implications for the accounting workforce pipeline, too. Kask said more big firms are hiring data scientists, programmers and oth- ers with technology expertise, which could slow demand for traditional accounting graduates. "We are starting to manage our firm in that direction," he said. Are his workers worried that technology could cost them their job one day? Kask says there may be some of that sentiment, but he also doesn't be- lieve robots are going to take over the industry any- time soon. "We have a responsibility to our people to train them and retool them," he said. ENERGY Bloomfield shared- solar project delayed until 2019 A shared clean-energy pilot program that's been beset by delays over the past few years will take a bit longer to debut one of its three projects. Clean Energy Collective LLC informed officials in June that it now expects its 1.6-megawatt solar array off Blue Hills Avenue in Bloomfield to be in ser- vice by July 2019, a year later than it had hoped. Clean Energy Col- lective wrote that state approvals and other steps have taken longer than initially expected. The delay means at least two of the three solar projects selected last year by the Department of Energy and Environ- mental Protection (DEEP) for the shared clean-energy pilot program won't be in service in 2018. Shared clean energy offers an alternative option to utility customers who can't use rooftop solar. The model allows those customers to "subscribe" to another solar project, even if they are not located near it, and receive a credit on their bill for the clean energy produced. In all, three pilot projects are in the pipeline with a combined capacity of 5.1 megawatts. The other two are in Shelton and Thompson. DEEP's June 2017 clean-energy selections came after the agency scrapped its initial request for proposals earlier that year, citing concerns about high prices and siting restric- tions. Its revised RFP drew less interest from bidders. As the pilot inches forward, state regulators are set later this year to begin proceedings to significantly grow the shared clean-energy model in Connecticut, following pas- sage of a new law during the most recent legislative session. The legislature allotted up to 25 megawatts per year for the expanded program, which the Public Utilities Regulatory Authority will begin crafting regulations for this September. An RFP will come at a later date. GAMING Off-track betting revenues continue CT decline Wagers at Sportech's 17 off-track betting parlors in Connecticut (including online bets) continued to decline last year, sliding 4.1 percent to $157.3 million; $3.4 million of that revenue went to the state. Off-track betting has been on a steady decline in Connecticut. 2012 2013 2014 2015 2016 2017 Amount wagered $187,936,750 $181,666,849 $180,746,707 $172,074,015 $163,968,716 $157,273,708 State's share $3,737,315 $3,644,167 $3,723,791 $3,606,125 $3,485,406 $3,354,294 Source: Department of Consumer Protection Shared-solar projects are off to a slow start. BlumShapiro's Joseph Kask and Thomas DeVitto. The off-track wagering area at Bobby V's Restaurant & Sports Bar in Windsor Locks. PHOTO | CONTRIBUTED HBJ PHOTO | MATT PILON PHOTO | CONTRIBUTED

• Cover