Hartford Business Journal

HartfordBusiness.com | February 22, 2021 | Hartford Business Journal 15 The company that builds and installs the critical systems in virtually every type of facility is the same company you can rely on to maintain them. For over 50 years, our clients have trusted us to deliver end-to-end facilities solutions, so they can focus on their core business. Experts in: Facilities Services, Preventive Maintenance Programs, Onsite Operations & Maintenance NEMSI SERVICE SOLUTIONS INCREASE PRODUCTIVITY. REDUCE COSTS. 860.871.1111 Toll Free: 800.741.6367 nemsi.com MECHANICAL | ELECTRICAL | PLUMBING | SHEET METAL | BUILDING AUTOMATION | FACILITIES SERVICES License #'s: E1-0125666 S1-302974 P1-203519 F1-10498 SM1-192 MC-1134 NEMSI HBJ_QtrPg Ads_201221.indd 2 NEMSI HBJ_QtrPg Ads_201221.indd 2 12/21/20 5:09 PM 12/21/20 5:09 PM supply chains from China were shaky last spring. Hartford-based commercial printer Joseph Merritt & Co. Inc. offset some lost revenue amid COVID-19 closures by pivoting to making face shields. Modern Plastics, a Shelton-based defense subcontractor that supplies plastic components to a range of weapons systems, pivoted to making plastic face shields, and then acrylic plexiglass barriers used in retail, restaurants and casino settings to separate workers from customers. Shifting into gear Revenues at New Britain manufacturer OKAY Industries fell by about 25% at its pandemic low point, CEO Jason Howey said. Now business at the company, which designs and makes metal and plastic parts used by medical device makers, is about 5% lower than in a normal year. Howey attributes much of the rebound to people scheduling previously postponed elective surgeries, which increases demand and orders for medical devices. And amid that bounce back, he's hiring. "We've actually been adding some key talent for manufacturing and project management," Howey said of his approximately 300-employee company, adding that he thinks manufacturers will soon be struggling with the industry's pre-pandemic problem of finding enough skilled workers to fill open positions. "[Workforce issues] haven't gone away, they just got delayed because of COVID." The federal PPP program also played a role in keeping OKAY Industries and Burke Aerospace going during the uncertain early days of the pandemic. They received $2.7 million and $1.2 million, respectively, from the program, according to U.S. Small Business Administration data. PPP funding has been critical to Connecticut manufacturers, Cooper said. "It allowed companies that were suffering significant demand declines to keep their workforce in place," Cooper said. "In the absence of it you would have seen a lot more layoffs." Another factor aiding the manufacturing recovery is the fact the pandemic didn't ravage local supply chains as much as initially predicted, said Jeff White, who leads the manufacturing industry and aerospace supply chain groups at Hartford law firm Robinson+Cole. Gov. Ned Lamont's decision to categorize all manufacturing as essential and not subject to COVID- related shutdowns helped protect Connecticut's supply chains, White said. White said some of his clients are seeing record sales and need to hire more people to keep up. "There was a significant rebound for a lot of manufacturing businesses as we hit the end of 2020," White said. "It doesn't surprise me that the job numbers rebounded. … I expect that [the industry will] continue to recover." Additionally the state's Shared Work Program kept many manufacturers from laying off employees, said CBIA's DiPentima. Shared Work allows people who've experienced a 20% to 60% reduction in work hours to claim partial unemployment benefits. White and DiPentima are both bullish about continued recovery in Connecticut's manufacturing industry, partly because of state efforts to bolster its manufacturing workforce. Cooper said the mix of out-of-work residents needing employment, manufacturers needing talent and the state's creation of a manufacturing industry workforce development plan could lead to a historic long-term restoration of By Sean Teehan steehan@hartfordbusiness.com As part of his two-year, $46 billion budget proposal, Gov. Ned Lamont has allocated $20 million for the state's dried up Manufacturing Innovation Fund (MIF), a move that has drawn praise from the industry. The MIF was created in 2014 to pay for programs — like apprenticeships and incumbent worker training — aimed at growing manufacturing jobs and helping the sector deal with a major workforce shortage. The fund started with $75 million, but slowly dried up over the years. It currently has no money, which led the state's Chief Manufacturing Officer Colin Cooper to lobby for the new funds from Lamont. The Democratic governor's recent budget proposal includes $10 million in MIF funding for the 2022 fiscal year — which begins in July — and another $10 million for fiscal 2023, Cooper said. That money would help fund initiatives like the Manufacturing Voucher Program, which provides grants to companies for facility expansions and new equipment purchases. It will also continue to help fund apprenticeship and training programs, which Cooper said will be of great importance as the state continues to build up its manufacturing workforce. Lamont's budget proposal still needs approval from the state legislature, which is in session until early June. Lamont earmarks $20M for depleted Manufacturing Innovation Fund Connecticut manufacturing. "If we crack the code here in Connecticut and have a trained and flexible and abundant workforce, that demand [for skilled workers] is going to find a supply here," Cooper said. "That demand is going to come here to Connecticut." Jeff White Chief Manufacturing Officer Colin Cooper (center holding red folder) visits Plantsville-based Sign Pro Inc. in Feb. 2020, right before the pandemic hit the state. Burke Aerospace makes components for turbines used in jet engines. Month (2020) Jobs Jan 161,600 Feb 162,500 Mar 162,800 Apr 151,000 May 153,200 Jun 155,200 Jul 156,200 Aug 154,400 Sep 155,900 Oct 156,300 Nov 156,300 Dec 158,200 Manufacturing jobs in CT Source: State of Connecticut Department of Labor, Office of Research The COVID-19 pandemic wiped out nearly 12,000 manufacturing jobs in one month, but the industry has steadily added back jobs and is nearing pre- pandemic employment levels. PHOTO | CONTRIBUTED HBJ PHOTO | STEVE LASCHEVER

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