Hartford Business Journal

26 HARTFORDBUSINESS.COM | DECEMBER 19, 2022 Editor's Take The good, bad and uncertainty of 2022 A s we head into the final days of 2022, it's a good time to reflect on a year that brought much uncertainty. While many of us returned to pre-pandemic routines and ways of life, economic headwinds — caused by supply chain disruptions, inflation, rising interest rates and workforce short- ages — caused many Greater Hartford business leaders sleepless nights. Here's a look back on the good, bad and uncertainty from a busy 2022. The Good Connecticut hasn't been known as a fiscally stable state, but it is right now, thanks to an influx of federal COVID-relief funds and a stock market that performed well throughout most of the pandemic. The state reported a $4.3-billion surplus in fiscal 2021 and currently has a $3.3-billion rainy day fund. By the end of this year, the state will have also paid down over $5 billion in long-term pension debt. Connecticut is on pace for another 10-figure surplus in the current fiscal year. Wall Street has looked fondly on the state's newfound fiscal stability. Stan- dard & Poor's in November increased Connecticut's general obligation bond credit rating, following similar moves made in 2021 by Moody's, Fitch and Kroll. The Lamont administration and legislature this year also approved $600 million in tax cuts. Additional tax cuts are on the table in 2023, including a middle class income tax cut and the possible sunset of the corporation business tax surcharge. The Bad The pandemic's impact on Greater Hartford's office market came into sharp focus this year. And the picture hasn't been pretty. Key Hartford employers announced major downsizing plans: • Prudential Financial will vacate space at 280 Trumbull St. in Hartford, shrinking its downtown presence from 250,000 to 25,000 square feet. • Robinson+Cole agreed to lease 75,000 square feet at One State St. in Hartford, vacating 120,000 square feet at 280 Trumbull St., its longtime home. • UnitedHealthcare is shrinking its footprint in City Place I from 350,000 square feet to 50,000 square feet. • Stanley Black & Decker shuttered its 23,000-square-foot advanced manufacturing innovation center at One Constitution Plaza and put the space on the market for sublease. These moves made it clear the pandemic will have a meaningful, lasting impact on the office market as employers continue to embrace remote and hybrid work models. It's also confirmation that pre-pan- demic workweek foot traffic won't be returning any time soon. With more downsizing still in the offing, some real estate experts predict downtown Hartford's office vacancy rate will be in the 30%-range, possibly reaching historic highs. The big question has been, where does Hartford go from here? Part of the answer is already in motion as city planners, boosters and developers try to recast Hartford as less of a business district and more of a residential neighborhood. Over the last decade, Hartford has developed a stronger residential base by adding more than 2,000 new apart- ment units, with thousands more set to be built in the years ahead. Demand for those units has been strong with occupancy rates above 90%. The latest to debut were Randy Salvatore's 270-unit "The Pennant" apartments — part of the broader North Crossing development — and the 97 rental units at 99 Pratt St. Shifting Hartford into more of a residential neighborhood is a sound strategy and the city should continue to add apartments as long as demand keeps pace. However, Hartford still needs a strategy to lure new businesses downtown. The Uncertainty While Connecticut has been able to achieve fiscal stability, the state's overall economic performance has been inconsistent, even weak. Heading into 2023, there is uncertainty about where the U.S. and Connecticut economies are headed. Some are predicting a recession, though not a severe one. Others are more optimistic the economy won't have much of a slow down. In 2022, Connecticut's economy continued to trail the nation's. As of October, Connecticut had only recov- ered 89.4% of the 289,400 jobs lost during March and April 2020, when the pandemic temporarily shut down signif- icant parts of the state's economy. The U.S. economy fully recovered pandem- ic-related job losses in July. And the workforce shortage continues to plague myriad industries. There are over 100,000 job openings in the state, and even if Connecticut had 0% unemployment, there would still be 33,000 unfilled jobs, according to Connecticut Business & Industry Association CEO Chris DiPentima, a sign that a decade-long population out-migration trend has limited our growth prospects. Meantime, Connecticut's second quarter GDP shrunk by 4.7%, the second worst decline in the nation, according to the U.S. Bureau of Economic Analysis. Conversely, the state's first quarter GDP grew 5.5%, one of the strongest growth rates in the country. High costs of doing business and living, high taxes and lack of affordable housing are all determinants to growth that have certainly impacted the state's slower recovery. Those are all areas state policy- makers should look to address in the new year. Greg Bordanaro MOVERS & SHAKERS Thomaston Savings Bank has elected a new board member and three new corporators. Michael Madow has been added to the bank's board. He is president of Ramco Recovery Inc., an environmental service company in Thomaston founded in 1992. The new corporators include: Dr. Amanda Nardozzi, the director of the police recer- tification program for the School of Continuing Education at Post University; Dr. Manpuneet Singh, owner of Thomaston Family Dentistry; and Angela Chapman, associate dean of development at Naugatuck Valley Community College. Colorado-based insurtech company Pie Insurance announced it has hired West Hartford resident Rick Poulin, as vice president of underwriting. Poulin, who is working remotely, is responsible for overseeing the compa- ny's business planning, forecasting, and loss and expense management. He has more than 20 years of expe- rience in the insurance industry, including more than a decade at Travelers, where most recently, he was the company's vice president of workers' comp. The Farmington-based Center for Advanced Reproductive Services announced that Brian Miller has been named CEO. Miller will succeed Paul Verrastro, who is stepping down from his position on Dec. 23, after a 23-year career at The Center. Miller is a veteran of the fertility industry, with an extensive back- ground in medical practice operations, business development and growth strategies, medical affairs, as well as clinical laboratory and research. He joins The Center from TMRW Life Sciences, where he was senior vice president. West Hartford-based building technology provider Environmental Systems Corp. (ESC) announced it has hired Mike Jaworowski as security sales manager. Jaworowski has been in the security industry for over 30 years, building and managing sales teams throughout New England for some of the largest security companies and integrators in North America. In his new role, Jaworowski will seek to build, develop and manage the sales team, and develop annual sales plans. Enfield-based Conval, a maker of severe service valves, announced it has hired Cole Magee as a sales engineer. Previously, Magee held industrial sales and engineering positions with Rapid Radiant Technologies, Innova- tion Cooperative 3D and MP Systems. Law firm Pullman & Comley recently announced the addition of five associates to the firm. Daniel R. Barrack is an associate in the public finance practice; Meagan A. Cauda is an associate in the litigation practice; Liana Feinn, is an associate in the real estate, land use and environmental practice; Joshua S. Smith is an associate in the business and finance practice; Gwaina D. Wauldon is an asso- ciate in the education law and labor and employment practices. Cole Magee Angela Chapman Dr. Amanda Nardozzi Liana Feinn Brian Miller Dr. Manpuneet Singh Daniel Barrack Michael Madow Meagan Cauda

• Cover