Hartford Business Journal

4 HARTFORDBUSINESS.COM | JANUARY 9, 2023 Harrison said housing advocates also learned to avoid a "one-size-fits- all approach," particularly on density requirements, because every com- munity's needs are different. Lastly, past legislative efforts focused on 40 communities with pas- senger rail stations or stops along the CTfastrak rapid bus route. The next proposal will have a broader focus, Harrison said. "We really want to see more homes and more services being concen- trated in places in Connecticut that already have public transportation," he said. Lamont admin. support Alexandra Daum, the newly named commissioner of the state Department of Economic and Community Development, acknowl- edges the high cost of living as a liability for Connecticut's efforts to recruit and retain a labor force. Daum said there is a clear link between 100,000 unfilled positions in Connecticut and "extremely tight housing supply." It's one of the reasons that the Lamont administration's $100 million Connecticut Communities Challenge grant program has focused on assist- ing private development in urban centers, particularly around mass transit, Daum said. The state has allocated $81.5 million of that fund so far with the remaining monies to be distributed in 2023. New CBIA chair sees labor shortage as CT's top business challenge By Michael Puffer mpuffer@hartfordbusiness.com M att McSpedon, a senior banking executive and 56-year-old father of four from Ridgefield, comes to the chair- manship of the state's largest busi- ness group as its agenda is flexing to meet a historic labor shortage. Businesses ranging from restau- rants and manufacturers to financial consulting firms are having trouble filling their ranks, noted McSpedon, a JPMorgan Chase commercial banking market executive. The Connecticut Business & Industry Association elected him as chair on Dec. 8. McSpedon has spent 35 years in banking, 25 with JPMorgan Chase. He manages a team of six commercial bankers providing services to middle market companies, generally ranging from $20 million to $500 million in annual revenue. His coverage area includes Connecticut, along with por- tions of Massachusetts and New York. Manufacturers, distributors and service companies feature heavily among his clients. "A CBIA survey found 90% of employers are struggling to fill posi- tions, which I can tell you — going out there and visiting our clients and companies that we love to bank — is absolutely true," McSpedon said. Connecticut has nearly 100,000 open jobs, according to the latest data from the U.S. Bureau of Eco- nomic Analysis. McSpedon noted that even if every unemployed worker in Connecticut suddenly were placed in one of those positions, there would be 30,000 left unfilled. "We have the jobs in Connecticut but not the people," McSpedon said. McSpedon said workforce devel- opment is recognized by CBIA as the state's No. 1 business challenge. The organization has begun to focus on soaring housing costs as a key contrib- uting factor — prompting the associa- tion to partner with housing advocates and the Connecticut Conference of Municipalities to push for legislation to ease the state's housing crunch. A shortage of child-care options and affordability is another big con- tributor, McSpedon said. Many par- ents find child-care expenses would almost entirely eat up any salary they could earn while working, he said. An aging workforce is going to be an increasing concern, with pend- ing retirements threatening to strain the already inadequate labor pool, McSpedon said. He acknowledges the labor short- age as a long-term problem. "It will take a lot of angles to fix it, whether it is attracting people or keeping folks here, there are a lot of headwinds to building the workforce here in Connecticut." The diminished labor force may be the top priority for CBIA, but it won't be the only issue the group contin- ues to address. Improving the state's overburdened transportation network has been and will remain a focus, McSpedon said. One solution the CBIA intends to promote comes in tandem with its workforce efforts. The association hopes to convince lawmakers to incentivize housing development along public transportation hubs. One issue the CBIA has long unsuccessfully lobbied for — the sunset of corporate business tax sur- charge — could gain steam this year. The surcharge sunset as of Jan. 1, and Gov. Ned Lamont has expressed interest and potential sup- port of letting it expire. "The temporary surcharge has been temporary for about 20 years," Lamont told HBJ in December. "I think probably (it's time to) let that go back to 7.5%, which is middle of the pack, but I have to negotiate that." MATT McSPEDON Executive Director, Middle Market Banking (Hartford and Shelton offices) JPMorgan Chase Education: Bachelor's degree in finance, Iona University Age: 56 "So, I think that's a place where we can make a difference," Daum said. "We have dollars, we have an opinion on where to build the housing in order to make sure it serves our businesses and fills those positions." Daum said the state's brownfield cleanup grant program — which typi- cally allocates about $25 million yearly — has increasingly focused on clean- ups that have an end use in mind. "All things being equal, we pre- fer a project that is going to create more (housing) units in an area that already has good infrastructure and good transit," Daum said. Legislative support Affordable housing as an economic imperative has some baked-in sup- port from legislative leadership. Newly elected state Sen. MD Rahman (D-Manchester) has been picked by party leaders to serve as co-chair of the General Assembly's Planning and Development Commit- tee, one of the possible first stops for affordable housing legislation. Rahman is a self-made business- man and philanthropist, claiming more than 1,000 employees in health care, construction and real estate investment ventures. Rahman said he is constantly searching for employees and agrees a lack of affordable housing makes it more difficult. "Affordable housing is really import- ant for the economy," Rahman said. "If someone has a job and can't find affordable housing close by, how are they going to keep that job?" HBJ PHOTO | STEVE LASCHEVER Matt McSpedon, newly elected chair of the Connecticut Business & Industry Association board. 2015 $209,900 $140,000 $100,000 $150,000 $200,000 $250,000 2016 $219,000 $142,000 2017 $215,000 $137,250 2018 $225,500 $144,250 2019 $245,000 $161,000 2020 $275,000 $175,000 2021 $300,000 $176,500 2022 $325,000 $220,000 MEDIAN HOME PRICE MEDIAN CONDO PRICE *The data includes home prices from 27 municipalities surrounding Hartford • Source: Greater Hartford Association of Realtors Greater Hartford median home prices* $300,000 $350,000

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