Hartford Business Journal

18 HARTFORDBUSINESS.COM | OCTOBER 20, 2025 FOCUS | MANUFACTURING A CH-53K King Stallion lifts a military vehicle. Using the single point hook, the helicopter hovered up to 100 feet for approximately 10 minutes while carrying the 18,870-pound vehicle. Contributed Photo | U.S. Navy/Sikorsky John Murphy of the U.S. Chamber of Commerce addressing the audience at the CBIA's Made in Connecticut event. Contributed Photo | CBIA further down Connecticut's "aerospace alley," which for gener- ations has relied on small, fami- ly-run machine shops — many with just a handful of employees producing custom, one-off parts. Those businesses were among the hardest hit by pandemic shutdowns, said Brian Montanari, president and CEO of Glaston- bury-based HABCO Industries, a longtime Sikorsky supplier. "Frankly, a lot of those compa- nies we used to deal with are no longer in business," he said. To replace that lost capacity, HABCO and others have ramped up in-house training programs and partnered with the state to invest in new equipment. The company's big focus was "how do we bring that in-house, how do we have more control over it?" Montanari said. It's a problem still confronting Mike Scotto, vice president of business development at Colchester-based Alpha Q, which builds assemblies for the trans- mission, gearbox and tail rotors on several Sikorsky helicopters. One of Alpha Q's assemblies is nearly finished, but production has been delayed while the company waits 30 weeks for two specialized parts available from only one supplier. "I'm holding up hundreds of thousands of dollars of inventory that customers are depending on. It's not good," Scotto said. Issues like these are what many suppliers hope to solve under the stability of Sikorsky's new multi- year CH-53K contract — whether by diversifying their vendor base, bringing special processes in-house, or having the confidence to order early and in bulk. At TIGHITCO, Hawks, the GM, remains optimistic about the future of Connecticut's often- stressed supply chain. "All of those opportunities roll down, and the companies that use that opportunity wisely will come out better, stronger, more efficient at the end," he said. Chain Reaction Continued from page 17 Overcoming challenges Such optimism has been hard to come by in Connecticut's aerospace supply chain in recent years. The sector has faced pandemic-related shutdowns, ongoing workforce shortages and turbulence tied to major issues at Boeing, one of the world's largest original equipment manufacturers (OEMs). Suppliers say they have weath- ered closures, consolidation, rising raw material costs, and persistent challenges attracting skilled talent. "A small machine shop can hold up an entire aircraft," said Justin Wolfanger, president of Triumph Systems, which has 700 employees in West Hartford and Windsor. The company makes engine controls, electronics, mechanical and hydraulic systems for Sikorsky and others, and is also a key supplier on the CH-53K program. Wolfanger was speaking at a recent manufacturing event hosted by the Connecticut Business & Industry Association. Like many larger suppliers in Connecticut's aerospace ecosystem, Triumph has benefited from private equity backing. Earlier this year, the company was acquired in a $3 billion deal by Warburg Pincus and Berkshire Partners. Wolfanger said that investment has enabled Triumph to continue making strategic improvements it began pursuing during the pandemic — including about $10 million in internal R&D funding aimed at addressing supply chain challenges. In an era of inflation and soaring material costs, he said, neither the Pentagon nor major OEMs fully appreciated the pressures facing suppliers in recent years — but that's beginning to change. "I'm finally having conversations with some large OEMs that are like, 'no, we don't want you going out of business,'" he said. Another challenge has surfaced Most CT manufacturers expect tariffs to hurt business in 2025 Manufacturers surveyed by the CBIA were asked how tariffs will affect their operations in the coming year. Here's how they responded: RESPONSE OPTION PERCENT Positively 3% No impact 13% Negatively 66% Unsure 19% CT manufacturers have dim outlook on tariffs; report hiring, retention challenges By Harriet Jones hjones@hartfordbusiness.com S ixty-six percent of Connecticut manufacturers recently surveyed say that tariffs will negatively affect their businesses in 2025. More than half expect inflation to rise next year. The figures come from a new report, Made in Connecticut, issued by the Connecticut Business & Industry Association, along with CONNSTEP and ReadyCT. Meanwhile, more than 80% of manufacturers surveyed in Connecticut say they're having diffi- culty finding and retaining workers. That response is consistent with last year's survey results. Employers named skills gaps as the top barrier to attracting new talent. The cost of doing business was also a big concern with 95% saying that costs are on the rise, driven by labor, healthcare and energy expenses. Speaking at the CBIA's recent Made in Connecticut event, John Murphy, head of international at the U.S. Chamber of Commerce, said the Trump administration's tariff regime has become too complex. "I do think there's more and more voices speaking about the need for restraint on all of this," he said. He said the biggest looming threat to Connecticut is the possibility of tariffs on the aerospace sector, which the Trump administration is considering. "The idea that we're going to impose tariffs here on a sector that is incredibly successful, huge exporter, jobs in every state, leaves you scratching your head," Murphy said. He said the industry has been lobbying the administration on the issue with some success. Murphy praised the One Big Beautiful Bill for its permanent tax provisions that benefit manufacturers, including immediate expensing of research and development, more generous limits for interest deduction, and 100% bonus depreciation for some investments. "We should celebrate the business tax provisions in this bill," he said. Seventy percent of firms surveyed for the CBIA's report were profitable in 2024 — that's up from 65% in 2023, while 14% broke even and 16% reported losses. In 2023, 21% posted losses. Exports rose to $16.1 billion in 2024, and defense contract spending reached $26.6 billion. "This year's report highlights both the enduring strengths and the pressing challenges facing Connecticut manufacturing," said CBIA President and CEO Chris DiPentima. "Manufac- turers are growing despite navigating numerous headwinds, including increased labor, healthcare and energy costs. Growing uncertainty due to volatility surrounding federal tariff and trade policies are also testing manufacturers' resilience." Some 27% of firms say they have integrated artificial intelligence tech- nologies into their workflow. The report also marks the launch by CBIA and CONNSTEP of a new manufacturing coalition in the state. The aim is to build a statewide manufacturing community that drives growth through training, resources and strategic networking.

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