Hartford Business Journal

6 Hartford Business Journal • April 13, 2015 www.HartfordBusiness.com TOP STORY Report: Gov't must cater manufacturing programs to smaller cos. Research and development tax credits and other programs designed to benefit advanced manufacturers often disproportionately help larger companies, accord- ing to a new report by the New England Council. Small and midsize companies, or SMEs, also have trouble recruiting talent and accessing new technologies, according to the report, which was commissioned by the business advocacy group and performed by Deloitte. While New England maintains its lead in advanced manufacturing, wages and GDP have begun to stagnate following post-recession gains, the report said. Other challenges for New England manufacturers include relatively high energy costs, aging public infrastructure and workers, and a persistent branding problem that "keeps talent at arm's length," according to the report. Besides wanting government to evaluate how R&D tax credits and other pro - grams help smaller manufacturers, the report also recommends that industry, government, higher education and other stakeholders work to create more inte- grated educational pathways for students to choose advanced manufacturing as a career path early on. It also called for a rebranding from "advanced manufactur- ing" to "maker revolution." In Connecticut, the value of advanced manufacturing shipments rose 36 per- cent between 2005 and 2011, to more than $30 billion. Its per capita shipment value also climbed by about a third over that time. The state also has a heavy concentration of jobs in that industry — nearly 370 percent the national average. And while Massachusetts has more advanced manufacturing jobs, 72 percent of Connecticut's manufacturing jobs are catego- rized as advanced, which is the highest in New England. HEALTH CARE Independent hospital alliance signs ACO deal with Aetna A fledgling alliance of seven independent Connecticut hospitals has signed an accountable care agreement with insurer Aetna. The ACO is the first major news out of the Value Care Alliance since forming last year. Members include Middlesex Hospital in Middletown, Griffin Hospital in Derby, Lawrence + Memorial Hospital in New London, St. Vincent's Medical Center in Bridgeport and the Western Connecticut Health Network's Danbury, New Milford and Norwalk hospitals. The agreement includes more than 40,000 Aetna commercial health plan customers who received care from any of the seven member hospitals over the past two years — and any new patients following the start of the deal. Financial terms were not disclosed. The ACO model allows insurers to offer financial incentives to providers who reduce costs and improve health outcomes for large populations of patients. Aetna will track the percentage of patients who receive recommended pre- ventative care and screening, as well as reductions in avoidable hospital read- missions and emergency room visits, and other metrics. Hospitals testify against property tax legislation A number of Connecticut healthcare executives testified last week against a bill that would allow cities and towns to charge property taxes to off-campus properties owned by hospitals. At least seven hospitals and health systems, as well as the Connecticut Hos- pital Association, submitted written testimony arguing that the legislation would add another financial burden on top of proposed cuts to Medicaid reimburse- ment rates and a proposed increase in the state's hospital tax. Office of Policy Management Secretary Benjamin Barnes wrote that the bill targets a growing trend of hospitals expanding beyond their traditional campus- es, which has meant previously taxable properties have fallen off the tax rolls. GAMING Report: Casino competition will cost CT 9,300 jobs by 2019 Coming Massachusetts and New York casinos will take a $254 million bite out of Connecticut's casino tax revenues between 2017 and 2019, according to an analy- sis commissioned by the operators of Mohegan Sun and Foxwoods Resort Casino. Those lost taxes would be the result of out-of-state casinos displacing nearly $703 million in gross revenue from Connecticut casinos over those three years, the report by Clyde Barrow of Pyramid Associates concludes. More than one-third of that displaced revenue would be from northern and western Connecticut residents, the report said. The state's two casinos will also be forced to eliminate 5,812 jobs as a result, and an additional 1,890 indirect jobs will be lost at related vendors, the report said. Lost wages will result in lower spending, which will induce another 1,598 Connecticut job cuts, for a grand total of 9,300 lost jobs by 2019. Barrow's report — the second substantial analysis on behalf of the tribes since March — comes as Foxwoods and Mohegan push for approvals to open several new casinos near Connecticut's northern and western borders. ECONOMIC DEVELOPMENT & CONSTRUCTION WalletHub: CT property taxes fifth highest At $3,301, Connecticut's median property tax bill is the fifth-highest in the country, according to an analysis by personal finance website WalletHub. WalletHub also found that vehicle property taxes are the fourth-highest in the Nutmeg State, where the average car owner paid $630. Illinois had the highest property taxes, at $3,939, while Virginia had the high- est car tax, at $962. The analysis uses data from the U.S. Census Bureau and state motor vehicle departments. TECHNOLOGY TicketNetwork sues broker over unkept Super Bowl orders South Windsor online ticket reseller TicketNetwork has sued one of its brokers, claiming that the Pennsylvania company failed to deliver on nearly $294,000 worth of Super Bowl ticket orders. DEM Ticketing had been licensed since November to list tickets on TicketNet- work's online exchange for sale to third parties. The complaint alleges breach of contract and unjust enrichment, and asks for compensatory damages, interest, fees and any other compensation deemed appropriate by the court. TicketNetwork's attorney said his client did not wish to comment on pending litigation. Dem Ticketing could not be reached for comment. Dozens of Super Bowl ticket orders through TicketNetwork and its affiliated websites and brokers went unfilled, according to an April 4 story in the Seattle Times, which reported that many brokers "short sell" tickets — meaning they accept payments before they actually acquire all the tickets they've promised. Washington's attorney general has received more than 138 complaints re- garding such short selling, the Seattle Times said. Of those, at least 10 are about TicketNetwork and an affiliate website, the paper said. MANUFACTURING Ansonia packaging products provider acquired Ansonia's Better Packages Inc. has been acquired by Montreal-based Inter- tape Polymer Group, the companies announced. The purchase price was not disclosed. Better Packages makes water-activat- ed tape dispensers that are used in e-commerce order fulfillment centers. It had approximately $18 million in revenue in its most recent fiscal year. IPG manufactures water-activated tape, which bonds to parcels and pack- ages using moisture. Better Packages CEO Phil White will continue to manage operations in Ansonia. BY THE NUMBERS $15 The minimum wage large CT employers would have to pay, or risk paying a fine, under a bill being pushed by labor unions in the General Assembly. $254M The gaming tax revenue the state will lose by 2019 as a result of new casinos opening in New York and Massachusetts. 10 The number of national titles the UConn's women's basketball team has won in the past two decades. $3,301 Connecticut's median property tax bill, according to WalletHub, which is the fifth-highest in the country. 28.1% The percent of Connecticut businesses that are women- owned. TOP 5 MOST READ on HartfordBusiness.com ■ WalletHub: CT property taxes fifth highest ■ TicketNetwork sues broker over unkept Super Bowl orders ■ Segarra fills out mayoral campaign team ■ Campbell Soup solar array goes live ■ CT jumps into top 10 in locally produced food index STAY CONNECTED For breaking and daily Greater Hartford business news go to www.HartfordBusiness.com. HBJ on Twitter: @HartfordBiz HBJ on Facebook: www.facebook.com/HartfordBiz HBJ on LinkedIn: www.linkedin.com/company/ the-Hartford-Business-Journal Daily e-newsletters: HBJ Today, CT Morning Blend www.HartfordBusiness.com/subscribe Weekly e-newsletters: CT Green Guide Weekly www.HartfordBusiness.com/subscribe WEEK IN REVIEW Small and midsize manufacturers like Berlin-based Tomz Corp. don't benefit from R&D tax credits as much as large companies do, a new report says. P H O T O | C O N T R I B U T E D

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