Hartford Business Journal

14 Hartford Business Journal • May 11, 2015 www.HartfordBusiness.com IS A DREAM YOU WANT YOUR FAMILY TO SHARE. YOUR BUSINESS MassMutual Financial Group refers to Massachusetts Mutual Life Insurance Co. (MassMutual) and its affiliated companies and sales representatives. CRN201609-185994 BUSINESS SUCCESSION PLANNING + RETIREMENT/401(K) PLAN SERVICES KEY EMPLOYEE RETENTION AND EXECUTIVE BENEFITS PRODUCTS What's right for your business has to be right for your family. So whether you're just starting out or ready to pass your business down to your children, Charter Oak's financial professionals focus on what you need when you need it most. Learn how we can help you achieve your family business goals. Peter Novak General Agent Charter Oak Insurance and Financial Services Co. 76 Batterson Park Road Farmington, CT 06032 860-674-1800 pnovak@financialguide.com www.charteroakfinancial.com When Your When Your Business Business Relies on Relies on Technology, Technology, You Can Rely You Can Rely on Us. on Us. Technology Services Technology Services Network Systems and Support Network Security & Encryption Outsourced IT Department Cloud & Hybrid Back-up Systems Business Continuity Systems Outsourced CIO & CISO Services Consulting Services Consulting Services Non-profit Accounting Solutions Fundraising Solutions Software Selection Outsourced CFO Services Network Security Audits SSAE 16 / SOC 1, SOC 2 Audits HIPAA Security Compliance IT Policies and Procedures Business Continuity Planning ASK US ABOUT MICROSOFT OFFICE 365! 280 Trumbull St., 24th FL Hartford, CT 860.524.4400 www.TheTechnologyGroup.com from page 1 Gioia, adding that the stronger dollar is hurting an industry that generally has high-paying jobs. The dollar rose approximately 9 percent against other currencies in the quarter ended March 31. The greenback's relative value has since retreated some- what, thanks in part to a weak first-quar- ter GDP report. But it remains near a 12-year high, so companies are anticipating the effects through year's end. In January, UTC cut the low and high ends of its 2015 revenue guid- ance range by $1 billion, partly because of currency concerns, while Cheshire drug maker Alexion Pharmaceuticals expects a $160 million impact this year. "I think it is a problem," said Kevin Cole, a partner in the New Haven office of accounting, consulting firm Marcum, who works with private and public exporters. Cole said a weaker dollar following the Great Recession helped many companies survive the slow growing U.S. economy; now firms are experiencing the flip side of the coin. How a strong dollar hurts A stronger dollar primarily affects companies in two ways. It can make foreign competitors' prices more attrac- tive to customers as the price of U.S. goods rises. And, if a domestic com- pany accepts foreign currencies when it sells its products abroad, the sales are worth less in dollars because of the weak- er foreign currency. The latter impact, sometimes called "adverse currency translation," is what some of Connecticut's biggest public manu- facturers say is hurt- ing their earnings. The stronger dol- lar may widen the state's existing trade CT's Top Export Destinations (2014) 2014 Value 2014 Rank Country (in millions) % Share 1 France $2,211 13.9 2 Canada $1,895 11.9 3 Germany $1,712 10.7 4 Mexico $1,281 8 5 United Arab Emirates $1,142 7.2 6 China $904 5.7 7 United Kingdom $719 4.5 8 Korea, South $673 4.2 9 Japan $540 3.4 10 Netherlands $489 3.1 Total $15,941 S O U R C E : D E P A R T M E N T O F C O M M E R C E CT companies reduce outlook over currency N O T E S : A V E R A G E S O F D A I L Y F I G U R E S . T H E G R A P H S H O W S A W E I G H T E D A V E R A G E O F T H E F O R E I G N E X C H A N G E V A L U E O F T H E U . S . D O L L A R A G A I N S T T H E C U R R E N C I E S O F A B R O A D G R O U P O F M A J O R U . S . T R A D I N G P A R T N E R S . B R O A D C U R R E N C Y I N D E X I N C L U D E S T H E E U R O A R E A , C A N A D A , J A P A N , M E X I C O , C H I N A , U N I T E D K I N G D O M , T A I W A N , K O R E A , S I N G A P O R E , H O N G K O N G , M A L A Y S I A , B R A Z I L , S W I T Z E R L A N D , T H A I L A N D , P H I L I P P I N E S , A U S T R A L I A , I N D O N E S I A , I N D I A , I S R A E L , S A U D I A R A B I A , R U S S I A , S W E D E N , A R G E N T I N A , V E N E Z U E L A , C H I L E A N D C O L O M B I A . F O R M O R E I N F O R M A T I O N A B O U T T R A D E - W E I G H T E D I N D E X E S S E E H T T P : / / W W W . F E D E R A L R E S E R V E . G O V / P U B S / B U L L E - T I N / 2 0 0 5 / W I N T E R 0 5 _ I N D E X . P D F. S O U R C E : T R A D E - W E I G H T E D U . S . D O L L A R I N D E X : B R O A D , U . S . F E D E R A L R E S E R V E Rise of the Dollar 90.00 95.00 100.00 105.00 110.00 115.00 120.00 125.00 130.00 2005-01-05 2006-01-05 2007-01-05 2008-01-05 2009-01-05 2010-01-05 2011-01-05 2012-01-05 2013-01-05 2014-01-05 2015-01-05 ▶ ▶ The biggest impact of the strong dollar for Connecticut companies large and small is from Europe, which along with Canada and Mexico is a top Connecticut trading partner.

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