Issue link: https://nebusinessmedia.uberflip.com/i/515646
www.HartfordBusiness.com May 25, 2015 • Hartford Business Journal 9 stronger here than the state's ranking reflects. "I don't think that's a litmus test for the health of the aerospace industry in the region," said Fiedorowicz, whose company makes fan casings for jet engines made by Pratt & Whit- ney, GE Aviation, and Rolls-Royce. "As I like to say it, we are in Silicon Valley of aerospace here," he said. "If you draw a radius around where we're sitting now [in Newington] and go 50 miles you have hundreds and hun- dreds of facilities…that have the capability of changing metal and adding value through spe- cial processes — that's the huge competitive advantage for this region." Connecticut has the talent, infrastruc- ture, and supply chain to complete parts to original equipment manufacturer (OEM) specifications most efficiently, he said. The ranking "by no means suggests the 'best places' for aerospace manufacturing," but does provide an interesting view on the many options to locate sites and/or research and development facilities, especially for sup- pliers that don't need to be based near OEMs, the PwC report said. Jeremy Maryles, manager of research and analysis at PwC, said industry and overall wage rates in Connecticut, plus energy costs, is where the state started to drop, fueling its last- place ranking in operating costs, which also includes business climate. Numbers influenc- ing that ranking, but not included in the report, had the state ranked 47th in electricity prices, and 46th and 48th in industry hourly wage and all occupations' hourly wage, respectively. "Basically, Connecticut, on all three metrics — on electricity and the wage numbers — is ranked pretty poorly," Maryles said. Connecticut scored well on its industry size. It ranked No. 4 in the number of companies whose primary business is aerospace and head- quartered in Connecticut, including suppliers that specialize in aerospace. Connecticut also ranked well (14th) for industry employment. "Even though Connecticut is a higher cost place in terms of wages, when you think about the state's industry employment being No. 14 and being No. 4 in terms of number of aero- space companies, to me what that says is that Connecticut should be placing a lot of empha- sis on its attractive labor pool," Thompson says. "Even if the cost is high — there may not be a lot that you can do to manage that — it tells me, put the emphasis on the skills." Joe Brennan, president and CEO of the Con- necticut Business & Industry Association, said Connecticut's overall ranking would be much better if not for the operating costs. "It's just the reality of being in Connecticut," he said. "Looking at wages, looking at taxes, you're going to come up with a pretty poor ranking for operating costs, and I think that skews the overall ranking. That's why we're working to try to reduce some of those costs." CBIA's legislative priorities include try- ing to reduce energy costs permanently, in part through projects like Access Northeast to improve natural gas pipeline capacity and through diversification of fuel sources, and try- ing to change the debate on taxes, Brennan said. Currently, the state legislature is debating hundreds of millions of dollars in proposed tax increases to help close billion-dollar budget deficits over the next two fiscal years. "The best way to pay for government … is to grow your tax base and you grow that best through economic activity, not through tax increases," Brennan said. "So that's the message, it's not just we don't want higher taxes, it's figuring out a better way to pay for government and to grow the economy." Connecticut has a lot of aerospace advan- tages, from Pratt & Whitney's headquarters to hundreds of companies in its supply chain, Brennan said. He called the PwC report a mixed bag. "It shows the good in some areas, not so good in others … but if you look at the overall impact that aerospace manufacturing has on Connecticut, I think it's a good place to oper- ate," Brennan said. GKN's Fiedorowicz agrees. Companies associated with aerospace components manufacturing are growing, adding jobs, equipment and facilities, he said. "If you take the pulse of the aerospace industry in this region, we're going at Mach 3 and beating fast," Fiedorowicz said. "The backlog and the opportunities from the OEMs are going to ensure that this area is going to have growth for the next 20-plus years and that's if they don't introduce any - more new platforms — and you know that's always going to happen." n THE LIST Connecticut's top foreign import partners (Ranked by 2014 dollars imported) Dollars imported Rank Country 2014 2013 Leading products 1 Canada $3,502,466,030 $3,773,704,430 Transportation equipment; primary metal manufacturing; chemicals (1) 2 China $2,979,314,412 $2,776,839,973 Leather and allied products; computer and electronic products; miscellaneous manufactured commodities; electrical equipment, appliances and components 3 Mexico $2,571,627,904 $1,016,232,324 Primary metal manufacturing; electrical equipment, appliances and components; fabricated metal products; computer and electronic products 4 Germany $1,851,787,943 $1,518,474,851 Machinery, except electrical; transportation equipment; fabricated metal products; chemicals 5 United Kingdom $1,689,126,665 $1,465,783,834 Chemicals; transportation equipment; petroleum and coal products (1) 6 Netherlands $1,603,653,217 $992,085,430 Machinery, except electrical; petroleum and coal products; chemicals (1) 7 Japan $1,091,214,088 $1,069,296,643 Transportation equipment; computer and electronic products; machinery, except electrical (1) 8 France $800,554,830 $911,179,130 Miscellaneous manufactured commodities; petroleum and coal products; transportation equipment (1) 9 Italy $546,760,006 $495,251,111 Machinery, except electrical; transportation equipment; fabricated metal products; food manufactures 10 Poland $531,960,418 $545,060,343 Transportation equipment; fabricated metal products; machinery, except electrical (1) 11 Russian Federation $519,729,993 $154,517,248 Primary metal manufacturing; petroleum and coal products; fabricated metal products; fish and other marine products 12 Singapore $484,529,067 $589,473,159 Machinery, except electrical; computer and electronic products; transportation equipment (1) 13 Switzerland $480,693,982 $407,151,472 Computer and electronic products; machinery, except electrical; electrical equipment, applicances and components; fabricated metal products 14 Brazil $343,263,073 $270,341,285 Paper; primary metal manufacturing; transportation equipment (1) 15 Chile $322,539,441 $1,057,004,572 Primary metal manufacturing; minerals and ores; beverages and tabacco products; food manufactures 16 Taiwan $301,456,053 $291,474,109 Transportation equipment; fabricated metal products; machinery, except electrical (1) 17 Israel $290,537,708 $288,406,837 Transportation equipment; computer and electronic products; miscellaneous manufactured commodities (1) 18 Sweden $282,929,668 $296,924,409 Transportation equipment; primary metal manufacturing; machinery, except electrical; electrical equipment, appliances and components 19 India $282,403,765 $194,678,760 Fish and other marine products; transportation equipment; primary metal manufacturing; chemicals 20 South Africa $269,454,478 $205,195,101 Primary metal manufacturing; electrical equipment, appliances and components; chemicals; beverages and tobacco products 21 Belgium $244,425,630 $205,010,272 Transportation equipment; petroleum and coal products; fabricated metal products (1) 22 South Korea $205,869,844 $158,059,412 Transportation equipment; machinery, except electrical; primary metal manufacturing (1) 23 Spain $153,455,410 $161,616,485 Transportation equipment; chemicals; miscellaneous manufactured commodities; beverages and tobacco products 24 Denmark $148,817,610 $22,470,731 Computer and electronic products; petroleum and coal products; beverages and tobacco products; paper 25 Viet Nam $147,156,395 $145,542,452 Furniture and fixtures; leather and allied products; agricultural products; fish and other marine products Source: U.S Department of Commerce, International Trade Administration (1) In addition, a significant fraction of the imports were U.S. goods returned and reimported. —Compiled by Roger Magnus and Heide Martin. Connecticut's top foreign import partners (Ranked by 2014 dollars imported) Dollars imported Rank Country 2014 2013 Leading products 1 Canada $3,502,466,030 $3,773,704,430 Transportation equipment; primary metal manufacturing; chemicals (1) 2 China $2,979,314,412 $2,776,839,973 Leather and allied products; computer and electronic products; miscellaneous manufactured commodities; electrical equipment, appliances and components 3 Mexico $2,571,627,904 $1,016,232,324 Primary metal manufacturing; electrical equipment, appliances and components; fabricated metal products; computer and electronic products 4 Germany $1,851,787,943 $1,518,474,851 Machinery, except electrical; transportation equipment; fabricated metal products; chemicals 5 United Kingdom $1,689,126,665 $1,465,783,834 Chemicals; transportation equipment; petroleum and coal products (1) 6 Netherlands $1,603,653,217 $992,085,430 Machinery, except electrical; petroleum and coal products; chemicals (1) 7 Japan $1,091,214,088 $1,069,296,643 Transportation equipment; computer and electronic products; machinery, except electrical (1) 8 France $800,554,830 $911,179,130 Miscellaneous manufactured commodities; petroleum and coal products; transportation equipment (1) 9 Italy $546,760,006 $495,251,111 Machinery, except electrical; transportation equipment; fabricated metal products; food manufactures 10 Poland $531,960,418 $545,060,343 Transportation equipment; fabricated metal products; machinery, except electrical (1) 11 Russian Federation $519,729,993 $154,517,248 Primary metal manufacturing; petroleum and coal products; fabricated metal products; fish and other marine products 12 Singapore $484,529,067 $589,473,159 Machinery, except electrical; computer and electronic products; transportation equipment (1) 13 Switzerland $480,693,982 $407,151,472 Computer and electronic products; machinery, except electrical; electrical equipment, applicances and components; fabricated metal products 14 Brazil $343,263,073 $270,341,285 Paper; primary metal manufacturing; transportation equipment (1) 15 Chile $322,539,441 $1,057,004,572 Primary metal manufacturing; minerals and ores; beverages and tabacco products; food manufactures 16 Taiwan $301,456,053 $291,474,109 Transportation equipment; fabricated metal products; machinery, except electrical (1) 17 Israel $290,537,708 $288,406,837 Transportation equipment; computer and electronic products; miscellaneous manufactured commodities (1) 18 Sweden $282,929,668 $296,924,409 Transportation equipment; primary metal manufacturing; machinery, except electrical; electrical equipment, appliances and components 19 India $282,403,765 $194,678,760 Fish and other marine products; transportation equipment; primary metal manufacturing; chemicals 20 South Africa $269,454,478 $205,195,101 Primary metal manufacturing; electrical equipment, appliances and components; chemicals; beverages and tobacco products 21 Belgium $244,425,630 $205,010,272 Transportation equipment; petroleum and coal products; fabricated metal products (1) 22 South Korea $205,869,844 $158,059,412 Transportation equipment; machinery, except electrical; primary metal manufacturing (1) 23 Spain $153,455,410 $161,616,485 Transportation equipment; chemicals; miscellaneous manufactured commodities; beverages and tobacco products 24 Denmark $148,817,610 $22,470,731 Computer and electronic products; petroleum and coal products; beverages and tobacco products; paper 25 Viet Nam $147,156,395 $145,542,452 Furniture and fixtures; leather and allied products; agricultural products; fish and other marine products Source: U.S Department of Commerce, International Trade Administration (1) In addition, a significant fraction of the imports were U.S. goods returned and reimported. —Compiled by Roger Magnus and Heide Martin. Connecticut's top foreign import partners (Ranked by 2014 dollars imported) Dollars imported Rank Country 2014 2013 Leading products 1 Canada $3,502,466,030 $3,773,704,430 Transportation equipment; primary metal manufacturing; chemicals (1) 2 China $2,979,314,412 $2,776,839,973 Leather and allied products; computer and electronic products; miscellaneous manufactured commodities; electrical equipment, appliances and components 3 Mexico $2,571,627,904 $1,016,232,324 Primary metal manufacturing; electrical equipment, appliances and components; fabricated metal products; computer and electronic products 4 Germany $1,851,787,943 $1,518,474,851 Machinery, except electrical; transportation equipment; fabricated metal products; chemicals 5 United Kingdom $1,689,126,665 $1,465,783,834 Chemicals; transportation equipment; petroleum and coal products (1) 6 Netherlands $1,603,653,217 $992,085,430 Machinery, except electrical; petroleum and coal products; chemicals (1) 7 Japan $1,091,214,088 $1,069,296,643 Transportation equipment; computer and electronic products; machinery, except electrical (1) 8 France $800,554,830 $911,179,130 Miscellaneous manufactured commodities; petroleum and coal products; transportation equipment (1) 9 Italy $546,760,006 $495,251,111 Machinery, except electrical; transportation equipment; fabricated metal products; food manufactures 10 Poland $531,960,418 $545,060,343 Transportation equipment; fabricated metal products; machinery, except electrical (1) 11 Russian Federation $519,729,993 $154,517,248 Primary metal manufacturing; petroleum and coal products; fabricated metal products; fish and other marine products 12 Singapore $484,529,067 $589,473,159 Machinery, except electrical; computer and electronic products; transportation equipment (1) 13 Switzerland $480,693,982 $407,151,472 Computer and electronic products; machinery, except electrical; electrical equipment, applicances and components; fabricated metal products 14 Brazil $343,263,073 $270,341,285 Paper; primary metal manufacturing; transportation equipment (1) 15 Chile $322,539,441 $1,057,004,572 Primary metal manufacturing; minerals and ores; beverages and tabacco products; food manufactures 16 Taiwan $301,456,053 $291,474,109 Transportation equipment; fabricated metal products; machinery, except electrical (1) 17 Israel $290,537,708 $288,406,837 Transportation equipment; computer and electronic products; miscellaneous manufactured commodities (1) 18 Sweden $282,929,668 $296,924,409 Transportation equipment; primary metal manufacturing; machinery, except electrical; electrical equipment, appliances and components 19 India $282,403,765 $194,678,760 Fish and other marine products; transportation equipment; primary metal manufacturing; chemicals 20 South Africa $269,454,478 $205,195,101 Primary metal manufacturing; electrical equipment, appliances and components; chemicals; beverages and tobacco products 21 Belgium $244,425,630 $205,010,272 Transportation equipment; petroleum and coal products; fabricated metal products (1) 22 South Korea $205,869,844 $158,059,412 Transportation equipment; machinery, except electrical; primary metal manufacturing (1) 23 Spain $153,455,410 $161,616,485 Transportation equipment; chemicals; miscellaneous manufactured commodities; beverages and tobacco products 24 Denmark $148,817,610 $22,470,731 Computer and electronic products; petroleum and coal products; beverages and tobacco products; paper 25 Viet Nam $147,156,395 $145,542,452 Furniture and fixtures; leather and allied products; agricultural products; fish and other marine products Source: U.S Department of Commerce, International Trade Administration (1) In addition, a significant fraction of the imports were U.S. goods returned and reimported. —Compiled by Roger Magnus and Heide Martin. 12 13 Switzerland $480,693,982 $407,151,472 Computer and electronic products; machinery, except electrical; electrical equipment, applicances and components; fabricated metal products 14 Brazil $343,263,073 $270,341,285 Paper; primary metal manufacturing; transportation equipment (1) 15 Chile $322,539,441 $1,057,004,572 Primary metal manufacturing; minerals and ores; beverages and tabacco products; food manufactures 16 Taiwan $301,456,053 $291,474,109 Transportation equipment; fabricated metal products; machinery, except electrical (1) 17 Israel $290,537,708 $288,406,837 Transportation equipment; computer and electronic products; miscellaneous manufactured commodities (1) 18 Sweden $282,929,668 $296,924,409 Transportation equipment; primary metal manufacturing; machinery, except electrical; electrical equipment, appliances and components 19 India $282,403,765 $194,678,760 Fish and other marine products; transportation equipment; primary metal manufacturing; chemicals 20 South Africa $269,454,478 $205,195,101 Primary metal manufacturing; electrical equipment, appliances and components; chemicals; beverages and tobacco products 21 Belgium $244,425,630 $205,010,272 Transportation equipment; petroleum and coal products; fabricated metal products (1) 22 South Korea $205,869,844 $158,059,412 Transportation equipment; machinery, except electrical; primary metal manufacturing (1) 23 Spain $153,455,410 $161,616,485 Transportation equipment; chemicals; miscellaneous manufactured commodities; beverages and tobacco products 24 Denmark $148,817,610 $22,470,731 Computer and electronic products; petroleum and coal products; beverages and tobacco products; paper 25 Viet Nam $147,156,395 $145,542,452 Furniture and fixtures; leather and allied products; agricultural products; fish and other marine products Source: U.S Department of Commerce, International Trade Administration (1) In addition, a significant fraction of the imports were U.S. goods returned and reimported. —Compiled by Roger Magnus and Heide Martin. To view the full list, please visit HartfordBusiness.com