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Doing Business In Connecticut 2015

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Digital Media & Film For the health of the state's economy, regaining some of those lost jobs is a prime concern. at's because jobs in manufacturing — where today the work is high-tech and the average yearly wage is almost $79,000 — pay 26% more than the average Connecticut job. e Manufacturing Alliance of Con- necticut, which represents more than 80 companies, found a glow of optimism in its 2014 member survey. Seventy-one percent of respondents said they expect to increase sales in 2015, a big jump from the 53% ex- pressing such confidence in the prior year. Alliance president Frank Johnson said the outlook is the best he's seen in four or five years. With supplier demand generated by Electric Boat and Pratt & Whitney, he's "seeing a lot of optimism" from companies making parts and assemblies for the auto industry as well as those serving aerospace and defense. "e work being done at the major OEMs [original equipment manufacturers] will extend down the supply chain to mate- rial suppliers and component manufactur- ers," he said. "e potential there is huge." "e auto industry has gone through a pretty healthy resurgence since the worst of the recession," he said. at holds out promise for companies such as the Associ- ated Spring division of Barnes Group Inc. in Bristol, which makes springs and other components for vehicles. "Now if the housing market picks up nationally, that helps another whole group of Connecticut manufacturers," Johnson said. At New Haven-based ASSA ABLOY, which makes door locks and other "archi- tectural hardware" for the building industry, spokeswoman Marna Wilber said that is slowly happening. Global sales of the Swed- ish company, which employs more than 1,000 in Connecticut, rose by 17% in 2014. "Since 2008, when the recession hit, we've steadily gotten back to the level of sales that we had previously," Wilber said. "We've done it by innovation and reinvest- ing in new products." Gioia of CBIA added that the expan- sion of the Algonquin Natural Gas Pipeline and other lines bringing natural gas into Connecticut will address a prime concern of manufacturers — the need for cheaper energy in order to be competitive. High energy costs in Connecticut have long been a concern. In January, the Federal Energy Regulatory Commission released its final environmental impact statement on the Al- gonquin project, saying the project's impacts can be mitigated. "By 2018, this will make a dramatic dif- ference in the cost of natural gas," Gioia said. At CONNSTEP, a Rocky Hill-based nonprofit agency that assists companies in quality management and adopting cost-sav- ing lean manufacturing processes, President and CEO Bonnie Del Conte sees a rising demand for services. "It's probably the most optimistic out- look, in the last 18 months, that I've seen," she said. "I can tell by the number of clients we reach. I think a lot of manufacturers have been planning for the growth in demand that we're seeing now, especially in the aero sector." Growing up in Bristol, Johnson of the Manufacturing Alliance recalls the shock oc- casioned when GM's New Departure bearing plant — which employed as many as 11,000 — closed in 1994 aer more than a century of operation. In nearby New Britain, Fafnir Bear- ing had closed a 600,000-square-foot factory that employed 7,000 just a few years earlier. Since that era, Johnson said, Connecti- cut has turned sharply toward high-tech, high-value-added manufacturing, and pro- ductivity has shot up. at means the overall level of employment is only one measure of how the industry is faring. "Companies today are making one-third more products with one-third fewer people because of gains in efficiency and productiv- ity," he said. "Connecticut is typically ranked among the top three or four states, and all those gains have helped us remain competitive." Del Conte agreed, saying productivity gains oen are what enable a company to grow. Better employee productivity allows a manufacturer to please customers with bet- ter prices and service, and that leads to more orders and new job creation. "ose big OEMs [like Pratt & Whitney and Electric Boat] are here because they know they have this very effective sup- ply base in Connecticut," she said. "Good quality, well-educated employees and high productivity are key." Landing a 10-year, $234 million contract to supply parts and assemblies for Pratt & Whitney's new line of jet engines has boosted prospects for the Whitcra Group, an aerospace manufacturer based in East- ford. CEO Colin Cooper said Whitcra, with 450 employees spread among facilities in Eastford, Farmington and Plainville, is com- mitted to "continuous improvement" as a means of meeting the strict quality demands of its customers. e latest state figures show manufac- turing contributes almost 11% to the state GDP, the single largest category. According to CBIA, each new job in the field creates 1.5 to four jobs in other sectors. John Zoldy is president and partner at the Homer D. Bronson Co. in Winsted, a maker of hinges for use in vehicles, appli- ances and industrial applications. In that capacity and as president of the 140-member Smaller Manufacturers Association, he ap- plauded the state's move to expand appren- ticeship assistance to smaller employers. In 2014, the legislature made S corpo- rations and limited liability corporations 64 Doing Business in Connecticut | 2015 INDUSTRY SPOTLIGHT › Manufacturing PHOTO/CONTRIBUTED > Continued from page 63 Pete Gioia ' e potential future of manufacturing in Connecticut is as bright as I've seen in 25 years. ' — Pete Gioia, economist, Connecticut Business and Industry Association

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