Hartford Business Journal

20 Hartford Business Journal • September 7, 2015 www.HartfordBusiness.com OPINION & COMMENTARY EDITORIAL Competing baseball franchises underscore regional divide I f you need a good example of why regionalism is a tough sell in Connecticut, just look at the fight over minor league baseball between Hartford and New Britain. Last week, just as Hartford was celebrating the implantation of the first steel beam for its new $56 million baseball stadium, the city of New Britain announced that it had a tentative agreement to bring a new minor league baseball team to the Hardware City. The timing of the announcements, just hours apart, likely wasn't a total coincidence. New Britain Mayor Erin Stewart hasn't been shy about voicing her disdain over the backroom deal that led Rock Cats ownership to move the team to Hartford. Stewart said she felt like an "MVP" when she announced that the Atlantic League has tentatively agreed to add or move a team to New Britain. No doubt, she enjoyed flexing her political muscles on a day when Hartford Mayor Pedro Segarra was trying to stir up his own good press by inviting news media, particularly TV cameras, to witness the raising of Dunkin' Donuts stadium's first steel beam. It's ironic that minor league baseball, which is marketed as a family-friendly event, has created such political tension between neighboring cities. Beyond the politics, however, there is a much larger economic question: Can Greater Hartford support two minor league franchises? If Con- necticut's economic development policies were grounded in a smart, regional approach (i.e., tak- ing into account what is best for the state or region rather than individual municipalities) that ques- tion would have been answered before Central Connecticut's two largest cities decided to bring in separate minor league sports franchises. The stakes are a lot higher for the city of Hart- ford whose taxpayers have staked $56 million to build the new baseball stadium. If the ballpark doesn't hit its attendance and corporate sponsor- ship targets, the city will have trouble paying its annual $4 million debt over 25 years. That could further strain Hartford's already tenuous budget situation. Although they will be playing in different leagues, a competing New Britain fran- chise will negatively impact Hartford Yard Goats' financial projections. By how much remains to be seen. Adding to the concerns: Developers of Hartford's new ballpark revealed last week that they are already $4 million over budget and trying to shave costs. The good news is that there is evidence Central Connecticut will support pro sports teams. The New Britain Rock Cats had a loyal fan following for 32 years. A recent report by data research firm SmartAsset said Hartford, based on its population and mean household income, could even support a major league franchise. Minor league sports serve as great family-friendly entertainment, particularly dur- ing the summer. We hope both minor league franchises are able to succeed and bring economic vibrancy to their respective cities. No doubt, the Hartford Yard Goats will add excite- ment to downtown Hartford. We just hope there will be enough interest to support two teams separated by 12 short miles. n OTHER VOICES A manufacturing challenge: thinking differently to compete globally By Elliot Ginsberg T o survive in today's economic climate, it has become evident that small to mid- sized manufacturing companies need to continually think and act creatively about the factors that will allow them to achieve global competitiveness. These companies are being pushed to innovate, to explore new production meth- ods, and rethink how they conduct busi- ness. The pressure to change comes from an increasingly com- petitive global mar- ket that is demanding compressed delivery times and higher-quality products at lower costs. The usual strategy of budget tightening, cutting expenses, and operating month-to- month or quarter-to-quarter to sustain current profit levels is at the tipping point. Status quo is no longer an option. One challenge is clear — the testing and implementing of advanced technologies and process improvements, which are critical to significantly drive business, are inher- ently restricted under a short-term business model. These changes require investments of time and resources that cannot be recouped within a few months. In an ideal world, maintaining in-house research and development facilities would enable companies to take production offline to test and prove innovative ways to measure, cut and shape. Unfortunately, for the majority of small and mid-sized manufacturers, this is not feasible. When customers are pressing for rapid response times, all hands and machines need to be working. Most companies are not positioned to take assets offline — accentuat- ing downtime — or to assume the risks that additional debt represents. It has become necessary for a tactical shift in thinking to focus on operations and produc- tivity for a longer term, not solely the immedi- ate months ahead. It is time to invest in new technology assets and process optimization to maximize capacity and business success. A shift should be pursued because it can result in significantly increased productivity. This axiom is true: We have seen the results of focused process optimization at CCAT's Advanced Manufacturing Center, which dra- matically improved cycle times and yielded substantial boosts in milling and turning capacity. These are game-changing results that make a difference in the short- and long-term. While policies and programs that focus on jobs and workforce issues will continue to be important, these alone are not sufficient. Assertive efforts to support technology devel- opment are needed to accelerate change. In a global market fueled by product innovations, we have and must continue to use public policies to stimulate technol- ogy advancement, enhance production, and ensure expansion of the smaller manufactur- ing sector. Currently this aid is being recognized and offered through Connecticut's Manufacturing Innovation Fund (MIF) and specific Depart- ment of Economic and Community Develop- ment and Department of Labor budgeted line items. These fiscal policies recognize the sig- nificant value of investing in technology infu- sion and optimization of manufacturing pro- duction along with focusing on current and future manufacturing employment needs. With the recently unveiled Apprenticeship, Incumbent Worker, Manufacturing Voucher, and Young Manufacturers Academy programs under the MIF, smaller companies will benefit from a comprehensive support program that integrates technology and talent. In fact, these programs are an investment in a lean manufacturing process improve- ment. When the capacity of the machines themselves is boosted, businesses have a more competitive ability to sustain profit- ability without necessarily incurring bur- densome capital debt or operating expenses. Further, as market demand increases, com- panies will be primed with the ability and resources to both add new equipment and increase their workforces. Growing the U.S. manufacturing base is a core pillar of the country's and state's eco- nomic recovery plan, and that model is solid. According to the National Institute of Stan- dards and Technology, manufacturing will always serve as the foundation of the U.S. economy because it challenges us to become more innovative and with innovation comes expansion and jobs. We know that manufacturing is specifi- cally critical to Connecticut's and the region's economic recovery and stability. In 2014, manufacturing accounted for more than 11 percent of this state's total output, second only to the financial services industry. The majority of the manufacturing sector is small to mid-sized companies that employ most of the state's 159,600 manufacturing workers, making up close to 10 percent of the total workforce. Beyond that are the supplier com- panies and community economies impacted by the industry. The sector's value to Con- necticut cannot be understated. Although recent news reports indicate that economic recovery in our region is lev- eling to the rest of the country, continued support for technology infusion and opti- mization becomes an important matter to this sector's success, along with the ability to train employees in the advanced skills required by today's manufacturing jobs. With the continuing enhancement of policy that aims to bring small and mid-sized manufacturers into a productive alliance with research and development partners, the issues of capacity building, sustainment and growth will be addressed. It is a realistic strategy for implementing vital long-term investments while managing quarter-to-quarter financial goals. And it sol- idly positions manufacturers in Connecticut, the region and the nation for the global com- petitive future. n Elliot Ginsberg is the president and CEO of the Connecticut Center for Advanced Tech- nology in East Hartford. HARTFORDBUSINESS.COM POLL Can Greater Hartford financially support two minor league baseball teams? ● Yes ● No To vote, go online to HartfordBusiness.com. Last week's poll results: What is your preferred financial institution? 60.0% Bank 34.5% Credit union 5.5% Other ▶ ▶ It's ironic that minor league baseball, which is marketed as a family-friendly event, has created such political tension between neighboring cities. Elliot Ginsberg

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