Hartford Business Journal

6 Hartford Business Journal • January 9, 2017 www.HartfordBusiness.com TOP STORY Malloy touts successes as he looks to make state budget 'predictable' Gov. Dannel P. Malloy during his State of the State address last week called for collaboration in righting the state's fiscal ship "this year" in a predictable way that enhances stability and makes residents want to invest and stay in Connecticut. Citing progress made in supporting the aerospace and other industry work- forces and negotiating with state labor unions, Malloy indicated he plans to do more of the same in 2017. During his address, Malloy touted his administra- tion's successes in the deal with Sikorsky Aircraft to keep the company in the state, protecting 8,000 workers and ancillary industry employees. The governor focused broadly in his speech on three points: making gov- ernment smaller, more efficient and cost effective; working to make pen- sions and benefits for state workers more affordable; and isolating a funding formula for education that is fair. Town aid also needs to be more efficiently and fairly managed, he said. He said labor unions should expect to make concessions regarding state pensions. Malloy also called on legislators and citizens to partner with the state on improvements to the state budget and to help struggling towns, but require them to be accountable to avoid bankruptcy — a veiled reference to Hartford. Citing last year's success in cutting the budget and reducing the state workforce, Malloy acknowledged the pain of adjustments like that but said similar paths will be necessary in 2017. MANUFACTURING Stanley Black & Decker to acquire iconic Craftsman brand for nearly $1B New Britain's Stanley Black & Decker has agreed to buy the Craftsman brand from Sears Holdings Corp. in a deal valued at $900 million that will also expand the company's U.S. footprint and create jobs. With an eye toward tapping into underserved markets, Stanley Black & Decker President and CEO James M. Loree said the deal for this "legendary" brand presents "a significant opportunity to grow the market by increasing the availability of Craftsman products to consumers in previously underpenetrated channels. We intend to invest in the brand and rapidly increase sales through these new channels, including retail, industrial, mobile and online." In preparation for continued growth of the Craftsman brand, Loree said the com- pany will expand its manufacturing footprint in the U.S. and add jobs. The firm has upped its manufacturing headcount by 40 percent in the past three years, he said. The deal provides Stanley Black & Decker with the rights to develop, manu- facture and sell Craftsman-branded products in non-Sears Holdings retail, in- dustrial and online sales outlets across the U.S. and in other countries. S. Windsor 3D printing maker nabs spacecraft order South Windsor's Oxford Performance Materials Inc., a 3D printing manufac- turer, will make 3D products for the Boeing Co.'s Starliner spacecraft, the com- panies have announced. The CST-100 Starliner can transport up to seven passengers or a mix of cargo and crew to destinations like the International Space Station. The Starliner is being developed in collaboration with NASA's commercial crew program. Lawrence Varholak, president of OPM Aerospace & Industrial, said his firm will deliver the more light-weight products while reducing cost and lead times, as requested by Boeing. Otis elevators to be featured in London office A new 59-story office tower in London will use 57 Otis elevators and 10 escalators, representatives for developer Lipton Rogers announced Wednesday. AXA Investment Managers – Real Assets will oversee the building of Twen- tytwo, a development on Bishopsgate scheduled for completion in 2019 using the Otis equipment, the company said. Otis is a division of Farmington-based United Technologies Corp. Designed by PLP Architecture, the building will use 67 state-of-the-art Otis elevators and escalators, including the fastest SkyRise double-deck elevators in Europe, traveling up to 8 metres per second. HEALTH CARE Belgium health software provider to open in CT after state backing Belgium-based LindaCare, a software company specializing in remote pa- tient monitoring for chronic heart disease patients, announced last week that it will open a new customer support facility in Connecticut after receiving a $500,000 investment from Connecticut Innovations in October. The investment was awarded during CI's VentureClash investment challenge. LindaCare is considering a few locations in Hartford and New Haven for its facility, which it expects to open this quarter, Shahram Sharif, CEO and founder of LindaCare, said in an email. LindaCare's product is a web-based software that remotely monitors patients with cardiac implanted electronic devices and suffering from chronic heart fail- ure and cardiac arrhythmia. These conditions affect about 10 million patients worldwide. L+M Healthcare CEO to retire this year Bruce D. Cummings, president and CEO of L+M Healthcare of New London for the past 11 years, last week announced his plans to retire this year. L+M Healthcare, a member of Yale New Haven Health, includes Lawrence + Memorial Hospital in New London, Westerly Hospital in Westerly, R.I., L+M Medical Group in multiple locations, and the Visiting Nurse Association of South- eastern Connecticut, based in Waterford. A national search for a successor is under way. ECONOMY & LABOR Study: CT, NY, NJ experiencing outbound migration Connecticut is one of several states experiencing an exodus of residents over the past year, according to the latest United Van Lines' 40th Annual National Movers Study. The report tracks customers' state-to-state migration patterns over the past year. With retirees moving to Mountain and Pacific West states as well as those in the South, South Dakota for the first time snagged the No. 1 spot as the top move-in destination. Relocating for a new job or company transfer topped the list of reasons for inbound moves, followed by retirement. However, the Northeast continues to be subject to residents moving away, with 60 percent of Connecticut residents "outbound," preceded by New York and New Jersey, both with 63 percent outbound, the study found. GOVERNMENT, POLITICS & LAW House Democrats block GOP bid to require votes on labor deals In the first partisan fight of 2017, Democrats in the House of Representatives blocked a Republican proposal last week that would have ended a longstanding practice of approving state employee contracts without a vote. The House voted 76-72, along party lines, to reject a rule change that would have required the chamber to cast ballots on all contracts, amendments and other agreements subject to collective bargaining. House Majority Leader Matt Ritter (D-Hartford) insisted Democrats remain open to discussing such a rule change, but House Minority Leader Themis Kla- rides (R-Derby) said there was no reason not to endorse the rule change now. INSURANCE Mega-merger sweeps up 3 CT insurance brokerages In a first-ever merger of its size, three Connecticut firms have joined with 21 others across the country to form Alera Group, an independent national insur- ance brokerage and wealth management firm. Based in Deerfield, Ill., the new organization has $158 million in annual rev- enues and more than 750 employees in 40 offices across 15 states. Terms of the deal were not disclosed. In Connecticut, the three firms that are members of the Alera Group include Beacon Retiree Benefits Group LLC of Plantsville, CBP of Stamford and the C. M. Smith Agency Inc. of Hartford. Combined with its peers from across the country, the 24 firms represent the 14th largest independent insurance agency and the seventh largest independent employee benefits firm in the country. BY THE NUMBERS 2,616 The number of single-family houses sold statewide in November, a 19.3 percent increase from the year-ago period, according to the Warren Group. $900M The amount Stanley Black and Decker will pay to acquire the Craftsman brand from Sears Holdings Corp. 67 The number of Otis elevators and escalators that will be installed in a new 59-story office tower in London, called Twentytwo. $20,000 The penalty John Dempsey Hospital in Farmington has agreed to pay to settle an Americans with Disabilities Act complaint from a deaf patient, who was allegedly denied a signing interpreter. TOP 5 MOST READ on HartfordBusiness.com ■ DCP: Deteriorating foundations must show evidence of mineral ■ Kane, Coleman would resign from Senate under tentative deal ■ Analyst: 2017 looks good for Pratt & Whitney ■ PURA: Firefighter cancer program would violate federal law ■ Study: CT, NY, NJ experiencing outbound migration 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, CT Health Care Weekly www.HartfordBusiness.com/subscribe WEEK IN REVIEW Gov. Malloy last week delivered his sixth State of the State address. P H O T O | H B J F I L E

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