Issue link: https://nebusinessmedia.uberflip.com/i/853654
www.HartfordBusiness.com • January 30, 2017 • Hartford Business Journal 17 Reporter's Notebook CT manufacturing wages declining despite more jobs Greg Seay Health Care, Bioscience, Energy and Government C onnecticut's manufacturing indus- try posted 1,000 new jobs in 2016, one of the first positive growth years the sector has experienced since the 1980s. That was a bit of good news in a disap- pointing year for the state's economy, which saw overall employment decline by 2,000 jobs in 2016. But while manufacturers are hiring they appear to be paying new workers less. Connecticut manufacturing workers saw their average hourly wage in 2016 fall 8.2 percent to $24.90 from $27.13 in Dec. 2015. Conversely, the rest of the state's private sec- tor received a modest 2.65 percent pay raise, recording average hourly earnings of $30.59 in December, up from $29.80 a year earlier, according to the state Department of Labor's recent labor market report. The wage dichotomy between production hands and the rest of the private sector has some economists scratching their heads, especially as manufacturers -- including higher-paying companies like Electric Boat and Pratt & Whitney -- are adding to their workforce. The most logical explanation, economists say, is that shrinking wages are a result of shifting workforce demographics. "We know that average ages in the manu- facturing workforce are considerably higher than in the overall state workforce," said MANUFACTURING All Direct's ex-N. Britain home price cut to $1.8M DEAL WATCH The 64,000-square-foot New Britain manufacturing warehouse for sale that once housed All Mail Direct has undergone a 30 percent cut in its $2.55 million asking, brokers say. The new price is $1.8 million for the building that opened in 1966 on 3.4 acres at 55 John Downey Drive. Peterson LLC is landlord. Among its footprint is 3,000 square feet of office space with central air condition- ing, according to listing broker Reno Properties Group. The building also features multiple high- loading docks and drive-ins with overhead doors, according to Reno's online property flyer. A year ago, All Mail Direct relocated its fulfillment and direct-marketing operations to leased quarters at 128 Old Brickyard Lane in Berlin. $825K Newington listing An 11,850-square-foot building on the Newington leg of the Berlin Turnpike is on the market with an $825,000 asking price, brokers say. The building at 2172 Berlin Turnpike/ Route 5-15 is on 1.82 acres and can be used for industrial or retail, listing broker Sentry Commercial said. Built in 1984, the tri-level structure has 1,250 square feet of office space on its mez- zanine. S. Windsor sale/lease option A 4,320-square-foot flex industrial build- ing in South Windsor is on the market for sale or lease. The facility on 0.82 acres at 12 Sea Pave Road has a $295,000 sale price, according to listing broker Sentry Commercial. It's also available for lease at $5.50 a square foot. Built in 1989, the property has a secure, fenced yard, two 12-foot by 14-foot drive-in doors and is suitable for a wide variety of uses. It also contains 300 square feet of office space. S. Windsor sublease Par Electrical Contractors signed a five- year sublease on a 31,404-square-foot build- ing in South Windsor to house its Connecti- cut division, brokers say. The free-standing building is at 55 Cor- neau Way. New Haven broker Pearce Commercial represented landlord Joseph T. Ryerson and Sons Inc. in the lease talks. JLL was Par's broker. $505K Bloomfield sale A 41,180-square-foot Bloomfield indus- trial building sold recently for $505,000, brokers say. BD55 LLC bought the building on 3.74 acres at 55 Peters Road from J.E.S. Realty LLC. Sentry Commercial was sole broker. Zangari Cohn's Hartford office New Haven law firm Zangari Cohn Cuthb- ertson Duhl & Grello PC has opened a satel- lite downtown Hartford law office in 2,500 square feet in the former Hartford Trust building at 750 Main St. Reese Commercial Real Estate Services represented Zangari Cohn in its search. Landlord Boxer Properties represented 750 Main LP. Zangari Cohn also has offices in Warwick, R.I. Hartford apt. sale-price cut The asking price has been trimmed 2.6 percent on a 15-unit apartment building in Hartford's Asylum Hill neighborhood for sale since last summer to $599,000, brokers say. Broker Reno Properties Group LLC listed a $615,000 pricetag when the three-story brick building at 1 Huntington St. first appeared on the market. Reno said at that time the property's latest improvements included a new rubber roof, new gas boiler and heating-system controls, fire escapes, windows, and electrical system. 12 Sea Pave Road, South Windsor. 55 Corneau Way, South Windsor. Andy Condon, director of the research office within the state Department of Labor. "My interpretation of these numbers is that we are seeing the beginning of a demographic shift of long-term experienced, high-paid workers retiring and being replaced by newer, lower-paid workers." UConn economist Fred Carstensen said he agrees with Condon's analysis. The modest expansion in manufacturing employment is bringing in younger workers, he said, and "in many unionized areas the newer contracts have a lower scale for entering workers than in the past." This trend could last for awhile as Con- necticut's aging workforce heads toward re- tirement over the next decade or so, Condon said. What's less clear is how the shrinking wages will impact the broader economy, including income tax receipts, which are a major driver of the state budget. As higher-paid workers leave the work- force they will have less spending power, but new hires will likely see a boost to their household income. "It is a trend worth watching closely," Carstensen said. "The good news is that jobs are being added in the sector; the bad news is that it is not enough to offset the broad weak- ness in job creation in Connecticut." Source: CT Department of Labor CT Private Industry Employee Hours & Wages Dec. 2016 Dec. 2015 Dec. 2014 Average Weekly Hours 33.7 33.6 33.8 Average Hourly Earnings $30.59 $29.80 $28.47 CT Manufacturing Employee Hours & Wages Dec. 2016 Dec. 2015 Dec. 2014 Average Weekly Hours 43.8 42.5 40.9 Average Hourly Earnings $24.90 $27.13 $24.00 CT Private Industry Employee Hours & Wages BY THE NUMBERS Hartford's vacancy rate grew slightly to 20 percent in 2016, largely a result of United TEchnologies relocating its corporate headquarters to Farmington. 20% $80M The amount of money Mohegan Sun is investing to build a new convention center The average asking rental rates in the city remained flat in 2016 at $23 per square foot gross. $23 The largest 2016 leases in Hartford included Prudential Financial renewing 254,000 square feet at 280 Trumbull St. and Lincoln Financial renewing 185,000 square feet at the Metro Center. 254,000 HBJ HBJ The percentage of the 311 Connecticut employers recent surveyed by the Malta Justice Initiative who they support the idea of giving formerly incarcerated individuals a second chance. 97%