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For Immediate Release
EASTERN CONNECTICUT BUSINESSES OPTIMISTIC ABOUT THE FUTURE But say hiring qualified workers is difficult or impossible now and expected to get worse
Eastern Connecticut is one of the most rapidly changing regions in the state. The region benefits from a continually growing tourism market and offers many economic opportunities for businesses and residents alike. Most area business executives have an optimistic outlook for the region and their companies in 2007, and they rank the region’s quality of life as one of the area’s greatest attributes. But eastern Connecticut businesses also face many of the same challenges as those in other regions of the state, including the high cost of doing business, the inability to find enough qualified workers, rising health care and energy costs, and an outdated transportation infrastructure. These are some of the findings of the 2006 Survey of Eastern Connecticut Businesses conducted by the Connecticut Business & Industry Association (CBIA) in partnership with the Chamber of Commerce of Eastern Connecticut, the Greater Mystic Chamber of Commerce and the Northeast Utilities System. Economic challenges More than a quarter (26 percent) of the business respondents identified the cost of doing business as the greatest challenge related to operating a business in eastern Connecticut. Other significant challenges cited include the availability of qualified workers (16 percent), high health care benefit costs (15 percent), taxes (10 percent) and transportation infrastructure (7 percent). "Business executives in eastern Connecticut echo the concerns of their counterparts in other regions of the state, identifying the same challenges to economic growth,” said John R. Rathgeber, CBIA president and CEO. “State policy-makers should quickly focus on helping this region and all of Connecticut mitigate the challenges and maximize resources that will benefit the economic health of our state.” Thirty-two percent of business executives said policy-makers should focus their efforts on encouraging gradual and responsible economic growth, improving the transportation infrastructure (27 percent), and addressing the need for affordable housing (10 percent). "The survey indicates that our region's business leaders, particularly small-business leaders, are concerned about energy, health care and transportation costs,” said Thomas A. Sheridan, Eastern Connecticut Chamber of Commerce president. “Progress was made in the state legislature in ‘06 on addressing some of these complicated concerns. However, much remains to be done if we are to continue to grow the region’s economy.” Labor/education Eastern Connecticut businesses are very concerned about their ability to attract and retain quality employees. The issue is expected to become more urgent as the baby boomers begin to retire. Sixty percent of businesses said it is already difficult or almost impossible to hire qualified workers in the region. The reasons for these difficulties include:
"There is a critical need to address education and job training so our companies can remain competitive, continue to grow and create jobs in Connecticut,” said Jason J. Giulietti, CBIA research economist. Transportation Almost all (91 percent) of respondents said improving the region’s transportation infrastructure is important for maintaining a healthy business environment. Eastern Connecticut has strategic multimodal transportation resources including rail, port, air and highway infrastructures already in place, but just over half (53 percent) of respondents said they are important to their business, and only 16 percent said they were using the regions’ transportation resources to their maximum benefit. '“Businesses in Eastern Connecticut are keenly aware of the importance of a first-rate transportation infrastructure, yet say they are not fully utilizing the resources now available to them,” said Peter Gioia, CBIA vice president and economist. “The vitality of the region's economy may depend on how well businesses take advantage of the area’s multimodal transportation system and how successful the state is in improving it.” Energy Rising energy costs are a continuing problem for businesses, and the majority of businesses in the region (87 percent) recognize the importance of energy conservation programs. More than 60 percent of respondents said they have taken some steps toward addressing rising energy costs, including:
More than half (51 percent) of eastern Connecticut executives responding are dissatisfied with the general state of energy and electric power in Connecticut and are concerned about energy costs, reliability and availability affecting their business operations. The majority (81 percent) said it’s important for the state to upgrade the electric transmission system. Seventy-nine percent of respondents said it is important to site new electric generating plants in the state to improve the state’s overall power supply. "The survey supports calls for initiatives that will maintain the economic strengths of the region while working together to manage the obstacles facing future growth,” said Tricia Cunningham, Mystic Chamber of Commerce president. “These include advocating for legislative and financial support of the Groton submarine base; seeking financial assistance from the state to increase marketing strategies that will promote the region as a tourist destination; alleviating traffic congestion by encouraging the expansion of I-95 and use of multiple forms of transportation; and keeping close track of the cost of doing business in the state, which includes energy and health insurance expenses. Each of these initiatives will enhance and maintain southeastern Connecticut's strongest attribute, a commanding quality of life, which we all enjoy.” Methodology The survey was conducted by mail and e-mail in November 2006. CBIA received 634 completed responses. The survey has a margin of error of plus or minus 3.9 percent. CBIA is the state’s largest business organization, with 10,000 members. ###
Editor’s note: Survey results will be discussed in detail at the Eastern Connecticut Economic & Energy Conference, on Wednesday, Jan. 17, at the Mystic Marriott Hotel and Spa. To attend the event, please contact Nancy Andrews, CBIA media relations manager, at 860-244-1957. For more information contact Nancy Andrews, CBIA media relations manager, at 860-244-1957 or andrewsn@cbia.com. 350 Church
Street · Hartford, CT 06103-1126 · cbia.com/newsroom
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