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For Immediate Release
DESPITE TALK OF THE R WORD, EASTERN CONNECTICUT BUSINESSES ARE GROWING
Eastern Connecticut has one of the state's fastest-growing economies. Key to the region's growth and vitality are its strong hospitality, tourism, manufacturing and pharmaceutical industries. And despite economic concerns and talk of a recession, business has been good for companies in eastern Connecticut, a trend they expect to continue for the next 12 months. But eastern Connecticut businesses also share the same challenges as their counterparts throughout the state, including the high cost of doing business, rising energy and health care costs, and a shortage of skilled workers. Nevertheless, regional business leaders have a generally positive view of the area as a desirable place to live, work and operate a business. These are some of the findings of the 2008 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 Liberty Bank. "Eastern Connecticut has a fast-growing economy and even greater potential with its tourism, manufacturing and biopharmaceutical industries and excellent hub' location between Boston and New York, said John R. Rathgeber, CBIA president and CEO. Yet the same challenges facing other regions of the state are present here including high business costs and a shortage of skilled workers. State policymakers can help eastern Connecticut and all of the state by fostering a more positive business climate and addressing cost, education and transportation challenges. Economic challenges Fifty-nine percent of business leaders identified the cost of doing business, including taxes, health care costs and energy expenses, as their greatest challenge to operating a business in the region. That's up from 26 percent in last year's survey, possibly due to concerns over an economic slowdown. Other challenges cited include a shortage of skilled workers ( 18 percent), profitability concerns and a diminishing customer base (9 percent), a weak economy (8 percent), and transportation infrastructure issues (5 percent). Business has been generally good for many companies in the region. Almost a third (32 percent) said the hospitality and tourism industry is vital to the area's future growth, and more than half (52 percent) said it is important to their own business. Other key industries identified as important to ensuring economic success in the region include pharmaceutical research and development (27 percent), manufacturing (19 percent), and defense/military (12 percent). "We are very fortunate to enjoy a diverse economy in eastern Connecticut, said Tony A. Sheridan, president of the Chamber of Commerce of Eastern Connecticut. Clearly hospitality and tourism is an important component of our regional economy. In addition, as a result of Pfizer's growth plans, which have led to relocations and new hires in the region, we have not suffered the downward spiral in the housing market to the same degree as the rest of the country. More than half (51 percent) of survey respondents increased their workforce in the past year, and just slightly fewer (44 percent) expect to do the same in the coming year. In addition, more than a quarter (27 percent) of the region's businesses expanded their operations within the state over the past year, and roughly the same percentage (28 percent) plan to do so in the next 12 months. And while respondents had a generally positive view of the region's business climate, they expressed concern about its overall economy. Thirty-nine percent expect the region's economy to worsen over the next 12 months, compared with only 16 percent last year. Less than a quarter (21 percent) expect the economy to improve, compared with 38 percent last year. Business executives responding to the survey believe there are a number of steps that can be taken to improve the region's economic outlook, including encouraging gradual and responsible economic growth (34 percent), improving the transportation infrastructure (27 percent), encouraging large-scale investments (12 percent), developing more affordable housing (12 percent), and maintaining/growing the tourism industry (7 percent). Energy and transportation infrastructure Nearly all (95 percent) of the survey's respondents said improving eastern Connecticut 's transportation infrastructure is important to maintaining a healthy business climate. Regional businesses would like to see improvements in area roads (73 percent), railways (16 percent), airports (7 percent) and seaports (4 percent). The cost and availability of energy are significant concerns for businesses in the region. While businesses are doing all they can to conserve and reduce their energy costs, more than three-quarters (79 percent) said it is important for the state to upgrade the current electricity transmission system. "It's clear from this report that businesses in eastern Connecticut are concerned about economic growth, workforce development, affordable housing and transportation, among other issues, said Chandler J. Howard, Liberty Bank president and CEO. As we move to respond to these challenges, it's key for us to keep in mind how interconnected they are and address them holistically instead of taking a piecemeal approach. CBIA received 403 completed surveys from companies within eastern Connecticut. The survey has a margin of error of plus or minus 4.9 percent. ### CBIA is the state's largest business organization, with 10,000 members. Editor's Note: For a complete copy of the 2008 Survey of Eastern Connecticut Businesses, visit www.cbia.com/newsroom/surveys.
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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