The Competitive Edge: How States Win
How can Connecticut grow its economy, attract a new generation of workers, maintain its high quality of living, and reduce the high cost of doing business?
The answers lie in data-driven policymaking—the way we collect, communicate, and compare data to stay informed and compete for national and statewide resources.
“To understand where we need to go as a state, we first need to understand where we are,” says Dustin Nord, director of the CBIA Foundation for Economic Growth & Opportunity.
“And we now have a way to do that—we call it By The Numbers.”
The first annual edition of By the Numbers: Tracking Connecticut’s Economic Competitiveness, which details key economic data points and trends, was introduced at CBIA’s Sept. 3 The Connecticut Economy conference in Hartford.
The reference guide features 50 data sets measuring Connecticut’s economic competitiveness across a range of metrics.
Data-Driven Policymaking
“This is a must-have reference guide,” CBIA president and CEO Chris DiPentima told conference attendees
“It features a range of critical metrics that demonstrate how Connecticut compares to other states.”
Nord joined Intersect Public Solutions’ Duby McDowell, Maryland Chamber of Commerce president Mary Kane, and Economic Leadership’s Katherine Saunders to review the index and share best practices for growing a sustainable, competitive economy and driving generational change.
“To understand where we need to go as a state, we first need to understand where we are,” Nord explained.
“This guide will serve as an important reference to learning more about Connecticut and its economy as we navigate an uncertain state, national, and global economy.”
Maryland’s Story
Three years ago, Maryland was ranked 46th in the U.S. for business friendliness, with broad concerns about the state’s direction after lawmakers had approved two unfunded education mandates totaling $30 billion.
And residents were leaving for states like Virginia, Pennsylvania and Delaware—all states Maryland competes with, and all located within an hour’s drive.
“We had a new governor who was very competitive and data-driven, and we needed to show our General Assembly that we were not ranking very well,” Kane said.
“We were just bumping along, increasing deficits and passing legislation we couldn’t pay for.”
Maryland Chamber’s Mary Kane
So the state chamber worked to collect nonpartisan data and published Maryland’s Economic Competitiveness Guide. Then they hand-delivered it to lawmakers and the governor’s staff.
“The reaction was disbelief,” Kane said. They didn’t want to hear it. It was a shockwave.”
“We showed that policy decisions were keeping us towards the bottom,” she added.
“We were just bumping along, increasing deficits and passing legislation we couldn’t pay for. Now we use this as our guide.”
Incremental Gains
Kane pointed to a number of incremental signs of success since then:
- Lawmakers from both sides of the aisle wanted to get out from under deficits and pass a balanced budget, leading to legislative changes
- Last year, the state’s Senate president pulled the competitiveness guide out of his pocket at a meeting–a sign it was in fact being used
- The governor appointed a statewide Economic Council that now meets monthly to monitor data
- A Democratic committee chair said he realized he needed to be more pro-business.
“For me, that was the epitome of success. It’s okay to be a pro-business Democrat,” Kane added.
“We’re just very up front about the policies being passed and we ask how they make things better for businesses.“
Communicating Effectively
Saunders noted that for community and business leaders to effectively communicate, they need to use language informed by the data in economic guides such as By the Numbers.
“It’s really important when you’re in a leadership or advocacy role and you’re talking to decision-makers, that you help move the conversation along beyond elected officials,” she said.
“You want to talk to peers, to nonprofits, to unions—people who can advance the state’s competitiveness. It’s an everyday thing, not just a check-the-box kind of thing.”
Saunders added that she already sees an effort to engage in ongoing dialogue about economic issues in Connecticut, and that doesn’t exist in some states.
“If quality of life is something that sells here, make it fantastic and fight for it,” she said.
“Make sure your policies are protected and that you’re doing new and innovative things. You’re being compared to other states, so you need to protect your strengths fiercely.”
Connecticut’s Focus
Connecticut’s guide, inspired by similar initiatives, aims to track metrics such as housing and energy costs, workforce migration, and business friendliness, said Nord.
“Connecticut’s business friendliness has improved to 35th in the country,” Nord said. “But housing costs and energy prices remain major challenges.”
For example, Connecticut ranks second highest in the U.S. for energy costs.
“That continues to be a major challenge to attracting business,” he said. “There are a lot of reasons why we have high energy prices, but there are a lot of reasons why we shouldn’t have.”
Growing our workforce is also a major focus, he said. Connecticut state ranked 40th in population growth in 2024, with the gains coming from international migration.
International students attending Connecticut colleges and universities can help address the labor shortage, he said, although keeping them here may require working on licensing and other issues.
‘Level of Confidence’
Saunders agreed that even though immigration may be seen as a federal-level issue, red states like Nebraska are working with employers on creative immigration policies and benefits to do exactly the same thing.
“We’re focused on improving our fiscal position and establishing a level of confidence so we can plan ahead for the future,” Nord said.
“It’s the the biggest challenge for our economy nationally, as well.”
Produced with support from the Connecticut Business Roundtable, By the Numbers will monitor key economic data points and shine a light on areas of strength and those in need of attention.
“As we continue to publish this, we’ll be able to look at it over time, look at the trends that come out of it, and take an objective view,” Nord said.
In addition to an annual publication, a regularly updated online dashboard version is also planned, Nord noted.
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CBIA IS FIGHTING TO MAKE CONNECTICUT A TOP STATE FOR BUSINESS, JOBS, AND ECONOMIC GROWTH. A BETTER BUSINESS CLIMATE MEANS A BRIGHTER FUTURE FOR EVERYONE.