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Connecticut Credit Conditions Improve in First Quarter 2012

May 22, 2012 By raymonda

Credit Availability Survey Shows Best Overall Results Since Fourth Quarter 2010

Connecticut’s credit conditions are showing signs of improvement according to the First Quarter 2012 CBIA/Farmington Bank Credit Availability Survey, with the credit availability index rising more than five index points to 28.5, the best number since fourth quarter of 2010 when the index was at 31.5.

“The national economic recovery is three years old as of mid-2012,” says John Patrick, president and CEO of Farmington Bank. “Going forward, credit availability will assist area businesses with the funding of day-to-day operations, payroll obligations, capital investments, maintaining sufficient levels of inventories, and future plans for expansion.”

Economists have long argued that credit availability is crucial to sustained economic growth and therefore is expected to play a pivotal role in the strength of expansion going forward for the balance of 2012 and into 2013.

“Economic recovery so far has lagged prior expansions,” says Peter Gioia, economist for CBIA. “We still have challenges regarding job growth despite the fact that state and regional unemployment rates are declining.

“The new data reflects a consensus view that credit conditions are ‘improving modestly’ for many area businesses but have yet to recover to a point that could be deemed ‘strongly positive in the aggregate.’”

Don Klepper-Smith, chief economist and director of research at DataCorePartners, adds that, “Credit availability is crucial to the strength of economic recovery. Ample credit means sufficient staffing for many area firms, adequate inventories on-hand for future sales, and needed capital for future expansion.

“Heading into the second half of 2012, we see we’re on a path of continued economic growth. Sustaining momentum will be important to economic recovery heading into 2013, when the primary risks to recovery may be a bit more pronounced. Overall, I’m encouraged.”

The first quarter 2012 survey showed that 41% of all businesses polled expect the outlook for their individual firms to improve over the next three months, while 34% anticipate better economic performance nationally over the next quarter.

Other findings:

  • Fourteen percent of respondents saw future credit conditions improving over the near-term, while 52% thought that future credit conditions would remain effectively unchanged. About one-third of respondents (34%) were of the opinion that near-term credit conditions are likely to deteriorate in coming months.
  • Fifteen percent of respondents rated current conditions as either “good” or “excellent,” while 47% rated current credit conditions as being “average.” About 38% stated that correct credit conditions were either “poor” or “fair.”
  • When asked about types of financing their firms needed most, about one-third (30%) of respondents stated they needed working capital for day-to-day operations, while another 11% said that the capital was needed for machinery and equipment purchases.
  • Forty-two percent of respondents stated they would use available credit by investing in new equipment, while another 19% sated they would use the credit to expand into new stores, branches, and operations. About 14% of respondents said they would use the funds to maintain their current workforce, and 25% reported that they would be adding workers if funds were available.
  • Seventy-six percent of respondents stated that credit availability had not been problematic for their businesses, while just 24% stated that credit availability was a problem.

“This is an improved credit outlook by Connecticut CEO’s, and we expect to see their ability in maintaining margins over the next year to result in more hiring,” says Marie O’Brien, President of the Connecticut Development Authority.

The First Quarter 2012 CBIA/ Farmington Bank Credit Availability Survey was emailed to 1,965 Connecticut businesses in April of 2012. A total of 12.5% executives responded, for a margin of error of 95% confidence at
+/-6.3%.

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CBIA is Connecticut’s largest business organization, with 10,000 member companies. For more information, please contact Ann Marie C. Raymond (860.244.1957; annmarie.raymond@cbia.com) or visit cbia.com/newsroom.

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April Jobs Report: State Sees Second Straight Month of Losses

May 17, 2012 By raymonda

With the Connecticut Department of Labor reporting a second consecutive month of job losses in April, CBIA economist Pete Gioia says the state’s economy is facing “a negative trend after what was a very strong and positive start in the beginning of the year.”

To talk with Pete Gioia about the jobs report, please contact Ann Marie C. Raymond (860.244.1957 or annmarie.raymond@cbia.com ).

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CBIA is Connecticut’s largest business organization, with 10,000 member companies. For more information, please contact Ann Marie Raymond (860.244.1957; annmarie.raymond@cbia.com) or visit cbia.com/newsroom.

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Greater Hartford-Area Residents Chosen for Eight-Week Energy-Sector Training at Northeast Utilities

May 14, 2012 By raymonda

Students Chosen from First Academic Skills Enhancement for Energy-Related Careers Training Program

Thirteen graduates from the first-ever Academic Skills Enhancement for Energy-Related Careers training program were selected to participate in an eight-week electric/gas utility worker training program at Northeast Utilities.

After completing six weeks of full-day classroom and online training courses designed to increase critical thinking, math, and applied technology skills, they will continue learning key skills needed to land jobs in the energy sector.

“Twenty-five percent of our physical workforce is eligible for retirement,” says Tom Burns, director of training at Northeast Utilities and co-chair of the Connecticut Energy Workforce Development Consortium. “We need workers to replace them and keep up with a growing demand for energy.”

The electric/gas utility worker training program, which began on April 16, covers basic electricity, gas, OSHA 10, confined space attendant/rescue worker training, rigging certification, environmental training, flagger training, and more.

Participants will attend two additional weeks of training at the New England Tractor Trailer Training School, where they will earn a commercial driver’s license (CDL B).

“The energy sector has a demand for qualified workers,” says Judy Resnick, executive director of the Connecticut Business and Industry Association’s (CBIA) Education Foundation. “With the training they have already received through the Academic Skills Enhancement for Energy-Related Careers training program, and now this training by Northeast Utilities, these participants are well on their way to a successful and rewarding career.”

“This group is coming into the utility worker training program having demonstrated basic skills and positive worker characteristics, including reliability, teamwork, and willingness to learn,” says Deb Presbie, project director for CBIA’s Education Foundation. “They should be better prepared to pass the Construction and Skilled Trades (CAST) test and other assessments required for employment in the utility industry.”

The training programs are made possible by a grant from the Workforce Solutions Collaborative of Metro Hartford. CBIA’s Education Foundation manages workforce development initiatives in energy/utilities on behalf of the collaborative. For more information, visit www.workforce-solutions.org.

Names and towns of program participants:

  • Derrick Bailey (Hartford)
  • Dave Barbagallo (Kensington)
  • Daniel Beaulieu (Newington)
  • Peter Collins (Manchester)
  • Stanley Gabel (Vernon)
  • Frederick Gentle (Hartford)
  • Ernestaly Gonzalez (Manchester)
  • Robert Henderson (Hartford)
  • Ashton Long (Terryville)
  • Scott Lush (Manchester)
  • Robert McIntyre (Plainville)
  • Miguel Ottey (Hartford)
  • Alex Perez (Colchester)

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CBIA’s Education Foundation is a nonprofit affiliate of CBIA, whose mission is to help develop a skilled, knowledgeable workforce in Connecticut. CBIA is Connecticut’s largest business organization, with 10,000 member companies. For more information, please contact Ann Marie C. Raymond (860.244.1957; annmarie.raymond@cbia.com) or visit cbia.com/newsroom.

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Connecticut’s Economy Continues on Slow and Steady Path

May 14, 2012 By raymonda

CBIA’s First Quarter 2012 Survey Shows Business Leaders Cautiously Optimistic

Finishing off the first quarter of 2012 with improving unemployment numbers, Connecticut’s business leaders are proceeding with caution, according to a new survey of businesses in the state.

The Connecticut Business & Industry Association’s First Quarter 2012 Economic Survey found that area executives believe the economy and their own firms have maintained gains seen in the fourth quarter of 2011.

“While we still have a long way to go in growing the economy, the last two surveys show optimism and growth expectations on par with slow but steady economic recovery,” says CBIA economist Peter Gioia.

  • The survey shows that 41% of respondents see their own firm improving over the next three months and 12% predicting worsening. In the last survey, 46% saw the potential for improvement, while 14% saw the potential for their firm to lose ground.
  • On production and sales, the most important determinant of future company performance, 46% of respondents anticipate future increases, compared to 16% who expect decreases in the second quarter of 2012—findings nearly identical to the results of the fourth quarter survey.
  • Jobs should see a slight improvement in the state, as 24% of business leaders who responded to the survey expect to add workers and only 10% expect to decrease workers over the next quarter. As recently as our third quarter 2011 survey only 16% of respondents said they would add staff, compared to 22% who said they would cut staff. Although these numbers are likely to support only slow growth, they represent statistically significant changes.
  • The survey saw executives expecting more growth nationally than locally. Nationally, 34% of respondents expect the U.S. economy to improve, while 24% expect further decline.
  • The survey found that business leaders’ confidence in the state remains fairly consistent with fourth quarter 2011 survey results, with 21% of respondents seeing the state economy improving and 35% expecting continued deterioration.
  • Productivity gains are solid but will be tempered by expected added costs. Forty-seven percent of executives see future gains in productivity, but 43% see increased wage costs, and 43% see total compensation costs going up.

“When you look at the results of the first quarter 2012 survey in comparison to the fourth quarter 2011 results, it’s clear that we haven’t gained much ground, but we haven’t lost any either,” Gioia says. “But it’s important to note that we are showing modest gains over the surveys prior to the fourth quarter of 2011.”

The survey was conducted in April 2012 with 246 respondents from around the state across many industries. The margin of error is =/- 6.38% with a 12.5% response rate.

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CBIA is Connecticut’s largest business organization, with 10,000 member companies. For more information, please contact Ann Marie C. Raymond (860.244.1957; annmarie.raymond@cbia.com) or visit cbia.com/newsroom.

Filed Under: News Releases, What's New Tagged With: , ,

2012 General Assembly Session: Business Community Applauds Governor, State Legislators for Passing Meaningful Education Reform

May 10, 2012 By raymonda

Says Session Opened Door for Giving All Children a Quality Education; Notes Concerns over Fiscal, Campaign Finance Issues

The state’s largest business organization today congratulated Governor Dannel Malloy and state legislators for the hard-fought passage of education reform legislation, calling it the signature bill of the 2012 General Assembly session.

“Governor Malloy not only tackled this issue, but successfully brought many different interests together and secured bipartisan support for meaningful education reform,” said John Rathgeber, president and CEO of the Connecticut Business & Industry Association.

“State lawmakers on both sides of the aisle also should be congratulated for supporting real reform. We now must focus attention on implementing the bill and ensuring that sustained improvement and access to quality education for every child become integral components of our education system.”

 Among other things, Senate Bill 458:

  • Helps fix broken schools by launching a pilot Commissioner’s Network to target and turn around the state’s lowest-performing schools. It gives the education commissioner power to require added classroom hours, professional development, and summer school sessions at poorly performing schools.
  • Offers more education choices through increased funding and support for charter and magnet schools, including technical and agricultural science schools.
  • Promotes accountability by cutting red tape for high-performing schools and districts and creates a common chart of accounts.
  • Helps at-risk children by creating 1,000 new pre-K school readiness seats and a pilot program to improve the literacy of students in grades K-3.
  • Supports teachers and school leaders by requiring annual performance evaluations for teachers and principals, strengthening the link between teacher effectiveness and tenure. A new evaluation system developed by the Performance Evaluation and Advisory Council will be piloted in 10 schools.
  • Adds funding for state’s 30 lowest-performing school districts, called “Alliance Districts,” and increases their accountability.

The 2012 session featured a number of other measures with implications for the state’s business community. Among them:

Campaign Finance

CBIA opposed and continues to have serious concerns about the campaign finance bill passed by the Senate and House. It is an unprecedented intrusion into corporate governance that violates longstanding constitutional and legal principles and sets up a completely unworkable process for organizations making legal political expenditures.

Budget Adjustments

The legislature approved adjustments to the two-year budget to head off a potential $284.6 million deficit. The state must remain vigilant when it comes to controlling spending so we don’t have another round of tax increases during the next fiscal year or in the next biennial budget put together during the 2013 session.

State government must streamline operations, expand the use of lean and other efficiency strategies, continue to identify cost savings, and encourage municipalities to work together to deliver services more efficiently.

Several measures that would have slowed Connecticut’s economic recovery did not move forward, including increasing the state’s minimum wage, shifting the burden of local property taxes, and opening up the state health plan to small businesses–an initiative that would have disrupted the small business healthcare marketplace.

CBIA is grateful to Governor Malloy and legislators on both sides of the aisle who tried to keep the economy on a positive track coming out of last October’s jobs session.

Going forward, policymakers must stay focused on economic competitiveness if we are to begin to create more jobs and strengthen Connecticut as a place where business can grow.

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CBIA is Connecticut’s largest business organization, with 10,000 member companies. For more information, please contact Ann Marie C. Raymond (860.244.1957; annmarie.raymond@cbia.com) or visit cbia.com/newsroom.

Filed Under: CBIA At The Capitol, In the News, News Releases, What's New Tagged With: , , , , , ,

Connecticut Science Center Hosts Cyber-Challenge Competition May 21

May 8, 2012 By raymonda

 Connecticut students give final presentations; winning teams announced

 More than 115 high school freshmen will take the stage at the Connecticut Science Center on May 21 to present solutions to real-world challenges identified by four of the state’s top energy and technology companies.

The students are participants in a year-long program known as Cyber-Challenge.  Working in teams representing East Hartford High School, New Britain High School, and Waterbury’s Wilby High School, they will address a crowd of teachers and peers and a panel of industry experts with ideas on everything from improving electric vehicle charger designs to eliminating barriers to vaccinations.

Prizes for the winning students include iPods, video cameras, and hi-fi in-ear headphones.

 Cyber-Challenge Final Presentations
Monday, May 21, 2012
9 am – 12:30 pm
Connecticut Science Center
250 Columbus Boulevard
Hartford

Now in its third year, Cyber-Challenge is funded by a three-year, $1.2 million Innovative Technology Experiences for Students and Teachers (ITEST) grant awarded by the National Science Foundation and administered by CBIA’s Education Foundation in collaboration with the Connecticut Science Center and EASTCONN.

Throughout the school year, Cyber-Challenge students work together not only to develop answers to complex science, technology, engineering, and math (STEM) problems but also to build critical thinking, teamwork, presentation, and multimedia skills. (Cyber-Challenge requires the use of advanced technology, including wikis, video, and animation.)

“This project gets young people excited about math, science, and technology and lays the groundwork for them to enroll and succeed in rigorous Advanced Placement STEM courses later in high school,” says Judy Resnick, executive director of CBIA’s Education Foundation.

 Cyber-Challenge corporate sponsors are Northeast Utilities, General Electric, United Technologies Corp., and Pfizer.

 “As some of the largest science and technology-based employers in Connecticut, these four companies have a keen interest in developing the next generation of scientists and engineers,” Resnick adds.

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 CBIA is Connecticut’s largest business organization, with 10,000 member companies. For more information, please contact Ann Marie C. Raymond (860.244.1957; annmarie.raymond@cbia.com) or visit cbia.com/newsroom.

Filed Under: News Releases, What's New Tagged With: , , , , , , ,

March Jobs Numbers Highlight Connecticut’s Fragile Economic Growth

April 19, 2012 By buddj

Connecticut’s March jobs report showed a loss of 2,700 jobs for the month, which Connecticut Business & Industry Association economist Pete Gioia said today “illustrates the fragile nature of the state’s economic recovery.”

The March figures reversed two successive months of growth. The state added 5,400 jobs in January while today’s report  from the state Department of Labor revised February’s numbers to 6,000 new jobs, against a previously reported gain of 4,900 jobs.

“Some of the sectors that showed strong gains earlier in the year, showed losses in February,” Gioia said. “That really illustrates  the fragile nature of the state’s economic recovery while highlighting just how far we have to go to restore our economy.

“Job growth for the year is basically just half a percent and that’s not spectacular by any stretch of the imagination.  We’ve recovered less than one-third of the jobs that were lost through the recession.”

Gioia also noted that while the state’s unemployment rate fell slightly to 7.7 percent in March, that was largely attributable to people leaving the workforce rather than job gains.

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CBIA is Connecticut’s largest business organization, with 10,000 member companies. For more information, or to set up time to speak with Pete Gioia, please contact Ann Marie Raymond (860.244.1957; annmarie.raymond@cbia.com) or visit cbia.com/newsroom.

Filed Under: News Releases, What's New

Connecticut Companies to Increase Awareness of Engineering and Manufacturing Careers

April 19, 2012 By buddj

More Than 300 Students to Attend April 27 Expo at Tunxis Community College

At a time when the state is dealing with high unemployment numbers, many Connecticut manufacturing and engineering companies have job openings they are unable to fill.

“There is an immediate need to fill manufacturing and engineering jobs with highly skilled workers if the state’s manufacturers are to remain competitive,” says Dr. Karen Wosczyna-Birch, executive director, Connecticut Community Colleges’ College of Technology’s Regional Center for Next Generation Manufacturing (RCNGM) . “This expo will help students see firsthand that manufacturing is innovative and high-tech and that it offers many rewarding career choices.”

Friday, April 27, 2012

Tunxis Community College, Farmington, CT

8:30 am – 1:00 pm

Coordinated by CBIA’s Education Foundation on behalf of the RCNGM, Pathways to Manufacturing and Engineering Technology Careers Expo will bring together more than 300 students from 10 different schools for a half-day of workshops led by some of Connecticut’s most prominent manufacturing and engineering companies, including Kaman, UTC Power, and General Electric.

The expo consists of three workshop sessions on manufacturing and engineering topics such as fuel cell technology, CNC machining, laser scanning, electric vehicle technology, aerodynamics and acoustic testing, and the K-Max drone helicopter. The event will also feature demonstrations and exhibits by over 20 Connecticut manufacturers.

The RCNGM, which is sponsoring the event, is funded by the National Science Foundation.

Media wanting to attend can contact Ann Marie C. Raymond at annmarie.raymond@cbia.com or 860.244.1957.

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CBIA is Connecticut’s largest business organization, with 10,000 member companies. For more information, please contact Ann Marie C. Raymond (860.244.1957

Filed Under: News Releases, What's New

Six Education and Business Groups Release Statement on Revised Version of SB 24

April 4, 2012 By buddj

Lack of transparency led to a weak version of reform bill that will impede progress for students

Six education and business groups* today came together to express disappointment over the modified version of Senate Bill 24 that passed the Education Committee on Monday and the process by which it was negotiated. Here is their statement:

The new version of S.B. 24 fails to move forward with several of the bold proposals Governor Malloy put forth, and it signals a lack of urgency to fix the fundamental issues that plague Connecticut’s public school system.

The process by which changes to this bill were negotiated excluded the voices of Superintendents, Boards of Education, principals, parents, community leaders, and students. The result is a bill that reflects compromises that appear to be brought on by pressure from the teachers unions.

In this process, the Education Committee watered down or delayed many of the important reforms originally proposed. As it is now written, this bill will not bring about the reforms Connecticut’s students need. Next week, our organizations will convene to issue a formal statement and analysis that outlines our specific concerns about the current version of the bill.

We are hopeful that bipartisan legislative leaders, committed to providing all students a high-quality educational program, will involve all stakeholders during the next phase of this legislative process, and will work in partnership with Governor Malloy and Education Commissioner Pryor to return the tenets of bold reform to this bill. Collectively, we must get this right for Connecticut’s children.

* The groups are: Connecticut Association of Public School Superintendents (CAPSS), the Connecticut Association of Boards of Education (CABE), the Connecticut Association of Schools (CAS), the Connecticut Council for Education Reform (CCER), the Connecticut Business and Industry Association (CBIA), and the Connecticut Coalition for Achievement Now (ConnCAN).

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CBIA is Connecticut’s largest business organization, with 10,000 member companies. For more information, please contact Ann Marie C. Raymond (860.244.1957; annmarie.raymond@cbia.com) or visit cbia.com/newsroom.

Filed Under: News Releases, What's New

CBIA Economist Peter Gioia Says Job Numbers Show a “Solid Performance”

March 29, 2012 By raymonda

Connecticut’s February jobs report was released today, and according to CBIA economist Peter Gioia, the results show a real “solid performance,” with the addition of 4,900 jobs in February. The state has now added 10,300 jobs year-to-date, after January’s revised numbers. Connecticut’s unemployment rate is now 7.8%. For more information, listen to Gioia’s comments.

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CBIA is Connecticut’s largest business organization, with 10,000 member companies. For more information, or to set up time to speak with Pete Gioia, please contact Ann Marie Raymond (860.244.1957; annmarie.raymond@cbia.com) or visit cbia.com/newsroom.

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