Northwest Connecticut Economic Development Corporation
333 Kennedy Drive, Torrington, CT 06790
860.567.2204 - www.nwctedc.com - info@nwctedc.com
Board of Directors
March 6, 2009 - 8:00 am
Alcoa-Howmet, Winsted
Attendance: Doug Parker, JoAnn Ryan, Bob Axelrod, Lou Helt, David Dean, Rick Lynn, Dan McGuinness, Bill Baxter, Frank Chiaramonte, Chuck Conn, Fran Delaney, Maura Martin, John Maxwell, Michael Menard, John Morici, Ted Murphy, Guy Rovezzi, Dwain Snow, Vance Taylor, Amy Wynn, Chris Vita, Arthur Bogen, Karen Paradis, Michelle Cook, Mike Peacock, Dick Labich, Tom Souchuns, Gary Koeppel, Peter Gutowski, Dawn Mazini, Henry Marchell, Eric Hampton, Bill Pratt, John Lavieri, Sal Galasso, Al Gravel and Allen Rebman
Welcome to Alcoa-Howmet
Laura Carpenter, Plant Manager, provided an overview of the manufacturing operations of Alcoa-Howmet. She began with safety procedures and emergency evacuation information. She described the products manufactured in Winsted and the inter-relationship of the Winsted plant with Alcoa's global network. The Winsted plant generates about $100 million in annual revenue. It first opened in 1982 after moving from Whitehall, Michigan They adopted lean manufacturing techniques in 1982. The building is 81,000 square feet in size. It is non-union and currently employs 180 workers in three shifts. They produce aluminum casted parts for the aerospace, airplane and automobile industries. Their major customers are the parent company, Rolls Royce and Pratt & Whitney.
What are the benefits of being located in NW CT? A highly skilled workforce with a strong work ethic. The employees are engaged in their work and seek to produce high quality products.
What are the challenges? High electricity costs, plant spends $1.2 million per year for electricity. High taxes for both property and state taxes are challenges. It is difficult to bring workers to the region due to the high cost of living and housing prices.
How can the region support your company? Networking with other manufacturers in the region would be beneficial in sharing best practices and discussing common concerns.
Manufacturing in NW CT - Input from regional manufacturers
Thomas Souchuns: Rexam Dispensing Systems, Thomaston
Rexam produces fragrance and lotion pumps for the cosmetics industry. They currently employ 320 people. They have been in Thomaston for 38 years. They buy metal parts from companies in Waterbury. Lean manufacturing techniques have improved their profitability. Due to an aging workforce, it is becoming increasingly difficult to find the skilled workers that are needed. Skilled metal working and metal forming craftsmen are needed. Poor economic conditions forced Rexam to lay off workers for the first time since 1990. They are working with a consultant to broaden their market and product line. The high cost of health care is a major challenge. Typical cost is $400 per month per employee. An apprenticeship program would be very beneficial. Tom also cited the high cost of taxation and energy as challenges.
Bob Axelrod, CL&P, suggested conservation and energy audits to reduce energy consumption and costs. He encouraged the state to continue supporting those efforts. He also suggested sharing services whenever possible with neighboring companies.
Doug Parker advised everyone that the July 10th NWCTEDC meeting will focus on energy. The meeting is scheduled for Cornwall at 8 am on Friday, July 10th.
John Lavieri, Sterling Engineering, Barkhamsted
Sterling Engineering makes gas turbines for helicopters and the aerospace industry. They employ 62 people and have been able to avoid any layoffs so far. They have been located in NW CT since 1941. Costly mandates and regulations have been the greatest challenge. Traffic flow on Route 44 is also a deterrent. The existing work force is highly skilled and highly dedicated. There are concerns about the future of the work force. The current workers are aging and many are nearing retirement age. The need to train younger workers will become increasingly critical to the future success of the company.
Fran Delaney, West State Mechanical, Litchfield
West State Mechanical currently employs 15 people. The high costs of operating a business are becoming increasingly challenging. Current state and federal statutes are punitive in nature and discourage rather encourage the development of private sector jobs. High unemployment costs and penalties were cited along with high workmen's comp costs. Efforts to allow "card checking" will provide another detriment to private businesses in the state. Apprenticeship program costs and regulations discourage employers from training new workers.
Dawn Mazini & Pete Gutowski, J& B Industry, Torrington
J&B is a start-up company currently with only one employee. They are seeking to expand, but are having hesitant to hire due to the high cost of unemployment insurance rates. They are also seeking skilled workers. The prospect of a higher minimum wage rate would also discourage hiring more workers.
Alan Seitz, Seitz Corp., Torrington
Seitz Corporation manufactures plastics and motion control devices for the medical and food and beverage industries. They have been in Torrington since 1949 and employ 200 people. They also have a plant in China. Their business has been very steady and is expanding. They are having difficulty obtaining financing from mid-level banks to expand their operations.
Lou Helt, Vice President at FNBL, suggested working with local regional community banks. They can pool resources to assist in providing the financing that is needed
John B. Maxwell & Allen Rebman, J&J Precision, Thomaston
J&J Precision employs 40 people. They make pens and are also linked to the auto industry as a parts provider. The downturn in the auto industry has had a very negative impact on their company. High costs for materials has also been challenging - stainless steel prices have doubled over the past year. They use stamping and electrical stamping equipment and sold $5 million worth of pens last year. An aging work force is also a concern for them. Skilled toolmakers are in high demand and require training programs. They are using the "Shared Work Program" sponsored by the CT State Dept. of Labor ( www.ct.gov/dol). JoAnn Ryan distributed a handout with information about the Shared Work Program.
Doug Parker suggested regional manufacturers support the efforts of local high schools to sponsor Robotic Teams. Currently Housatonic (Region 1) and Litchfield have teams. Many of the other area high schools would like to have their own teams. It costs $6,000 per year to purchase the kits for building the robots. Each year robots have specific tasks that must be completed. Competitions provide an opportunity to compare and compete against robots created by other schools. Points are awarded relative to the tasks. Students work in teams with a school advisor and community mentors to build the robots. There is a regional competition at the CT Convention center at the end of March. Over 60 teams from New England competed in last year's event. National Web Site: ( http://www.usfirst.org/) CT Regional Web Site: ( http://sites.google.com/site/frcctregional09/) - currently being upgraded
Chris Vita suggested attending the Chamber's Legislative Breakfast meetings to have an opportunity to speak with local legislators about issues affecting their business. Meetings are held at 8:00 am on the second Thursday of each month at the NW CT Chamber. The Chamber's lobbyist attends to listen to concerns. As one attendee stated, "The problem with businesses is that they have the largest pocketbooks and the smallest voices." JoAnn Ryan was recently appointed by Governor Rell to serve on a statewide Workforce Development Committee. An aging workforce and a concern about a shortage of skilled workers in the future was a concern expressed by many at the meeting. Chris also discussed the Manufacturer's Coalition hosted by the Chamber. Networking and working cooperatively were mentioned by nearly every manufacturer at the meeting.
Eric Hampton, DECD, works with the manufacturing sector throughout the state. He suggested networking with other manufacturing organizations and coalitions to provide a stronger voice. Waterbury has an active organization, he suggested connecting with them.
A "Card Checking" bill currently being proposed by the legislature and a paid sick leave bill were cited as examples of over-regulation by the state government. The consensus from all that the meeting was that the state regulations are punitive in nature. They serve to punish the good employers because of a few employers who do not follow the rules. There is great concern that many manufacturers will leave the state and go to other states with friendlier and more supportive business environments.
Sal Galasso from the CT Department of Labor also offered assistance in labor relations with existing workers and training programs for new workers. He offered support for local manufacturers. He is not involved in any way with regulatory procedures.
Al Gravel, Model Craft, Plymouth
They make products associated with the medical and aerospace markets. The company began in the 1960's. They are in a growth mode and have been expanding their operations and adding to their work force. They have hired a lot of recently laid off workers from other companies. They have been very impressed with the high skill levels of these workers. They now have about 35 employees. A manufacturing network would allow the movement of workers from one company to another based on economic cycles.
Guy Rovezzi, Executive Director of the Community Foundation of NW CT, congratulated Alcoa-Howmet for their generosity in supporting non-profit causes throughout the region. He said they serve as a corporate role model for their efforts to support the arts and education.
Laurie Roy praised the efforts of Oliver Wolcott Tech to train students for manufacturing jobs. She expressed concerns about their aging equipment and the ability of the school to train students using appropriate technology. It was suggested that manufacturers may want to donate equipment to the school when upgrading their equipment.
Eric Hampton (DECD) reiterated the need to work with other regions. Platt Tech is producing about 30 manufacturing students per year. The New Haven Manufacturers Association is very active and works with schools to get young people involved and trained in manufacturing. Eric would be glad to help connect with those organizations. He again offered his assistance to all local manufacturers. Email: Eric.Hampton@ct.gov
Sal Galasso (CT Dept. of Labor) also encouraged manufacturers to contact him for support with job postings at CT Jobs Central, program and work force expansion, and working as manufacturer's advocate with CT OSHA. He can be contacted by email: sal.galasso@ct.gov
Summary of Manufacturing Discussions:
What are the benefits of being located in NW CT?
Highly skilled work force
Dedicated workers with high work ethic
Highly productive workers
What are the challenges of being located in NW CT?
High property taxes and high corporate taxes
High cost of living - housing prices - difficult to bring new workers to the region
Aging work force - many approaching retirement age
Transportation system - Route 44 is highly congested (major east-west corridor)
Lack of skilled younger workers - need more trained younger workers
Excessive rules and regulations imposed by state government - costly to implement - punitive in nature - discourages manufacturers from wanting to stay in CT
High fees for unemployment insurance, workmen's comp, apprenticeships, health care costs, penalties imposed by the state, high minimum wage
High energy costs, high material costs
How can the region support your company?
Share best practices with each other
Networking - joint communications - shared concerns
Shared apprenticeships programs
Energy audits - energy conservation
Training programs for skilled machinists - tool & die workers, metal forming workers
Better equipment at Oliver Wolcott Tech - donate equipment to OWT when upgrading to newer equipment
Training programs for licensed mechanics
Maintaining close contact with area legislators to avoid costly and punitive laws that discourage business
Consortium of local community banks to provide funding for large projects
Updates
Regional Brownfields Inventory
Arthur Bogen, NWCTEDC Brownfields Consultant, is nearly finished with the regional brownfields inventory. There are currently 26 sites included with possibly 3 or 4 more new sites to be added. The next step will be to prioritize sites based on redevelopment potential and economic benefit. Grants will then be sought to either further evaluate or rehab sites. Complete report should be finished by the spring.
CEDS (Comprehensive Economic Development Strategies) Process
The NWCTEDC Executive Committee had a lengthy discussion about the CEDS process on February 24, 2009. CEDS is a federal program sponsored by the U.S. Department of Commerce - Economic Development Administration. They provide two types of grants - planning (up to $50,000) and development (currently $100 million nationally - priority to distressed regions). Both are 50-50 matching grants. The current CEDS is outdated. It was completed in May 2004. CEDS are written to cover five years. Yearly updates are required. The current CEDS (May 2004) only included about half of the towns in the region - mostly from the Litchfield Hills Council of Elected Officials. The region now includes 21 towns. The state of CT has not formally recognized the CEDS process. It has been encouraged, but there is no formal recognition of regional economic development regions. While there is a great desire to create a newly updated and more comprehensive CEDS document for the 21 town region, there is also hesitancy because of the state's lack of commitment or definition of economic development regions. The state is supposed to release a new comprehensive economic development plan for the entire state in the spring.
Job Fair
Chris Vita reported that the Chamber sponsored Job Fair attracted about 500 people. There were 43 employers represented. The high quality of those seeking employment was noted. Chris also discussed the Career Fair being sponsored by the Chamber's CEBP (Community Educators Business Partnership) Committee which is being planned for the fall of 2009 and will include regional students (and their parents) from grades 7-12.
Welcome Center
Chris Vita reported that progress is being made with the Welcome Center. A cookbook is being created to support funding for that project. The Chamber and the Chamber's Education Foundation have been coordinating these efforts.
Next Meeting
The next NWCTEDC meeting is scheduled for Friday, May 1st at the Washington Town Hall in Washington, CT at 8:00 am.
Adjourn
The meeting was adjourned at 10:00 am followed by a tour (optional) of the Alcoa-Howmet faculty.
Chris Vita, Recorder
Respectfully submitted,
Doug Parker
President/Executive Director
NW CT Economic Development Corporation
www.nwctedc.com
info@nwctedc.com
(860) 567-2204
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