SOUTH CENTRAL CONNECTICUT Comprehensive Economic Development Strategy 2013-2018 PROJECT TEAM The Project Team assisting in the creation of the South Central Connecticut Comprehensive Economic Development Strategy included: South Central Regional Council of Governments Cosgrove Development Services Garnet Consulting Services, Inc. REX Development ACKNOWLEDGEMENTS REX Development would like to thank the following organizations for providing the ongoing financial support necessary to produce this CEDS update: U.S. Economic Development Administration The 15 Towns of the South Central Regional Council of Governments Regional Leadership Council The Community Foundation of Greater New Haven This CEDS update profited from the efforts of many volunteers and partner organizations from the public and private sectors who worked together throughout the CEDS process. A special thanks to the co-chairs of the Strategic Planning Committee, Mayor Scott Jackson (Hamden) and Roger Joyce (President, The Bilco Company), as well as David A. Rackey (Management Consultant—retired) who provided exceptional leadership, guidance and support. We would also like to extend our sincere appreciation to the authors and participants from the 2003 and 2008 CEDS update. The thoughtful and meticulous efforts of Regional Growth Partnership and the Strategic Planning Committees provided a solid foundation for the 2013 CEDS update and their outstanding work is deeply appreciated. South Central Connecticut: CEDS 2013 2 Table of Contents SECTION PAGE Executive Summary 10 Introduction: Participation & Process 18 Part I: Action Agenda SWOT Analysis 25 Vision 26 Cluster Prospects 27 Action Plan 38 Regional Development 62 Regional Projects 63 Part II: Analysis of Region Demographic Profile 75 Economic Analysis 99 Cluster Analysis 140 Other Plans 156 Appendices Appendix A: SPC Agendas/Minutes Appendix B: Cluster NAICS Codes Appendix C: Memoranda of Understanding Appendix D: Business Report Appendix E: Project Readiness South Central Connecticut: CEDS 2013 3 List of Figures FIGURE TITLE Figure 1 Map of the South Central Region 10 Figure 2 Total Employment 27 Figure 3 Individual Clusters as Share of Cluster Employment 27 Figure 4 Healthcare *(sector) 29 Figure 5 Education & Knowledge Creation 31 Figure 6 Manufacturing 32 Figure 7 Advanced Materials 33 Figure 8 Biomedical/Life Sciences 34 Figure 9 Arts, Entertainment & Tourism 35 Figure 10 Business & Financial Services (Professional) 36 Figure 11 Agribusiness/Agribioscience 37 Figure 12 Desired Growth Areas in South Central Region 62 Figure 13 Geography of the South Central Region 75 Figure 14 Regional Transportation Network 77 Figure 15 Population Density by Census Tract, 2010 78 Figure 16 Proximity of Region to Major Cities 79 Figure 17 Population Growth by Geography 80 Figure 18 Population Change by Municipality, 2000-2010 81 Figure 19 Population Distribution by Age 81 Figure 20 Concentration of Non-White Population 2010 82 Figure 21 Percent of Population 25+ Years with a Bachelor's Degree or More 84 Figure 22 Median Household Income, 2010 85 Figure 23 Change in Percent of Population in Poverty by Town 2000-2010 86 Figure 24 Annual Housing Permit Data (by Town) from 1990 thru 2010 87 Figure 25 Regional Owner-Occupancy Rate 2000 2010 88 Figure 26 Change in Median Sales Price Single-Family Home, 2009-2011 89 Figure 27 Percent of Single-Family Housing Sales by Price Bracket, Jan. 2009 – Dec. 2009 90 Figure 28 Comparison of Median Household Income to Median Home Sales 91 Figure 29 Labor Force Growth in South Central Region, CT, and USA, 2000 – 2011* 93 Figure 30 Unemployment Rate in Region, State and Nation 2000-2011 94 South Central Connecticut: CEDS 2013 PAGE 4 List of Figures FIGURE TITLE Figure 31 Unemployment Rates by Municipality 2005-2011 95 Figure 32 Migrants into and out of New Haven County, 2005-2010 96 Figure 33 Migrants into and out of New Haven County, 2010 97 Figure 34 Share of Population That Commutes to a Different Town for Work 98 Figure 35 Farmington Bank Business Barometer 100 Figure 36 New Haven County % of Total Workforce 102 Figure 37 Size of Establishments by 2-digit NAICS 116 Figure 38 Connecticut Total Primary Jobs 120 Figure 39 New Haven County Total Primary Jobs 120 Figure 40 Change in Employment 2006-2011 121 Figure 41 Worker Inflow/Outflow by Percent of Total Workers and Residents, New Haven County 122 Figure 42 Innovation Index 129 Figure 43 Employment by Industry Cluster 142 Figure 44 Manufacturing Supercluster 143 Figure 45 Wages of the Top Six Industry Clusters 145 Figure 46 Percent Change in LQ 2006-2010 148 South Central Connecticut: CEDS 2013 PAGE 5 List of Tables TABLE TITLE Table 1 Snapshot of Cluster Dynamics—Healthcare 29 Table 2 Snapshot of Cluster Dynamics—Education & Knowledge Creation 31 Table 3 Snapshot of Cluster Dynamics—Manufacturing 32 Table 4 Snapshot of Cluster Dynamics—Advanced Materials 33 Table 5 Snapshot of Cluster Dynamics—Biomedical/Life Sciences 34 Table 6 Snapshot of Cluster Dynamics—Arts, Culture & Tourism 35 Table 7 Snapshot of Cluster Dynamics— Business & Financial Services (Professional) 36 Table 8 Snapshot of Cluster Dynamics—Agribusiness/Agribioscience 37 Table 9 Regional Economic Development Projects 64 Table 10 Demographic and Socioeconomic Overview, 2000 vs. 2010 76 Table 11 Regional Summary: 30-, 60-, and 90-miles from the Center of the Region 79 Table 12 Characteristics of Students in Region’s Colleges and Universities, 2010 83 Table 13 Distressed Municipalities List: 2012 92 Table 14 Kyser Center for Economic Research 2012-2013 Forecast 99 Table 15 Change in Employment 2006-2011 103 Table 16 Total Employment: Region, State, & Nation 103 Table 17 Connecticut—Top Ten Industry Sectors by Employment 104 Table 18 New Haven County—Top Ten Industry Sectors by Employment 104 Table 19 Location Quotients for New Haven County vs. the State and Nation 105 Table 20 Sub-Sector Analysis—Healthcare and Social Assistance 107 Table 21 Sub-Sector Analysis—Retail Trade 108 Table 22 Sub-Sector Analysis—Manufacturing 109 Table 23 Sub-Sector Analysis—Educational Services 110 Table 24 Sub-Sector Analysis—Arts, Entertainment, and Recreation 110 Table 25 Location Quotients: New Haven County vs. Nation 112 Table 26 Top 20 Industry Sub-Sectors by Employment (2011) 112 Table 27 Top 20 Industry Sub-Sectors by Wage (2011) 113 Table 28 Shift-Share Analysis Compared to the Nation 114 Table 29 Size of Establishments: New Haven County vs. United States, 2011 115 South Central Connecticut: CEDS 2013 PAGE 6 List of Tables TABLE TITLE PAGE Table 30 Largest Employers in the South Central Region 117 Table 31 New Haven County Wages 118 Table 32 New Haven County Workers by Place of Residence 122 Table 33 New Haven County Residents Work Destinations 122 Table 34 Connecticut Workers by Place of Residence 123 Table 35 Connecticut Residents Work Destinations 123 Table 36 Employment Estimates for Major Occupational Groups, First Quarter 2012 124 Table 37 Top Employing Industries, Management Occupational Group 125 Table 38 Top 25 Occupations in terms of Projected Growth 125 Table 39 Top 25 Occupations in Terms of Projected Decline 126 Table 40 Breakdown of Innovation Index Components 128 Table 41 Overall State Index Indicator 129 Table 42 Breakdown of Innovation Index 129 Table 43 Percent of Population Ages 25 to 64 with Some College or an Associate's Degree 130 Table 44 Percent of Population Ages 25 to 64 with a Bachelor's Degree or Higher 130 Table 45 Avg. Annual Change in Young Adult Population (1997-2009) 130 Table 46 Avg. High-Tech Employment Share (1997-2009) 131 Table 47 Technology-Based Knowledge Occupation Cluster Share of Total Employment 131 Table 48 Avg. Venture Capital Investment per $10,000 GDP 131 Table 49 Mid-Point Weighted Connections per 1,000 Households 132 Table 50 Avg. Annual Percent Change in Broadband Providers 132 Table 51 Avg. Establishment Churn 132 Table 52 Avg. Small Establishments per 10,000 Workers 132 Table 53 Avg. Large Establishment per 10,000 Workers 133 Table 54 Rate of Change in High-Tech Employment Share (1997-2009) 133 Table 55 Job Growth to Population Growth Ratio (1997-2008) 133 Table 56 Gross Domestic Product (GDP) per Worker 133 Table 57 Avg. Annual Change in GDP per Worker (1997-2008) 134 South Central Connecticut: CEDS 2013 7 List of Tables TABLE TITLE PAGE Table 58 Avg. Patents per 1,000 Workers 134 Table 59 Avg. Poverty Rate (2006-2008) 134 Table 60 Avg. Unemployment Rate (2007-2009) 134 Table 61 Avg. Net Internal Migration Rate per 10,000 Residents (2000-2009) 135 Table 62 Avg. Annual Growth in Per Capita Personal Income (1997-2008) 135 Table 63 Avg. Annual Change in Wage and Salary Earnings per Worker (1997-2008) 135 Table 64 Avg. Annual Change in Proprietors Income per Proprietor (19972008) 135 Table 65 Top 20 Highest Performing Secondary Cities in the U.S 136 Table 66 Top 30 Organizations Receiving Patients 2006-2010 137 Table 67 Academic Research and Development Expenditures, FY 2009 138 Table 68 Change in Employment by Cluster, South Central Region, 2006 2010 144 Table 69 Annual Wage by Industry Cluster 146 Table 70 Location Quotients, 2006 vs. 2010 149 Table 71 Basic and Non-basic Employment 151 Table 72 Shift-Share Analysis Compared to the Nation 153 Table 73 Additional Plans, Studies and Reports Consulted 157 South Central Connecticut: CEDS 2013 8 Abbreviations CEDS Comprehensive Economic Development Strategy CERC Connecticut Economic Resource Center CONNDOT Connecticut Department of Transportation CURE Connecticut United for Research Excellence DECD Department of Economic & Community Development, Connecticut DEEP Department of Energy & Environmental Protection EDA Economic Development Administration, U.S. EPA Environmental Protection Agency, U.S. GCC Gateway Community College GNHBPA Greater New Haven Business & Professional Association GNHCC Greater New Haven Chamber of Commerce GNHCLF Greater New Haven Community Loan Foundation IWT Incumbent Worker Training MXCC Middlesex Community College NHHS New Haven—Hartford—Springfield Commuter Rail Line NHMA New Haven Manufacturers Association NU Northeast Utilities REDFO Regional Economic Development Forum REX Regional Economic Xcelleration Development RLC Regional Leadership Council RWA Regional Water Authority SBDC Small Business Development Center, Connecticut SCRCOG South Central Regional Council of Governments TSB Transportation Strategy Board UIL UIL Holdings Corporation UNH University of New Haven South Central Connecticut: CEDS 2013 9 Executive Summary THE CEDS Figure 1: Map of the South Central Region Every five years the South Central Connecticut region updates its Comprehensive Economic Development Strategy (CEDS). This strategy is an opportunity for the region to assess the strengths and weaknesses of its economy and to develop plans of action to maximize economic growth and job creation. The CEDS further serves to qualify the region for infrastructure funding from the United States Economic Development Administration. This CEDS update is divided into several sections. The first section is an Executive Summary that highlights the region and summarizes the key items driving the action agenda. The Introduction discusses the participants involved in the CEDS and the process used to accomplish this update. Part I discusses the visioning process, the key industry clusters of focus for the region, the key economic goals proposed for the region and an implementation plan of action and a list of economic development and infrastructure projects critical to the future of the region’s economy. Part II provides the quantitative and qualitative analysis of the region’s economy necessary for setting the goals and objectives. THE CHALLENGE Since the 2008 update, the United States experienced the deepest economic downturn since the Great Depression. Connecticut will take many years to recover from the effects of the Recession, most notably in terms of job growth. This CEDS update therefore reflects a sense of urgency among all of the participant stakeholders as we develop a concise strategy to increase economic output and job growth across the region. THE REGION The South Central region has a population of 570,001 residents and is located within New Haven County in Southern Connecticut and is comprised of the following fifteen municipalities: Bethany, Branford, East Haven, Guilford, Hamden, Madison, Meriden, Milford, New Haven, South Central Connecticut: CEDS 2013 ONE REGION. 15 TOWNS. UNLIMITED POTENTIAL. North Branford, North Haven, Orange, Wallingford, West Haven and Woodbridge. These are the same 15 towns that comprise the South Central Regional Council of Governments (SCRCOG). SCRCOG brings together local governments to coordinate land use and transportation planning on a regional basis. This is also the regional footprint of the Regional Economic Xcelleration (REX) Development, the economic development arm of SCRCOG and administer of the CEDS. All of the region’s municipalities are located in the New Haven Labor Market Area, as defined by the Connecticut Department of Labor, except Milford and Woodbridge, which belong to the BridgeportStamford Labor Market Area. THE VISION “The South Central Connecticut region of 2033 will be widely recognized as a diverse and desirable place to live, work, play and run a business because of its: Outstanding quality of life; 10 Executive Summary Strong economy and extensive employment opportunities served by effective transportation and communication infrastructure; Innovative and entrepreneurial character of its residents and businesses; Cost-effective and well-managed local governments; and Leadership in demonstrating regional pride, cooperation and problem solving.” THE INDUSTRY The South Central region’s focus starts with the companies and activities that make up the region’s economic base, exporting goods and services that drive job creation and import wealth into the region. These clusters and economic drivers leverage innovations that improve productivity in the region and around the world and create new market opportunities. The South Central region has targeted the following clusters and economic drivers for its economic development activities: HEALTHCARE The healthcare industry is one of the strongest in the region, being one of two industry sectors that increased employment over the last two years. The region is home to the 4th largest hospital system in the nation and is driven through innovation and research. HIGHER EDUCATION of employees compared to the nation, of particular strength in the region is primary and fabricated metal manufacturing; electrical equipment and electronic component manufacturing; and medical device manufacturing. ADVANCED MATERIALS Advanced materials are defined as metals, polymers, ceramics, or composites- mixed materials--, with particular combinations of mechanical, physical and chemical properties that outperform conventional materials. This industry cluster is one of the strongest performers (especially over the last five years) in the region with overlap into other industry sectors, directly associated with the strength of the manufacturing and healthcare industries BIOMEDICAL/LIFE SCIENCES With nearly 60,000 employees working in this industry cluster, including healthcare workers, it is one of the strongest in the region. With world class institutional and academic assets to leverage, this region has become a focus of biomedical expertise and development. ARTS, ENTERTAINMENT AND TOURISM The South Central region serves as the creative capital of Connecticut, boasting world-class theater and museums, extraordinary artistic, design and creative talent, and natural and cultural attractions in every town. The region is home to a vast array of eight colleges and universities, including two law schools, two medical schools and a world renowned university. Although not a true cluster, the education sector is a main economic driver, producing a well-educated workforce, while employing over 15,000 people and having a total economic impact of over $1.5 billion. BUSINESS AND FINANCIAL SERVICES ADVANCED MANUFACTURING Built upon a sustainable agricultural base, this industry cluster includes farming, agricultural research, food manufacturing and ag-bio technology and services. The region, built upon a strong manufacturing base, abounds with small manufacturers utilizing highly-skilled workers to produce precision, high value-added products. With a high concentration South Central Connecticut: CEDS 2013 With almost 85% of the region’s economy being service oriented, this cluster employees a little over 22,000 people and provides direct support services to other industry clusters. AGRIBUSINESS/AGRI-BIOSCIENCE 11 Executive Summary GREEN TECHNOLOGY Building upon the State’s green economy of efficiencies and renewables, the South Central Region is poised to support the formation of new clean tech ventures and technologies locally. IMPLEMENTATION STRATEGY A major outcome of this CEDS process was the newly established implementation plan of action. Over the course of the outreach process, a consistent theme heard throughout the region was the need for more collaboration and coordination among regional entities. The new implementation process tries to do just that, by bringing together relevant regional entities around specific objectives. Implementation and delivery on the strategies is ultimately what will make this plan dynamic, purposeful and relevant. The plan has identified lead implementers, or champions, to guide implementation of the plan. Each lead implementer will be responsible for a specific objective, and lead a team to develop strategies and provide accountability for directing and measuring progress. Many of the lead implementers and implementation teams have been drawn from the key stakeholders that were in attendance during the outreach process over the past year. Going forward, it is the hope to draw the broader public and other key civic stakeholders to join in committing to implement the strategies to sustain and expand the region’s economic prosperity. South Central Connecticut: CEDS 2013 12 Executive Summary REGIONAL ECONOMIC DEVELOPMENT ACTION AGENDA GOAL 1: REGIONAL MARKETING & COMMUNICATIONS Enhance the region’s image as a desirable location and destination to live, work, play and operate a business through an aggressive, cooperative external and internal marketing program and creation of a credible regional economic development team. Objective 1: Regional Marketing, Communications and Advocacy Enhance and implement the regional marketing and communications strategy in 2013 and beyond, including working from and with the State’s marketing strategy. Objective 2: Regional Economic Program & Best Practices Maintain an Economic Development Program, based on best-practices, education and training, throughout the next five years. Objective 3: Advocacy Collaborate as “one voice” and advocate for policy on the municipal, state and federal level, supporting the goals and objectives described here and supportive of economic development needs in the region. Objective 4: Regional Collaboration Support and promote policies that would enforce regional collaboration and reduce competition among municipalities and other regions throughout the state. GOAL 2: INFRASTRUCTURE Develop, maintain and effectively utilize an excellent, integrated, multi-modal transportation, communications and information system that facilitates the efficient and convenient movement of people, goods and data intraregionally, inter-regionally and internationally. Objective 1: Tweed New Haven Regional Airport Continue physical, structural and safety enhancements to airport to support a needed increase in air service. Objective 2: Port of New Haven Dredging Project Provide support for the dredging of New Haven Harbor. The Harbor, which has not been dredged since 2004, needs to be returned to its 35 foot depth and 400-800 foot width to support port industries and deepwater cargo shipping. Currently, it is uncertain whether the federal government will provide the $10 million needed to complete this project. Objective 3: New Haven-Hartford-Springfield and Shore Line East/Metro-North Commuter Rail Complete the New Haven-Hartford-Springfield commuter rail line by 2016, with the goal of increasing annual trips by 1.26 million by 2030. Support rail service conducive to regional growth and increase rail service to both rail lines, while investing in necessary facilities and infrastructure, to include advocacy for Amtrak’s NextGen High-speed Rail through New Haven, as opposed to inland routes. Objective 4: Bus Service Increase ridership of the region’s bus and ridesharing services by 10% by 2017. Improve effectiveness by increasing frequency of existing routes by 25% and adding 10 new east-west bus routes in the South Central Region service areas, parallel with employment corridors. South Central Connecticut: CEDS 2013 13 Executive Summary REGIONAL ECONOMIC DEVELOPMENT ACTION AGENDA GOAL 2: INFRASTRUCTURE (CONTINUED) Develop, maintain and effectively utilize an excellent, integrated, multi-modal transportation, communications and information system that facilitates the efficient and convenient movement of people and goods intra-regionally, inter-regionally and internationally. Objective 5: Roadways & Bridges Ensure adequate investment in the region’s roadways and bridges to maintain current infrastructure, improve safety and reduce traffic congestion. More specifically, this goal focuses on the state-ofgood repair projects and new investments which directly support economic development and job growth. Objective 6: Telecommunications Ensure that the entire region has adequate infrastructure to support 21st century communications and information systems, in order to benefit economic growth and business development. Objective 7: Energy Infrastructure Support the expansion of natural gas mains to commercial/industrial districts over the next five years in order to lower energy costs for commercial customers, create new construction jobs, and to use a domestic fuel that is currently underutilized and safer for the environment. Objective 8: Water Infrastructure Encourage exploration of regional funding mechanisms to support main extensions for new industrial and commercial customers, for interconnections between utilities, and to help fund the water infrastructure needs of the region. GOAL 3: BUSINESS DEVELOPMENT & RETENTION On a continuing basis, identify and assist in the development of policies, priority clusters and other businesses that capitalize on the region’s diverse strengths and emerging opportunities. Objective 1: Regional Business Assistance Program Develop and implement an effective regional business assistance and retention strategy by 2014 to help existing businesses grow or remain in the region. Objective 2: Entrepreneurs & Start-Ups Foster innovation and new business development, by promoting “The Grid” (innovation ecosystem hub) and continuing to identify and assist prospective companies and entrepreneurs in priority business sectors to start and grow new business ventures in the region. Objective 3: Small Business Development Increase collaboration and connection of small businesses in the region, and work to provide needed assistance, training and support to small businesses throughout the region, including the creative economy. Objective 4: Improve the Regulatory Environment Continue to advocate for improved policies and procedures to promote the economic growth of the region over the next five years. Focus on regional permitting processes, cost of doing business, tax structure and a comprehensive energy strategy. South Central Connecticut: CEDS 2013 14 Executive Summary REGIONAL ECONOMIC DEVELOPMENT ACTION AGENDA GOAL 3: BUSINESS DEVELOPMENT & RETENTION (CONTINUED) On a continuing basis, identify and assist in the development of policies, priority clusters and other businesses that capitalize on the region’s diverse strengths and emerging opportunities. Objective 5: Expand Global Opportunities Support and develop new opportunities for business to access expanded markets. GOAL 4: WORKFORCE ENHANCEMENT AND HOUSING Identify, stimulate and, where necessary, coordinate programs, services and initiatives ensuring that the region’s residents have affordable access to the high quality training, education and housing opportunities they desire in order to be a productive member of the region’s workforce. Objective 1: Support Incumbent Worker Training Support the need for additional annual funding, mergers or additional training programs for Incumbent Worker Training, to maintain or exceed the $1,000,000 ($1.82/capita in region) threshold per year. Objective 2: Align Education to Business Growth Work with State to build collaboration among public and private sector partners to engage in discussion of critical school-to-work issues, and grow STEAM (Science, Technology, Engineering, Arts and Mathematics) related education at all levels. Objective 3: Support Community Colleges and High School Technical Programs Meet emerging workforce needs by supporting innovative workforce development efforts at Gateway Community College, Middlesex Community College and area high schools, including priority cluster specific workforce efforts such as manufacturing technology programs. Objective 4: Educate Primary/Secondary Students on Cluster Industries and Entrepreneurship Initiate and utilize regional and state programs to educate primary and secondary students on real world work experience, including updating and introducing curriculum and internships. Objective 5: Retain and Attract Young Professionals Build upon and promote existing regional young professional organizations and work to develop additional programs, policies and mentorships to attract and retain young professionals to the excellent quality of life in the New Haven region. Objective 6: Workforce Housing Improve the amount and diversity of workforce housing by offering design and policy resources to the region’s communities to help them address the region’s critical shortage of housing at price points for middle income families. GOAL 5: REAL ESTATE, LAND USE AND SUSTAINABILITY Assist and support communities in developing and devising local land use policies and regulations that encourage effective and sustainable development, conducive to a livable region. Objective 1: Brownfields & Redevelopment Fund Continue the existing REX Brownfields program and expand funding for assessment and redevelopment by 2017, as well as expanding regional brownfields programs to include additional funding. South Central Connecticut: CEDS 2013 15 Executive Summary REGIONAL ECONOMIC DEVELOPMENT ACTION AGENDA GOAL 5: REAL ESTATE, LAND USE AND SUSTAINABILITY (CONTINUED) Assist and support communities in developing and devising local land use policies and regulations that encourage effective and sustainable development, conducive to a livable region. Objective 2: Transit-Oriented Development & Smart Growth Assist the region’s communities in developing and implementing land-use policies that employ transit-oriented development and Smart Growth principles to meet local challenges and needs. Objective 3: Integrate Arts, Culture and Preservation with Economic Development Promote community and neighborhood revitalization through artistic, cultural or creative policies, to include the reuse of existing sites, buildings or vacant lots for arts and cultural purposes (i.e. temporary public art). Objective 4: Agriculture & Open Space Preservation Encourage growth while maintaining or increasing agricultural production and open space preservation, to include at least 21% of the region’s land area to be preserved as open space by 2017. GOAL 6: FUNDING AND IMPLEMENTATION Secure adequate funding to implement the objectives proposed by this CEDS. Objective 1: Implementation Funding West River Crossing, West Haven Establish a multi-year funding commitment to support implementation of the Goals and Objectives of this Strategic Plan. Objective 2: Implementation Team (s) Develop implementation teams and committees to supervise the implementation progress of these objectives over the next five years. Photo: Courtesy City of West Haven South Central Connecticut: CEDS 2013 16 Success Stories West Haven – West River Crossing/Bulkhead $1 million/DECD and $1 million/EDA for bulkhead repair/remediation with construction nearly complete. Enable the 100 acre West River Crossing project to proceed. Project will result in hundreds of mid- to executive-level jobs for West Haven and the region, as well as scores of temporary construction jobs. New Haven – River Street (MDP) Redevelopment/Bulkhead $1 million of EDA funding for repair of bulkhead toward the redevelopment of River Street. Hamden – Goodrich/Daisy $373,000 in funding to cleanup and remediate an abandoned metal finishing facility – collaborative project with the City of New Haven, created over 20 jobs. Branford – Atlantic Wire $500,000 in funding to cleanup and remediate an abandoned industrial site near center of town– total project $2.8 million creating over 40 new jobs. Brownfield Funding Over the past five years REX has received an additional $600,000 in funding, on top of $2 million in federal and state Brownfield funding. South Central Connecticut: CEDS 2013 17 Introduction: Participation & Process INTRODUCTION Regional Economic Xcelleration (REX) Development, a non-profit economic development organization, identified, assembled and mobilized a diverse group of public, private, business, education, labor, environmental and other community-based participants to update, shape, build support around and help implement a consensus economic strategy for the region as a whole, better known as the Comprehensive Economic Development Strategy (CEDS). REX Development is a public/private economic development organization serving the 15 municipalities of South Central Connecticut, and the economic development corporation of the South Central Regional Council of Governments (SCRCOG). Once known as the Regional Growth Partnership (RGP), as part of implementation of the previous CEDS, and a new marketing strategy and vision of the region, RGP changed its name in 2010 to REX Development. This rebranding represents the re-energized collaborative effort of the economic development strategy implementation. REX Development’s core make-up, however, has not changed still bringing together top business leaders and chief elected officials to address issues facing the region’s economy. REX Development’s Board consists of appointees from the Regional Leadership Council, an organization of leading private sector employers in the region, and chief elected officials of the region’s municipalities appointed by the SCRCOG. 2013 CEDS: BACKGROUND & PURPOSE In January 2003, the U.S. Economic Development Administration (EDA) approved the South Central Region’s first CEDS. As a requirement, the CEDS is amended annually with a comprehensive update once every five years. Subsequently, the 2008 CEDS was completed as the comprehensive five-year update and currently serves as the guiding document for the region. Like the current process, the initial 2003 CEDS and the subsequent five-year update in 2008 brought together the public and private sectors from throughout the region to analyze the strengths and weaknesses of the region’s economy, identify barriers to growth and job creation and propose a regional agenda for overcoming these barriers and promoting economic growth. The resulting CEDS agenda has guided the efforts of REX Development and its regional partners in efforts to develop programmatic and policy initiatives to address the workforce, transportation and land use needs critical to the region’s economy. In the past, the CEDS has served two main purposes. First, it provides an opportunity for the region to come together around a common agenda aimed at promoting economic growth and job creation. The CEDS process is an indispensable tool for identifying key issues and building a base of support for addressing those concerns. Second, maintaining a valid CEDS is a South Central Connecticut: CEDS 2013 infrastructure and planning investments from EDA. This document represents the five-year update for 2013 through year 2017, and as a result, the approved plan is a blueprint towards economic vitality and sustainability for the region. As an update, it is not intended to be a completely new CEDS, but to build upon the information and analysis laid out in the 2003 CEDS and the 2008 CEDS update. The focus of this document is to reflect the economic changes in the region over the last five years, since the completion of the previous five year update in 2008. As a result, certain components of the CEDS will remain unchanged, as over the past five years these parts were deemed as relevant, timely and future focused. Parts, however, have been changed, as the CEDS continues to be a working document driving implementation and positive change. PROCESS The planning process was designed to build consensus around the need to implement a comprehensive, collaborative plan for economic development to strengthen the economy, improve the environment and invigorate the communities throughout the South Central Region. The priority of this process was to develop consensus around a common set of goals that serves the community’s long-term vision and 18 Introduction: Participation & Process encourages broad community participation, engagement and ownership to ensure the plans overall success. As part of this process, REX Development’s Strategic Planning Committee established a vision for the South Central Region as a diverse and desirable place to live, work, play and run a business. This vision, as well as the overarching themes accompanying this report were realized through the outreach process and regional and State plans of development, and are closely calibrated to the six “Livability Principles” recognized by the Federal Partnership for Sustainable Communities. These six principles are: Provide more transportation choices; Promote equitable, affordable housing; Support existing communities; Enhance economic competitiveness; Coordinate policies and leverage investment; Value communities and neighborhoods. These principles are at the core of the defined objectives and were the building blocks in developing the plan. Patents & Job Churning According to the 2010 State New Economy Index by the Kauffman: The Foundation of Entrepreneurship, Connecticut ranks #5 in the U.S. in inventor patents. The same report also ranks Connecticut as #50 in job churning (the number of new startups and business failures combined as a share of total firms in each state.). With 13.75% of patents granted in Connecticut between 2006 and 2010 being awarded to individuals there may be an opportunity to convert more ideas into products to drive economic growth. As the home of Eli Whitney and his cotton gin, history is in our favor. US Patent Office Report South Central Connecticut: CEDS 2013 STRATEGIC PLANNING COMMITTEE REX Development’s Strategic Planning Committee serves as the strategy committee responsible for the ongoing development and updating of the CEDS. This committee represents a diverse cross section of economic interests in the region including the private sector, local governments, colleges/universities, non-profits and private citizens. This public private collaboration is exemplified through the co-chairs of the committee, Roger Joyce, Executive VicePresident of The Bilco Company, and Scott Jackson, Mayor of the Town of Hamden. This committee has met periodically since the development of the 2008 CEDS, overseeing implementation, providing valuable input and guiding the amendment process. In the fall of 2010, the committee began the initial strategy for the 2013 five-year CEDS update. Beginning in February of 2011 and throughout the planning process, the committee met monthly (with a few exceptions) to design the CEDS process, review its findings and develop a concrete plan of action for the region based on these findings (minutes of the meetings can be found in Appendix A). As part of the process, the committee retained Garnet Consulting Services, Inc., a firm with 20 years of national economic development experience, to assist in the public outreach and goal and objective development in order to produce a meaningful CEDS and to meet EDA requirements. Funding for the CEDS process came from a variety of public and private sources. The United States Economic Development Administration provided a planning grant for the 2010-2011 fiscal year that supported the staff capacity required for much of the CEDS process, including support for the consultant. Funding from the Community Foundation for Greater New Haven also supported this work. The rest of the staff time and expenses associated with this CEDS were funded through the ongoing investment of the region’s municipalities and business community in REX Development. The following chart shows the participants of the Strategic Planning Committee. 19 REX Strategic Planning Committee NAME & TITLE AFFILIATION SECTOR Mayor Scott Jackson (CoChair) Town of Hamden Local Government Roger Joyce (Co-Chair) The Bilco Company Business Rick Bassett Southern Connecticut State University Higher Education Peggy Brennan City of Meriden Local Government Tom Cariglio United Illuminating Holdings, LLC Business, Utility Gerald Clark Greater New Haven Business & Professional Association Business Jerry Clupper New Haven Manufacturing Association Industry Mary Ellen Cody Gateway Community College Higher Education Jack Crane CONNSTEP Industry Terry Elton Town of Branford Local Government Dale Kroop Town of Hamden Local Government Ginny Kozlowski REX Development Business Chris LaConte Higher One Finance, Business Barbara Malmberg REX Development/Visit New Haven Business, Arts, Culture & Tourism Tom Marano Northeast Utilities Utilities Sean Moore Greater Meriden Chamber of Commerce Business Ned Moore Department of Economic and Community Development, Connecticut State Government Kelly Murphy City of New Haven Local Government Deborah Nason C4sb.com, Business Journalist Professions, Private Citizen Bob Polito Webster Bank Finance, Business David Rackey Management Consultant (retired) Professions, Private Citizen Christine Reardon Workforce Alliance Workforce Development Tony Rescigno Greater New Haven Chamber of Commerce Business Will Warren REX Development Business Carla Weil Greater New Haven Community Loan Fund Community Organization, Finance Marna Wilbur Assa Abloy Industry Lauren Zucker Yale University Properties Business, Retail Carl Amento South Central Regional COG Local Government South Central Connecticut: CEDS 2013 20 Introduction: Participation & Process REGIONAL ANALYSIS In a joint effort, REX Development and the South Central Regional Council of Governments conducted a thorough demographic and economic analysis of the region over the past five years (as can be seen in Part II of this document). Unlike the previous CEDS, the Strategic Planning Committee concluded for this CEDS that the analysis study could be done in house. The resulting research provided a foundation for discussions, outreach and decisions throughout the process, and a firm basis for the actions proposed by this plan. OUTREACH The outreach portion of the CEDS process was a major priority of the Strategic Planning Committee during the 2013 update. In order to ensure maximum input, public participation was a central element to the development of the plan. As a cornerstone to the process, the six-month outreach period spanning from September 2012 through February 2013, helped to guide and mold the plan and develop its consensus vision. Input was solicited from hundreds of individual stakeholders, representing the public at large, municipal officials, business leaders, and members of non-profit and public interest groups. The feedback garnered through this solicitation process was used to shape, refine and continuously advance the CEDS from a previous outline to a new five-year update and a consensus driven blueprint for economic development. This effort included four components: municipal meetings, focus group meetings, individual business interviews and a web focused survey. Municipal Meetings were sponsored by REX in all 15 municipalities in the region to give members of the public, municipal officials and local business leaders an opportunity to share their concerns about the economy in their respective municipality and the region as a whole. These meetings were structured around the request of the municipal officials and were publicized through social media, press releases to local newspapers and invitations to members of municipal boards and commissions. The format of the municipal meetings began with South Central Connecticut: CEDS 2013 REX Development staff and members of the Strategic Planning Committee presenting an overview of the CEDS process along with local and regional economic data to build a foundation around the regional discussion that followed. The discussion, facilitated by the consultants and REX Development staff, centered around the strengths and weaknesses of the local and regional economy and the vision going forward. All issues raised were recorded by REX Development staff and can be found in the minutes of each meeting in Appendix A. As previously described, this input provided the building blocks for the development of the plan. Focus Group Meetings were strategized through various Strategic Planning Committee meetings. There were a core number of focus groups that were determined to be of importance to the overall plan, including groups pertaining to Young Professionals, Manufacturing, Arts, Innovation and Technology, Tourism and Education. These regional and state-wide meetings were either held or attended by REX Development staff. The important information gathered from these various focus group meetings were also imperative to the development of the plan and the overall success of the implementation. In addition to these sector based focus group meetings, REX Development communicated with its municipal and private sector partners to solicit their input to the CEDS process. In September of 2012, REX Development dedicated a session of the Regional Economic Development Forum (REDFO) to the CEDS process. This monthly meeting of municipal economic development professionals, chamber executives and others involved in economic development in the region provided the opportunity for those involved with development on a daily basis to contribute their insights towards the plan development. The committee also sought the input of the Regional Leadership Council (RLC) and South Central Regional Council of Governments (SCRCOG) while developing the regional goals and objectives. REX Development staff met with each group individually, as well as the REX Development Board to discuss the findings of the CEDS process and to give them the opportunity to share their insights and priorities. 21 Introduction: Participation & Process Individual Business Interviews were conducted by a member of the Strategic Planning Committee, Dave Rackey. Mr. Rackey performed a series of personal interviews with local business executives to capture their insights on the region’s economy and to provide a complement to the public information gathered. A majority of the interviews focused around small companies that are not permanently tied to this region. The resulting insight garnered through this process allowed the committee to further understand the advantages and disadvantages for companies looking to locate or expand in the region. Mr. Rackey’s business report, can be found in full in Appendix D. A Web-Focused Survey was implemented for the current CEDS update process in order to give any and all individual stakeholders in the region the opportunity to provide insight on the economic vision for the region. Published on the REX Development website, this survey focused on the municipal meeting discussions and allowed for anyone not able to attend the meetings to provide additional input. GOAL DEVELOPMENT Concluding the public outreach process, REX Development staff compiled the findings to determine the key issues affecting the region over the course of the past five years. Although many issues were raised throughout the process, the overwhelmingly consistent regional issues that were heard were grouped into four representative categories: Regionalism Municipality versus County System Coordination of Regional Efforts Shared Services at a Regional Level Workforce Disconnect with Educational Institutions Logistical Issues Matching Open Jobs with Qualified Candidates Available Jobs Not Matching Resident Skill Sets South Central Connecticut: CEDS 2013 Transportation and Land Use Lack of Developable Land Brownfields Lacking East/West Bus Routes Maximize ROI of NHHS Rail Project TWEED Competitiveness Port Opportunities Business Costs Utilities Taxes Healthcare Regulations Considering the relevancy, timeliness and future focused value of the 2008 CEDS, these four areas were the building blocks for the committee’s review and redevelopment of the regional goals, objectives and processes in the 2013 update. In redeveloping the goals and agenda over the next five years, and considering the economic changes over the last five years, the committee evaluated all input gathered throughout the outreach process and utilized the core competency areas described above to further develop the goals and objectives for the next five years. Although six goals still remained as the centerpiece for the resulting strategy, the goals were revamped to encompass the changing economic environment of the South Central Region. The resulting six goals were: 1. Regional Marketing, Communications and Advocacy 2. Infrastructure 3. Business Development and Retention 4. Workforce Enhancement and Housing 5. Real Estate, Land Use and Sustainability 6. Funding and Implementation 22 Introduction: Participation & Process As a newly envisioned component to the current CEDS, the objectives were transformed through committee discussion into a more realistic and broad based embodiment of what was heard throughout the outreach process. The committee realized the challenges of implementing the past CEDS and focused more on establishing a working document where objectives could be achieved through constant discussion and leadership. A resulting component of these newly envisioned objectives were a short list of achievable action items that could be introduced over the next year, and more importantly, revamped or developed on a continuing basis. Newly developed performance measures were also determined for each objective in order to provide a highly objective, measurable method of accountability. The measures of progress were put in place to quantitatively evaluate progress over time. They can be found for public viewing on REX’s website. This new structure will allow the CEDS working document to be just that, a working plan that will continue to be analyzed, reevaluated and updated on an annual basis. The current goals and objectives were recognized as the most urgent priorities in order to steer the region towards economic vitality and sustainability well into the 21st century, yet broad enough to be evaluated and changed with the changing economy. identified to process, lead implementers were identified to champion the successful implementation. A lead implementer is associated with each objective, and a supporting implementation team, many of which were participants during the outreach sessions, has been identified for implementing these strategies in the years ahead. REX Development established a Memorandum of Understanding (MOU) with the lead implementer for each objective. These formal MOUs suggest the lead implementer will provide leadership and acknowledge commitment towards progress of the objective, to include at least two annual meetings with the group to discuss progress, identify and modify suggested short-term and long-term strategies and measure performance for each objective. It is the goal that this process will establish a team of champions around a single focused agenda item. These champions have been identified to avoid overlap of purpose and to build support from the entire region. The MOU can be found in Appendix C following this report. IMPLEMENTATION As previously described, it was realized throughout the CEDS process that the implementation of the past CEDS was challenging at best. With this realization, the implementation of this CEDS document became a priority for the committee. Multiple discussions took place over the course of the process on how best to not only improve implementation of the plan, but to raise awareness after completion and build buy-in to make the plan dynamic, purposeful and relevant versus one that merely “sits on the shelf.” As a result of the outreach process, one of the main objectives proposed was the need for regional collaboration. In an effort to achieve more efficient and effective collaboration, the implementation process has been updated significantly. Upon recognition of the goals and objectives throughout the process, South Central Connecticut: determined CEDS 2013 lead implementers were 23 Introduction: Participation & Process PUBLIC COMMENT/APPROVAL A full draft of this CEDS was completed May of 2013 and reviewed and edited by the Strategic Planning Committee. It was approved by the committee at the May 2013 Strategic Planning Committee meeting. A 30-day comment period followed in accordance with EDA regulations. This period gave the public the opportunity to review the draft CEDS and to offer feedback and propose changes for consideration by the committee. The draft CEDS was made widely available to the public and was publicized in a number of ways including: 1. Draft posted on REX Development website; and citizens. In June 2013, the CEDS update was submitted to the United States Economic Development Administration for final approval. OUTREACH COMMENT Municipalities without full-time Economic Development staff would like to learn best practices from other ED leaders in the region. 2. Email notice sent to all public outreach meeting attendees, municipal economic development officials, chambers of commerce, relevant non-profit groups and REX Development board members; 3. Hard copies sent to all chief elected officials; 4. Notices placed in regional newspapers; and 5. Press releases. All comments received through this process were collected and distributed to the committee. The effective comments were then incorporated into the plan and a final draft was produced for approval. The final draft of the CEDS update was reviewed and approved by the REX Development Board, the fifteen chief elected officials of the South Central Regional Council of Governments, and the Regional Leadership Council. These three approvals are the primary representation of REX Development and reflective of widespread consensus by the public and private sectors in the region. These approvals recognized that this CEDS update accurately depicts the state of the region’s economy, presents a legitimate and broadly supported agenda for addressing the region’s economic needs, and was completed through an inclusive process that sought the input of a widely representative cross section of the region’s interests South Central Connecticut: CEDS 2013 OUTREACH COMMENT Business attraction needs to respect the importance of current high quality of life to the residents. OUTREACH COMMENT The potential for shared services among the municipalities is an idea worth exploring. 24 SWOT Analysis An important part of developing the framework for the CEDS was conducting outreach and a SWOT – strengths, weaknesses, opportunities and threats – analysis of the region. Throughout the outreach process to regional entities, more than 200 individuals participated in meetings conducted in each municipality and special focus groups. Participants included individuals from the private sector, public sector, non-profits, universities and community colleges, local chambers, economic development professionals and residents. In the outreach meetings participants were engaged in a dialogue from a set of five key questions: 1. What is your vision of economic development in (your community) and the region in the next 5 years? Do you see these visions as complementary or divergent? 2. What are the key components to economic development in (your community) and the region? Strengths Weaknesses Obstacles 3. What roles do you see for the public and private sectors in promoting economic development? Opportunities Limitations 4. What measurements are true indicators of economic growth or decline? 5. How can we all work together to make the region more competitive? The following were the themes heard throughout these outreach meetings. In addition to the outreach meetings, a SWOT analysis was also conducted on the Strategic Planning Committee. This resulted in defining strengths, weaknesses, opportunities and threats for the entire region, broken down into 15 categories. The categories were: Location and Access to Markets; Transportation; Infrastructure; Workforce; Education; Industry Sector/Cluster; Business Climate; Housing; Government; Taxes/Fees; Available Sites and Buildings; Financing/Incentives; Quality of Life; Image and Visibility; and Regionalism/Cooperation. The complete SWOT analysis can be found in Part II of this document. South Central Connecticut: CEDS 2013 25 Regional Vision Statement The South Central Connecticut Region of 2033 will be widely recognized as a diverse and desirable place to live, work, play, and run a business because of its: outstanding quality of life; strong economy and extensive employment opportunities served by effective transportation and communication infrastructure; innovative and entrepreneurial character of its residents and businesses; cost-effective and well-managed local governments; and leadership in demonstrating regional pride, cooperation, and problem-solving. South Central Connecticut: CEDS 2013 26 Clusters Prospects Clusters are generally defined as geographic concentrations of interconnected businesses and supporting organizations. An industry cluster is different from the classic definition of industry sectors because it represents the entire value chain of a broadly defined industry from suppliers to end products, including supporting services and specialized infrastructure. Cluster industries are geographically concentrated and inter-connected by the flow of goods and services, which is stronger than the flow linking them to the rest of the economy. A primary characteristic of a cluster is its capacity to export goods and services outside of the region. Such “traded sectors” are critical to driving regional economic growth because they bring in new sales and investment dollars that are recirculated throughout the economy. The net result of this process is regional economic growth and an improved standard of living. Overall the South Central regional economy is diverse, with no one sector making up over 19.0% of employment in the region. The priority clusters in the region are also fairly diversified. As the below chart displays, the priority clusters, determined through cluster research and by the strategic planning committee, make up 45.1% of overall employment in the region. The nine areas of focus identified are: Advanced Materials, Advanced Manufacturing, Agribusiness/ Agribioscience, Arts and Tourism, Biomedical/Life Sciences, Business and Financial Services, *Green Technology, *Healthcare and Higher Education and Knowledge Creation. Figure 2: Total Employment South Central Connecticut: CEDS 2013 Figure 3: Individual Clusters as Share of Cluster Employment . Why These Clusters? The 2003 CEDS update identified five major industries that then drove the region’s economy: education, manufacturing, biosciences, arts and creativity and logistics. The 2006 annual report eliminated logistics as an identified cluster, choosing instead to consider these jobs as part of the regional infrastructure needed to support all of the other industries. The 2008 CEDS update continued to support the remaining four industries, together with the region’s medical institutions, as the backbone of the region’s economy. The identified clusters of focus in 2008 were: Advanced Manufacturing; Biosciences; Creativity, Arts and Tourism; Higher Education; Healthcare; Sustainable Industries; and Agriculture. In this updated strategy, 9 clusters have been identified in the region for specific focus. A combination of factors was considered when identifying these regional clusters, including: Employment Size, Annual Wage, Employment Dynamism (how much and how quickly a cluster is changing), Location Quotient (concentration of employment in the region relative to the United States) and Comparative Advantage. In addition to these quantitative factors, there were other qualitative factors that were discussed by the committee in deciding upon areas of focus. Some of the additional qualitative factors were: State Priority, Multiplier Effect and Export Potential. 27 Clusters Prospects Many of the clusters remained the same, some are new, and some of the cluster definitions have been modified based on a better understanding of the clusters and the dynamics of the regional economy. For example, agriculture has been modified to agribusiness to better define the region’s opportunities for manufacturing and food production. A complete cluster analysis can be found in Part II of this strategy. CLUSTERS OVERLAP It’s important to note that there is much overlap among industries that isn’t captured in the analysis. For example, while advanced manufacturing is viewed as a stand-alone industry cluster, it can be seen throughout almost all of the focus areas. The healthcare cluster is also an industry that can be seen throughout other focus areas. While the healthcare sector is not identified in the analysis as a cluster, it is a major economic driver in the region, and its influence is seen in a number of clusters, particularly the biomedical and life sciences cluster, which is the largest cluster in the region. ECONOMIC MAKE-UP The cluster analysis gave a clear picture of the changing shape of the South Central regional economy. Over the course of the last five years, only two industry clusters grew in employment in the region: Biomedical/Life Sciences and Education and Knowledge Creation. Considering the effects of the recession on the region, this is not all that unexpected, as Healthcare and Higher Education have long been economic drivers in the region. The priority areas were broken down into areas of overall performance, based on their comparative advantage and effects on the region, as well as distinguishing between the clusters and economic drivers in the region. The analysis allowed the committee to break down the priority areas as follows. Primary economic drivers Healthcare Higher Education South Central Connecticut: CEDS 2013 Key Growth Clusters Advanced Manufacturing Advanced Materials Biomedical/Life Sciences Relevant Clusters (declining) Arts, Entertainment & Tourism Business & Financial Services (Professional) Emerging Clusters Agribusiness/Agribioscience Green Technology Important Point Although not stated as specific clusters, technology, creativity and innovation are key economic engines in the South Central Connecticut Region. All of the priority focus areas are affected by the innovative and productive economy of the region. Technology + Creativity = Innovation New Haven and the surrounding region serve as the creative capital of Connecticut, boasting world class universities, research and development, design and creative talent. Connecticut has consistently been ranked as one of the top five states for being an innovation based new economy, according to the Kauffman New Economy Index, with the South Central Region being among the leaders in the State. The recent creation of the innovation ecosystem throughout the State, with an innovation “Hub” centered in New Haven, has given the region a controlled environment to further innovation and technological growth. This has led the States venture capital funding authority, Connecticut Innovations, to make significant contributions to new and existing ventures in the region, just last month investing $950,000, making 40% of its total investment portfolio in the South Central Region. The creativity, innovation and technological presence in the region have been key to economic growth and will continue to be a focus of the economic development efforts in South Central Connecticut. 28 Clusters Prospects PRIMARY ECONOMIC DRIVERS Figure 4: Healthcare *(sector) Healthcare Although not recognized as a true cluster, the healthcare sector is one of the primary economic drivers in the region, and its presence can be seen through a number of the other priority clusters in the region. The recent merger of YaleNew Haven Hospital and the Hospital of St. Raphael’s has made the new Yale-New Haven Hospital one of the biggest in the nation, hosting over 1,500 beds and employing over 12,000 people in the region. The Veterans Affairs Connecticut Healthcare System and Mid-State Medical Center also are among the top employers in the region. Although not necessarily an industry sector that the region will focus on recruitment of new hospitals, these facilities generally expand as needed to meet the needs of the region’s population. Yale-New Haven Hospital has just opened a new facility in the adjacent town of West Haven, known as Yale-New Haven West Campus, and its footprint can be seen throughout the region in outpatient care facilities. The region is also soon to be home to two medical schools, with Quinnipiac University slated to open its new medical school in the fall of 2014. Table 1 : Snapshot of Cluster Dynamics—Healthcare Employment (2011) 46,672 Loca on Quo ent (U.S. = 1.0) 1.44 Establishments (2010) N/A Loca on Quo ent (U.S. = 1.0) Wages (Annual) N/A $47,161 Healthcare was one of two sectors in the region that saw significant growth in employment over the last five years, employing over 46,000 people in 2011. In fact, 10 of the top 15 projected fastest growing occupations in the South Central Connecticut region are predicted to be in the Healthcare sector. With the world class university system throughout the region and a strong research and development presence, the medical and diagnostic laboratory sub-sector is one of the highest concentrated in terms of employment when compared to the nation. The healthcare sector continues to be a strong driver of overall economic growth in the region, and is projected to be that way for many years to come. Major Employers: Yale-New Haven Healthcare System; Veterans Affairs Connecticut Healthcare System; Mid-State Medical Center South Central Connecticut: CEDS 2013 29 Clusters Prospects YALE-NEW HAVEN HOSPITAL Opening a new cancer hospital, acquiring a major hospital and opening a new outpatient center are just a few of the major accomplishments of Yale-New Haven Hospital (YNHH). Consistently named as a top hospital by U.S. News & World Report's annual "Best Hospitals" rankings, YNHH is the largest provider of healthcare in Connecticut. According to the 2012 YNHHS Annual Report, the hospital reported: 1541 total licensed beds 61,958 inpatient discharges 775, 085 outpatient encounters 11,512 employees MILESTONES In the fall of 2009, Smilow Cancer Hospital opened its 15 story, 500,000 square foot state-of-the-art facility, on time and under budget. The hospital provides personalized, integrated, multi-disciplinary care to cancer patients. Founded by the Sisters of Charity Saint Elizabeth in 1907, the Hospital of St. Raphael has served the greater New Haven area with distinction. While providing top quality care, the hospital was also in financial distress. In 2012, YNHH obtained approval from the Federal Trade Commission, Connecticut attorney general, the Connecticut Office of Health Care Access and the Vatican to acquire the hospital. With 1,541 beds, YNHH is now the 4th largest hospital in the U.S. In 2013, YNHH opened an ambulatory care center in North Haven. The centerpiece of the facility is a walk-in/primary care center to provide comprehensive medical services from injury care to management of chronic conditions, on either a scheduled or walk-in basis. The center will be open seven days a week. In addition, the building includes a Smilow Cancer Hospital Care Center for outpatient medical and hematological care for cancer patients and an Inflammatory Disease Center for patients with multiple sclerosis, rheumatoid arthritis and related disorders. South Central Connecticut: CEDS 2013 30 Clusters Prospects Higher Education Like healthcare, higher education, while not a cluster in the formal sense, remains one of the primary drivers of the region’s economy. The region is host to eight colleges and universities and has the ability to create opportunities with a well-educated workforce and a home for innovation. These schools, collectively, provide thousands of jobs and bring millions of dollars into the region each year through tuition, research funding and discretionary spending by students, families and guests. Yale, a world-renowned university, provides over 8,000 jobs, making it one of the largest employers in the region. Yale’s operating budget is now over $2 billion. A recent example of a major investment in the region was the opening of the new Gateway Community College campus in downtown New Haven. In addition to the direct contribution to the regional economy through employment, purchases and capital expenditures, these institutions serve as engines for new business development. Yale specifically, has offices primarily concerned with commercializing their researcher’s accomplishments. The regional universities also have entrepreneurial acceleration groups to allow students to capitalize on entrepreneurial efforts. Education was the other sector that saw significant growth over the last five years, and only one of two identified clusters that grew at all. The education and knowledge creation cluster employs over 26,000 individuals in the region, and while the jobs don’t receive the highest annual wage in the region, the education sub-sector of education, training and library is predicted to be the fastest growing occupation over the next 10 years in the South Central Connecticut region. Major Employers: Albertus Magnus College, Gateway Community College, Middlesex Community College, Paier College of Art, Quinnipiac University, Southern Connecticut State University, University of New Haven, Yale University South Central Connecticut: CEDS 2013 Figure 5: Educa on & Knowledge Crea on* (cluster that includes higher educa on) Table 2: Snapshot of Cluster Dynamics—Educa on & Knowledge Crea on Employment (2010) Loca on Quo ent (U.S. = 1.0) 26,256 1.98 Establishments (2010) 386 Loca on Quo ent (U.S. = 1.0) 1.26 Wages (Annual) $55,155 Yale West Campus In November of 2006, Bayer Healthcare announced it was leaving its West Haven/Orange location. With 136 acres and almost 3,000 employees, Bayer had once been a major employer in the region. An effort to recruit another pharmaceutical company failed to yield results. In 2007, Yale University in turn and purchased the entire complex, including 17 buildings. The campus featured 450,000 sq. feet of state-of-theart lab space. Conveniently located near I-95 and the planned West Haven and Orange train stations, the facility is now home to the School of Nursing, High Through-Put Cell Biology, Small Molecule Discovery Center, Yale Center for Genomic Analysis and High Performance Computing departments. The sciences are also being put to good use for the arts here. With the Center for Conservation and Preservation and Yale Digital Collections Center(YDC2) on the premises, the University’s vast collection is being preserved, cataloged and digitized for future generations. 31 Clusters Prospects KEY GROWTH CLUSTERS Figure 6: Manufacturing Advanced Manufacturing Manufacturing has long been a critical component of the state and regional economy. Like most of the Northeast and older industrialized portions of the country, the South Central Connecticut region saw a steady decline in employment in the manufacturing sector in the second half of the century, including the last five years. Despite the decline in manufacturing overall, advanced manufacturing is still a strong part of the region’s economy. Unlike manufacturers of earlier generations, these companies are generally small companies that produce highly specialized products. They employ highly skilled workers and utilize advanced technology to manufacture high value-added, precision products. Although this cluster is identified as a supercluster and consists of primary metal; fabricated metal product; machinery; computer and electronic product; electrical equipment, appliance and component; and transportation manufacturing, advanced manufacturing as a whole can be seen throughout almost all of the identified clusters, including defense, biomedical/life sciences, and advanced materials, three of the top clusters by employment in the region. Table 3: Snapshot of Cluster Dynamics—Manufacturing Employment (2010) 19,090 Loca on Quo ent (U.S. = 1.0) 1.31 Establishments (2010) 703 Loca on Quo ent (U.S. = 1.0) 2.11 Wages (Annual) $64,227 The manufacturing supercluster employs almost 20,000 people in the region; however, the sector employs almost 25,000 and the state almost 170,000. Although the manufacturing cluster doesn’t employ the most people in the region, its economic impact is disproportionate to its size. For example, the retail sector’s, which employs roughly the same number of employs as manufacturing, average annual wage is almost three times less than manufacturing. In addition, the manufacturing supercluster has the highest basic multiplier than any other cluster in the region, exporting significantly more product than any other cluster in the region. Major Employers: Sargent Manufacturing Co./Assa Abloy, Amphenol Corp., Neopost USA, Thermo Spas Inc. South Central Connecticut: CEDS 2013 32 Clusters Prospects Advanced Materials This is a new cluster of focus for the region, separating itself from advanced manufacturing due to the importance and strength of its industry sectors. While the name “Advanced Materials” is general and could pertain to a wide variety of products, this cluster is comprised of a number of distinct areas of strength in the region’s economy: Metal Working and Fabrication; Pharmaceutical and Medical; Basic Chemical; Electronic Component; Rubber and Plastics. With nearly 20,000 regional employees working in the Advanced Materials industry, this cluster is one of the strongest in the area. Like with any geographically concentrated industry cluster, there are unique local assets and innovation capacities which make this region a good fit for Advanced Materials. It is thus important for the region to support and build upon these capacities. Employees in the advanced materials space receive the third highest annual wage of any identified cluster in the region, just behind business and financial services and defense and security. Although employment in advanced materials decreased slightly over the past five years, when compared to the nation, it’s concentration (location quotient) increased by 2.0% over this same time period, making the advanced materials cluster one of the “star” clusters in the region (as can be seen in the cluster analysis in part II). In addition to the two main economic drivers, healthcare and education, and the manufacturing cluster, advanced materials has been one of the strongest performing clusters in the region over the last five years and through the recessionary period. South Central Connecticut: CEDS 2013 Figure 7: Advanced Materials Table 4: Snapshot of Cluster Dynamics—Advanced Materials Employment (2010) 19,895 Loca on Quo ent (U.S. = 1.0) 1.56 Establishments (2010) 707 Loca on Quo ent (U.S. = 1.0) Wages (Annual) 2.00 $71,787 33 Clusters Prospects Biomedical/Life Sciences Like Advanced Materials, “Biosciences” is a general term that can pertain to a great number of things, all of which share the common link of biology-inspired, life-enhancing products and processes. Connecticut is home to 49 bioscience companies, with 30+ located in the Greater New Haven region. Anchored by scientific research at Yale, the region’s bioscience cluster includes both large pharmaceutical companies and small startups, developing new drugs, therapies and medical devices. These businesses often tend to feed from the research and innovation ties with higher learning institutions, chemical manufacturing (e.g. pharmaceuticals) and healthcare (medical research). With a state wide priority focus on biosciences, the South Central Connecticut region is ground zero for biosciences infrastructure of skilled scientists, technicians, lab space, plus a supplier network for everything from rubber gloves to medical-waste disposal. Much of the lab space is in proximity to Yale, the epicenter of pharmacological and medical research in Connecticut. These include Science Park, New Haven's oldest lab-incubator complex and Yale's 136-acre bioscience park, as well as 300 George St., a one-time phone company building converted to office-lab space now teeming with bioscience tenants. The biomedical and life sciences cluster by far employs the most people in the region, making up almost 17% of the overall employment. Because of the strong healthcare and university presence in the region, it is one of only two clusters identified in the cluster analysis that gained employment over the past five years. While the concentration of employment, when compared to the nation, decreased slightly over the past five years, it is significantly still more concentrated than the nation, is one of the top performing clusters in the region and is a major focus of not only the region but the State. Major Employers: Covidien Surgical Devices, CAS Medical Systems, Ikonis Inc., Defibtech LLC, Warner Instruments, Z-Medica Corp. South Central Connecticut: CEDS 2013 Figure 8: Biomedical/Life Sciences Table 5: Snapshot of Cluster Dynamics—Biomedical/Life Sciences Employment (2010) 58,089 Loca on Quo ent (U.S. = 1.0) Establishments (2010) 1,021 Loca on Quo ent (U.S. = 1.0) Wages (Annual) 1.53 1.29 $53,107 State of Connecticut’s First Fifteen First Fifteen, implemented in 2011 by Governor Dannel Malloy and the Department of Economic and Community Development, is a program that provides incentives to the first fifteen (originally five) businesses that each bring a minimum of 200 new full-time jobs to the state within the next 2 years or invest at least $25 million and create at least 200 jobs within five years. In addition, these businesses would continue to receive credits for each net new job created above 200, increasing the potential for thousands of jobs in the state. Our region’s first was Alexion Pharmaceuticals which is returning to its New Haven roots with a new headquarters to be completed in 2015. The facility is expected to create 200-300 new jobs. 34 Clusters Prospects RELEVANT CLUSTERS (DECLINING) Figure 9: Arts, Entertainment & Tourism Arts, Entertainment & Tourism Tourism is an export-oriented cluster in that goods and services are primarily sold to tourists from outside the region rather than residents. In addition, most sales and other taxes paid by tourists remain and help fund public services and infrastructure. In a sense, the tourism cluster is both benefited by, and provides benefits to, all other industry clusters. The arts and entertainment industries have made New Haven the “creative capital” of the State of Connecticut, building upon the abundant cultural diversities in the core urban city and utilizing the assets of the creative economy in the region. The percentage of businesses in the region that are “arts centric” is 4.49% compared to the national average of 2.52%. This creative industry has generated significant new employment opportunities and contributed directly to the economic growth of the region. While the employment and concentration in this cluster is relatively low compared to the nation, the overall economic impact of this cluster is hard to determine through just employment. The South Central Connecticut region is a major destination for tourism in the State, generating a significant amount of economic activity and supporting jobs outside of the sector. Over the last five years the State has shifted the importance from marketing the State from a once budget of $1, to now budgeting over $15 million to promote the many attractions the State has to offer. Arts, Entertainment and Tourism will remain a crucial driving force in the regional economy and must be promoted vigorously. As suggested, the full impact of this cluster is closely linked to nearly every other sector discussed in the CEDS and must be understood in that larger context. Table 6: Snapshot of Cluster Dynamics—Arts, Culture & Tourism Employment (2010) 7,606 Loca on Quo ent (U.S. = 1.0) 0.55 Establishments (2010) 522 Loca on Quo ent (U.S. = 1.0) 0.80 Wages (Annual) $27,464 Marketing the Region as a Tourist Destination Each year, REX Development and the Arts Council of Greater New Haven partner to create the Greater New Haven Cultural & Visitors Guide. The guide is used by locals and visitors alike to find attractions, events, restaurant, shops and hotels. Local distribution includes all hotels, motels and B&Bs in the region, major attractions, town halls and libraries, train stations, Connecticut Welcome Centers and AAA office through the northeast and mid-west. In addition, guides are sent to individuals requesting information about the region. In total 80,000 guides are distributed annually and an interactive version of the Greater New Haven Cultural & Visitors Guide is available on the visitNewHaven.com website. Major Employers: Yale University Art Gallery, Yale Center for British Art, Yale Peabody Museum, Long Wharf Theatre, Shubert Theater South Central Connecticut: CEDS 2013 35 Clusters Prospects Business & Financial Services (Professional) The professional services cluster has been newly identified as a focus area in this update. The Business & Professional Services cluster includes all accounting, auditing, bookkeeping, and tax filing services; credit reporting and collection services; holding companies; and investment offices (not including banks or brokers). Additional business services included are in real estate leasing and operations, advertising services, photography, and employment and temporary help agencies. Professional services include legal, engineering, architectural and surveying, commercial training, management consulting, research, public relations, and business consulting. While these are the broad areas of the cluster, when broken down into sub-sectors the scientific and technical services are one of the top 5 sub-sectors in the region by employment. The architectural services sub-sector is also a burgeoning community anchored by the Yale School of Architecture, whose faculty and graduates continue to leave their mark on cityscapes worldwide. There are nearly 75 architectural firms doing business in New Haven alone, an industry employing nearly 500 people and exporting work worldwide. Figure 10: Business & Financial Services (Professional) Table 7: Snapshot of Cluster Dynamics— Business & Financial Services (Professional) Employment (2010) Loca on Quo ent (U.S. = 1.0) Establishments (2010) Loca on Quo ent (U.S. = 1.0) Wages (Annual) 22,248 0.73 3,221 0.91 $83,622 Almost 85% of the region’s economy is service oriented, slightly above the national average. Although it is a focus to return to a more goods producing economy, it has become increasingly important to build upon the current assets that the region provides. With a little over 22,000 people employed in this industry cluster, it is one of the largest clusters in the region and one of the highest average annual wages of any cluster. While the employment has dropped 11.1% over the course of the last five years, and the concentration has decreased compared to the nation, it has become increasingly imperative to focus strategic efforts on an industry cluster that has a solid foundation in the region. South Central Connecticut: CEDS 2013 36 Clusters Prospects EMERGING CLUSTERS Figure 11: Agribusiness/Agribioscience Agribusiness/Agribioscience In the previous CEDS agriculture was identified as an emerging cluster, recognizing the vast array of farms and agricultural activity in the region. While the farming network was clearly identified, it was also suggested that agricultural business owners needed more small business assistance and counseling. Over the last five years it has become increasingly apparent that the region is not only positioned to be an agricultural community, but a business community among agricultural experts, including food processing, manufacturing and scientific research. While the region is relatively small in this field, compared to other regions and the nation, it is a cluster that has become increasingly in demand among local residents. With a large market area for production of goods, food processing has become a topic of interest in the region. For example, New Haven has recently submitted a proposal to open a food processing incubator in the upcoming year, to fulfill a demand among area experts and accelerate potential agricultural business in the region. The region is also home to the State Agricultural Experiment Station to develop, advance, and disseminate scientific knowledge, improve agricultural productivity and environmental quality, protect plants, and enhance human health and well-being through research for the benefit of Connecticut residents and the nation. Directly affiliated with Yale University, this State agency is the first of its kind in the nation. Major Employers: Green Life Guides, P2 Science. RPM Sustainable Technologies, Bishop's Orchards & Winery, CitySeed, Robert Treat Farm, Gouveia Vineyards, Paradise Hills Vineyard and Winery South Central Connecticut: CEDS 2013 Table 8: Snapshot of Cluster Dynamics— Agribusiness/Agribioscience Employment (2010) 2,898 Loca on Quo ent (U.S. = 1.0) 0.35 Establishments (2010) 131 Loca on Quo ent (U.S. = 1.0) 0.39 Wages (Annual) $34,444 Green Technology Although the name of the cluster has changed since the last CEDS update, the industry remains the same, focusing on renewable and environmentally sensitive products and services. Every year the Connecticut Energy Efficiency Fund and the Connecticut Clean Energy Fund invest millions of dollars in conservation and renewable generation. This stable base of funding has created a ripe environment for clean energy and technology companies to thrive. A recent study estimates Connecticut's Green Workforce to be nearly 12,000 employees. Continued investment and a pro-green regulatory environment will help these companies to keep growing in the state. As suggested in the previous CEDS, there continues to be a small cluster of diverse businesses engaged in the production and distribution of sustainable products and services, emerging in the South Central region. With the emergence of this new cluster making a foundation in the region, it will continue to be an area of priority focus for South Central Connecticut. 37 Action Plan GOALS & OBJECTIVES In an effort to increase regional collaboration and reduce duplication of services throughout the region, a new implementation process for the 2013 update has been envisioned. As the previous CEDS recognized, the heart of the CEDS is the regional action agenda. This remains true in the five-year update with an emphasis on regional collaboration and implementation. Similar to the 2008 CEDS update, the new agenda recognizes six major goals for the area to focus its economic development efforts. Over the course of the update process the strategic planning committee refined the past goals, recognizing the changes in the regional and national economy and the current economic development priorities for the region. The six goals are: Regional Marketing, Communications and Advocacy Infrastructure Business Development and Retention Workforce Enhancement and Housing Real Estate, Land Use and Sustainability Funding and Implementation As an update to the changing economy, the strategic planning committee revised the goal statements to better align with the current economic structure and priorities. The programmatic and policy initiatives, or objectives, were also refined to help the region realize its goals. Evaluation New to the five-year update is an evaluation of the performance of the policies and an implementation strategy to encompass involvement from the whole region. Through the planning process, the Strategic Planning Committee realized the importance of measuring the performance of the overall strategy. In an effort to increase transparency and effectiveness of the plan, a comprehensive evaluation strategy was developed by the committee. This process includes the establishment of implementation teams around each objective, output and efficiency measurements around the stated objectives, overall goal outcome indicators to show the progress (or lack thereof) of the entire region, and assessment of short term strategies or plans of action. The idea is for the implementation teams to champion a specific objective, continually updating strategies and measurements when needed, and working towards the effective implementation. This strategy will allow each team to have a specific focus and continually work to update and revise the agenda as needed, making the plan truly a working document. As the economy changes the working groups will have the opportunity to envision needed changes for the most effective outcome for the current economic environment. “Thevalueofanidealiesintheusingofit.”ThomasEdison Lead Implementers The Lead Implementers will be the champions of the implementation teams, driving the agenda and organizing the teams to continue to develop action items, measure success and delineate performance based timelines. The Lead Implementer will also be tasked to represent the team at quarterly Strategic Planning Meetings to report on the success of the specific objective. The duties and tasks of the lead implementer are outlined in a Memorandum of Understanding (MOU), attached as an appendix to this plan. Upon signing of the MOU and acceptance of the responsibilities, the lead will work with the team to achieve the suggested agenda and provide modifications or additions to the agenda items as deemed necessary. Many of the lead implementers were volunteers from the stakeholders present at the public forums during the outreach process. The following are the roles and responsibilities among the parties outlined in the MOU: South Central Connecticut: CEDS 2013 38 Action Plan REX Development and the Strategic Planning Committee will administer and keep current the Comprehensive Economic Development Strategy. REX Development will submit an annual update of the CEDS to the U.S. Economic Development Administration (EDA), and submit an overall update every five years, unless circumstances arise that lead to a change in development. GOALS & OBJECTIVES MEMORANDUM OF UNDERSTANDING Implementation Roles and Responsibilities The Strategic Planning Committee will hold, at least, four meetings a year to update the CEDS and monitor progress. This may lead to amendments to the CEDS action agenda that will need majority approval by the Strategic Planning Committee. The Lead Implementer will acknowledge and accept its designation and role as volunteer lead implementer of the specific objective identified in the CEDS. The Lead Implementer will hold at least two meetings a year with their respective implementation team. The Lead Implementer will work with their respective team to achieve the suggested strategies and provide modifications or additions to these strategies as deemed necessary. The Lead Implementer will work with their respective team to identify long term strategies and additional short term strategies (annually) to be presented to the Strategic Planning Committee. The Lead Implementer will record performance measurements for the identified objective, and will modify or amend (through addition or subtraction of measurements) stated measurements as they see fit. The Lead Implementer, or representative, will attend Strategic Planning Committee meetings, to provide necessary updates and progress. The Lead Implementer will report annually to REX Development on annual accomplishments of stated objective, at least 45 days prior to submission of the annual update. The following are the six goals and 27 objectives recognized by the strategic planning committee, based on the assessment of the region and input gained through public outreach. In addition, each objective (where appropriate) has output and efficiency measurements to evaluate progress and each goal has an overall list of outcome indicators to measure the economic progress of the region as a whole. In order to achieve progress towards the goals, each objective has a list of short term action items to be performed by the implementation team, that will be continually assessed, updated and modified when deemed appropriate for success. South Central Connecticut: CEDS 2013 39 Action Plan Overall Outcome Indicators Current 2013 Change Ra ng 2014 2015 2016 2017 % increase in regional website traffic Annual unemployment rate Total number of jobs/employment (annual average) Total number of business establishments Growth of private sector payroll State Hotel Tax Collec ons # of regional home sales Objective 1: Regional Marketing, Communications and Advocacy Enhance and implement the regional marketing and communications strategy in 2013 and beyond, including working from and with the State’s marketing strategy. Objective 2: Regional Economic Program & Best Practices Maintain an Economic Development Program, based on best-practices, education and training, throughout the next five years. Output Measurements Number of business prospects contacted/attracted through marketing materials Amount of $ administered toward marketing Number of programs Number of participants in REDFO Lead Implementer REX Development Implementation Team REX Development DECD Representative Regional Economic Development Forum (REDFO) South Central Regional Council of Governments (SCRCOG) Visit New Haven South Central Regional Council of Governments (SCRCOG) Regional Economic Development Forum (REDFO) Municipal Economic Development Organizations Utilities CEDAS Short-Term/Immediate Action Items Utilities Municipal Economic Development Organizations Short-Term/Immediate Action Items Number of media outlets Implementation Team Output Measurements Number of trade shows attended Lead Implementer GOAL 1: REGIONAL MARKETING & COMMUNICATIONS Enhance the region’s image as a desirable location and destination to live, work, play and operate a business through an aggressive, cooperative external and internal marketing program and creation of a credible regional economic development team. Update the regional website Establish marketing committee and coordinate with state let marketing efforts Generate additional funding for marketing campaign Continue regional marketing campaign, drawing on cluster research to identify specific businesses to target, and to highlight regional assets Establish regional awareness and buy-in of campaign South Central Connecticut: CEDS 2013 Periodically hold regional meetings with commercial and industrial real estate brokers and site selectors Research best practices for regional economic development training programs Reach out to key stakeholders who could assist in developing a program Based on research, develop an education program available to all municipalities in the region 40 Action Plan Objective 3: Advocacy Objective 4: Regional Collaboration Collaborate as “one voice” and advocate for policy on the municipal, state and federal level, supporting the goals and objectives described here and supportive of economic development needs in the region. Support and promote policies that would enforce regional collaboration and reduce competition among municipalities and other regions throughout the state. Output Measurements Annual approval of regional legislative agenda # of organizations supporting agenda # of municipalities/organizations supporting CEDS Lead Implementer $ saved as a result of shared services Lead Implementer South Central Regional Council of Government Regional Chambers of Commerce CCM Municipal legislative liaisons Implementation Team South Central Connecticut Regional Water Authority Coordinate outreach strategies with all municipalities in region Continue implementation and support of CEDS Coordinate regional legislative agenda support and outreach, and seek approval in a timely manner South Central Connecticut: CEDS 2013 Regional Chambers of Commerce Regional Economic Development Forum (REDFO) Chief Elected Officials & staff members Municipal economic development directors and commissions Short-Term/Immediate Action Items Short-Term/Immediate Action Items # of policies/studies introduced to combat regional competition # of shared services within the region Greater New Haven Chamber of Commerce Implementation Team Output Measurements GOAL 1: REGIONAL MARKETING & COMMUNICATIONS Enhance the region’s image as a desirable location and destination to live, work, play and operate a business through an aggressive, cooperative external and internal marketing program and creation of a credible regional economic development team. Pending OPM funding, complete regional tax base sharing study Pending OPM funding, perform asset mapping project for region Initiate conversation regarding regional energy/sustainability plan Continue regional advocacy, including representation on the MORE commission and other outlets 41 Action Plan Current 2013 Change Ra ng 2014 2015 2016 2017 1.1 Annual % website traffic (REX) 1.1 Amount of $ administered toward marke ng 1.1 # of trade shows a ended 1.1 # of media outlets 1.2 # of business leads a racted through marke ng materials 1.2 # of programs 1.2 # of par cipants at REDFO 1.3 Annual approval of regional legisla ve agenda 1.3 # of organiza ons suppor ng agenda 1.3 # of municipali es/organi za ons endorsing the CEDS 1.4 # of policies/studies introduced to combat regional compe on 1.4 # of shared services within the region GOAL 1: REGIONAL MARKETING & COMMUNICATIONS Goal 1: Regional Marke ng, Communica ons & Advocacy *Performance measures may be edited on an as needed basis South Central Connecticut: CEDS 2013 42 Action Plan Overall Outcome Indicators Current 2013 Change Ra ng 2014 2015 2016 2017 % Broadband access in region # of shovel ready sites in region # of commuters % increase in exports/imports Objective 1: Tweed New Haven Regional Airport Objective 2: : Port of New Haven Dredging Project Continue physical, structural and safety enhancements to airport to support a needed increase in air service. Provide support for the dredging of New Haven Harbor. The Harbor, which has not been dredged since 2004, needs to be returned to its 35 foot depth and 400-800 foot width to support port industries and deepwater cargo shipping. Currently, it is uncertain whether the federal government will provide the $10 million needed to complete this project. Output Measurements $ amount of investment in TWEED Output Measurements # of enplanements # of carriers Lead Implementer South Central Regional Council of Governments (SCRCOG) Implementation Team Depth of harbor Width of harbor Reorganization of city and state port authorities Increase in # of ships/containers # of jobs Lead Implementer Tweed New Haven Regional Airport City of New Haven South Central Regional Council of Governments (SCRCOG) Town of East Haven Implementation Team Regional Chambers of Commerce Short-Term/Immediate Action Items Continue advocacy of TWEED, including collaboration with State and other regional airports Maintain current service upon recent announcement of cuts Continue efforts to modernize and expand TWEED South Central Connecticut: CEDS 2013 GOAL 2: INFRASTRUCTURE Develop, maintain and effectively utilize an excellent, integrated, multi-modal transportation, communications and information system that facilitates the efficient and convenient movement of people, goods and data intra-regionally, inter-regionally and internationally. City & State Port Authorities Short-Term/Immediate Action Items Garner support and advocate for continued federal funding Coordinate action plan around potential opportunities and uses of port 43 Action Plan Objective 3: New Haven-Springfield and Shore Line East/Metro-North Commuter Rail Complete the New Haven-Hartford-Springfield commuter rail line by 2016, with the goal of increasing annual trips by 1.26 million by 2030. Support rail service conducive to regional growth and increase rail service to both rail lines, while investing in necessary facilities and infrastructure, to include advocacy for Amtrak’s NextGen High-speed Rail through New Haven, as opposed to inland routes. Objective 4: Bus Service Increase ridership of the region’s bus and ridesharing services by 10% by 2017. Improve effectiveness by increasing frequency of existing routes by 25% and adding 10 new east-west bus routes in the South Central Region service areas, parallel with employment corridors. Output Measurements $ - Public Investment in Bus Service Number of riders on region’s bus service Output Measurements Annual trips (upon completion) of NHHS South Central Regional Council of Governments (SCRCOG) Implementation Team Connecticut Department of Transportation Municipalities with rail service Transportation authorities NHHS Corridor Advisory Committee representative Connecticut Department of Transportation Transit authorities Short-Term/Immediate Action Items Implementation Team South Central Regional Council of Governments (SCRCOG) # of travelers on Shore Line East/Metro North Lead Implementer Lead Implementer Public Investment in NHHS GOAL 2: INFRASTRUCTURE Develop, maintain and effectively utilize an excellent, integrated, multi-modal transportation, communications and information system that facilitates the efficient and convenient movement of people and goods intra-regionally, inter-regionally and internationally. Develop regional private sector incentives program to promote greater transit use among employees Promote necessary upgrades to all services in region Review COG Transportation Study Short-Term/Immediate Action Items Coordinate status reports of the NHHS rail line to regional partners Continue engagement of public and private partners in planning an economic development strategy around the NHHS rail corridor, highlighting opportunities for Transit Oriented Development (TOD) Seek additional funding, upgrades and support for Shoreline East and Metro-North, to include parking and other municipal issues Coordinate advocacy for Amtrak to include proposed route through New Haven Union Station, one of the most travelled stations in the North East South Central Connecticut: CEDS 2013 44 Action Plan Objective 5: Roadways & Bridges Objective 6: Telecommunications Ensure adequate investment in the region’s roadways and bridges to maintain current infrastructure, improve safety and reduce traffic congestion. More specifically, this goal focuses on the state-of-good repair projects and new investments which directly support economic development and job growth. Ensure that the entire region has adequate infrastructure to support 21st century communications and information systems, in order to benefit economic growth and business development. Output Measurements % residents with access # hot spots Measurement of bandwidth Lead Implementer TBD Implementation Team Connecticut Department of Transportation Advocate for infrastructure dollars Maintain balance between local and regional interests in considering approval of infrastructure projects Coordinate site development projects with transportation improvement plans contained in the region’s Long-Range Transportation Plan South Central Connecticut: CEDS 2013 TBD Short-Term/Immediate Action Items SCRCOG Transportation Committee Short-Term/Immediate Action Items South Central Regional Council of Governments (SCRCOG) Implementation Team Output Measurements $ - Public investment in roadways and bridges Lead Implementer GOAL 2: INFRASTRUCTURE Develop, maintain and effectively utilize an excellent, integrated, multi-modal transportation, communications and information system that facilitates the efficient and convenient movement of people and goods intra-regionally, inter-regionally and internationally. Determine access and infrastructure needs throughout the region Organize partners willing to participate in the development of regional access 45 Action Plan Objective 5: 7: Roadways Energy Infrastructure & Bridges Objective 8: Water Infrastructure Supportadequate Ensure the expansion investment of natural in the gas region’s mains to roadways and bridgesdistricts commercial/industrial to maintain overcurrent the next five infrastructure, years in order improve to lower energy safety and costs reduce for commercial traffic congestion. create customers, More specifically, new construction this goal jobs,focuses and to on use the a domestic state-of-good fuel that repair is currently projectsunderutilized and new and investments safer for the environment. which directly support economic development and job growth. Encourage exploration of regional funding mechanisms to support water main extensions for new industrial and commercial customers, for interconnections between water utilities, and to help fund the water infrastructure needs of the region. Output Measurements Output Measurements TBD Lead Implementer South Central Connecticut Regional Water Authority United Illuminating/Southern Connecticut Gas South Central Regional Council of Governments (SCRCOG) Connecticut Light & Power/Yankee Gas Implementation Implementation Team Team Output Measurements # of natural gas conversions $ - Public investment in roadways Miles of new gas mains installed and bridges Lead Lead Implementer Implementer Connecticut Department of Transportation DEEP SCRCOG Transportation Committee PURA Wallingford Power representative Short-Term/Immediate Action Items Short-Term/Immediate Action Items Advocate for infrastructure dollars Continue balance to advocate and educate naturalinterests gas use in Maintain between local andforregional throughout consideringregion approval of infrastructure projects Market energy programs Coordinate siteefficiency development projects with transportation improvement plans contained the region’s Long-Range Initiate the discussion around ainregional energy plan, in Transportation direct support ofPlan the State Plan South Central Connecticut: CEDS 2013 GOAL 2: INFRASTRUCTURE Develop, maintain and effectively utilize an excellent, integrated, multi-modal transportation, communications and information system that facilitates the efficient and convenient movement of people and goods intra-regionally, inter-regionally and internationally. Implementation Team Regional Water Utilities DEEP Short-Term/Immediate Action Items Promote the availability of water supply to water intense industries in areas of water shortage. Study the feasibility of additional merchant gas pwered turbine power generating facilities in region. Encourage interconnections between the region’s water utilities legislatively. 46 Action Plan Current 2013 Change Ra ng 2014 2015 2016 2017 2.1 $ amount of federal investment TWEED 2.1 # of enplanements TWEED 2.1 # of carriers TWEED 2.2 Depth of Harbor 2.2 Width of Harbor 2.3 Annual trips of NHHS 2.3 Public investment NHHS 2.3 # travelers on Shoreline East/Metro‐North 2.4 $ public investment bus 2.4 # riders on region bus system 2.5 $ public transporta on investment 2.6 # of residents with broadband access 2.6 # of regional hot spots 2.7 # of natural gas conversions GOAL 2: INFRASTRUCTURE Goal 2: Infrastructure *Performance measures may be edited on an as needed basis South Central Connecticut: CEDS 2013 48 Action Plan Overall Outcome Indicators Current 2013 Change Ra ng 2014 2015 2016 2017 % increase/decrease in overall grand list % increase/decrease patents Growth in private sector payroll Average weekly wage Manufacturing as % of employment by number of establishments Objective 1: Regional Business Assistance Program Objective 2: Entrepreneurs & Start-Ups Develop and implement an effective regional business assistance and retention strategy by 2014 to help existing businesses grow or remain in the region. Foster innovation and new business development by promoting “The Grid” (innovation ecosystem hub) and continuing to identify and assist prospective companies and entrepreneurs in priority business sectors to start and grow new business ventures in the region. Output Measurements Output Measurements # of businesses visited (annually) # of businesses expanded (annually) # of jobs created/retained Lead Implementer # of business start-ups Amount venture capital ($ # of business utilizing Grid services Lead Implementer Economic Development Corporation of New Haven Implementation Team Municipal Economic Development directors CT DECD REDFO Short-Term/Immediate Action Items REX Development Implementation Team Continue the development of the Regional Business Retention and Expansion Task Force Educate on the importance and significance of a unified business assistance program Develop a workable plan to be agreed upon by all regional stakeholders Work with other business assistance strategies throughout the region The Grid Business subject experts Connecticut Innovations Yale Entrepreneurial Institute Make Haven YES Short-Term/Immediate Action Items South Central Connecticut: CEDS 2013 GOAL 3: BUSINESS DEVELOPMEN T & RETENTION On a continuing basis, identify and assist in the development of policies, priority clusters and other businesses that capitalize on the region’s diverse strengths and emerging opportunities. Initiate and develop all Grid programs to be successfully launched Continue to market the Grid program Identify additional support and collaboration among all assistance programs, to include angel, venture and seed capital investments Study the need for additional incubators throughout the region and coordinate collaboration among existing incubators/accelerators Prepare master list of all services available to entrepreneurs in the region Coordinate technology commercialization programs in the region 49 Action Plan Objective 3: Small Business Development Objective 4: Improve the Regulatory Environment Increase collaboration and connection of small businesses in the region, and work to provide needed assistance, training and support to small businesses throughout the region, to include better links between business and existing programs. Continue to advocate for improved policies and procedures that are detrimental to the economic growth of the region, over the next five years to focus on regional permitting processes, cost of doing business, tax structure and a comprehensive energy strategy. Output Measurements Output Measurements # of small business expansions/relocations) Middlesex and Greater New Haven Chambers of Commerce Implementation Team SCORE Small Business Development Regional Chambers of Commerce CEDF CDA CTCIC Ensure access to capital for smaller establishments, to include studying the opportunity for a Revolving Loan Fund Support Downtown Business Development Chambers of Commerce Governmental Affairs Committees South Central Connecticut Regional Water Authority Short-Term/Immediate Action Items Small Business Administration Short-Term/Immediate Action Items REX Development Implementation Team N/A Lead Implementer # of creative class employees Lead Implementer # of chamber members GOAL 3: BUSINESS DEVELOPMEN T & RETENTION On a continuing basis, identify and assist in the development of policies, priority clusters and other businesses that capitalize on the region’s diverse strengths and emerging opportunities. Align Statewide, regional and local policies Assist and encourage business to take advantage of process improvement initiatives (i.e. lean manufacturing) Connect businesses with resources to help them reduce energy usage and associated costs Initiate development of a regional energy strategy Advocate for processes to make the region more “business friendly” and continue to educate local and statewide stakeholders on the value of business on the regional economy and encourage evaluation of current regulations and policies Encourage and expand creative and artistic opportunities throughout the region Support the coordination and development of a regional small business network South Central Connecticut: CEDS 2013 50 Action Plan Objective 5: Expand Global Opportunities Support and develop new opportunities for business to access expanded markets. Output Measurements Amount of annual exports ($) Amount of annual imports ($) Lead Implementer REX Development Implementation Team GOAL 3: BUSINESS DEVELOPMEN T & RETENTION On a continuing basis, identify and assist in the development of policies, priority clusters and other businesses that capitalize on the region’s diverse strengths and emerging opportunities. U.S. Department of Commerce (Middletown) New Haven Manufacturers Association Colleges & universities Short-Term/Immediate Action Items Assist firms in accessing export assistance programs Educate the region on the significance of export opportunities Initiate international trade programs for the region South Central Connecticut: CEDS 2013 51 Action Plan Current 2013 Change Ra ng 2014 2015 2016 2017 3.1 # of businesses visited (annual) 3.2 # of start‐ups 3.2 $ amount venture capital 3.2 # businesses through Grid 3.3 # small business expansions/reloca o ns 3.3 # of chamber members (regional) 3.5 $ annual exports 3.5 $ annual imports GOAL 3: BUSINESS DEVELOPMEN T & RETENTION Goal 3: Business Development & Reten on *Performance measures may be edited on an as needed basis South Central Connecticut: CEDS 2013 52 Action Plan Overall Outcome Indicators Dropout rate of high school students Current 2013 Change Ra ng 2014 2015 2016 2017 % of residents with a bachelor’s degree Average age of region workforce (ages 16‐64) Percentage of home owners paying more than 30% on mortgage Percentage of renters paying more than 30% on rent Median sale price of a single family home Objective 1: Support Incumbent Worker Training Objective 2: Align Education to Business Growth Support the need for additional annual funding, mergers or additional training programs for Incumbent Worker Training, to maintain or exceed the $1,000,000 ($1.82/capita in region) threshold per year. Work with State to build collaboration among public and private sector partners to engage in discussion of critical school-to-work issues, and grow STEAM (Science, Technology, Engineering, Arts and Mathematics) related education at all levels. Output Measurements Amount of annual funding for IWT Output Measurements N/A Lead Implementer Workforce Alliance Lead Implementer Chambers of Commerce Implementation Team Gateway Community College Middlesex Community College Vo-tech schools Chambers of Commerce New Haven Works Implementation Team Coordinate education and efforts around support and significance of IWT to the region Advocate for increased support of IWT South Central Connecticut: CEDS 2013 Gateway Community College Middlesex Community College New Haven Manufacturers Association CONNSTEP Short-Term/Immediate Action Items Short-Term/Immediate Action Items GOAL 4: WORKFORCE ENHANCEMENT & HOUSING Identify, stimulate and, where necessary, coordinate programs, services and initiatives ensuring that the region’s residents have affordable access to the high quality training, education and housing opportunities they desire in order to be a productive member of the region’s workforce. Promote education and training in skilled professions to the region’s high school students, and provide career readiness services Advocate for the importance of STEAM education in school reform Advocate for more innovation and creativity for students in school reform Coordinate and continue support of mentorship and skilled trades training programs at all education levels 53 Action Plan Objective 3: Support Community Colleges and & High School Technical Programs Objective 4: Educate Primary/Secondary Students on Cluster Industries & Entrepreneurship Meet emerging workforce needs by supporting innovative workforce development efforts at Gateway Community College, Middlesex Community College and area high schools, including priority cluster specific workforce efforts such as manufacturing technology programs. Initiate and utilize regional and state programs to educate primary and secondary students on real world work experience, including updating and introducing curriculum and internships. Output Measurements Output Measurements # of technical skills training programs # of programs Lead Implementer Lead Implementer New Haven Manufacturers Association TBD Implementation Team Implementation Team Workforce Alliance Gateway Community College Continue support and development of CC’s workforce development programs and high school technical programs Coordinate efforts of CC’s and technical schools South Central Connecticut: CEDS 2013 TBD Short-Term/Immediate Action Items Middlesex Community College Short-Term/Immediate Action Items GOAL 4: WORKFORCE ENHANCEMENT & HOUSING Identify, stimulate and, where necessary, coordinate programs, services and initiatives assuring that the region’s residents have affordable access to the high quality training, education and housing opportunities they desire in order to be a productive member of the region’s workforce. Initiate discussion of regional youth summer jobs program Initiate discussion of integrating business and entrepreneurship curriculum into high schools Coordinate innovative approaches to teaching throughout the region 54 Action Plan Objective 5: Retain & Attract Young Professionals Objective 6: Workforce Housing Build upon and promote existing regional young professional organizations and work to develop additional programs, policies and mentorships to attract and retain young professionals to the excellent quality of life in the New Haven Region. Improve the amount and diversity of workforce housing by offering design and policy resources to the region’s communities to help them address the region’s critical shortage of housing at price points for middle income families. Output Measurements # of members in young professional organizations # of 18‐40 year‐olds in the region Lead Implementer # of affordable housing units # of foreclosures # of housing permits Lead Implementer TBD Implementation Team TBD Short-Term/Immediate Action Items TBD Implementation Team Output Measurements GOAL 4: WORKFORCE ENHANCEMENT & HOUSING Identify, stimulate and, where necessary, coordinate programs, services and initiatives assuring that the region’s residents have affordable access to the high quality training, education and housing opportunities they desire in order to be a productive member of the region’s workforce. TBD Short-Term/Immediate Action Items Coordinate efforts around young professional attraction and retention, to include the coordination of key groups throughout the region Work with public and private employers to establish and maintain annual/seasonal internship programs Encourage and expand cultural and artistic amenities Improve mobility among downtown districts and improve access to public transportation Support and promote diversity Identify the need for affordable/workforce housing in the region, to include a feasibility study Educate, encourage and promote smart growth principles in regards to housing development Support incentive housing zone programs that encourage construction of affordable housing Educate the importance of creating healthy, vibrant and strong communities Engage young professionals in the municipal development and local legislative processes Promote and encourage public safety efforts South Central Connecticut: CEDS 2013 55 Action Plan E H Current 2013 Change Ra ng 2014 2015 2016 2017 4.1 $ annual funding for IWT 4.3 # of technical skills training programs 4.5 of members in young professional organizations 4.5 # of 18‐40 year‐olds in the region 4.6 # affordable housing units 4.6 # foreclosures 4.6 # of new housing permits GOAL 4: WORKFORCE ENHANCEMENT & HOUSING Goal 4: W *Performance measures may be edited on an as needed basis South Central Connecticut: CEDS 2013 56 Action Plan Overall Outcome Indicators Current 2013 Change Ra ng 2014 2015 2016 2017 # of vacant proper es in region % increase in density (if measurable) Average increase/decrease in crea ve economy workforce Objective 1: Brownfields Redevelopment Continue the existing REX Brownfields program and expand funding for assessment and redevelopment by 2017, as well as expanding regional brownfields programs to include additional funding and advocacy. Output Measurements Objective 2: Transit-Oriented Development & Smart Growth Assist the region’s communities in developing and implementing land-use policies that employ transitoriented development and Smart Growth principles to meet local challenges and needs. Output Measurements # of Brownfields redeveloped # of Brownfields assessed Amount of overall funding for regional Brownfields program # of new business starts around train/bus stations # of new housing starts around train/bus stations Lead Implementer Lead Implementer REX Development South Central Regional Council of Governments (SCRCOG) Implementation Team Regional Economic Development Forum (REDFO) CT Department of Energy and Environmental Protection Implementation Team EPA Short-Term/Immediate Action Items GOAL 5: REAL ESTATE LAND USE & SUSTAINABILITY Assist and support communities in developing and devising local land use policies and regulations that encourage effective and sustainable development, conducive to a livable region. Identify resources and seek out additional funding sources Market the Brownfields program throughout the region Educate the region on the important of Brownfield redevelopment Coordinate efforts among regional entities conducting Brownfield assessment and remediation, and prioritize sites Short-Term/Immediate Action Items South Central Connecticut: CEDS 2013 RPC Continue to educate municipalities and elected officials on the benefits of TOD and Smart Growth Principles Implement critical TOD projects at Union Station in New Haven Prioritize projects that support downtown, train station and transit corridor development Prioritize projects at the regional level that make use of existing infrastructure Coordinate discussions and planning processes around these principles 57 Action Plan Objective 3: Integrate Arts, Culture and Preservation with Economic Development Promote community and neighborhood revitalization through artistic, cultural or creative policies, to include the reuse of existing sites, buildings or vacant lots for arts and cultural purposes (i.e. temporary public art). Output Measurements Encourage growth while maintaining or increasing agricultural production and open space preservation, to include at least 21% of the region’s land area to be preserved as open space by 2017. Output Measurements % of open space land area # of reused sites for pop up art Lead Implementer Objective 4: Agriculture & Open Space Preservation Arts Council of Greater New Haven Lead Implementer South Central Regional Council of Governments Regional Land Trust Implementation Team Implementation Team All regional arts councils Historic Preservation Trust South Central Connecticut Regional Water Authority Connecticut Department of Agriculture Short-Term/Immediate Action Items Connecticut Trust Local arts agencies Short-Term/Immediate Action Items GOAL 5: REAL ESTATE LAND USE & SUSTAINABILITY Assist and support communities in developing and devising local land use policies and regulations that encourage effective and sustainable development, conducive to a livable region. Continue support for Arts funding and education in regional municipalities and schools Prioritize the creative economy cluster, where in New Haven County it is twice the national average in overall arts centric businesses (4.49% compared to 2.52% respectively) Coordinate conversations with the arts, culture and economic development communities in the region South Central Connecticut: CEDS 2013 Coordinate with regional conservation and development planning processes to identify responsible growth Initiate discussion around a regional agriculture plan Coordinate regional tourism and agricultural plans Expand the regional farmers market network 58 Action Plan Current 2013 Change Ra ng 2014 2015 2016 2017 5.1 # Brownfields redeveloped 5.1 # of Brownfields assessed 5.1 $ funding regional Brownfields program 5.2 # new business starts around train/bus 5.2 # new housing permits around train/bus 5.3 # of reused sites (art) 5.4 % open space land area GOAL 5: REAL ESTATE LAND USE & SUSTAINABILITY Goal 5: Real Estate Land Use & Sustainability *Performance measures may be edited on an as needed basis South Central Connecticut: CEDS 2013 59 Action Plan Objective 1: Implementation Funding Objective 2: Implementation Teams Establish a multi-year funding commitment to support implementation of the Goals and Objectives of this Strategic Plan. Develop implementation teams and committees to supervise the implementation progress of these objectives over the next five years. Output Measurements Output Measurements $ amount of institutional funding levels for regional coordination Lead Implementer Lead Implementer REX Development Implementation Team TBD Increase support for regional economic development and collaboration Research and identify additional funding streams and concepts South Central Connecticut: CEDS 2013 REX Development Board of Directors Short-Term/Immediate Action Items Short-Term/Immediate Action Items # of Lead Implementers signing MOUs REX Development Implementation Team GOAL 6: FUNDING & IMPLEMENTATION Secure adequate funding to implement the objectives proposed by this CEDS. Continue to garner support for CEDS and CEDS process Conduct outreach to lead implementers 60 Action Plan Current 2013 Change Ra ng 2014 2015 2016 2017 6.1 $ amount of ins tu onal funding levels for regional coordina on 6.2 # of Lead Implementers signing MOUs *Performance measures may be edited on an as needed basis South Central Connecticut: CEDS 2013 GOAL 6: FUNDING & IMPLEMENTATION Goal 6: Funding & Implementa on 61 Success Stories The Big Cheese Cash Mobs In May of 2012, REX Development kicked off the first in a series of cash mob designed to help local businesses. Using a combina on of social and tradi onal media, local residents selected a deserving locally owned and operated business where a group of shoppers would gather at a specified me to spend $20. To date we have held events in eight of our fi een towns with incredible results. Sweet Cioccolata (pictured here), Books & Company and The Sweet Shoppe all had their best sales day ever and Books & Company has been in business for 18 years! Through 2013, REX will bring Cash Mobs to the remaining towns to encourage residents to shop local. Photo: Sweet Cioccolata, Wallingford South Central Connecticut: CEDS 2013 While we don’t claim to be Wisconsin by any means, Greater New Haven is home to Calabro Cheese®. This local cheese maker occupies 54,000 square feet in East Haven and has been distribu ng its fine cheeses for over 40 years. Currently, Calabro products are sold in 11 states as far west as Colorado. The company plans to expand its distribu on area in the coming years. Our most famous cheese related product is the world –renowned New Haven style pizza (apizza, pronounced “ah beetz” by the locals). Frank Pepe Pizzeria Napoletana and Sally’s Apizza have been staples on Wooster Street since the 1920’s. Owned by cousins, these pizzerias have had many famous fans including Presidents Reagan and Clinton as well as Frank Sinatra. Frequently featured on The Travel Channel and The Food Network, our pizza might be our second most famous a rac on giving Yale University a run for its money. Photo: Pepe’s pizza, Michael Marsland/Yale University 61 Regional Development The South Central Connecticut region, although relatively small with a land area of 367 mi², is strategically located at the intersection of Interstates 91 and 95 with convenient rail connections via Metro-North, Shore Line East and Amtrak to New York, Boston and destinations along the Connecticut shoreline, not to mention the busiest port on the Long Island Sound. The terrains of this region and distance to major markets continue to be the fundamental and overriding factors guiding development. Not unlike other economic regions throughout New England, the South Central region, built upon an industrial base, has a lack of developable land and many underutilized sites. The current economic base, however, is forming (often as an example of redevelopment) around priority development areas, driven by transportation options and mixed use areas in the town centers of the region. The following desired growth areas map suggests the priority development areas in the region. The desired growth areas are based on three criteria, displaying a “low”, “medium” or “high” growth potential: Transit Oriented Development; Transportation/Transit Corridors; and Town Centers. These identified centers have appropriate conditions for reinvestment and context-sensitive expansion. Figure 12: Desired Growth Areas in the South Central Region South Central Connecticut: CEDS 2013 62 Regional Projects In addition to the programmatic and policy initiatives proposed in the Action Agenda, a critical tool for achieving the region’s economic goals are strategic investments that will establish the infrastructure necessary to support a growing economy and that will catalyze unique development opportunities. Each of the regional projects draw on a mix of local, state, federal and private market resources in order to leverage the greatest possible investment and the greatest return in jobs, increased tax revenue and community renewal. Process The regional projects included in this CEDS were submitted by municipalities, planning organizations and non-profit agencies from throughout the region. The Strategic Planning Committee evaluated the proposed projects and prioritized them according to the following set of criteria developed and agreed upon by the committee. Three categories of projects were considered by the committee: economic development projects, infrastructure projects and transportation projects. Economic development projects include multi-faceted sitespecific projects that capitalize on unique locations and assets to create centers of growth and job creation. Infrastructure projects seek to build critical infrastructure such as roads or utilities that will improve the economic vitality. Transportation projects provide the critical linkages internally and externally that facilitate the movement of people and goods necessary for an efficient economy and high quality of life. Within each of these categories, the committee prioritized projects as “ready-to-go” or “in-planning.” Criteria was established in this CEDS to determine if the projects were “ready-to-go.” If the projects were determined to be “ready-to-go”, the project was then evaluated, scored and ranked by the committee. This priority score given to each project identifies priority projects for the region, based on priority investments of the EDA as well as priority investments of the South Central Connecticut region. Both the criteria and project evaluation score sheet is included in Appendix E for reference. Also new to this CEDS, the Strategic Planning Committee holds quarterly project roundtable meetings. These roundtables give each municipality and regional entity the opportunity to present projects to the roundtable they feel are “ready-to-go.” The projects are then immediately evaluated, ranked and scored. This process allows funding entities (both State and Federal) to see the priorities of the region on a quarterly basis, rather than waiting a full fiscal year for the annual update. Each project included in the CEDS is linked to a specific goal and objective from the regional action agenda that the project supports. Cost estimates and number of jobs to be created or retained by the projects are also provided on the following chart. South Central Connecticut: CEDS 2013 63 Table 9: 2013 CEDS Regional Projects Regional Economic Development Projects Ready to Go Goal / *Priority Objective Score Project Name City/Town/Region Responsibility 5 / 2 107 Route 34 East: Downtown Crossing New Haven 5 / 1 90 Hill‐to‐Downtown Planning Initiative New Haven 5 / 2 89 Coliseum Site Redevelopment New Haven 3 / 2 87 Comprehensive Business Accelerator/Incubator West Haven South Central Connecticut: CEDS 2013 Further Description Redevelopment of current Route 34 into integrated city streets and new New Haven; Private neighborhood extending Downtown to Developers Union Station. First project – 100 College Street. Med lab/office – construction start Spring 2013 Mixed‐use Transit Oriented Development in area between Union Station, Downtown, the Hill and Medical New Haven District, including improved street grid and additional structured parking. Full build‐design underway, 30% are due for 2013 Mixed‐use development on site of old Veterans’ Memorial Coliseum. The City has an MOU with a developer and New Haven expects to enter into a development agreement with them in Summer/Fall 2013. The Tagliatela College of Engineering (TCoE) at the University of New Haven (UNH) and the Grid (along with the City of New Haven), the New Haven’s regional innovation HUB, are partnering University of New to integrate the Grid’s components Haven/New Haven (Bioscience Clubhouse) into the scope of work submitted for a UNH business accelerator concentrating on technology, renewable energy, digital forensics and wireless communication. 64 Jobs Est. Total Project Cost Funding Sources 4,028 $325 million $30 million Federal, State and City; $140 million Private: Balance TBD 2363 $125 million+ 1450 $150 million 100 TBD TBD; Seeking a matching EDA grant 5 / 2 87 City Center TOD project at HUB site. Meriden 5 / 1 87 Science Park Development New Haven 4 / 3 85 Science Park Development New Haven 3 / 1 81.5 Mill River Planning and Economic Development Study 3 / 1 71.5 Orange Technology & Light Industrial Park 4 / 1; 4 / 2; 4 / 5 67.5 New Haven Works South Central Connecticut: CEDS 2013 New Haven Orange New Haven Implement TOD , flood control and open space project at HUB site downtown. Incorporate new rail station design and development on adjacent site. City 300 Redevelop factory buildings into mixed New Haven, Science use development including residential, 2000 perm Park Dev Corp, parking & commercial. Develop 600 constr Private Developers additional laboratory and office space at 25 Science Park. Rehabilitation of Tract A, Buildings 1‐4 of deteriorated Winchester Arms factory into 158 loft style apartments, 20% New Haven, Science affordable. Construction expected to Park Dev Corp, TBD Private Developers start in Spring/Summer 2013. 150,000 s.f. of the complex occupied by Higher One, Dec.,2011 $15 million $1 million CTDECD; $1million HUD; $1million Urban Act; $300,000 EPA, $2 million Urban Act $200 million $150 million private TBD TBD Comprehensive planning and economic development study of Mill River Industrial District. MPD approved plan area, expand to address deteriorating Study‐ New Haven EDC/City properties, rehabilitate the shoreline, of New Haven Office $250,000; improve storm water infrastructure and TBD TBD of Economic Construction take advantage of potential food Development TBD processing cluster and Long Wharf. Phase I Report was released in July, 2012. The study is currently in its second phase. Extension of Edison Rd (2,220 ft) and Orange EDC develop multiple lots for use by tech $500K private 350 $1.4 million based and light industrial users capital Collaborates with major employers and State, City of small businesses in the region, as well as New Haven and labor organizations, to identify 10 created; EDC $50,000/yr, New Haven Works $750,000 comprehensive training programs for 1,000 filled Yale University hiring needs in regional growth $50,000/yr industries. 65 3 / 1 5 / 2 65 58.5 Shubert Theatre Centennial Capital Improvements Harbor Brook Flood Control New Haven Meriden New Haven Meet the theatre’s significant capital needs, including improving the exterior façade and plaza, enhancing the stage acoustical shell, replacing the HVAC system, upgrading mechanical systems, tuck pointing exterior masonry, and creating additional office space for arts groups related to 100 year anniversary. 100 (+) $8.1 million CT Bond Commission $4 million; New Haven Capital Fund/Campaign $3 million; Private Contributions $1.1 million Meriden Multi‐faceted infrastructure/bridge replacement project to control flooding of Harbor Brook throughout Meriden Brook is part of Quinnipiac River Watershed. TBD Over $10 million $5.8 million spent/committe d TBD TBD TBD 1500 $50 million $6 million private capital 160 $6 million TBD TBD TBD TBD TBD TBD TBD TBD TBD In Planning 3 / 1 Feasibility of Bioscience Cluster Sites 3 / 2 Acorn Technology Campus 3 / 2 Stowe Farm Arts Center 4 / 2 Expansion of Middlesex Community College 3/1,2; 4/1,2,3,4 Gateway Community College Business Extension Gateway Food Incubator South Central Connecticut: CEDS 2013 Expansion of the presence of Biotech companies in Meriden Bioscience and other technology West Haven West Haven facilities in campus setting off Rt. 34 Combine Simon Lake School into project Milford Milford for studio space and use Stowe Farm as gallery and arts center Continue support for expansion of MCC, Meriden, satellite campus in Meriden to serve Meriden Legislative local job/skills training and higher Delegation education expansion in the city. After moving into new facilities, enrollment growth is pushing beyond existing space. Short term will be Region, Gateway Gateway Community combination of existing facilities at Community College College North Haven campus and Long Wharf campus. Long Term the College will work with Board to select appropriate space to fit the needs. The Gateway Food Incubator will refurbish and reimage a commercial kitchen at the former Gateway New Haven, Gateway Community College Long Wharf campus New Haven Community College to support the growth and development of culinary businesses in New Haven and the surrounding region. Meriden EDO 66 This project is a partnership between the City of New Haven, Economic Development Corporation of New Haven, Gateway Community College and New Haven Board of Education. Consultants (Next Street) have been actively working with EDC and City of New Haven for several months. Preliminary feasibility study was completed in Dec., 2012, and preparations for Sept. 2013 launch are ongoing. Local Advisory Group has been convened and initial community meeting was held in Dec. 2012. 2/3,4; 3/1,2; 4/1,2,3,4; 5/1,2 Center for Customized Training and Continuing Education 5 / 1 Blighted Factory H Cooper Street area‐ redevelopment initiative 5 / 2 5 / 2 Region, Gateway Community College Center encompasses targeted training in a variety of sustainable areas for municipalities and private industries. Gateway Community Training is already taking place; the College building space is not in ready to go status and is in planning stage (as additional space is needed for the Center). Funding secured for demolition and partial remediation completed by 12/11. Reuse concept has been developed as a part of neighborhood planning effort. Meriden EDO West River Crossing Redevelopment West Haven West Haven EDC Route 34 West MDP New Haven New Haven South Central Connecticut: CEDS 2013 67 Strategic Waterfront Redevelopment Initiative & infrastructure improvements Continuum of Care, a New Haven‐based non‐profit healthcare corporation, is seeking to consolidate its operations in a new development on the lot bordered by Legion Avenue, Dwight Street, TBD TBD 75 $ 10 million 600 $35 million 500 $400 million TBD $2.5 million in EPA grants and EPA hazards removal action; $1.5million HUD (Section 108); $300,000 CT Brownfields Pilot $375K local $125K state TBD Frontage Road and Orchard Street. Currently a surface parking lot, this redevelopment project will create 120,000 square feet of new office and medical services space on the site. A potential developer has signed an MOU with the City of New Haven to study the project and plans to have a proposal ready for review by Fall 2013. 5 / 2 Chapel/Center Redevelopment 5 / 2 Older Pratt & Whitney buildings & site North Haven 5 / 1 Circuit Wise Building North Haven 3 / 1 Yale‐New Haven Expansion North Haven 3 / 1 Wharton Brook Industrial Park North Haven 3 / 1 205 Church Street Hotel New Haven 3 / 1 Expansion of Superior Court Milford 5 / 1 Wepawaug River Dredging Milford 3 / 1 Walnut Beach Boardwalk Area Milford South Central Connecticut: CEDS 2013 New Haven New Haven Mixed‐use redevelopment of prime downtown block damaged by December 2007 fire. Infrastructure improvements and valley service road extension Brownfield Redevelopment, contaminated site that needs North Haven assessment and cleanup for redevelopment Renovation of the existing (old) AT&T North Haven building Enhance Roadways at the industrial park North Haven site Redevelop 13 story colonial revival office building. Owners have conducted $7 New Haven/Private million structural retrofit and exterior Developers restoration. The property is currently for sale. Build parking garage to accommodate Milford courthouse needs as well as commuters. Environmental Dredging of duck ponds Milford and basin Activate retail space surrounding the Milford newly constructed Walnut Beach Boardwalk for economic activity North Haven 68 TBD $125 million $125 million TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD 150 $50‐$60 million TBD TBD TBD TBD TBD TBD TBD 160 $6 million 5 / 2 5 / 2 Advanced Metering Infrastructure Lake Saltonstall Intake Modifications Bethany, Branford, East Haven, Hamden, Milford, New Haven, North Branford, North Haven, Orange, West Haven, Woodbridge Branford/East Haven/New Haven Regional Water Authority Replacement of existing water meter reading technology (would affect 20 150 during municipalities). With new technology, constructio customers consumption data would be n; 5 full transmitted daily, opposed to the $25.2 million time after current availability of once every three constructio months. Customers would be able to n use this daily information to decide if water use habits should be altered. TBD (rate payers will pay if no sources found) Regional Water Authority Replacing the existing public water system reservoir raw water pumping station and intake, built more than 50 years ago. A study suggests such a replacement, also, the new system will have the capability drawing water at deeper depths, an issue affecting the quality of water currently being drawn. $9.5 million Current WRDA request (federal), Ratepayers (if no other funding ratepayers will pay entire portion) 50 $6,000,000 EDA, Section 108 (HUD), EPA, Local, *450,000 from State already approved 3,000 $9.3 million 10 Regional Infrastructure Projects Ready to Go 3 / 2 86.5 3 / 1 82 Hamden Business Incubator Fresh Meadow Road Ext. Small business incubator in former Hamden Middle School. Hamden Hamden West Haven West Haven 2 / 6 77 Boathouse at Canal Dock New Haven New Haven 2 / 6 58.5 State Street Development Streetscape Phase IV Hamden Hamden South Central Connecticut: CEDS 2013 Extension of existing street to access 200 acres of undeveloped industrially‐zoned land. Relocate – reconstruct boathouse, piers, waterfront walkway and create education and recreation center; funding part of I‐95 harbor crossing mitigation Continue Streetscape and new sidewalk construction from Farm St to New Haven line 69 NA $32 million 10 $550,000 US DOT $24 million + 2 million; CONNDOT $6 million $50,000 local; State (not yet approved) 5 / 1 54.5 Guilford Harbor Bulkhead Guilford Replacing 215 feet of bulkhead from deteriorated Guilford Town Dock. Proposed to install a new cantilevered sheet pile bulkhead w/in 18 inches seaward of the existing bulkhead. A new wood fender system and a 5 foot wide concrete sidewalk will be constructed over existing bulkhead. Guilford CT Steap Grant $300,000; Requesting $370,000 from EDA 15 $670,000 N / A $35 million N / A $600,000 200 $20 million NA NA $3 million NA 25 $150,000 $50,000 local 15 $1,000,000 Private, Local 10 $300,000 $50,000 Local N / A $30 million NA 3000 $7 million To be determined TBD TBD TBD In Planning 2 / 1 2 / 1 Tweed New Haven Airport Capital Improvement Plan New Haven Tweed New Haven Airport Capital Improvement Plan New Haven 2 / 2 Port of New Haven Infrastructure New Haven 2 / 2 Neighborhood Commercial Improvements New Haven 2 / 6 State Street Development Phase V Hamden 3 / 2 Highwood Redevelopment Part II Hamden 2 / 6 Dixwell Avenue Corridor 2 / 6 Medical District Street Grid New Haven 3 / 1 Industrial Expansion – 270 Acres – Infrastructure Wallingford 3 / 1 Washington Ave / I‐91 Development North Haven South Central Connecticut: CEDS 2013 Hamden/New Haven Near term capital improvements Airport Authority including obstruction removal, terminal modernization Repaving and improving landside/airside Airport Authority roads and parking; and adding Pedestrian Walkway Port Infrastructure improvements to include direct rail access; bulkhead Port Authority restoration & improvements; and construction of ethanol pipeline connection to North Yard New Haven Infrastructure improvements Infrastructure improvements for this approved Municipal Development Project Rehabilitation of building and road Hamden improvements adjacent to Highwood Square Cross boundary infrastructure Hamden & New improvements and commercial Haven development projects Infrastructure improvements supporting construction of a new street grid New Haven / EDC between Union Station, Downtown and the City’s medical district. Infrastructure Improvements necessary Wallingford ED to use 270 acres zoned for industrial Community expansion Infrastructure improvements linking 12 North Haven acres to Washington Ave. Hamden 70 State bond; FAA ACIP State bond; FAA ACIP 3 / 1 Broadway Street Redevelopment North Haven North Haven 2 / 6; 5 / 1 Rerouting of Water Street from Elm Street to Bayview Place West Haven West Haven 3 / 1 Landfill Redevelopment West Haven West Haven 2 Beach Reclamation West Haven West Haven Expansion of Telecommunication Infrastructure for Technology Cluster Meriden Meriden, MCC 3 / 1 3 / 2 Hamden Business Incubator Hamden 3 / 2 Arts District Meriden 4 / 1 Talent Pool Regional 5 / 2 West River Flood Control South Central Connecticut: CEDS 2013 Woodbridge/New Haven Infrastructure improvements Involves the straightening of Water Street to provide better access from Kimberly Avenue Bridge, open the area for prime, waterfront property that can be developed as mixed use and create a better grid pattern that will improve traffic flow through the West River area. The realignment of Water Street as an integral part of the overall implementation of the Municipal Development Plan for the City’s West River Crossing area. Infrastructure improvement of 70 acre site off Rt. 1 between I‐95 Repair and restoration of groins, stabilize beaches and cover sanitary sewer outrail piping Meriden already has the fiber‐optic and sonnet rings available to info‐tech companies wishing to locate in the region. Small business incubator in former Hamden Middle School. Hamden Meriden’s art district will serve as a Arts Comm. Meriden regional arts and entertainment venue CC EDO, RGP that will augment regional efforts to grow the “creative cluster” Computerized database of available Workforce Alliance workers primarily in manufacturing. Via a recent flood study, the project seeks to mitigate flooding and resulting damage to homes and businesses on the Woodbridge West River. Havning already received funding for the replacement of Merrit Ave bridge and removal of the Lily Pond Dam, Woodbridge is seeking funding for 71 TBD TBD TBD TBD TBD TBD 5 /NA Under study NA N/A $3 million EDA $3 million TBD TBD TBD 60 $2,950,000 EDA, Section 108 (HUD), Local, *450,000 from State already approved 70 TBD NA $200,000 $4.46 million Federal‐$1.28 million for bridge; State‐ $350,000 for Dam removal; Local‐$370,000 for Flood Study N/A channel improvements to the West River. 5 / 1‐2 Atlantic Wire Building Site Branford Branford Brownfield Project –Cleanup site of old Atlantic Wire Building and intersection road realignment to handle traffic flow and Local; LISFF‐$60,000 for Dam; Seeking $2.4 million for Channel Improvements TBD TBD TBD NA $1.2 million 700 $35 million $16 million state funds N / A $1.2 million FTA N/A $.5 M ‐ $1.0 M FTA N/A $.5 M FTA NA $250 million NA NA $10 million NA $400 million Regional Transportation Projects Ready to Go Implementation of approved new SCRCOG, DOT, commuter rail line between New Haven Legislative & Springfield, MA. Develop Delegation, Meriden, opportunities for Transit Oriented Meriden Chamber Development in towns along rail line. 2 / 3 New Haven/ Hartford/Springfield Commuter Rail 2 / 4 Guilford Railroad Parking Extension 2 / 4 New Regional Train Stations West Haven/Orange West Haven/Orange 2 / 5 Downtown Circulator New Haven CT Transit 2 / 5 Cross Town West New Haven CT Transit 2 / 5 Downtown Bus Shelters New Haven SCRCOG / GNHTD 2 / 6 New Haven Region 2 / 6 New Haven New Haven 2 / 6 Milford SCRCOGDOT I‐95 along Long Wharf area Q‐Bridge and surrounding area along I‐95 Housatonic River Bridge Replacement South Central Connecticut: CEDS 2013 SCRCOG Guilford SCRCOG/DOT 72 Infrastructure improvements to support development around new rail stations Implementation of second public circulator routes between Union Station and medical district. (First circulator implemented in 2009). Implementation of New Haven West Side Crosstown Route City Point to Putnam Place Hourly service 7 days per week Replacement of the remaining four shelters on the NH Green. Create better linkage of waterfront area with buildings north of I‐95 and new ring road. Compensate for lost land and needed infrastructure improvements Replacing aging bridge on I‐95. 2 / 4 Farmington Canal Phase IV New Haven New Haven Extension of the Farmington Canal Line from Hillhouse Avenue to Long Wharf NA $8 million $6.4 million Federal: $1.6 million local match NA $4 million $3.2 million USDOT, $800,000 CONNDOT $5 million $25 million NA NA In Planning Implementation of approved new SCRCOG. DOT, commuter rail line between New Haven Legislative & Springfield, MA. Develop Delegation, Meriden, opportunities for Transit Oriented Meriden Chamber Development in towns along rail line. New Haven/Hartford/Springfield Commuter Rail Long Wharf Park Shoreline Stabilization New Haven New Haven 2 / 6 Intermodal Ferry Terminal New Haven New Haven 2 / 6 State & Wall Mixed Use Development Site New Haven New Haven 2 / 6 Wallingford Wallingford ED Comm. 2 / 6 West Haven West Haven EDC 2 / 6 West Haven West Haven EDC Infrastructure improvements NA Under study 2 / 6 Meriden Meriden/COG Implement plan for improved interchanges with I‐691 TBD COG Study Complete TBD 2 / 6 $2.5 M TBD 2 / 6 $30 M FTA 2 / 3 Rt. 68/Rt. 5 Corridor Initiatives Saw Mill Road Redevelopment Project RT 1‐Orange Ave & Front Ave Redevelopment Chamberlain Highway, Kensington Ave. corridor, Downtown Interchanges Downtown Two‐Way Street Conversion Regional/Downtown Streetcar South Central Connecticut: CEDS 2013 SCRCOG New Haven New Haven Stabilization of shoreline along Long Wharf Park Study feasibility of intermodal ferry terminal on New Haven Harbor. Mixed Use development or parking structure or both in key anchor NE 75 perm downtown corner. Environmental 250 const remediation underway Rebuilding of RT 5 & 68 and other study NA recommendations Improve access and infrastructure 400 improvements Conversion of Church and College to two‐way operation. Implementation of a small‐start streetcar route in Downtown New SCRCOG, New Haven Haven, with extensions to Hamden and West Haven New Haven 73 NA N/A N/A $25 million $9.5 million local bond $125K local funds 2 / 6 Lower State Street Reconstruction New Haven New Haven 2 / 6 Exit 53 Connector Branford Branford Reconfiguration of lower State Street to promote economic development at Lots N and O In the POCD, fixing the connector along exit 53 to establish a better traffic flow pattern and develop land surrounding the area N/A TBD $8 – 10M TBD TBD TBD *Priority Score only evaluates projects that are ready to go (excluding transportation projects). All projects are presented at quarterly roundtable sessions and scored on project readiness to determine if the project is “ready to go” or “in planning.” As projects are determined “ready to go” they are then evaluated and scored based on priority investments of EDA as well as priority investments of the South Central Connecticut Region. South Central Connecticut: CEDS 2013 74 Part II: Analysis of the Region DEMOGRAPHIC PROFILE The Region Defined The region used in this analysis includes 15 municipalities in Southern Central Connecticut: Bethany, Branford, East Haven, Guilford, Hamden, Madison, Meriden, Milford, New Haven, North Branford, North Haven, Orange, Wallingford, West Haven and Woodbridge. All of the municipalities are within New Haven County, as well as within the New Haven New England City and Town Area (NECTA), which is a geography definition from the U.S. Census Bureau. The geography of the New Haven NECTA is quite similar to the New Haven Labor Market Area (LMA), as defined by the Department of Labor. Figure 13: Geography of the South Central Region South Central Connecticut: CEDS 2013 75 Part II: Analysis of the Region A demographic and socioeconomic overview, comparing the years 2000 and 2010, at the regional, labor market and county scale is presented in Table 10. The percentage change in the total population and number of households in all three geographies was about 5%. The South Central Region experienced the largest increase ($15,088) in median household income compared to the other two geographies analyzed. In both years, per capita income and median age are comparable across the three geographies. In 2010, 66% of the population in New Haven County and 95% of the population in the New Haven Labor Market Area resided in the Region. Table 10: Demographic and Socioeconomic Overview, 2000 vs. 2010 South Central Region New Haven Labor Market Area New Haven County 2000 2010 2000 2010 2000 2010 Popula on 546,799 570,001 571,310 597,172 824,008 862,477 Households 212,894 222,620 220,781 231,769 319,040 334,502 Median Household Income $49,565 $64,653 $52,371 $66,425 $48,834 $61,114 Per Capita Income $24,223 $32,849 $25,342 $33,027 $24,439 $31,720 Median Age (years) 36.8 39.0 36.9 39.4 37.0 39.3 Sources: U.S. Census Bureau, Census 2000 (Tables DP‐1, DP‐2), 2010 U.S. Census Demographic Profile Date (Table DP‐1) & 2006‐2010 American Community Survey (Tables B19013 & B19301) Is Water the New Oil? While the details vary, most climatologists are predicting an increase in both the frequency and intensity of droughts throughout the west and mid-west portions of the U.S. In contrast, Coastal Connecticut has not experienced a drought of greater than four months since 1967*. If the forecasts are accurate, Greater New Haven will continue to have access to an abundance of this dwindling natural resource. Currently, the Regional Water Authority has excess capacity of 18 million gallons a day. Our abundance of water may represent a significant economic growth opportunity for South Central Connecticut to recruit water dependent industries to our region. Source: Cornell University: based on the monthly Palmer Drought Severity Index as computed by the National Climatic Data Center. Period of record: January 1895 through November 2012 South Central Connecticut: CEDS 2013 76 Part II: Analysis of the Region Transportation The South Central Region possesses a robust transportation network that accommodates diverse modes of travel (Figure 14). The Region is home to two interstate highways: I-91, which runs north-south, and I-95, which runs east-west. Other important highways are Routes 1, 5, and 15 (north-south) and I-691 (east-west). Metro-North, Shore Line East, and Amtrak commuter rail service routes run parallel to Interstate 95 and Route 1. In 2016, new high-speed commuter rail service, as a result of the New Haven-Hartford-Springfield Rail Program, will provide easy access to cities along the north-south rail corridor. Several of the Region’s municipal plans of conservation and development have policies that recognize the rail stations and major transportation corridors as areas of sustainable future growth. Two regional airports (Tweed-New Haven and Meriden-Markham) and one deepwater port (New Haven) are located in the Region. Figure 14: Regional Transporta on Network In addition to the transportation infrastructure highlighted in Figure 14, there is a growing network of bicycle and pedestrian-oriented infrastructure. This network includes the Farmington Canal/East Coast Greenway and the Shoreline Greenway Trail (under construction). Extensive bus service, largely provided by CT Transit, is also available in the Region. These alternate modes of transportation are vital to reducing vehicular congestion. In 2011, Union Station was Amtrak’s 11th busiest station in the U.S. with a ridership of 740,902* In 2012, Metro-North ridership reached an all-time high of 38.8 million despite the impact of Hurricane Sandy on rail travel** Shoreline East provided more than 614,000 "rides," or single boardings, in 2011, a 4.9 percent increase over 2010*** Union Station, New Haven Kindra Clineff Union Station, New Haven *Source: Amtrak. Top 25 Busiest Amtrak Stations in 2011. Retrieved from: http://www.amtrak.com/whistle-stop/top-25-busiest-amtrak-stations **Source: Metropolitan Transportation Authority. Check out 2012 Ridership Data. Retrieved from: http://www.mta.info/news/stories/?story=951 ***Source: The Day. More Are Riding the Rails in State, U.S. Retrieved from:http://www.theday.com/article/20120912/BIZ02/309129951/1070 South Central Connecticut: CEDS 2013 77 Part II: Analysis of the Region As shown in Figure 15, the most densely populated census tracts are in, or adjacent to, the town centers of New Haven, Meriden, and West Haven, while the least densely populated census tracts are in the towns of Bethany, Madison, North Branford, and Woodbridge. There is a north-south and east-west pattern of densely populated census tracts that tends to follow the major transportation routes in the South Central Region. Figure 15: Popula on Density by Census Tract, 2010 South Central Connecticut: CEDS 2013 78 Part II: Analysis of the Region Figure 16: Proximity of Region to Major Ci es Figure 16 represents the South Central Region in relation to the greater geographic area. Specifically, the map depicts 30, 60 and 90 mile radii around the regional center. There are four major Connecticut cities located within the 30 mile radius (Bridgeport, Hartford, New Haven, and Waterbury). The 60 mile radius encompasses all but the northeastern edge of Connecticut, as well as Springfield, MA, while the 90 mile radius includes the entire states of Connecticut and Road Island. Additionally, the following major cities in NY and MA are located within the 90 mile radius: New York and Worcester. Table 11: Regional Summary: 30‐, 60‐, and 90‐miles from the Center of the Region Building on Figure 15, Table 11 shows selected characteristics of the population within and around the South Central Region. Within 90 miles from the center of the Region are 22.5 million people and 8.3 million households. Most of the variables in Table 11 increase when the 30 mile and 90 mile ranges are compared. Notable divergences from this trend are average median household income and owner-occupied housing units, which decrease as you move farther from the center of the Region. There are about ten and eleven times more employees and establishments, respectively, in the 90 mile radius than in the 30 mile radius. 30 Miles Total Popula on 2,049,738 7,649,182 22,502,974 Popula on Density (per sq. mile) Total Households 1,006 784,781 Average Household Size 933 90 Miles 1,340 2,793,807 8,365,859 2.53 2.66 2.62 61.7% 64.2% 48.3% 30.5% 27.6% 43.7% 7.9% 8.2% 8.0% Average Median Household Income $72,077 $67,474 $66,080 Average Per Capita Income $36,036 $33,043 $33,285 Employees 846,474 Establishments 52,731 Owner Occupied Housing Units Renter Occupied Housing Units Vacant Housing Units Sources: U.S. Census Bureau, 2010 U.S. Census Demographic Profile Date (Table DP‐1) & 2006‐2010 American Community Survey (Tables B19013 & B19301) & 2009 County Business Pa erns 60 Miles 2,967,681 8,734,428 218,183 615,332 NYC or Boston… or the Best of Both? Many businesses, especially professional services, view the cost of space as less expensive in this region than their other offices in New York City, Boston, and the District of Columbia. Young professionals enjoy a vibrant quality of life in our 15 towns at a fraction of the cost of living in NYC or Boston. Cost of Living Comparison South Central Connecticut: CEDS 2013 New York, NY Boston, MA Washington, DC 52 % 47% 21% 79 Part II: Analysis of the Region Population Figure 17 shows historical population change in the South Central Region through three distinct categories: New Haven Municipalities Adjacent to New Haven: East Haven, Hamden, North Haven, Orange, West Haven, and Woodbridge South Central Region, excluding New Haven and adjacent towns: Bethany, Branford, Guilford, Madison, Meriden, Milford, North Branford, and Wallingford. Since 1900, the municipalities adjacent to New Haven and the rest of the South Central Region have exhibited similar population growth patterns, with the largest increase occurring between 1940 and 1970. Conversely, New Haven lost population between 1950 and 1980. Prior to 1950, the population of New Haven exceeded the total population of all other municipalities within the Region, reaching a peak of about 164,000 in 1950. Figure 17: Popula on Growth by Geography 600000 500000 400000 New Haven 300000 Adajcent Towns South Central Region (excluding New Haven and Adjacent Towns) 200000 100000 0 1900 1910 1920 1930 1940 1950 1960 1970 19 80 1990 2000 2010 Source: Popula on Growth by Geography—US Census South Central Connecticut: CEDS 2013 80 Part II: Analysis of the Region Figure 18 shows the population change in the Region’s municipalities between 2000 and 2010. Since 2000, the population of thirteen of the fifteen municipalities increased. The largest increase occurred in New Haven (about 6,000). The only municipality that experienced a decrease in population was Branford (about 600). The population of Woodbridge remained relatively stable during this time period. Figure 18: Popula on Change by Municipality, 2000‐2010 Figure 19: Popula on Distribu on by Age In percentage terms, the region’s population age distribution is lower than the state for both the <5 and 5-19 year-old groups. The region is higher for 20-49, 50-64 and over 65 year-old groups. The same pattern applies to the relationship between South Central Connecticut and the U.S. with the exception of the 20-49 year-olds, where they are nearly identical. These relationships are shown in Figure 19. 120.00% 100.00% 65+ 80 .00% 50‐64 60 .00% 25‐49 20‐24 40 .00% 5‐19 20 .00% <5 0.00% South Central Connecticut United State s DP‐1: Profile of General Popula on and Housing Characteris cs: 2010 2010 Demographic Profile Data South Central Connecticut: CEDS 2013 81 Part II: Analysis of the Region Figure 20 shows the distribution of the non-white population by census tract in 2010. The largest concentrations of residents identifying themselves as non-white are in Hamden, Meriden, New Haven, and West Haven. Both census tracts in North Branford are less than 5% non-white. Towns with some census tracts consisting of less than 5% non-white residents are Branford, Guilford, and, Madison. Figure 20: Concentra on of Non‐White Popula on 2010 South Central Connecticut: CEDS 2013 82 Part II: Analysis of the Region Students The South Central Region is home to a number of colleges and universities. Table 12 depicts that many of these educational institutions have a significant number of out-of-state students, especially Yale, Quinnipiac, and the University of New Haven. These students are representative of a potential source of future skilled workers. With the exception of Yale and the University of New Haven, international students do not comprise a large percentage of the student body. The public colleges and universities within the Region have approximately 80% of their students employed in Connecticut within one year of graduation. Table 12: Characteris cs of Students in Region’s Colleges and Universi es, 2010 College/University Out of State Students % Interna onal Students % Albertus Magnus College 15% 0.4% Gateway Community College 2%* 1.4% Middlesex Community College 0% 0.2% Paier College of Art 7%* N/A Quinnipiac University 85% 1.4% Southern Connec cut State University 4% 0.9% University of New Haven 49% 10.9% Yale University 94% 17.7% Sources: CollegeView.com (out of state students), Interna onal Student.com (interna onal students), & Campusdiscovery.com (*) Quinnipiac University Southern CT State University South Central Connecticut: CEDS 2013 Middlesex Community College University of New Haven Paier College of Art Yale University Michael Marsland Yale University Gateway Community College Mimi Dudley Albertus Magnus College 83 Part II: Analysis of the Region College Attainment The South Central Region is home to a number of colleges and universities. Figure 21 depicts that many of these educational institutions have a significant number of out-of-state students, especially Yale, Quinnipiac, and the University of New Haven. These students are representative of a potential source of future skilled workers. With the exception of Yale and the University of New Haven, international students do not comprise a large percentage of the student body. The public colleges and universities within the Region have approximately 80% of their students employed in Connecticut within one year of graduation. Figure 21: Percent of Popula on 25+ Years with a Bachelor's Degree or More Meriden East Haven West Haven New Haven North Branford Wallingford Milford 2000 North Haven Increase 2000‐2010 Hamden Branford Orange Bethany Guilford Madison Woodbridge 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Sources: U.S. Census Bureau, 2000 Census & 2006‐2010 American Community Survey Turning Lemons into Lemonade The recession left many residents under or unemployed. It seems they made the best of a bad situation with every town reporting an increase in the percentage of residents with a Bachelor’s Degree or higher. Most notably, Bethany can boast 56% of its residents with a BA or higher, up from 50% in 2009! Source: CERC Town Profiles South Central Connecticut: CEDS 2013 84 Part II: Analysis of the Region Income Figure 22 shows the median household income for the municipalities in the South Central Region during 2010. Woodbridge led the Region with a median household income of approximately $127,000, while New Haven’s median household income was about $39,000. There are apparent similarities in Figures 21 and 22. Municipalities with higher rates of college attainment tend to have higher median household income. Similarly, those municipalities with low rates of college attainment typically have lower median household income. Figure 22: Median Household Income, 2010 Woodbridge Bethany Madison Orange Guilford North Haven North Branford Milford Wallingford Branford Hamden East Haven Meriden West Haven New Haven $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 Source: U.S. Census Bureau, 2006‐2010 American Community Survey (Table B19013) South Central Connecticut: CEDS 2013 85 Part II: Analysis of the Region Poverty With respect to individuals living below the federally-defined poverty level (Figure 23), seven municipalities saw a decrease between 2000 and 2010 (Bethany, Guilford, Hamden, Madison, North Branford, Orange, and Woodbridge). It is clear that poverty is a greater problem in some of the larger municipalities, specifically Meriden, New Haven, and West Haven. In 2010, these municipalities had more than 10% of their residents living in poverty, with approximately 25% of New Haven’s population living below the poverty level. The largest increase in poverty, 3.1%, occurred in East Haven. Figure 23: Change in Percent of Popula on in Poverty by Town 2000‐2010 Sources: 2000 U.S. Census & ACS 2010 5 Year Es mates South Central Connecticut: CEDS 2013 86 Part II: Analysis of the Region Housing As shown in Figure 24, the number of housing permits issued in the South Central Region has ranged from a low of 297 in 2009 to a high of 1,703 in 2004. The rapid decrease in permits after 2007 is due to a downturn in the economy, referred to as the 2007-2009 recession by the National Bureau of Economic Research (NBER). The slight increase in permits between 2009 and 2010 is supportive of the NBER’s conclusion that the recession ended in mid-2009. Figure 24: Annual Housing Permit Data (by Town) from 1990 thru 2010 Source: Census, Department of Economic and Community Development Compiled by DECD Research South Central Connecticut: CEDS 2013 87 Part II: Analysis of the Region Housing The total number of housing units in the South Central Region increased by approximately 13,000 between 2000 and 2010 (Figure 25). However, the percentage of owner-occupied and renter-occupied units has remained rather stable. In both years, about 58% of the housing units were owner-occupied, while about 35% were renter-occupied. Vacant housing units increased from 6.5% to 7.5% between 2000 and 2010. Figure 25: Regional Owner‐Occupancy Rate 2000 2010 Sources: U.S. Census Bureau, Census 2000 Data Profile 1 & 2010 U.S. Census Demographic Profile Data (Table DP‐1) 360 State Street Mixed-use project, completed in 2011 with 500 total units, 50 affordable housing units First Connecticut Residence targeting LEED Platinum Certification, including a 400kW fuel cell on-site to produce clean, renewable energy Located next to the State Street Train Station Conveniently located within walking distances of over 30 Zagat-rated South Central Connecticut: CEDS 2013 88 Part II: Analysis of the Region Housing As shown in Figure 26, between 2009 and 2011, only four municipalities (Branford, Guilford, Milford, and Woodbridge) saw increases in the median sales price of single family homes, with Branford’s median sales price increasing 4.7%. The rest of the municipalities saw decreases, with the largest occurring in Meriden (-14.3%). Figure 26: Change in Median Sales Price Single‐Family Home, 2009‐2011 Branford Guilford Woodbridge Milford Wallingford East Haven North Branford Madison Bethany Hamden North Haven West Haven New Haven Orange Meriden ‐16.0% ‐14.0% ‐12.0% ‐10.0% ‐8.0% ‐6.0% ‐4.0% ‐2.0% 0.0% 2.0% 4.0% 6.0% Source: Pruden al Connec cut Realty, 4th Quarter Market Report – 2009 & 2011 South Central Connecticut: CEDS 2013 89 Part II: Analysis of the Region Housing Figure 27 shows the housing sales (for single-family homes) by price bracket during calendar year 2009. More than 40% of the sales in Guilford, Madison, and Woodbridge were $400,000 or greater. On the other end of the spectrum, nearly 30% of the sales in New Haven were less than $100,000. Figure 27: Percent of Single‐Family Housing Sales by Price Bracket, Jan. 2009 – Dec. 2009 Bethany* Branford** East Haven Guilford Hamden Madison Meriden <$100K Milford $100K‐$200K New Haven $200K‐$300K $300K‐$400K North Branford $400K+ North Haven Orange Source? Find original information to change color scheme Wallingford West Haven Woodbridge** 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% *January 2010 ‐ September 2010 ** January 2009 ‐ September 2009 Source: CT Office of Policy and Management, Real Estate Sales Lis ngs – 2008 & 2009 South Central Connecticut: CEDS 2013 90 Part II: Analysis of the Region Housing Figure 28 shows the difference between median household income and median home sales price (of single family homes) in 2010. The average ratio of median household income to median home sales price in the Region was 3.49, with the highest being in New Haven (4.23). It is clear from this figure that housing affordability is an issue in the South Central Region. Figure 28: Comparison of Median Household Income to Median Home Sales Sources: Pruden al Connec cut Realty 4th Quarter 2011 Market Report & 2006‐2010 American Community Survey South Central Connecticut: CEDS 2013 91 Part II: Analysis of the Region Distressed Municipalities The Connecticut Department of Economic and Community Development ranks all 169 municipalities in the state according their level of distress. The factors used to calculate this ranking include high unemployment and poverty, aging housing stock and low or declining rates of growth in job creation, population, per capita income, percentage of population with high school diploma or higher, and per capita adjusted equalized net grand list. When taken together, these metrics give an overall picture of the economic well-being of a community. Table 13 shows the 25 towns in the ranking that are considered distressed by the state and are deserving of special attention and investment. In the South Central region, the communities of New Haven, Meriden and West Haven qualified as distressed. Table 13: Distressed Municipali es List: 2012* Total Score Ansonia 1287 Bridgeport 1412 Bristol 1271 Deep River 1263 Derby 1289 East Har ord 1278 Enfield 1208 Groton 1167 Har ord 1462 Killingly 1294 Meriden 1207 Naugatuck 1354 New Britain 1460 New Haven 1269 New London 1293 North Canaan 1255 Plainfield 1283 Putnam 1146 Sprague 1152 Stra ord 1138 Torrington 1310 Waterbury 1460 West Haven 1209 Winchester 1247 Windham 1299 Source: Connec cut Department of Economic and Community Development (DECD) List of Distressed Municipali es ‐ 2012 South Central Connecticut: CEDS 2013 92 Part II: Analysis of the Region The labor force is defined as the sum of employed and unemployed residents. Figure 29 shows the labor force growth in the South Central Region, Connecticut, and the United States between 2000 and 2011. Since 2000, the labor force of the Region and Connecticut grew at a similar rate. Between 2001-2004 and 20082011, the labor force growth of both the Region and Connecticut exceeded that of the United States. In 2010, the Region’s labor force growth began trending slightly higher than that of the state. As of 2011, the labor force in the Region and Connecticut has grown by 10.2% and 8.7%, respectively. Figure 29: Labor Force Growth in South Central Region, CT, and USA, 2000 – 2011* 1.15 1.10 Index (2000 = 1) 1.05 South Central Region 1.00 Connecticut United States 0.95 0.90 0.85 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Connec cut Department of Labor, Labor Force Monthly Data w/ Annual Averages by Town 2000‐2011 South Central Connecticut: CEDS 2013 93 Part II: Analysis of the Region Unemployment Between 2000 and 2010, the average annual unemployment rate (unemployment rate) of the South Central Region resembled that of Connecticut (Figure 30). In the Region, Connecticut, and the United States, the largest increase in unemployment occurred between 2007 and 2009 (indicative of the economic recession) and the unemployment rate reached its peak in 2010. Between 2009 and 2011, the unemployment rate of the United States exceeded that of both the Region and Connecticut. Between 2010 and 2011, the most significant decrease in the unemployment rate occurred in the Region (-1.45%). Figure 30: Unemployment Rate in Region, State and Na on 2000‐2011 Source: CT DOL Labor Force Monthly Data w/ Annual Averages By Town (2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011) South Central Connecticut: CEDS 2013 94 Part II: Analysis of the Region Unemployment Average annual unemployment rates increased in all of the South Central Region’s municipalities, between 2005 and 2011, as shown in Figure 31. In 2011, all of the average annual unemployment rates were below 10%, except for Meriden (10.6%), New Haven (12.8%), and West Haven (10.2%). Figure 31: Unemployment Rates by Municipality 2005‐2011 New Haven Meriden West Haven East Haven Hamden North Branford Milford Wallingford 2005 Increase 2005‐2011 North Haven Branford Orange Bethany Woodbridge Guilford Madison 0% 2% 4% 6% 8% 10% 12% 14% Unemployment Rate Source: CT DOL Labor Force Monthly Data w/ Annual Averages By Town (2005, 2006, 2007, 2008, 2009, 2010) 2011? South Central Connecticut: CEDS 2013 95 Part II: Analysis of the Region Migrants Figure 32 represents data on New Haven County migrants between 2005 and 2010. Migrants are defined as people who moved out of the County (out-migrants) or into the County (in-migrants). The information was calculated from exemptions data published by the Internal Revenue Service. In each year, out-migration exceeded in-migration, with the difference between the two being the largest in 2010 (about 2,500 more outmigrants than in-migrants). Overall, the total number of in-migrants and out-migrants has been declining since 2005. Figure 32: Migrants into and out of New Haven County, 2005‐2010 Sources: Sta s cs of Income Division ‐ Internal Revenue Service, County‐to‐County Migra on Inflow 2004‐2005, 2005‐2006, 2006‐2007, 2007‐2008, 2008‐2009, 2009‐2010 & County‐to‐County Migra on Ou low 2004‐2005, 2005‐2006, 2006‐2007, 2007‐2008, 2008‐2009, 2009‐2010 South Central Connecticut: CEDS 2013 96 Part II: Analysis of the Region Migrants Figure 33 shows the number of net migrants between New Haven County and select counties during 2010. Net migrants are calculated by subtracting the number of people moving out of New Haven County from the number of people moving into New Haven County. The largest net gain was from Fairfield County (711). The next highest net gain was from Puerto Rico (198). The largest net losses were to Harford (-455) and Middlesex Counties (-444). Figure 33: Migrants into and out of New Haven County, 2010 Source? Sources: Sta s cs of Income Division ‐ Internal Revenue Service, County‐to‐County Migra on Inflow 2009‐2010 & County‐to‐County Migra on Ou low 2009‐2010 South Central Connecticut: CEDS 2013 97 Part II: Analysis of the Region Commuters The share of residents that commuted to a town outside of their hometown for work in 2000 and 2010 are shown in Figure 34. Five municipalities saw an increase in residents leaving for work (Bethany, East Haven, Meriden, Milford, and West Haven), five municipalities saw a decrease (Guilford, Madison, New Haven, Wallingford, and Woodbridge), and five municipalities experienced essentially no change (Branford, Hamden, North Branford, North Haven, and Orange). In 2010, New Haven had the least residents leaving for work (45.8%) and Bethany (86.4%) had the most residents leaving for work. Figure 34: Share of Popula on That Commutes to a Different Town for Work Sources: 2000 U.S. Census & 2006‐2010 American Community Survey South Central Connecticut: CEDS 2013 98 Part II: Analysis of the Region ECONOMIC ANALYSIS Over the course of the last five years, the national economy has seen a dramatic shift, from the recession in years 2007-2009 and the current post-recessionary period. Most economic data suggest that the United States economy improved over the past year. Gross Domestic Product (GDP) grew, inflation remained near the historic average, total employment and non-farm employment both improved, and even the unemployment rate fell. Economists divide the post-recession part of an economic cycle into two parts: recovery and expansion. Recovery refers to growth in GDP that occurs after the economy hits bottom, and gives way to expansion when the level of GDP surpasses the previous peak. According to the Kyser Center for Economic Research, based on that definition the economy entered the expansion phase of the economic cycle in the third quarter of 2011 and has continued to grow since then. Most businesses and consumers, however, still feel that the recession has not ended, and that the economy has not recovered. Although this may be the sentiment across the Nation and in the South Central Connecticut region, there are some explanations. United States According to the Kyser Center for Economic Research the economy is growing but the growth trajectory is lower than is typical of this point in an economic cycle. GDP has grown by an average of 2.8% since 1970, but in post-recession years, the growth rate typically ramps up to rates exceeding 4.0%. The current recovery period, however, has not been so typical. GDP grew just 3.0% in 2010 and a meager 1.7% last year. Additionally, weak economic growth has spurred anemic gains in the labor market. The unemployment rate did fall last year, but a decline from 9.1% in January of last year to 8.3% currently still leaves the unemployment rate considerably higher than the long-run “normal” unemployment rate, which is thought to be somewhere around 6.0% (citation). Finally, with uncertainty about their jobs, declines in the value of their assets, and tight credit, households have spent tentatively. This is a problem because the consumer sector makes up 70% of economic activity, meaning that households sit in the economy’s driver seat. If the hesitancy remains, the economy will continue on its slow growth trajectory and improvement in the labor market and elsewhere in the economy will remain painfully slow. The following is a 2012-2013 forecast at a glance of the U.S. economy, conducted by to Kyser Center for Economic Research. Below par growth and slow improvement in labor market Consumer sector key to improvement, potential drag from slower global growth Oil prices a perennial concern Table 14: Kyser Center for Economic Research 2012‐2013 Forecast Real GDP (% Change) Nonfarm Jobs (% Change) Unemployment Rate Consumer Price Index (% Change) 2011 2012 2013 1.7% 1.1% 9.0% 3.2% 1.9% 1.1% 8.5% 1.8% 2.3% 1.4% 8.3% 1.9% Leading Sectors – Consumer Spending, Exports, Business Equipment Spending Trailing Sectors – Construction, State/Local Government Spending South Central Connecticut: CEDS 2013 Yale University, New Haven 99 Part II: Analysis of the Region Connecticut The Connecticut economy, as expected, shows similar trends in respect to the National economy. A key measurement for overall economic growth in the Connecticut economy is the Farmington Bank Business Barometer (FBBB), reported quarterly by the Connecticut Department of Labor. The FBBB, through its three components, tells us where we are in the current business cycle, and whether statewide economic conditions are improving or deteriorating, and how we compare to the nation as a whole. The three components that are tracked in measuring the overall economic growth are: non-manufacturing employment, real disposable income and manufacturing production. On a historical basis, the FBBB has risen at an average annual rate of roughly 2.5%, dating back to the early 1970’s, slightly less than the approximate 3.0% growth rate realized nationally. The following is the FBBB through 2011: Figure 35: Farmington Bank Business Barometer Source NOTE: The Farmington Bank Business Barometer is a measure of overall economic growth in the state of Connecticut that is derived from non-manufacturing employment, real disposable personal income, and manufacturing production. Over the past five years you can see the economy has taken a downturn, coinciding with the recession, with a slight uptick between the second quarter of 2010 and through 2011. According to DATACORPS and the Connecticut Department of Labor, however, the FBBB is now reflecting a rather stagnant economy through the first half of 2012 (not shown in the above graph). Specifically, the FBBB has posted a slight 0.2% cumulative YTD rise for the first seven months of 2012, and has posted quarterly year-by-year percent changes of minus 0.1% in the 1Q, minus 0.1% for the 2Q, and plus 0.8% for the 3Q based on partial data through July. This indicates that, similar to the national economy, the State economy is slowing and demonstrating modest growth. According to the Connecticut Center for Economic Analysis’s recent “Connecticut Economic Outlook” report (published in August, 2012), the recession was more severe on Connecticut than was previously thought. As a result of the federal Bureau of Labor Statistics (BLS) annual Benchmark revision for Connecticut and all States, Connecticut was still contracting when the rest of the Nation was beginning to recover its real gross South Central Connecticut: CEDS 2013 100 Part II: Analysis of the Region In contrast, the report also points out that Connecticut is experiencing a stronger recovery, measured by housing permits, than neighboring States. Employment, however, has recovered only approximately a third of jobs lost in the recession. South Central Connecticut Although growth has been slow, there has still been growth over the last two years following the recession, in the Nation, State and in the South Central Connecticut region. It is the purpose of this analysis to show how the last five years have affected the economy in the South Central Region. The following sections show the collection and analysis of economic data to provide a firm basis for the actions proposed by this plan. The first section examines the overall economic situation in the South Central Connecticut region and looks at broad sectors of the economy. The next section examines the innovation potential for the region, and compares innovation performance with other areas. The final section details a cluster analysis of the region and identifies specific clusters in the region where economic development efforts can be focused. Note: It should be noted that this analysis does not include the government sector. South Central Connecticut: CEDS 2013 Yale University, New Haven 101 Part II: Analysis of the Region INDUSTRY SECTOR & EMPLOYMENT As previously discussed, since the region’s 2008 CEDS was completed, the economic development climate has changed dramatically. Recovery in the labor market has been painfully slow after the recession. As recently as last August, the national unemployment rate was 9.1%. Since then, the unemployment rate fell (or remained unchanged) for eight consecutive months. However, over the last several months has slightly increased and currently stands at 8.3% for July 2012. Nonfarm jobs grew by 1.2% for all of 2011 over 2010, a gain of 1.5 million jobs. The economy has added nearly 2.9 million jobs from the beginning of 2010 through January 2012, representing a significant recovery of the 8.7 million jobs that were lost from the start of the recession through the end of 2009. That still, however, leaves a large number of unemployed individuals, hence the relatively high unemployment rate. The South Central regional economy has seen the same effects. The following is a labor and industry analysis of the South Central region since the time of the previous CEDS was completed in 2008. The graph below shows the composition of the region’s economic base in 2011, by industry sector. Based on traditional industry sector definitions, the Health and Social Assistance sector provides the most jobs in the region, followed by Government, Retail, Manufacturing, Accommodation and Food Services and Education sectors. Excluding Government, these five sectors made up a large concentration of regional employment. This is very similar to the largest concentrations of employment in the State, with the exception of the Finance and Insurance sector, which makes up over 8.0% of the employment in the State but only 3.1% in the region. Figure 36: New Haven County % of Total Workforce Healthcare & Social Assistance: 18.9% Manufacturing: 9.1 Retail: 11.7% Flutterby, Guilford South Central Connecticut: CEDS 2013 102 Part II: Analysis of the Region Regional Employment The following chart shows the change in employment since 2006, by industry sector. As shown in the chart, the South Central Connecticut region was affected by the recession, much like the State and Nation. Although most industries in the region saw a decline during this period of time, two of the economic drivers in the region saw growth of 16.4% and 11.0%, that being Educational Services and Health Care and Social Assistance respectively. Table 15: Change in Employment 2006‐2011 US CT South Central Region** Industry Sector 2006 2011 % Change 2006 2011 % Change 2006 2011 % Change 23 Construc on 7,602,148 5,470,906 ‐28.0% 67,157 51,494 ‐23.2% 10,802 8,460 ‐21.7% 31‐33 Manufacturing 14,110,663 11,701,587 ‐17.1% 193,714 166,279 ‐14.2% 29,278 23,584 ‐19.4% 42 Wholesale trade 5,885,194 5,544,792 ‐5.8% 67,660 63,471 ‐6.2% 10,466 9,986 ‐4.6% 44‐45 Retail trade 15,370,040 14,665,100 ‐4.6% 191,254 180,203 ‐5.8% 31,086 28,341 ‐8.8% 54 Professional and technical services 55 Management of comp and enterprises 56 Administra ve and waste services 7,392,850 7,670,881 3.8% 91,396 87,834 ‐3.9% 10,811 10,634 ‐1.6% 1,785,257 1,914,283 7.2% 26,370 28,616 8.5% 1,939 2,847 46.8% 8,291,573 7,710,134 ‐7.0% 88,103 80,716 ‐8.4% 13,530 13,768 1.8% 61 Educa onal services 2,207,199 2,534,354 14.8% 47,723 54,718 14.7% *21,357 *24,852 16.4% 48‐49 Transporta on and warehousing 51 Informa on 4,204,514 4,055,183 ‐3.6% 41,710 39,640 ‐5.0% 6,355 5,349 ‐15.8% 3,040,577 2,675,278 ‐12.0% 37,730 31,385 ‐16.8% 8,361 4,816 ‐42.4% 52 Finance and insurance 6,007,468 5,507,056 ‐8.3% 123,282 114,560 ‐7.1% 10,297 8,614 ‐16.3% 2,154,595 1,909,455 ‐11.4% 21,043 18,692 ‐11.2% 4,176 3,178 ‐23.9% 1,901,194 1,922,524 1.1% 23,821 23,903 0.3% 3,104 2,708 ‐12.8% 11,123,421 11,371,675 2.2% 108,654 113,311 4.3% 17,560 18,756 6.8% 4,364,889 4,406,825 1.0% 57,761 57,229 ‐0.9% 9,134 9,114 ‐0.2% 53 Real estate and rental and leasing 71 Arts, entertainment, and recrea on 72 Accommoda on and food services 81 Other services, except public administra on *Regional Data for Educa onal Services was taken from New Haven County Level Data. **Regional Data is taken from the CT Department of Labor informa on for 15 municipali es in the region. The decrease in total employment, including all industries, was similar for the region compared to the State and only slightly below the National average of -4.0% between 2006 and 2011 (as seen below). Table 16: Total Employment: Region, State, & Na on United States 2006 112,718,858 2011 108,165,289 South Central Connecticut: CEDS 2013 Connec cut % Change ‐4.0% 2006 1,425,174 2011 1,374,880 South Central Region % Change ‐3.5% 2006 265,268 2011 255,679 % Change ‐3.6% 103 Part II: Analysis of the Region The South Central Region has a somewhat diverse economy with health care and social assistance, retail, manufacturing and educational services being the top private industry sectors by employment. As a comparison over the last four quarters that data is available, the State has the same top three industries by employment, with finance and insurance having a much larger concentration in the State than in the region. Educational services, on the other hand, have a much larger concentration in the region than that of the State. Table 17: Connec cut—Top Ten Industry Sectors by Employment Sector All Sectors Avg. Quarterly Employment (last 4 Q's) 1,360,184 62 Health Care and Social Assistance 245,768 44‐45 Retail Trade 176,015 31‐33 Manufacturing 169,880 52 Finance and Insurance 72 Accommoda on and Food Services 118,205 108,392 54 Professional, Scien fic, and Technical Services 85,756 56 Administra ve and Support and Waste Management and Remedia on Services 42 Wholesale Trade 78,119 63,638 61 Educa onal Services 56,572 81 Other Services (except Public Administra on) 55,942 Source: United States Census Bureau. Longitudinal Employer‐Household Dynamics. Retrieved from: h p://lehd.did.census.gov/led/datatools/datatools.html Table 18: New Haven County—Top Ten Industry Sectors by Employment Sector Avg. Quarterly Employment (last 4 Q's) All Sectors 312,769 62 Health Care and Social Assistance 66,120 44‐45 Retail Trade 42,538 31‐33 Manufacturing 33,426 61 Educa onal Services 72 Accommoda on and Food Services 27,142 24,892 56 Administra ve and Support and Waste Management and Remedia on Services 42 Wholesale Trade 18,947 54 Professional, Scien fic, and Technical Services 15,863 81 Other Services (except Public Administra on) 52 Finance and Insurance 16,135 12,561 11,882 Source: United States Census Bureau. Longitudinal Employer‐Household Dynamics. Retrieved from: h p://lehd.did.census.gov/led/datatools/datatools.html South Central Connecticut: CEDS 2013 104 Part II: Analysis of the Region Economic Base The economic base of a region is made up of industries that are more heavily concentrated in that region than they are in some other reference area. Those industries that employ a disproportionately large number of employees are assumed to be producing more than is required for local consumption, and are thus exporting the excess. The theory is that the economic base of a region drives growth by bringing in outside money. A technique (which will be explained in more detail during the cluster analysis discussion) of determining which industries are in the base is to calculate location quotients (LQ). The LQ is determined by comparing the percentage of an area’s total employment that is made up by a particular industry, to the percentage of total employment in a reference area that is made up by a particular industry. If the LQ is below 1.0 the region is assumed to be a net importer of that industry’s goods. If it is around 1.0, the industry is assumed to be producing just enough for local consumption. If the value is much greater than 1.0 it indicates that the region is exporting the product of that industry, a value of 1.2 is usually a defining measure of an exporting product. Table 19: Loca on Quo ents for New Haven County vs. the State and Na on Industry State U.S. 2006 ND 2011 0.69 % NA 2006 ND 2011 0.24 % NA 21 Mining, quarrying, and oil and gas extrac on ND 1.46 NA ND 0.09 NA 22 U li es 0.78 0.84 7.6% 0.75 0.74 ‐1.3% 11 Agriculture, forestry, fishing and hun ng 23 Construc on 1.02 1.05 2.9% 0.71 0.78 9.9% 31‐33 Manufacturing 0.98 0.92 ‐6.1% 1.06 1.02 ‐3.8% 42 Wholesale trade 0.98 1.03 5.1% 0.9 0.93 3.3% 44‐45 Retail trade 1.05 1.03 ‐1.9% 1.04 1.00 ‐3.8% 54 Professional and technical services 0.8 0.8 0.0% 0.79 0.72 ‐8.9% 55 Management of companies and enterprises 0.54 0.64 19.0% 0.63 0.75 19.0% 56 Administra ve and waste services 0.98 0.98 0.0% 0.82 0.81 ‐1.2% 61 Educa onal services 2.02 2.08 3.0% 3.45 3.53 62 Health care and social assistance 1.19 1.21 1.7% 1.45 1.44 2.3% ‐4.1% 48‐49 Transporta on and warehousing 0.88 0.86 ‐2.3% 0.69 0.66 ‐4.3% 51 Informa on 1.17 0.88 ‐24.8% 1.15 0.81 ‐29.6% 52 Finance and insurance 0.49 0.44 ‐10.2% 0.8 0.72 ‐10% 53 Real estate and rental and leasing 1.12 1.18 ‐1.8% 0.87 0.91 4.6% 71 Arts, entertainment, and recrea on 0.8 0.71 ‐11.3% 0.79 0.69 ‐12.7% 72 Accommoda on and food services 0.98 1 2.0% 0.76 0.79 3.9% 81 Other services, except public administra on 1.02 1.02 0.0% 1.07 1.04 ‐2.8% 99 Unclassified 0.5 0.64 28.0% 0.04 0.09 125.0% Source: United States Department of Labor Quarterly Census of Employment and Wages. Retrieved from: h p://data.bls.gov/loca on_quo ent/ControllerServlet South Central Connecticut: CEDS 2013 105 Part II: Analysis of the Region The data on the previous page from 2011 show only two industry sectors that made up the economic base (LQs above 1.2) for the South Central region: Educational Services and Health Care and Social Assistance. Even during the economic downturn over the past five years these two industry sectors have increased in concentration in comparison to both the State and Nation. Manufacturing saw a slight decline in this period, although still maintained an LQ above 1.0 in comparison to the Nation. There are two industry sectors that saw a significant decline that should be noticed. The information sector had an LQ above 1.0 in 2006 compared to both the State and Nation, however, since 2006 has decreased below 1.0 to .88 compared to the State and .81 compared to the Nation. The arts, entertainment and recreation industry also saw a decline of over 10% during this time period. This should be of some concern, as this industry sector has in the past been thought to be an economic engine in the region. LQs can also reveal industries that are underrepresented in the region, indicating that certain needs are being met outside of the region. In this regard, very few sectors in the region have shown an LQ below 0.6 showing a diversity in the South Central region. Finance and insurance was seen to have a LQ below 0.6 at 0.44 compared to the State, most probably due to the strong concentration of financial and insurance corporations in the Hartford region. Management of companies and corporations is another industry sector that has seen a LQ below 0.60 in the past, having a LQ of 0.54 compared to the State in 2006 and 0.63 compared to the Nation in that same year. This industry sector, however, has showed a 19.0% increase in both the State and Nation since 2011, indicating a possible increase in corporate offices in the region. Sub-Sector Analysis The above data was taken from broad industry sectors with a 2-digit NAICS. To better understand the breakdown of some of the top industry sectors in the region the following information will break down the industry sectors into sub-sectors using the 3-digit NAICS for each specific sector, with the exception of the two main economic drivers in the South Central region, Education and Healthcare, these industry sectors have been broken down even further into 4-digit NAICS. The following charts show the LQ concentrations for the top five industry sectors in the region by employment, broken down into their respective sub-sectors. Each industry sub-sector is compared to both the Nation and the State, with LQ concentrations above 1.2 in both the Nation and State highlighted in grey and with concentrations above 1.2 in at least one comparison category highlighted in green. South Central Connecticut: CEDS 2013 Yale University, New Haven 106 Part II: Analysis of the Region Table 20: Sub‐Sector Analysis—Healthcare and Social Assistance Industry Sector U.S. CT 62 Health care and social assistance 1.44 1.21 1.12 1.05 1.17 1.04 1.27 1.14 1.54 1.7 1.45 1.49 1.27 1.36 0.98 0.78 1.51 1.43 NC ND NC ND 2.31 1.29 1.88 1.06 0.85 1.03 0.97 0.74 1.55 1.07 1.39 1.05 2.48 1.27 1.3 1.06 Sub‐Sectors 6211 Offices of physicians 6212 Offices of den sts 6213 Offices of other health prac oners 6214 Outpa ent care centers 6215 Medical and diagnos c laboratories 6216 Home health care services 6219 Other ambulatory health care services 6221 General medical and surgical hospitals 6222 Psychiatric and substance abuse hospitals 6223 Other hospitals 6231 Nursing care facili es, skilled nursing 6232 Residen al mental health facili es 6233 Con nuing care, assisted living facili es 6239 Other residen al care facili es 6241 Individual and family services 6242 Emergency and other relief services 6243 Voca onal rehabilita on services 6244 Child day care services South Central Connecticut: CEDS 2013 107 Part II: Analysis of the Region Table 21: Sub‐Sector Analysis—Retail Trade Industry Sector 44‐45 Retail trade U.S. CT 1 1.03 0.97 1.06 0.9 0.83 0.95 0.97 0.99 1.01 1.15 0.97 1.1 1.06 0.6 1.09 1.03 0.96 1.05 1.03 0.87 1.22 0.98 1.06 1.62 1.01 Sub‐Sectors 441 Motor vehicle and parts dealers 442 Furniture and home furnishings stores 443 Electronics and appliance stores 444 Building material and garden supply stores 445 Food and beverage stores 446 Health and personal care stores 447 Gasoline sta ons 448 Clothing and clothing accessories stores 451 Sports, hobby, music instrument, book stores 452 General merchandise stores 453 Miscellaneous store retailers 454 Nonstore retailers South Central Connecticut: CEDS 2013 108 Part II: Analysis of the Region Table 22: Sub‐Sector Analysis—Manufacturing Industry Sector 31‐33 Manufacturing Sub‐Sectors 311 Food manufacturing 312 Beverage and tobacco product manufacturing 313 Tex le mills 314 Tex le product mills 315 Apparel manufacturing 316 Leather and allied product manufacturing 321 Wood product manufacturing 322 Paper manufacturing 323 Prin ng and related support ac vi es 324 Petroleum and coal products manufacturing 325 Chemical manufacturing 326 Plas cs and rubber products manufacturing 327 Nonmetallic mineral product manufacturing U.S. CT 1.02 0.92 0.47 1.23 0.11 0.32 ND ND 0.65 0.93 0.18 ND ND ND 0.24 0.94 0.53 0.71 1.03 1.11 0.13 0.68 1.27 1.02 0.65 0.91 0.69 1.43 331 Primary metal manufacturing 1.76 2.47 332 Fabricated metal product manufacturing 333 Machinery manufacturing 1.82 1.08 0.82 0.74 334 Computer and electronic product manufacturing 1.43 1.49 335 Electrical equipment and appliance manufacturing 1.73 0.81 336 Transporta on equipment manufacturing 337 Furniture and related product manufacturing 0.58 0.24 0.41 0.75 339 Miscellaneous manufacturing 2.65 1.89 South Central Connecticut: CEDS 2013 109 Part II: Analysis of the Region Table 23: Sub‐Sector Analysis—Educa onal Services Industry Sector NAICS 61 Educa onal services Sub‐Sectors NAICS 6111 Elementary and secondary schools NAICS 6112 Junior colleges U.S. CT 3.53 2.08 2.06 1.07 ND ND NAICS 6113 Colleges and universi es NAICS 6114 Business, computer and management training NAICS 6115 Technical and trade schools 5.78 3.03 2.7 1.21 2.07 1.1 1.08 0.83 ND ND NAICS 6116 Other schools and instruc on NAICS 6117 Educa onal support services Table 24: Sub‐Sector Analysis—Arts, Entertainment, and Recrea on Industry Sector NAICS 71 Arts, entertainment, and recrea on U.S. CT 0.69 0.71 0.56 0.25 0.77 0.78 0.2 0.75 Sub‐Sectors NAICS 711 Performing arts and spectator sports NAICS 712 Museums, historical sites, zoos, and parks NAICS 713 Amusements, gambling, and recrea on Sub‐Sectors NAICS 72 Accommoda on and food services NAICS 721 Accommoda on NAICS 722 Food services and drinking places 0.79 0.37 0.86 1 0.75 1.03 U.S. Department of Labor—Quarterly Census of Employment and Wages. Retrieved from: h p://data.bls.gov/loca on_quo ent/ControllerServlet South Central Connecticut: CEDS 2013 110 Part II: Analysis of the Region As seen in the charts of the sub-sector location quotient analysis above, several of the top industry sectors by employment have strong concentrations when compared to both the State and Nation. The healthcare and social assistance industry sector by far employees the largest number of individuals in the region, and along with educational services is one of the two main economic drivers in the region. Among the healthcare and social assistance sector there are several industry sub-sectors that have strong concentrations in both the State and Nation, they are: Outpatient care centers, medical and diagnostic laboratories, home health care services, general medical and surgical hospitals, nursing care facilities, skilled nursing and vocational rehabilitation services. Nursing care facilities and skilled nursing and vocational rehabilitation services had the highest LQs when compared to the Nation at 2.31 and 2.48 respectively. There are also several subsectors that have a relatively high concentration when compared to the State, those being outpatient care centers and medical and diagnostic laboratories at 1.70 and 1.49 respectively. Overall, when broken down at the sub-sector level, the health care industry is very strong with the majority of the subsectors indicating an exportation of product. The educational services industry sector, when broken down to its sub-sectors is also an overall diverse and highly concentrated industry, with colleges and universities showing extremely high LQs when compared to both the Nation and State. The other industry sector to pay particular attention to is the manufacturing industry, which employees the third highest total of individuals in the region at 23,584 in 2011, just behind retail, a service industry with a relatively even (1.0) LQ when compared to the State and Nation. When the manufacturing industry, which shows an overall LQ of 1.02 when compared to the Nation and 0.92 when compared to the State, is broken down into sub-sectors, several in the region stand out as strong areas of concentration. The primary metal manufacturing sub-sector has the strongest concentration in both the Nation and State at 1.76 and 2.47 respectively, followed closely by the computer and electronic product manufacturing. The other industry subsector with high concentration in both the Nation and State is the miscellaneous manufacturing at 2.65 and 1.89 respectively, which may be due to a strong presence of medical supplies manufacturing in the region. Fabricated metal and product manufacturing and electrical equipment and appliance manufacturing subsectors, although not having a relatively high concentration when compared to the State, they both have a high LQ when compared to the Nation. Food manufacturing, on the other hand, has an extremely low LQ when compared to the Nation at 0.43, but a relatively high concentration when compared to the rest of the State at 1.23, which may show an industry of some significance and emerging. While historically the South Central region was developed through the manufacturing industry, the service oriented industry has become the largely dominant industry group over the course of the last ten years, as the previous CEDS report showed. Goods producing jobs, as the name suggests, involve making things. While this category largely consists of manufacturing jobs, which can include machinist and craftsman work, laboratory production in chemicals and pharmaceuticals, food processing and electronics and engineering jobs, to name a few, it also consists of agriculture, construction and mining. Service industry jobs, by contrast, have a much broader function. The service industry is defined by the U.S. Department of Labor as including workers as varied as health care employees, educators, restaurant employees, hairstylists and even performers like musicians and actors. Basically, service industry jobs can involve working with things or working with people. South Central Connecticut: CEDS 2013 111 Part II: Analysis of the Region The goods producing and service providing industries continue to evolve and reveal distinct differences, including emerging employment patterns as suggested by the growing service sector in the region, and the perception that parts of the service industry is recession proof, as was seen in the region over the last five years in regards to the two main economic drivers of activity, healthcare and education. A better way to examine the industry subsectors identified above may be to further break the sub-sectors down into goods producing and service providing jobs in the region. According the U.S. Bureau of Labor Statistics, 15.3% of the overall industry employment was in the goods producing industries in 2011 and 84.7% was in the service industry, similar to the breakdown of the Nation. The totals of all industries and the location quotients compared to the Nation can be seen in the following chart. Table 25: Loca on Quo ents: New Haven County vs. Na on Industry Total ‐ All Industries Goods‐Producing Service‐Providing U.S. Total 108,165,289 19,062,460 89,102,828 % 100.0% 17.6% 82.4% New Haven County 300,468 46,028 254,440 % 100.0% 15.3% 84.7% LQ 0.87 1.03 Source: United States Department of Labor, Bureau of Labor Sta s cs. Quarterly Census of Employment and Wages. Retrieved from: h p://data.bls.gov/loca on_quo ent/ControllerServlet As was previously seen, the sub-sectors with the highest concentration in New Haven County are seen in the healthcare and social assistance, educational services and manufacturing industries. In comparison the following charts show the top 20 sub-sectors for the region ranked by overall employment and annual wage, with the goods producing industries highlighted. Table 26: Top 20 Industry Sub‐Sectors by Employment (2011) Total – All Sub‐Sectors 611 Educa onal Services 722 Food Services and Drinking Places 621 Ambulatory Health Care Services 561 Administra ve and Support Services 622 Hospitals 623 Nursing and Residen al Care Facili es 541 Professional, Scien fic, and Technical Services 624 Social Assistance 445 Food and Beverage Stores 238 Specialty Trade Contractors 452 General Merchandise Stores 423 Merchant Wholesalers, Durable Goods 332 Fabricated Metal Product Manufacturing 424 Merchant Wholesalers, Nondurable Goods 524 Insurance Carriers and Related Ac vi es 522 Credit Intermedia on and Related Ac vi es 334 Computer and Electronic Product Manufacturing 441 Motor Vehicle and Parts Dealers 448 Clothing and Clothing Accessories Stores 812 Personal and Laundry Services Employment 312,769 27,142 23,160 21,975 17,735 17,005 16,118 15,863 11,022 9,137 7,855 7,279 7,045 6,655 6,384 5,639 4,928 4,717 4,561 4,400 4,337 Avg. Monthly Wage $4,330 $6,013 $1,458 $4,721 $3,119 $4,669 $2,909 $6,972 $2,020 $1,936 $4,771 $1,838 $5,713 $4,840 $5,206 $7,121 $5,367 $5,686 $4,042 $1,592 $2,099 Source: U.S. Census Bureau. Longitudinal Employer‐Household Dynamics. Retrieved from: h p://lehd.did.census.gov/ South Central Connecticut: CEDS 2013 112 Part II: Analysis of the Region Table 27: Top 20 Industry Sub‐Sectors by Wage (2011) Total – All Sub‐Sectors 523 Securi es, Commodity Contracts, and Other 325 Chemical Manufacturing 425 Wholesale Elec. Markets and Agents and Brokers 551 Management of Companies and Enterprises 517 Telecommunica ons 221 U li es 481 Air Transporta on 524 Insurance Carriers and Related Ac vi es 541 Professional, Scien fic, and Technical Services 533 Lessors of Nonfinancial Intangible Assets 515 Broadcas ng (except Internet) 237 Heavy and Civil Engineering Construc on 611 Educa onal Services 331 Primary Metal Manufacturing 519 Other Informa on Services 336 Transporta on Equipment Manufacturing 423 Merchant Wholesalers, Durable Goods 483 Water Transporta on 334 Computer and Electronic Product Manufacturing 335 Electrical Equip, Appliance, and Component Mfg. Avg. Monthly Wage $4,330 $18,511 $10,203 $8,955 $8,093 $7,982 $7,855 $7,382 $7,121 $6,972 $6,795 $6,733 $6,343 $6,013 $5,982 $5,934 $5,757 $5,713 $5,711 $5,686 $5,580 Employment 312,769 1,112 2,874 2,707 4,102 3,690 1,271 187 5,639 15,863 846 403 927 27,142 1,817 477 2,225 7,045 197 4,717 1,787 Source: U.S. Census Bureau. Longitudinal Employer‐Household Dynamics. Retrieved from: h p://lehd.did.census.gov/ As can be expected, in overall employment in the region a majority of the top twenty sub-sectors are in the service providing industry, with only one in the goods producing industry of construction ranking in the top ten. In contrast when the sub-sectors are ranked by wage, a number of the goods producing sub-sectors are in the top twenty, with chemical manufacturing ranking in the top three. Also, as can be seen in comparing the two industry sub-sector charts, only five of the sub-sectors identified in the top twenty for employment are also seen in the top twenty for wage in the region, those being: Educational Services; Professional, Scientific and Technical Services; Merchant Wholesalers, Durable Goods; Insurance Carriers and Related Activities; and Computer and Electronic Product Manufacturing. Even though the region is predominately service oriented, a majority of the employment in the service providing industry sectors, with the exception of educational services, have lower paying jobs than their counterparts in the goods producing and other service providing sub-sectors. Shift-Share Analysis Shift-share looks at employment in various industry sectors during two points in time. It compares the changes that occur on a regional scale to those that are happening nationwide and industry wide. This allows the determination of a given industry’s growth or decline, in a given region, is attributable to general national trends, specific industry trends, and the character of the local economy. The following chart represents a shift-share sector analysis performed for the region in comparison to the Nation. South Central Connecticut: CEDS 2013 113 Part II: Analysis of the Region Table 28: Shi ‐Share Analysis Compared to the Na on Industry Sector Na onal Employment % Change Agriculture Mining U li es Construc on Manufacturing Wholesale Retail Trans and Warehouse Informa on Finance Real Estate Professional and Tech Management of Comp Admin and Waste Educa on Healthcare and Social Arts and Entertainment Accom/Food Services Other (not Pub Admin) Total All Industry Sectors Na onal Share Regional Employment Industry Mix Regional Share 2006 2011 Change % Change 2006‐2011 2006‐2011 2006‐2011 ‐0.5% 10.5% 0.0% ‐28.0% ‐17.1% ‐5.8% ‐4.6% ‐3.6% ‐12.0% ‐8.3% ‐11.4% 3.8% 7.2% ‐7.0% 14.8% 12.1% 1.1% 2.2% 1.0% * * * 10,802 29,278 10,466 31,086 6,355 8,361 10,297 4,176 10,811 1,939 13,530 3,816 42,051 3,104 17,560 9,134 * * * 8,460 23,584 9,986 28,341 5,349 4,816 8,614 3,178 10,634 2,847 13,768 5,037 46,672 2,708 18,756 9,114 * * * (2,342) (5,694) (480) (2,745) (1,006) (3,545) (1,683) (998) (177) 908 238 1,221 4,621 (396) 1,196 (20) * * * ‐21.7% ‐19.4% ‐4.6% ‐8.8% ‐15.8% ‐42.4% ‐16.3% ‐23.9% ‐1.6% 46.8% 1.8% 32.0% 11.0% ‐12.8% 6.8% ‐0.2% * * * (436.4) (1182.8) (422.8) (1255.8) (256.7) (337.8) (416.0) (168.7) (436.7) (78.3) (546.6) (154.2) (1698.8) (125.4) (709.4) (369.0) * * * (2,591.9) (3,815.8) (182.6) (169.9) 31.0 (666.7) (441.7) (306.4) 843.3 218.5 (402.2) 719.8 6,779.1 160.2 1,101.3 456.7 * * * 686.3 (695.4) 125.4 (1,319.3) (780.3) (2,540.5) (825.3) (522.9) (583.6) 767.9 1,186.8 655.4 (459.3) (430.8) 804.1 (107.8) ‐4.0% 265,268 255,679 (9,589) ‐3.6% (10716.2) 0 1,127.2 In looking at the shift-share sector analysis in more detail, it is important to point out the regional share component is often seen as the most important component of the analysis, because it is unique to a specific region (in this cast South Central Connecticut), contains employment growth effects of regional policy and can help identify a region’s economic strengths and point to industries that enjoy a local comparative advantage. This is explained in more detail in the upcoming cluster analysis section. As can be seen from the above analysis, overall sector employment in the region saw a lower decrease than that of the nation, -3.6% and 4.0% respectively. When looking at individual industries, of the five industries with the highest employment, only the Administrative and Waste Management and Accommodation and Food Services industries saw a positive regional share with a positive employment growth over the past five years. This is not to say that all of the top five employment industries did not see a positive growth, the largest employment sector Healthcare and Social Assistance saw an 11.0% growth, however, was slightly behind the 12.1% growth seen nationally. Some of the positive regional trends seen in the shift-share sector analysis (and highlighted in green), when compared to the nation, was seen in the Construction; Wholesale Trade; Management of Companies; Administrative and Waste Management; Education (which only includes the university system); and Accommodation and Food Services South Central Connecticut: CEDS 2013 114 Part II: Analysis of the Region industries. The Management of Companies showed some of the strongest positive growth, at 46.8% over the last five years. This sector was able to hold roughly 768 more jobs than would be predicted by national and industry trends. The shift-share analysis also revealed a number of weaknesses in the region’s economy. A major loss of jobs in the Manufacturing sector was experienced, falling 19.4% regionally, slightly more the 17.1% decline in the national economy. This decline deprived the region of 695 jobs that would have been predicted following the national and industry trends. As previously mentioned regional growth in the Healthcare and Social Assistance sector, which was 11.0%, lagged that of the nation. If the region had followed national trends, sectorial employment would have grown by almost 460 jobs. The industry sector’s showing the most significant weakness in the region were the Information and Retail sectors. Retail, the second largest employment sector in the region, saw almost double the percentage loss of jobs over the past five years, nationally declining by 4.6% while regionally falling by 8.8%. The result was a loss of 1,319 jobs beyond what national or industry trends would suggest. Although a smaller sector in overall employment when compared to other sectors in the region, Information decreased by 42.4% over the last five years, falling from an employment of 8,361 jobs to 4,816 in 2011. This significant loss in jobs resulted in 2,540 more jobs being lost than what would have occurred following national and industry trends. Establishment Sizes The employers in the region are predominately made up of businesses with a relatively small workforce. In 2011, 94.4% of all business establishments in the region employed fewer than 50 employees, with half (51.5%) employing fewer than 5. This is a comparable trend to that of the nation, as the national average for establishments with employees fewer than 5 is 55.1%. For both the region and the Nation, establishments with employees greater than 500 only make up 0.2% of the entire market, with only 33 businesses greater than 500 employees in the region. This is important to note, as the definition of a small business used by the U.S. Small Business Association varies by industry, but generally includes businesses with fewer than 500 employees. On sheer size alone, the small businesses in the region make up the overwhelming backbone of the workforce in the region. Table 29: Size of Establishments: New Haven County vs. United States, 2011 Number of Employees Total Employees 1‐4 5‐9 10‐19 20‐49 50‐99 100‐249 250‐499 500‐999 1000 + New Haven County 19,607 10,089 3,826 2,763 1,823 611 408 54 17 16 % of Total 100% 51.5% 19.5% 14.1% 9.3% 3.1% 2.1% 0.3% 0.1% 0.1% U.S. 7,396,628 4,078,084 1,373,687 956,016 616,964 206,814 118,622 29,128 10,744 6,569 % of Total 100% 55.1% 18.6% 12.9% 8.3% 2.8% 1.6% 0.4% 0.1% 0.1% United States Census Bureau: County Business Pa erns (CBP), ZIP Code Business Pa erns (ZBP). Retrieved from: www.census.gov/econ/cbp/index.html South Central Connecticut: CEDS 2013 115 Part II: Analysis of the Region In regards to each individual industry sector, the sizes of employers varied depending on the sector that the business was in, as shown in the following chart. Both the Real Estate and Rental Leasing sector and the Professional and Technical services sector have over 60% of their businesses with fewer than 5 employees. The construction industry also showed nearly 70% of their businesses having fewer than 5 employees. In contrast, the Manufacturing; Healthcare and Social Assistance; and the Management of Companies and Enterprises sector tended to have larger employers. All had less than 40% of their businesses with fewer than 5 employees. In fact, the Manufacturing and Health Care and Social Assistance industry sectors had 230 and 159 businesses with more than 50 employees respectively. The Health Care and Social Assistance industry sector alone had 7 businesses that employed over 1000 employees, by far the most in the region, with the Educational Services sector having the second most at three. Figure 37: Size of Establishments by 2‐digit NAICS Source: United States Census Bureau. County Business Pa erns. Retrieved from: h p://www.census.gov/econ/cbp/index.html South Central Connecticut: CEDS 2013 116 Part II: Analysis of the Region The 25 largest employers (excluding public administration) in the region can be found in the following table. As can be seen from the list, it is dominated by the Healthcare and Social Services industry sector and the Educational Services industry sector. Two manufacturers also made the list, one being located in North Haven, Covidien (Surgical Appliances), and the other in New Haven, Assa Abloy Door Security Solutions (Valves and Pipe Fittings). It is also important to point out that there are a number of corporate and world headquarters on the list, proving the area is a good fit for a certain type of business. This lists also represents the larger municipalities in the region (with the exception of Marrakech Inc. in Woodbridge), with New Haven being the location for over 50% of the businesses on the list. Table 30: Largest Employers in the South Central Region Company Name Town Industry/Business Descrip on Yale University Yale New Haven Health System Southern Connec cut State Unv. Covidien Veterans Affairs Connec cut Servicom LLC Anthem Blue Cross Blue Shield Midstate Medical Ctr. Temple Medical Ctr. General Counselors Office Yale School of Med Psychiatry Quest Diagnos cs Milford Hospital United Illumina ng Co Marrakech Inc. American Medical Response Schick‐Wilkinson Sword Elm City Newspapers Quinnipiac University Knights of Columbus ASSA ABLOY DOOR SECURITY SLTNS SUBWAY World Headquarters NEW HAVEN NEW HAVEN NEW HAVEN NORTH HAVEN WEST HAVEN MILFORD WALLINGFORD MERIDEN NEW HAVEN NEW HAVEN NEW HAVEN WALLINGFORD MILFORD NEW HAVEN WOODBRIDGE NEW HAVEN MILFORD NEW HAVEN HAMDEN NEW HAVEN NEW HAVEN MILFORD Schools‐Universi es & Colleges Academic Hospitals/Clinics Schools‐Universi es & Colleges Academic Surgical Appliances‐Manufacturers Hospitals Call Centers Insurance Hospitals Clinics Business Services NEC Psychiatric Hospitals Physicians & Surgeons Hospitals U li es Social Service & Welfare Organiza ons Ambulance Service Marke ng Programs & Services Newspapers (Publishers/Mfrs) Schools‐Universi es & Colleges Academic Fraternal Organiza ons Valves & Pipe Fi ngs NEC (Mfrs) Restaurant Management DOCTOR'S Associates Inc. US Post Office Knights of Columbus Insurance MILFORD NEW HAVEN NEW HAVEN Restaurant Holding Companies Post Offices Insurance Size/Range 5,000 ‐ 9,999 5,000 ‐ 9,999 1,000 ‐ 4,999 1,000 ‐ 4,999 1,000 ‐ 4,999 1,000 ‐ 4,999 1,000 ‐ 4,999 1,000 ‐ 4,999 1,000 ‐ 4,999 1,000 ‐ 4,999 500 ‐ 999 500 ‐ 999 500 ‐ 999 500 ‐ 999 500 ‐ 999 500 ‐ 999 500 ‐ 999 500 ‐ 999 500 ‐ 999 500 ‐ 999 500 – 999 500 ‐ 999 500 ‐ 999 500 ‐ 999 500 ‐ 999 Source: Connec cut Department of Labor. Top 25 Employers. Retrieved from: h p://www1.ctdol.state.ct.us/lmi/empsearch.asp South Central Connecticut: CEDS 2013 117 Part II: Analysis of the Region Wages Total private wages in the region have increased since the last comprehensive strategy update by roughly $5,000, from $44,561 in 2006 to $49,364 in 2011. The increase of 10.8% over this time period is almost identical to the State’s increase of 10.7%, and slightly below the Nation’s increase of 12.8% (although the Nation’s data was between 2005-2010, while 2011 data was not available). When adjusting for inflation in the region, using the U.S. Bureau of Labor Statistics Consumer Price Index Tool, the 2006 annual wage of $44,561 is adjusted to $49,719, just slightly above the actual average annual wage in 2011. The following chart shows the annual average wage for each industry sector in the region for 2011. Table 31: New Haven County Wages, 2011 NAICS 11 21 22 23 31‐33 42 44‐45 48‐49 51 52 53 54 55 56 61 62 71 72 81 Industry Total Private Agriculture, forestry, fishing and hun ng Mining U li es Construc on Manufacturing Wholesale trade Retail trade Transporta on and warehousing Informa on Finance and insurance Real estate and rental and leasing Professional and technical services Management of companies and enterprises Administra ve and waste management Educa onal services Health care and social assistance Arts, entertainment, and recrea on Accommoda on and food services Other services, except public administra on Avg. Annual Wage $49,364 $27,011 * $100,836 $58,084 $65,993 $68,010 $27,648 $42,821 $69,069 $77,371 $45,718 $82,072 $106,010 $35,521 $65,615 $47,161 $20,010 $16,823 $28,148 As the top employer in the region, the health care and social assistance sector has a relatively lower annual wage compared to other industries that have been strong employers in the past. The educational services industry in contrast, has a very high annual wage, 25% higher than the average annual wage for the region. This is due to the strong presence of universities and university research in the region. Of the goods producing industries which historically have a higher annual wage per employee, manufacturing had an annual average wage of $65,933, a strong indicator for the region since manufacturing is the third largest private industry sector by employment. KEY FINDINGS: Healthcare and Education remained as two of the economic drivers in the region, both increasing in employment over the last five years, while the majority of the other industry sectors declined. Although the manufacturing sector overall employment fell at a shaper decrease than the State and Nation, it is still a major employer in the region (9.5% of total employment). Percentage wise the Arts/Recreation and Retail sectors suffered far greater than the State and Nation over the past five years, showing that consumption is down and the South Central region may have been affected more negatively than both the State and Nation. South Central Connecticut: CEDS 2013 118 Part II: Analysis of the Region Only two sectors showed significantly high concentrations when compared to the State and Nation, the Health Care and Social Assistance sector and the Educational Services sector; however, there were no noticeably low concentrations among all sectors, showing diversity in the region. Many sub-sectors of the top major industry sectors by employment showed very strong concentrations when compared to the State and Nation, with the exception of the Arts, Entertainment and Recreation sector. Two strong sub-sectors within the Manufacturing sector were seen to be in Primary Metal Manufacturing and Computer and Electronic Product Manufacturing. Employment in the region is predominately service based, being 84.7% of the overall employment, slightly above but on par with the national average of 82.4%. As can be expected, the service providing jobs have lower wages than the goods producing. In 2011, small businesses made up 94.4% of all business establishments in the region. Wages increases have followed national trends, but when adjusted for inflation, wages have been essentially flat. South Central Connecticut: CEDS 2013 119 Part II: Analysis of the Region Labor Force and Employment Trends The decline over the last five years in employment can be attributed to the recession; this same decline can be seen in the primary job makeup in the region. A primary job is the highest paying job for an individual worker for the year, and thusly will be the same as the count of workers. This overall decline, however, masks the year over year employment change that can be seen in New Haven County and the State. As seen below, both the State and the County gained jobs between 2006 and 2008, however, between 2008 and 2010 there was a sharp decrease, falling below the 2006 level. Figure 38: Connec cut Total Primary Jobs South Central Connecticut: CEDS 2013 Figure 39: New Haven County Total Primary Jobs 120 Part II: Analysis of the Region Unemployment The decrease in total primary jobs is correlated in an increase in unemployment in both the State and the Region, both of which were consistent with that of the National unemployment rate increase. Unemployment in the South Central region rose from just under 14,000 unemployed persons in 2006 to over 28,000 unemployed persons in 2011, a 110% increase. The graph below shows that the 2011 unemployment rate for the South Central region, as well as the State and the Nation, doubled the 2006 unemployment rate. It does show, however, that the unemployment rate decreased slightly between 2010 and 2011, after a 104% increase in the South Central region between 2006 and 2010. Similar increases over this time period can be seen by both the State and the Nation. Figure 40: Change in Employment 2006‐2011 South Central Connecticut: CEDS 2013 121 Part II: Analysis of the Region Workforce Trends The inflow and outflow of labor in the region has been roughly consistent over the course of the last five years. As expected with the decrease in the number of primary jobs between 2006 and 2010, there has been a slight decrease in the number of employees that both live and work in the region, however, the numbers of employees that inflow or outflow for work has slightly increased, with the region having a net inflow/outflow percentage in 2010 of -5.2% (meaning 5.2% more workers that live in the region leave the region for work, than do workers that live outside the region come into the region for work). Slightly more of the workforce in 2010 commuted in from outside the region (29.3%) and commuted out from inside the region (24.1%) than the total 46.6% of the workforce that both lived and worked in the region. Figure 41: Worker Inflow/Ou low by Percent of Total Workers and Residents, New Haven County In 2010 a relatively large percentage of workers employed in the region lived in New Haven, followed by Waterbury, which is outside the region but still in New Haven County. Of the municipalities that are in our region, over a quarter of the workforce in the county live in New Haven, Hamden, West Haven, Meriden and Wallingford. Similarly, of the residents that reside in the region, a relatively large percentage works in New Haven, 15.8%, however, residents tend to work throughout the region and State. These commuting work patterns suggest that access to employment and transportation issues may not be primary issues for area labor force participants. Table 32: New Haven County Workers by Place of Residence 2010 New Haven town (New Haven, CT) Waterbury town (New Haven, CT) Hamden town (New Haven, CT) West Haven town (New Haven, CT) Meriden town (New Haven, CT) Wallingford town (New Haven, CT) Milford town (New Haven, CT) East Haven town (New Haven, CT) Branford town (New Haven, CT) North Haven town (New Haven, CT) All Other Loca ons South Central Connecticut: CEDS 2013 Count 28,972 21,808 17,756 15,070 14,787 14,130 11,998 9,999 9,422 7,829 174,855 Share 8.9% 6.7% 5.4% 4.6% 4.5% 4.3% 3.7% 3.1% 2.9% 2.4% 53.5% Table 33: New Haven County Residents Work Des na ons 2010 New Haven town (New Haven, CT) Waterbury town (New Haven, CT) Milford town (New Haven, CT) Wallingford town (New Haven, CT) Hamden town (New Haven, CT) North Haven town (New Haven, CT) Meriden town (New Haven, CT) West Haven town (New Haven, CT) Stra ord town (Fairfield, CT) Har ord town (Har ord, CT) All Other Loca ons Count 55,318 21,907 15,679 15,210 12,996 12,995 11,061 10,407 10,281 9,367 175,231 Yale University, New Haven Share 15.8% 6.3% 4.5% 4.3% 3.7% 3.7% 3.2% 3.0% 2.9% 2.7% 50.0% 122 Part II: Analysis of the Region Conversely, in showing the strength of the labor force in comparison with the State, New Haven ranked in the top three places of residents and worker destinations in 2010. No other municipality in the South Central region ranks in the top 10. Table 34: Connec cut Workers by Place of Residence 2010 Bridgeport town (Fairfield, CT) Stamford town (Fairfield, CT) New Haven town (New Haven, CT) Har ord town (Har ord, CT) Waterbury town (New Haven, CT) Norwalk town (Fairfield, CT) Bristol town (Har ord, CT) New Britain town (Har ord, CT) West Har ord town (Har ord, CT) Danbury town (Fairfield, CT) All Other Loca ons Count 42,511 37,353 37,023 36,667 36,512 29,344 28,157 26,600 26,043 25,307 1,131,996 Share 2.9% 2.6% 2.5% 2.5% 2.5% 2.0% 1.9% 1.8% 1.8% 1.7% 77.7% Table 35: Connec cut Residents Work Des na ons 2010 Har ord town (Har ord, CT) New Haven town (New Haven, CT) Stamford town (Fairfield, CT) Bridgeport town (Fairfield, CT) Norwalk town (Fairfield, CT) Waterbury town (New Haven, CT) Danbury town (Fairfield, CT) Farmington town (Har ord, CT) Manha an borough (New York, NY) East Har ord town (Har ord, CT) All Other Loca ons Count 105,951 69,903 51,054 36,736 36,391 35,800 34,583 29,310 28,662 25,885 984,141 Share 7.4% 4.9% 3.5% 2.6% 2.5% 2.5% 2.4% 2.0% 2.0% 1.8% 68.4% Occupations The 2010 Standard Occupational Classification (SOC) system is used by Federal statistical agencies to classify workers into occupational categories for the purpose of collecting, calculating, or disseminating data. All workers are classified into one of 840 detailed occupations according to their occupational definition. To facilitate classification, detailed occupations are combined to form 461 broad occupations, 97 minor groups, and 23 major groups. For purposes of this analysis report the 23 major groups are being used to classify groups of occupations. Taking the current employment estimates for the major occupational groups, the South Central region is very similar to the State in terms of percent of overall employment. The top eight occupational groups in the South Central region make up almost 70% of the occupational employment in the region, those being Educational, Training and Library; Food Preparation and Serving-Related; Healthcare Practitioners and Technical; Management; Office and Administrative Support; and Production. The same eight are the top occupational groups in the State as well. Similarly, Office and Administrative Support and Education, Training and Library are the top two groups in both the region and State. Healthcare Practitioners and Technical occupational group has a much stronger presence in the region than compared to the State. The same can be said for Business and Financial Operations, where it is much stronger in the State compared to the region. In terms of wages, the top occupational group in the region Office and Administrative Support has a much lower average wage per worker then the regional and state average for all industries. Although, this may seem problematic, this group allows for advancement opportunities for growth in their current positions. The next largest group in the region, Education, Training, and Library at 9.9%, has a much higher average wage, $66,130, then the overall average of $51,581. Of the top 8 occupational groups in the region in terms of employment, only three have average wages above the overall average. As has been seen throughout this report, however, healthcare and educational occupations have relatively high average wages in the region, both strong economic drivers in the region. South Central Connecticut: CEDS 2013 123 Part II: Analysis of the Region Table 36: Employment Es mates for Major Occupa onal Groups, First Quarter 2012 New Haven LMA (1Q 2012) CT (1Q 2012) Es mated Employment % of Overall Employment Average Wage Es mated Employment 266,090 100.0% $51,581 1,608,820 100.0% $53,526 Architecture & Engineering 3,700 1.4% $74,062 32,340 2.0% $77,293 Arts, Design, Entertainment, Sports, & Media 2,870 1.1% $52,566 22,090 1.4% $55,088 Building & Grounds Cleaning & Maintenance 8,590 3.2% $31,801 57,420 3.6% $30,507 Business & Financial Opera ons 9,470 3.6% $71,696 82,090 5.1% $80,434 Occupa onal Group All industries % of Overall Average Wage Employment Community & Social Services 6,370 2.4% $48,909 34,490 2.1% $50,529 Computer & Mathema cal 4,610 1.7% $77,314 41,910 2.6% $82,744 Construc on & Extrac on 7,910 2.8% $53,782 44,980 2.8% $52,694 26,210 9.9% $66,130 127,770 7.9% $58,076 120 0.0% $28,517 520 0.0% $32,464 Food Prepara on & Serving‐Related 20,290 7.6% $20,040 124,430 7.7% $24,404 Healthcare Prac 19,770 7.4% $80,616 97,170 6.0% $80,930 Healthcare Support 9,370 3.5% $32,296 52,000 3.2% $32,791 Installa on, Maintenance, & Repair 8,980 3.4% $48,573 52,310 3.3% $50,155 Educa on, Training, & Library Farming, Fishing, and Forestry Occupa ons oners & Technical Life, Physical, & Social Science 2,680 1.0% $81,102 12,630 0.8% $77,506 Legal 1,960 0.7% $102,254 12,880 0.8% $111,220 Management 15,550 5.8% $111,038 108,530 6.7% $118,208 Office & Administra ve Support 45,180 17.0% $40,223 267,420 16.6% $40,213 Produc on 17,860 6.7% $37,483 97,620 6.1% $40,092 Protec ve Service 5,790 2.2% $52,435 35,920 2.2% $47,888 Personal Care & Service 8,650 3.3% $28,890 54,750 3.4% $28,517 25,520 14,640 9.6% 5.5% $40,081 $33,012 163,870 85,680 10.2% 5.3% $46,682 $33,935 Sales & Related Transporta on & Material Moving Source: State of Connec cut. Connec cut Labor Market Informa on. Retrieved from: Source: h p://www1.ctdol.state.ct.us/lmi/wages/oesmain.asp There are some interesting findings when the groups are broken down into sub-categories as well. As would be expected in most urban areas, in the second largest occupational group Education, Training and Library, almost 10% of the total 26,210 workers are elementary school teachers. The South Central region has a large presence of universities in the region and the overall makeup of the group’s total is post-secondary teachers that make a much larger annual wage. When looking at the other economic driver in the region, the Healthcare Practitioners and Technical occupational groups largest subcategories are lab technicians and nurses, when combined, however, general practitioners make up the overwhelming majority in this group. When looking at the Management occupational group which has the highest annual wage in the region and makes up 5.8% of the employment, it shows that almost a third of employment in this group is in the Education and Health Services industries. South Central Connecticut: CEDS 2013 124 Part II: Analysis of the Region Table 37: Top Employing Industries, Management Occupa onal Group Industry Employment Percent Educa on and Health Services 4,720 30.30% Trade, Transporta on and U li es 2,180 14.00% Professional and Business Services 2,050 13.10% Manufacturing 1,790 11.50% Occupational employment projections give a broad view of future employment conditions. They show job growth and decline in various occupations over the entire decade. The Connecticut Department of Labor projects that the South Central workforce investment area (WIA) will grow at a relatively slow rate. From 2008 to 2018, total job growth is projected to be just 5.2%, well below the 10.1% projected growth for the Nation into 2018. The largest portion of the projected new jobs will come from the service industries, as the below chart shows. Among the top 25 projected occupations in terms of growth, education and health care occupation make up an overwhelming majority of new jobs. It is also important to note that business and financial operations occupations ranks 15th among the overall occupations in terms of expected growth. This is an industry that has been seen to be relatively weak in the region, especially compared to other regions in the State, but, however, has a very high annual wage. Table 38: Top 25 Occupa ons in terms of Projected Growth Annual Openings 2008‐ 2018 Employment Occupa onal Group / Occupa on Title 2008 2018 Growth Total Growth Total, All Occupa ons 376,534 395,987 19,453 11,101 2,570 Educa on, Training, and Library Occupa ons 28,450 32,873 4,423 1,055 440 Healthcare Prac 23,127 26,712 3,585 822 359 Personal Care and Service Occupa ons 14,960 17,710 2,750 629 308 Personal and Home Care Aides 3,795 6,413 2,618 379 332 Other Personal Care and Service Workers 9,483 12,051 2,568 504 310 Health Diagnosing and Trea ng Prac oners and Technical Occupa ons 14,435 16,810 2,375 500 238 Healthcare Support Occupa ons 13,952 16,281 2,329 387 237 Primary, Secondary, and Special Educa on School Teachers 12,398 14,364 1,966 501 197 Nursing, Psychiatric, and Home Health Aides 9,777 11,520 1,743 273 176 Food Prepara on and Serving Related Occupa ons 26,974 28,625 1,651 1,190 165 Postsecondary Teachers 8,433 10,068 1,635 308 161 Registered Nurses 8,348 9,821 1,473 293 147 Home Health Aides 3,441 4,643 1,202 154 120 Health Technologists and Technicians 8,474 9,649 1,175 311 117 Business and Financial Opera ons Occupa ons 16,141 17,231 1,090 451 135 Food and Beverage Serving Workers 14,691 15,751 1,060 773 106 Community and Social Services Occupa ons 7,864 8,758 894 258 85 South Central Connecticut: CEDS 2013 oners 125 Part II: Analysis of the Region Table 38 : Top 25 Occupa ons in terms of Projected Growth (con nued) Counselors, Social Workers, and Other Community and Social Service Specialists Construc on and Extrac on Occupa ons Elementary School Teachers, Except Special Educa on Business Opera ons Specialists Customer Service Representa ves Informa on and Record Clerks Installa on, Maintenance, and Repair Occupa ons Other Installa on, Maintenance, and Repair Occupa ons Annual Openings 2008‐2018 Employment Occupa onal Group / Occupa on Title 2008 2018 Growth Total Growth 7,772 8,655 883 254 83 14,687 3,776 9,791 6,120 13,007 14,399 6,378 15,385 4,471 10,484 6,801 13,639 14,959 6,938 698 695 693 681 632 560 560 328 156 292 261 489 344 171 67 70 86 68 103 62 56 A large portion of the least performing occupations in terms of growth will be from production occupations. Production occupations are expected to decrease by 1,457 jobs, with few annual openings. The major decline will be seen in the goods producing industry; however, declines will also be seen in the administrative and service occupations. One important note to point out is the loss of employment in the top executive’s occupations, which may be a result of low overall projected growth. Table 39: Top 25 Occupa ons in Terms of Projected Decline Employment Occupa onal Group / Occupa on Title Produc on Occupa ons Metal Workers and Plas c Workers Material Recording, Scheduling, Dispatching, and Distribu ng Workers Top Execu ves Other Office and Administra ve Support Workers General and Opera ons Managers Material Moving Workers Other Produc on Occupa ons Insurance Claims and Policy Processing Clerks Other Sales and Related Workers Telemarketers Order Clerks Assemblers and Fabricators Shipping, Receiving, and Traffic Clerks Postal Service Mail Carriers Laborers and Freight, Stock, and Material Movers, Hand Secretaries, Except Legal, Medical, and Execu ve Prin ng Workers Team Assemblers File Clerks Transporta on and Material Moving Occupa ons Office and Administra ve Support Workers, All Other Postal Service Mail Sorters, Processors, and Processing Machine Operators Cu ng, Punching, and Press Machine Se ers, Operators, and Tenders, Metal and Plas c Packers and Packagers, Hand South Central Connecticut: CEDS 2013 Annual Openings 2008‐2018 Total Growth 417 12 100 1 237 13 218 0 191 24 179 0 241 2 109 4 17 0 62 4 25 0 15 0 98 0 45 0 42 0 159 0 90 0 15 0 46 0 10 0 530 34 32 0 2 0 2008 22,761 5,707 9,247 7,585 10,752 6,188 8,271 5,530 1,328 2,506 987 537 5,104 1,824 1,364 4,924 6,704 991 2,044 426 20,336 1,418 300 2018 21,304 5,043 8,699 7,058 10,303 5,776 7,947 5,237 1,067 2,247 759 335 4,903 1,624 1,169 4,729 6,516 838 1,903 291 20,202 1,287 175 Growth ‐1,457 ‐664 ‐548 ‐527 ‐449 ‐412 ‐324 ‐293 ‐261 ‐259 ‐228 ‐202 ‐201 ‐200 ‐195 ‐195 ‐188 ‐153 ‐141 ‐135 ‐134 ‐131 ‐125 742 618 ‐124 15 0 1,364 1,242 ‐122 23 0 126 Part II: Analysis of the Region KEY FINDINGS: Unemployed persons in the region increased by 110% since 2006, however, unemployment has decreased since 2010. In 2010, 5.2% more workers that live in the region leave the region for work, than do workers that live outside the region come in to the region for work. A large portion of the labor force in the region work in New Haven, followed by the towns of Milford and Wallingford. The top occupational group in the region by employment, Office and Administrative Support, has a much lower average wage per worker than the overall average. Two of the stronger occupational groups in the region, Education, Training and Library and Healthcare Practitioners and Technical, have a relatively high average wage. When the highest wage occupational group, Management, is broken down into its sub-sectors, almost a third of employment is in the Education and Health Services industries. Among the top 25 projected occupations in terms of growth through 2018, education and health care occupations make up an overwhelming majority of new jobs. An overwhelmingly large portion of the least performing occupations in terms of projected growth will be from production occupations. Innovation Innovation is the creation of better or more effective products, processes, services, technologies, or ideas that are readily available to markets, governments, and society. Innovation differs from invention in that innovation refers to the use of a better and, as a result, novel idea or method, whereas invention refers more directly to the creation of the idea or method itself. Innovation differs from improvement in that innovation refers to the notion of doing something different rather than doing the same thing better. It has long been documented that in business and economics, innovation is the catalyst to growth. The United States has long been founded on innovation and over the course of the past five years innovation has taken center stage in driving the economic growth post-recession. The State of Connecticut has taken hold of this innovation driven economy and developed policy to drive innovation throughout the State. Governor Malloy convened a special session of the Connecticut General Assembly to address job creation in the State of Connecticut on October 26, 2011. The General Assembly passed Public Act 11-1, An Act Promoting Economic Growth and Job Creation in the State, which included provisions to develop a more effective system of innovation and entrepreneur support in Connecticut, commonly referred to in the State as the “Innovation Ecosystem.” Its goal is to elevate Connecticut’s profile in innovation-based economic development and drive economic growth via the creation of knowledge-based jobs. A number of drivers created the need for the State to take actions. The persistent low relative levels of business and job growth in the state, and the state’s demonstrated weakness in retaining high-growth firms that start in Connecticut. The limited and declining percentage of national venture capital funds flowing into the state to match and support local investment funds. As well as the rise of infrastructure to support entrepreneurs in cities and states outside of Connecticut, which are attracting and retaining entrepreneurs building fast-growing companies. The South Central region is well positioned to drive innovation through policy decisions. The region, and Connecticut in general, has a myriad of assets that make for a strong ecosystem, as seen throughout this South Central Connecticut: CEDS 2013 127 Part II: Analysis of the Region world class universities, high levels of per capita income, a large number of Fortune 500 companies, as well as a long history of innovation. The region has proven to be a fertile home for bioscience companies, and an emerging center for the software and digital media sectors. In the 2010 release of the Kaufmann’s Foundation “New Economy Index”, Connecticut ranks 5th among all States in terms of overall innovation. According to statsamerica.org, much of today’s successful economic growth hinges on attracting or cultivating jobs that characterize the “innovation economy”—firms and occupations relying on talented workers whose skills are based on significant knowledge, insight and creativity. This innovation analysis utilizes the tool created by statsamerica.org and funded through the U.S. Economic Development Administration, in order to assess the region’s comparative strengths and weaknesses with respect to fostering innovation-based growth. The innovation index tool compares the South Central region to the U.S. for assessing innovation capacity. Methodology The index incorporates a mix of input measures that characterize the place and its people (accounting for 60 percent of the overall index score) and output measures that characterize its economic success (40 percent of the overall score). The Innovation Index’s four key component indexes are, the human capital (30%), the economic dynamics (30%), the productivity and employment (30%), and the economic well-being (10%) of a region. The following are the breakdown of the indicators for each key component: Table 40: Breakdown of Innova on Index Components Human Capital (30%) Avg. High‐Tech Employment Share Technology‐Based Knowledge Occupa ons Young Adult Popula on Growth Rate Ages 25‐64 w/Bachelor's Degree Ages25‐64 w/some College or Associate's Economic Dynamics (30%) Avg. Small Establishments Avg. Large Establishments Change in Broadband Density Broadband Connec on/1,000 Households Avg. Establishment Churn Avg. Venture Capital Invest./$10,000 GDP 20% 20% 20% 20% 20% 12.5% 12.5% 12.5% 12.5% 25% 25% Produc vity and Employment (30%) Avg. Annual Rate of Change in GDP/Worker Gross Domes c Product/Worker Avg. Patents/1,000 Workers Change in High‐Tech Employment Share Job Growth to Popula on Growth Ra o Economic Well Being (10%) Change in Proprietors Income/Proprietor Change in Wage and Salary Comp/Worker Change in Per Capita Personal Income Avg. Net Internal Migra on Rate Avg. Unemployment Rate Avg. Poverty Rate 12.5% 12.5% 25% 25% 25% 10% 10% 20% 20% 20% 20% State Index While not part of the calculation of the overall index itself, there is also a overall State Index that measures state resources available to entrepreneurs and businesses. These resources may not necessarily be used by all businesses, but their proximity and availability provide resources and capacity to innovate. The measurement indicators in the State Index are: Science and Engineering Graduates from All Institutions; R&D Intensity; and Industry R&D per $1,000 Compensation. Connecticut’s index rates very high in comparison to the Nation, having a rating of 157.6 compared to the National rate of 100.0. The indicator that ranks the highest for CT is the Industry R&D per $1,000 Compensation, which is seen in the following chart: South Central Connecticut: CEDS 2013 128 Table 41: Overall State Index Indicator Industry R&D per $1,000 Compensa on Private R&D Total Compensa on (000) Connec cut $0.06 $7,704,000 $123,045,805 United States $0.03 $246,680,000 $7,846,006,000 Innovation Index Analysis When the South Central Region is analyzed using the innovation index tool its overall innovation index rating is 97.9. As the following chart will show, the region ranks just ahead of the Hartford region, and just below the State and Nation, when compared. Figure 42: Innova on Index South Central Region 97.9 CT 102.6 Hart ford, CT 90.7 U.S. 100.0 84.0 86.0 88.0 90.0 92.0 94.0 96.0 98.0 100.0 102.0 104.0 As previously described, the index incorporates a mix of input measures that characterize the place and its people: Human Capital and Economic Dynamics (accounting for 60 percent of the overall index score); and output measures that characterize its economic success: Productivity and Employment and Economic WellBeing (40 percent of the overall score). The following chart shows the comparison among the above regions when the Innovation Index is further broken down into these key component indexes. Table 42: Breakdown of Innova on Index Innova on Index U.S. CT Har ord, CT South Central Region Human Capital 100.0 107.8 80.3 100.5 Economic Dynamics Produc vity and Employment Economic Well Being 100.0 100.0 100.0 111.2 89.0 102.3 102.4 85.2 103.0 112.5 80.1 100.0 South Central Connecticut: CEDS 2013 129 Part II: Analysis of the Region When the South Central region is compared to the above region, it ranks above the other regions in terms of Economic Dynamics, however, ranks below the other regions in both Productivity and Employment and Economic Well-Being. It also ranks well above the Hartford region in terms of Human Capital, however, ranks below the State. In order to see exactly how the regions performs in terms of innovation and what can be approved, the following section breaks the four key components down into their individual parts. Human Capital – 30% Human capital inputs are those characteristics that describe the ability of the population and labor force to innovate. The following charts show how the South Central region compares in regards to the key components of the Human Capital Index. Educational Attainment Educational attainment is a measure of the population's capacity to contribute to innovation with necessary skills and knowledge. two component indicators are presented for education to measure not only highly educated residents (ages 25 to 64) with a bachelor's degree or higher, but also residents with some college. Research shows that the some college/ associate's degree indicator has a significant effect on GDP per worker growth. Table 43: Percent of Popula on Ages 25 to 64 with Some College or an Associate's Degree 20% U.S. CT Har ord Region South Central Region Percent of Popula on Ages 25 to 64 with Some College or an Associate's Degree 29.60% 26.30% 26.50% 27.1% Table 44: Percent of Popula on Ages 25 to 64 with a Bachelor's Degree or Higher 20% U.S. CT Har ord Region South Central Region Percent of Popula on Ages 25 to 64 with a Bachelor's Degree or Higher 26.50% 34.70% 33.10% 30.90% Population Growth Rates High population growth rates for younger working age persons (ages 25 to 44) suggest new residents are attracted to an area, growing the workforce, adding to the innovative base and launching new businesses. Research shows this indicator has a significant effect on GDP per worker growth. Table 45: Avg. Annual Change in Young Adult Popula on (1997‐2009) 20% U.S. CT Har ord Region South Central Region Avg. Annual Change in Young Adult Popula on (1997‐2009) ‐0.20% ‐1.40% ‐1.30% ‐1.10% High-Tech Employment Share Firms requiring a highly skilled and specialized workforce contribute to innovation in a region by providing a resource for workers, other firms and other industries. South Central Connecticut: CEDS 2013 130 Part II: Analysis of the Region Table 46: Avg. High‐Tech Employment Share (1997‐2009) 20% U.S. CT Hartford Region South Central Region Avg. High‐Tech Employment Share (1997‐2009) 4.90% 5.50% 3.70% 7.50% Technology-Based Knowledge Occupations These 6 occupation clusters are often thought to be closely associated with the production of innovations. They include information technology; engineering; health care and medical science practitioners and scientists; mathematics, statistics, data and accounting; natural science and environmental management; and postsecondary education and knowledge creation. Table 47: Technology‐Based Knowledge Occupa on Cluster Share of Total Employment 20% U.S. CT Har ord Region South Central Region Technology‐Based Knowledge Occupa on Cluster Share of Total Employment 8.40% 10.10% 11.20% 9.30% Economic Dynamics – 30% This component measures local resources available to region entrepreneurs and businesses that encourage innovation close to home. The following charts show how the South Central region compares in regards to the key components of the Economic Dynamic l Index. Average Venture Capital Venture capital provides a source of funds to launch new ideas or expand innovative companies. Table 48: Avg. Venture Capital Investment per $10,000 GDP 25% U.S. CT Har ord Region South Central Region South Central Connecticut: CEDS 2013 Avg. Venture Capital Investment per $10,000 GDP $52.45 $91.70 $16.39 $69.46 131 Part II: Analysis of the Region Broadband Density and Penetration Innovation and knowledge are linked to widespread Internet usage for individuals and businesses. There are two measures, both from the Federal Communication Commission (FCC), to gauge Internet usage. One measure is the level of Internet penetration, or broadband density. This measure is residential broadband fixed connections per 1,000 households in 2009, a new data series the FCC first released in early 2010. The FCC reports these data in ranges, not as a specific number of connections per 1000 households in a particular county. The second measure is a proxy for the rate of Internet adoption. This indicator is defined as the change in the number of broadband providers available to residents in a given county from 2000 to 2009. Table 49: Mid‐Point Weighted Connec ons per 1,000 Households 12.5% U.S. CT Har ord Region South Central Region Mid‐Point Weighted Connec ons per 1,000 Households 700 700 700 700 Table 50: Avg. Annual Percent Change in Broadband Providers 12.5% U.S. CT Har ord Region South Central Region Avg. Annual Percent Change in Broadband Providers 29.80% 15.40% 17.10% 18.30% Establishment Churn Innovative and efficient companies replace outdated establishments, or those firms unable to modernize techniques and processes. Average churn is a measure of total establishment births and deaths, and expansions and contractions, relative to the total number of firms in a region for all years available. Table 51: Avg. Establishment Churn 25% U.S. CT Har ord Region South Central Region Avg. Establishment Churn 77.50% 74.60% 75.40% 74.70% Establishment Sizes The sizes of establishments provide an indication of a regional economy's structural composition. Small establishments with fewer than 20 employees are flexible and not overburdened by a bureaucratic organizational structure enabling rapid changes to implement new ideas and evolve with technology. On the other end of the spectrum, large establishments with more than 500 employees have both the capital and labor resources to fund research and other innovative activities. Research shows that the average share of small establishments has a significant effect on GDP per worker growth. Table 52: Avg. Small Establishments per 10,000 Workers 12.5% U.S. CT Hartford Region South Central Region South Central Connecticut: CEDS 2013 Avg. Small Establishments per 10,000 Workers 373.0 374.4 317.3 373.7 132 Part II: Analysis of the Region Table 53: Avg. Large Establishment per 10,000 Workers 12.5% U.S. CT Har ord Region South Central Region Avg. Large Establishment per 10,000 Workers 1.10 1.03 1.31 0.81 Productivity and Employment – 30% This component measures economic improvement, regional desirability, or are the direct outcomes of innovation. Change in High-Tech Employment Firms requiring a highly skilled and specialized workforce are drawn to innovative areas. Growth in this sector suggests the increasing presence of innovation. High-tech employment, derived from a NAICS-based definition by Moody’s Analytics, measures an aggregation of employment in key sectors (e.g., telecommunications, Internet providers, scientific laboratories) as an average annual rate of change in the share of high-tech employment. Research shows this indicator has a significant effect on GDP per worker growth. Table 54: Rate of Change in High‐Tech Employment Share (1997‐2009) 25% U.S. CT Har ord Region South Central Region Rate of Change in High‐Tech Employment Share (1997‐2009) ‐0.30% ‐1.00% ‐0.20% ‐1.70% Job Growth High employment growth relative to population growth suggests jobs are being created faster than people are moving to a region. A high ratio between these 2 variables indicates strong economic growth. Table 55: Job Growth to Population Growth Ratio (1997‐2008) 25% U.S. CT Hartford Region South Central Region Job Growth to Population Growth Ratio (1997‐2008) 0.69 1.09 1.19 0.94 Gross Domestic Product per Worker GDP serves as a measure of county-level economic output, while increases in GDP per worker measures increases in worker productivity. Table 56: Gross Domes c Product (GDP) per Worker 12.5% U.S. CT Har ord Region South Central Region South Central Connecticut: CEDS 2013 Gross Domes c Product (GDP) per Worker $79,554 $100,219 $115,483 $93,877 133 Part II: Analysis of the Region Table 57: Avg. Annual Change in GDP per Worker (1997‐2008) 12.5% U.S. CT Har ord Region South Central Region Avg. Annual Change in GDP per Worker (1997‐2008) 3.50% 3.40% 3.80% 3.20% Average Patents per 1,000 Workers New patented technologies provide an indicator of individuals’ and firms’ abilities to develop new technologies and remain competitive in the economy. Patents are presented as total number per 1,000 workers. Table 58: Avg. Patents per 1,000 Workers 25% U.S. CT Har ord Region South Central Region Avg. Patents per 1,000 Workers 0.45 0.99 0.34 0.40 Economic Well-Being – 10% Innovative economies improve economic well-being for residents because they earn more and have an increasing standard of living. Average Poverty Rate Innovative economies are thought to be less poverty stricken as a result of elevated employment opportunities and a more highly educated workforce with diverse skills that open the doors to an increased number of employers. As poverty rates decrease, presumably innovation has increased. Table 59: Avg. Poverty Rate (2006‐2008) 20% U.S. CT Har ord Region South Central Region Avg. Poverty Rate (2006‐2008) 13.20% 8.40% 9.80% 10.10% Average Unemployment Rates Innovative economies have greater employment opportunities and lower unemployment rates. Table 60: Avg. Unemployment Rate (2007‐2009) 20% U.S. CT Har ord Region South Central Region South Central Connecticut: CEDS 2013 Avg. Unemployment Rate (2007‐2009) 6.60% 6.20% 6.50% 6.70% 134 Part II: Analysis of the Region Average Net Migration Total migration of all persons into a region serves as an indicator of whether a region is attractive to job seekers and families. Table 61: Avg. Net Internal Migra on Rate per 10,000 Residents (2000‐2009) 20% U.S. CT Har ord Region South Central Region Avg. Net Internal Migra on Rate per 10,000 Residents (2000‐2009) N/A ‐27.8 ‐26.0 ‐21.5 Average Growth in Per Capita Personal Income Personal Income is the broadest measure of a person's income because it includes rental income, dividends and interest payments, in addition to salary, wages and benefits. As a result, it is probably the best measure of well-being. Table 62: Avg. Annual Growth in Per Capita Personal Income (1997‐2008) 20% U.S. CT Har ord Region South Central Region Avg. Annual Growth in Per Capita Personal Income (1997‐2008) 4.30% 4.50% 4.40% 4.30% Compensation Improvements in earnings per worker, or compensation, signify a positive trend in economic growth being passed on to workers. 2 specific categories of workers are considered: wage and salary employees and nonfarm proprietors. Table 63: Avg. Annual Change in Wage and Salary Earnings per Worker (1997‐2008) 10% U.S. CT Har ord Region South Central Region Avg. Annual Change in Wage and Salary Earnings per Worker (1997‐2008) 3.80% 3.70% 3.70% 3.30% Table 64: Avg. Annual Change in Proprietors Income per Proprietor (1997‐2008) 10% U.S. CT Har ord Region South Central Region Avg. Annual Change in Proprietors Income per Proprietor (1997‐2008) 1.60% 1.50% 3.40% 1.30% Note: Please keep in mind that the data used in this analysis is taken between the years 1997 and 2009. Although the 2009 data is at the beginning of the recession and may not take into account the sharp economic decrease between 2009 and 2010, the overall data in the above categories are a good measure of the overall innova on in the region. South Central Connecticut: CEDS 2013 135 Part II: Analysis of the Region Overall, the South Central region is well equipped to be an innovative economy and drive healthy growth. In regards to the analysis tool, the region is strong in some aspects, however, could work more strategically in other focus areas in order to improve the region’s innovation capacity. When compared directly to the Nation, the region shows strength in some key areas, including Educational Attainment, High-Tech Employment Share, Technology-Based and Knowledge Occupations, Venture Capital Expenditures, Number of Patents and Gross Domestic Product. This could be due to the region’s high productivity level when compared to other areas in the Nation, as well as industry cluster development and a relatively high occurrence of venture capital deals. For example, in 2007 New Haven and Branford ranked in the top 20 for private equity deals, among secondary cities across the Nation. Table 65: Top 20 Highest Performing Secondary Ci es in the U.S. Rank City 1 Boulder CO 2 Salt Lake City UT 3 Westborough MA 4 Ann Arbor MI 5 Norwalk CT 6 Providence RI 7 Southborough MA 8 Stamford CT 9 Melbourne FL 10 New Haven CT 11 Branford CT 12 Durham NC 13 Madison WI 14 Tucson AZ 15 Bakersfield CA 16 Santa Barbara CA 17 Louisville KY 18 Nashua NH 19 Princeton NJ 20 Tulsa OK Federal Reserve Bank of Boston. Venture Capital in Secondary Ci es. Retrieved from: h p://www.bos.frb.org/commdev/necd/2007/issue1/venturecap.pdf South Central Connecticut: CEDS 2013 136 Part II: Analysis of the Region Even when compared to other regions in the State, the South Central region stands out in High-Tech Employment and Knowledge Based Occupations, as well as Venture Capital Expenditures and Patents. The following chart shows the top 30 organizations that received patents from 2006-2010. Table 66: Top 30 Organiza ons Receiving Pa ents 2006‐2010 Rank Organiza on Total Patents 1 PITNEY‐BOWES, INC. 92 2 BRISTOL‐MYERS SQUIBB COMPANY 90 3 TYCO HEALTHCARE GROUP LP 81 4 EVEREADY BATTERY COMPANY, INC. 64 4 YALE UNIVERSITY 64 6 SIKORSKY AIRCRAFT CORPORATION 47 7 UNITED TECHNOLOGIES CORPORATION 32 8 BRIDGEPORT FITTINGS, INC. 31 8 NEUROGEN CORPORATION 31 8 INTERNATIONAL BUSINESS MACHINES CORPORATION 31 11 BAYER PHARMACEUTICALS CORPORATION 24 12 PENTRON CLINICAL TECHNOLOGIES, LLC 22 13 CHEMTURA CORPORATION 19 13 SOCIETE BIC S.A. 19 15 HUBBELL INCORPORATED 18 15 SYLVAN R. SHEMITZ DESIGNS, INC. 18 17 ANALYTICA OF BRANFORD, INC. 17 18 CURAGEN CORPORATION 16 18 WEATHERFORD/LAMB, INC. 16 18 UNILEVER HOME & PERSONAL CARE USA, DIVISION OF CONOPCO, INC. 16 21 CONOPCO, INC. 15 22 LIGHT SOURCES, INC. 14 22 STAPLES THE OFFICE SUPERSTORE, LLC 14 24 CROMPTON CORPORATION 13 24 GILLETTE COMPANY 13 26 GENERAL ELECTRIC COMPANY 11 26 TI GROUP AUTOMOTIVE SYSTEMS, LLC 11 26 HUBIE GROWN, LLC 11 29 ACME UNITED CORPORATION 10 29 BAYER HEALTHCARE, LLC 10 South Central Connecticut: CEDS 2013 137 Part II: Analysis of the Region Additionally, according the Price Waterhouse Coopers MoneyTree report on Venture Capital Deals in the U.S., following national trends, the number of financing deals within Connecticut has declined from over 100 during the “tech bubble” of 2000, back to historical levels of around 30-50 per year, back up to 63 in 2010, a fairly large increase over the 43 in 2009. This could be due to the high cluster of biomedical companies, as well as universities and research and development in the region. Two universities in the south Central region make up over two-thirds of all the academic R&D expenditures in the State. Table 67: Academic Research and Development Expenditures, FY 2009 Ins tu on Yale Univ. Southern CT State Univ. FY 2009 R&D Expenditures ($1000s) 509,452 CT Total (%) 67.7% 2,273 0.3% All other CT Univ. 241,068 32.0% State Total 752,793 100.0% Na onal Science Founda on. Academic Research and Development Expenditures: Fiscal Year 2009 Retrieved from: h p://www.nsf.gov/sta s cs/nsf11313/content.cfm?pub_id=4065&id=2 Some of the areas for concern are the high unemployment and poverty rates (when compared to the State), as well as the rate of change in High-Tech employment (which has decrease by 1.70% since 1997, 1.40% more of a decrease than the National average). This analysis is not meant to say whether or not the South Central region is capable of innovation. It is meant to provide leaders and practitioners with a tool to compare regional innovation performance with other regions. The idea is for the analysis to allow practitioners to explore innovation within the region by guiding questions and conversations about the overall region’s performance. Generally it is a tool to see how to improve the region’s innovation capacity by aligning, linking, and focusing relevant energy and investments. KEY FINDINGS: Connecticut has an extremely high innovation index rating when it comes to resources available for innovation, compared to the Nation. Overall, the region is not the highest rated in the State in terms of innovation, but it is very competitive. The South Central region is extremely competitive when measuring the resources available to region entrepreneurs and businesses that encourage innovation close to home. Although not as high as the State, the average venture capital investment for the region is well above the national average. A large majority of the regions establishments are fewer than 20 employees, which is shown to have a significant effect on GDP per worker. The region ranks extremely low when it comes to Productivity and Employment, which measures economic improvement, regional desirability, or direct outcomes of innovation. South Central Connecticut: CEDS 2013 138 Part II: Analysis of the Region The region has a much higher than average high-tech employment share and a very well educated population, showing a strong workforce for innovation. The high-tech employment share, however, has been declining over the past ten years at a greater rate than the State and Nation. Technology based occupations are very competitive in the State and region. Although above the national average, the GDP per worker in the region is well below that of the State. The region boasts a higher than average poverty rate when compared to the State. South Central Connecticut: CEDS 2013 139 Part II: Analysis of the Region Cluster Analysis The 2008 CEDS update identified six clusters and regional drivers that shaped the economic landscape for the entire region: Advanced Manufacturing, Biosciences, Creativity, Arts and Tourism, Higher Education, Healthcare, and Emerging Cluster and Opportunities. Although the economy has changed shape in the last five years, these industries still remain the backbone of the region’s economy. The following discussion updates and clarifies the state of the region’s clusters and identifies other sectors of the economy that deserve attention from regional stakeholders. As background, an industry cluster analysis identifies industries that are geographically concentrated or of a similar nature, and that make use of related buyers, suppliers, infrastructure and workforce. The term “business cluster” was popularized by Michael Porter in The Competitive Advantage of Nations (1990), and has become the norm in policy and planning efforts. Mr. Porter claims that clusters have the potential to affect competition in three ways: by increasing the productivity of the companies in the cluster, by driving innovation in the field, and by stimulating new businesses in the field. Industry clusters are different than the traditional industry sectors that were detailed earlier in this report. Where sectors represent general categories of economic activities, clusters are interdependent firms that are linked through the buyer-supplier relationship, share common resources and technologies, depend on a similar labor pool, rely on special infrastructure and draw a productive advantage in being geographically located near these resources and each other. Methodology There are a number of methods that can be used for measuring and evaluating clusters, for this reports analysis three principal methods were used: the location quotient analysis, shift-share analysis and the economic base model analysis. It should be pointed out that the economic base model analysis is compensating for the lack of an input-output analysis. For the purposes of this report, the first two methods were used to identify and evaluate clusters in the region. Although the input-output analysis was not performed for the purposes of this report, it is recommended that such an analysis be conducted once a cluster strategy is in place. (statsamerica.org) An input-output analysis will assist in estimating the impacts of any targeted changes to the clusters, and will show which cluster industries are most closely connected with each other in the region. For this latter task, however, the analysis should be supplemented with first-hand information garnered from regional firms and economic developers (which this report does not contain). To compensate for the lack of an input-output analysis, however, an economic base model analysis was performed. The regional economic models, such as location quotient, shift-share analysis, and economic base models, are widely used by local and economic development agencies in industrial targeting, economic impact analysis, and regional comparisons (Dinc 2002). Industry cluster analysis, which utilizes the regional economic tools in assessing industry clusters, aids in directing regional resources available for business retention and attraction. These tools complement each other and together furnish necessary information to local economic development agencies in developing policies for business retention and attraction. Location quotient identifies strength and weakness in a local economy with respect to industry clusters. Exportoriented industry clusters, which are considered to be the drivers of local economy, are identified using the economic base model. Finally, the shift-share analysis measures performance of local economies with respect to the national trends. South Central Connecticut: CEDS 2013 140 Part II: Analysis of the Region Connecticut Statewide Industry Clusters It would be remiss if this report didn’t mention the State framework regarding clustering of industries within Connecticut. Based on the previously mentioned work of Dr. Michael Porter, Connecticut’s cluster-based economic development initiative is built around the idea that nurturing the state’s key industries improves the competitiveness of businesses within these industries, in turn boosting the statewide economy. In 1998, a task force of 125 business leaders from Connecticut assembled to study the best method of implementing cluster-based economic development in the state. At this time, the task force identified six industry areas key to Connecticut’s economic competitiveness: manufacturing; financial services; telecommunications and information; health care services; and high technology. The task forces research led to the legislation passed in 1998, effectively launching Connecticut’s Industry Cluster Initiative under the Department of Economic and Community Development. Since the Industry Cluster Initiative began, business, government, education and civic sectors have collaborated in unexpected ways. In doing so, they have accelerated a cluster development process that has formed nine formal clusters to date: Aerospace Components Manufacturing; Agriculture; Bioscience; Insurance and Financial Services; Maritime; Metal Manufacturing; Plastics; Software and Information Technology; and Tourism. According to the 2009 Connecticut Economic Strategic Plan, over the past ten years, DECD has invested approximately $17 million in the Industry Cluster Initiative, having been matched by the private sector. The Initiative leveraged more than $23 million in federal funds and $8 million in other public and foundation funds. In addition, DECD estimates that Connecticut Innovation’s investment of $33 million into the Bioscience Facilities Fund generated about $40 million in related private investments. (CT Economic Strategic Plan 2009/DECD) South Central Regional Cluster Analysis The industry clusters defined in this analysis are adopted from a study conducted at Purdue University of Purdue Center for Regional Development, Indiana business Research Center, and Strategic Development Group Inc. in 2007. The study identified 17 industry clusters based on six-digit NAICS codes, which include Manufacturing Supercluster disaggregated in to six sub-clusters. These 17 clusters were generalized from the 41 clusters identified by Michael Porter and the U.S. Cluster Mapping Project and are adaptable to the entire United States. In addition, the tool developed on the statsamerica.org website was utilized to garner the information needed from the 17 cluster industries for the analysis. With this tool, county level industry cluster data was accessible in a user friendly format and focused on the 17 clusters across the United States. As such, this analysis was done for the entire New Haven County and not just the 15 municipalities identified as the South Central Connecticut region. South Central Connecticut: CEDS 2013 141 Part II: Analysis of the Region Employment The following chart highlights the 17 clusters and the percentage of employment in the region: Figure 43: Employment by Industry Cluster The major cluster industries by employment in the region are Advanced Materials at 5.8%, Biomedical/Biotechnical (Life Sciences) at 16.8%, Business and Financial Services at 6.4%, Defense and Security at 5.1%, Education and Knowledge at 7.6% and the Manufacturing Supercluster at 5.5%. To further define the Manufacturing Supercluster, the sub-clusters represented by the supercluster are: Primary Metal Manufacturing; Fabricated Metal Product Manufacturing; Machinery Manufacturing; Computer and Electronic Manufacturing; Electrical Equipment, Appliance and Component Manufacturing; and Transportation Equipment Manufacturing. The employment in the region for this supercluster is as follows. South Central Connecticut: CEDS 2013 142 Part II: Analysis of the Region Figure 44: Manufacturing Supercluster Manufacturing Supercluster (total) Primary Metal Mfg Fabricated Metal Product Mfg Machinery Mfg Computer & Electronic Product Mfg Electrical Equipment, Appliance & Component Mfg Transporta on Equipment Mfg South Central Connecticut: CEDS 2013 19,090 1,776 6,471 2,346 4,380 1,787 2,330 143 Part II: Analysis of the Region The following chart shows the change in employment since 2006 for each industry cluster in the South Central Connecticut region. As can be expected, as a result of the recession over this time period, a large majority of the industry clusters in the region saw a decline in employment, with the exception of Biomedical/Biotechnical (Life Sciences) and Education and Knowledge Creation. Of the major employers in the region, the Information and Technology and Communications cluster as well as the Manufacturing supercluster saw a significant decline in employment, 19.7% and 18.6% respectively. Another major industry cluster (in terms of employment) that saw double digit decline was the Business and Financial Services cluster, an industry sector we previously saw projected to significantly increase in employment over the next 10 years. Table 68: Change in Employment by Cluster, South Central Region, 2006 ‐ 2010 Industry Cluster 2006 Empl 2010 Empl % Change Advanced Materials 22,839 19,895 ‐12.5% Agribusiness, Food Processing & Technology 3,174 2,898 ‐8.7% Apparel & Tex les 1,912 1,581 ‐17.3% Arts, Entertainment, Recrea on & Vistor Industries 8,401 7,606 ‐9.5% Biomedical/Biotechnical (Life Sciences) 56,638 58,089 2.6% Business & Financial Services 25,026 22,248 ‐11.1% Chemicals & Chemical Based Products 6,577 4,901 ‐25.5% Defense & Security 19,605 17,647 ‐10.0% Educa on & Knowledge Crea on 24,670 26,256 6.4% Energy (Fossil & Renewable) 11,266 10,287 ‐8.7% Forest & Wood Products 2,490 1,669 ‐33.1% Glass & Ceramics 1,311 954 ‐27.2% Informa on Technology & Telecommunica ons 17,397 13,967 ‐19.7% Transporta on & Logis cs 5,642 5,320 ‐5.7% Manufacturing Supercluster 23,440 19,090 ‐18.6% Primary Metal Mfg 2,196 1,776 ‐19.1% Fabricated Metal Product Mfg 7,903 6,471 ‐18.1% Machinery Mfg 2,612 2,346 ‐10.2% Computer & Electronic Product Mfg 4,669 4,380 ‐6.2% Electrical Equipment, Appliance & Component Mfg Transporta on Equipment Mfg 2,429 1,787 ‐26.4% 3,631 2,330 ‐35.8% 287 194 ‐32.4% 5,971 4,800 ‐19.6% 367,114 345,525 ‐5.9% Mining Prin ng & Publishing Total All Industries South Central Connecticut: CEDS 2013 144 Part II: Analysis of the Region Wages The figure below highlights the wages of the top six industry clusters by employment and shows how they compare with the average wage in those clusters in the Unites States. All of the top six industry clusters by employment have average wages above the national average, except for the Manufacturing Supercluster, which is behind the national average by only $1,300. Figure 45: Wages of the Top Six Industry Clusters South Central Connecticut: CEDS 2013 145 Part II: Analysis of the Region The table below identifies the average annual wage for each cluster, and the change since 2000. Currently, the region has annual wages above that of the national average, except for the few industries highlighted below (none of which represent the top six industries by employment in the region with the exception of the computer and electronic manufacturing sub-cluster). Table 69: Annual Wage by Industry Cluster Descrip on South Central South Central Region Region Change 2001‐2010 U.S. Wage 2010 Wage 2010 Wage 2001 Total All Industries $49,662 $39,483 25.8% Advanced Materials $71,787 $55,490 Agribusiness, Food Processing & Technology $34,444 $31,509 U.S. Wage 2001 Change 2001‐2010 $46,742 $36,219 29.1% 29.4% $69,770 $50,244 38.9% 9.3% $37,594 $29,430 27.7% Apparel & Tex les $44,190 $41,211 7.2% $43,275 $31,895 35.7% Arts, Entertainment, Recrea on & Visitor Industries $27,464 $23,873 15.0% $34,877 $27,456 27.0% Biomedical/Biotechnical (Life Sciences) $53,107 $40,902 29.8% $47,558 $34,325 38.6% Business & Financial Services $83,622 $65,290 28.1% $82,832 $64,023 29.4% Chemicals & Chemical Based Products $87,513 $67,115 30.4% $63,018 $46,640 35.1% Defense & Security $79,019 $61,548 28.4% $69,035 $51,604 33.8% Educa on & Knowledge Crea on $55,155 $43,052 28.1% $48,175 $36,273 32.8% Energy (Fossil & Renewable) $66,935 $56,828 17.8% $72,513 $52,336 38.6% Forest & Wood Products $54,803 $40,446 35.5% $45,858 $35,812 28.1% Glass & Ceramics $45,125 $37,104 21.6% $47,309 $36,506 29.6% Informa on Technology & Telecommunica ons $90,037 $66,011 36.4% $90,505 $67,398 34.3% Transporta on & Logis cs $49,689 $37,954 30.9% $47,103 $38,231 23.2% Manufacturing Supercluster $64,227 $48,767 31.7% $65,564 $48,916 34.0% Primary Metal Mfg $64,018 $51,026 25.5% $58,511 $45,022 30.0% Fabricated Metal Product Mfg $59,571 $42,619 39.8% $48,760 $37,216 31.0% Machinery Mfg $64,949 $47,207 37.6% $60,507 $45,277 33.6% Computer & Electronic Product Mfg $66,047 $55,381 19.3% $93,092 $64,632 44.0% Electrical Equipment, Appliance & Component Mfg $65,574 $50,000 31.1% $53,742 $40,388 33.1% Transporta on Equipment Mfg $72,131 $50,307 43.4% $67,057 $50,688 32.3% Mining $64,824 $54,594 18.7% $61,598 $45,576 35.2% Prin ng & Publishing $58,822 $45,246 30.0% $60,216 $44,634 34.9% South Central Connecticut: CEDS 2013 146 Part II: Analysis of the Region Location Quotient The location quotient is one of the most frequently used tools in economic geography and local regional economic analysis. It is a measure of an industry’s concentration in an area relative to a reference area, which is generally (and for this analysis) the rest of the nation. It compares an industry’s share of local employment with its share of national employment and is a useful tool in determining a region’s key industries. If a location quotient equals to 1 then the industry’s share of local employees is the same as the industry’s share nationally, and can serve only the local economy. A location quotient greater than 1 means the industry employs a greater share of the local workforce than it does nationally, produces more goods and services that are consumed locally, thus exporting the goods or services and bringing money into the local area. A location quotient less than 1 implies that the industry’s share of local employment is smaller than its share of national employment. This analysis also measures the change in the location quotient from 2006 to 2010 (as this is an update from the previous five year document) to provide information on whether an industry cluster is growing or declining in concentration compared to other regions. Using these sets of data, the clusters were then sorted according to a method developed by the Boston Consulting Group. (BCG-Growth Share Matrix) According to this method of sorting the data, sectors and clusters in the region have been classified into the following four categories: “Stars” – clusters that are relatively specialized (LQ > 1) compared to the national economy and are becoming even more specialized over time within the region; “Emerging” – clusters that are relatively unspecialized (LQ < 1) compared to the national economy but are becoming more specialized over time within the region; “Mature” – clusters that area relatively specialized (LQ > 1) compared to the national economy but are becoming less specialized over time within the region; “Transforming” – clusters that are relatively unspecialized (LQ <1) compared to the national economy and are becoming even less specialized over time within the study area The following chart represents the regional cluster performance. The concept of location quotient graph for industry cluster is based on the work done at Purdue University (Purdue CRD, IBRC, and SDG 2007). The vertical axis indicates the current location quotient for the particular industry cluster, while the horizontal axis represents the percent change in the location quotient over the suggested time period. The size of the bubble is proportional to industry cluster’s relative employment within the region. South Central Connecticut: CEDS 2013 147 Part II: Analysis of the Region Figure 46: Percent Change in LQ 2006‐2010 As seen in the above bubble chart a majority of the industry clusters classified in the region have become less concentrated over this time period and are considered to be transforming. The LQ analysis also shows that there are several “star” industry clusters in the region: Education and Knowledge Creation, Manufacturing Supercluster, Primary Metal Manufacturing, Fabricated Metal Manufacturing and Computer and Electronic Product Manufacturing. These dominant clusters are becoming more concentrated in the region. Several industries are moving from being star industries to a mature cluster: Advanced Materials, Biomedical/Biotechnical (Life Sciences), Glass and Ceramics, Information Technology and Telecommunications and Electrical Equipment and Appliance Manufacturing. These industries have been part of the driving force of the economy in the region, with relatively high LQ’s, however; have been declining in concentration over the past five years. Several emerging clusters are to be pointed out: Apparel and Textiles, Energy (Fossil and Renewable) and Machinery Manufacturing. These industry clusters aren’t as concentrated as the national average, however, have been increasing in the last several years and have potential of becoming star industries in the region. South Central Connecticut: CEDS 2013 148 Part II: Analysis of the Region Table 70: Loca on Quo ents, 2006 vs. 2010 Cluster LQ 06 LQ 10 LQ % Change Cluster Level Advanced Materials 1.53 1.56 2.0% Star Agribusiness, Food Processing & Technology 0.38 0.35 ‐7.9% Transforming Apparel & Tex les 0.55 0.61 10.9% Emerging Arts, Entertainment, Recrea on & Vistor Industries 0.59 0.55 ‐6.8% Transforming Biomedical/Biotechnical (Life Sciences) 1.57 1.53 ‐2.5% Mature Business & Financial Services 0.79 0.73 ‐7.6% Transforming Chemicals & Chemical Based Products 1.00 0.91 ‐9.0% Transforming Defense & Security 1.04 0.93 ‐10.6% Transforming Educa on & Knowledge Crea on 1.92 1.98 3.1% Star Energy (Fossil & Renewable) 0.69 0.67 ‐2.9% Transforming Forest & Wood Products 0.46 0.45 ‐2.2% Transforming Glass & Ceramics 1.46 1.38 ‐5.5% Mature Informa on Technology & Telecommunica ons 1.21 1.05 ‐13.2% Mature Transporta on & Logis cs 0.50 0.52 4.0% Emerging Manufacturing Supercluster 1.28 1.31 2.3% Star Primary Metal Mfg 1.73 1.82 5.2% Star Fabricated Metal Product Mfg 1.92 1.94 1.0% Star Machinery Mfg 0.81 0.88 8.6% Emerging Computer & Electronic Product Mfg 1.31 1.48 13.0% Star Electrical Equipment, Appliance & Component Mfg 2.05 1.85 ‐9.8% Mature Transporta on Equipment Mfg 0.74 0.63 ‐14.9% Transforming Mining 0.52 0.4 ‐23.1% Transforming Prin ng & Publishing 0.90 0.85 ‐5.9% Transforming Economic Base Analysis The economic base analysis is meant to classify regional clusters into export and import industry categories. It is used to identify sectors of the local economy that serve other regions, there in by being export industry clusters. These industry clusters are thought to be the engine of the local economy and that the means of strengthening and growing the local economy is to develop and enhance these determined export clusters. The economic base analysis assumes that the industry structure of local economy is made up of two sectors: Basic Sector – produces and distributes goods and services for export outside the region, thus brining wealth to the local economy. Examples are the manufacturing and energy clusters, which produce goods that are consumed within the region as well as outside the region; Non-Basic Sector – goods and services are consumed primarily within the local area. Examples of non-basic sector firms that mainly serve the local population include industries such as retail, construction, transportation and utilities. South Central Connecticut: CEDS 2013 149 Part II: Analysis of the Region This analysis compares New Haven county industry cluster employment to that of the nation. There are several direct and indirect industry classification techniques that determine whether an industry cluster is export-oriented or not. Even though direct methods have more precision, they are not commonly used because of their intensive time, labor and financial requirements (Galambos and Schreiber 1978). A report prepared by Mustafa Dinc from the World Bank Institute proposed four different methods for classifying industry clusters into basic and non-basic sectors: 1. Assumptions Technique; 2. Location Quotient Technique; 3. Minimum Requirement Technique; and 4. Multiple Regression Analysis. Due to the time and financial restraints posed by the latter of these four methods, the first two methods will be used in combination for the purposes of this analysis. This cluster analysis utilizes the Assumption and Location Quotient Technique to identify the export oriented clusters in the South Central Connecticut region. Assumption Technique – this is the simplest and most commonly used industry classification technique, which literally assumes that certain industries are basic in nature and other are non-basic. It assumes that all manufacturing, energy, agriculture and federal and state government jobs are basic sector activities as they rely on external factors that are non-local in nature. Conversely, all other industries are assumed to be nonbasic in nature that are dependent upon local factors (Dinc 2002) Location Quotient Technique – this identifies basic sectors by comparing the share of local industry employment with that of the nation. This is the most commonly used technique to calculate base employment. If an industry has a greater share than expected of a given industry, then that extra industry employment is assumed to be basic, because those jobs are above what a local economy should have to serve local needs (Dince 2002 p. 18) There are three general outcomes with this technique: 1. A LQ of less than 1.2, indicates that the industry is non-basic in nature as it is not even meeting the local demand for a given good or service; 2. A LQ equal to 1.2, indicates that the local employment is sufficient to meet the local demand and all good services are utilized locally and nothing is exported, therefore, these industries are also considered to be non-basic in nature; and 3. A LQ greater than 1.2, indicates that some of the goods and services are exported to other regions, which in turn indicates that some of the employment in that industry is basic in nature. From this it is possible to determine the base employment in a specific industry. Once the base employment is calculated, it can be used to estimate the base multiplier. The multiplier provides an insight on local employment based on a given change in the base employment. For example, a base multiplier value of 3.5 indicates that for every one base job created there will be additional 2.5 non-basic jobs. In using the assumption technique, the analysis assumes that the business and financial services, education and knowledge creation and printing and publishing clusters are non-basic in nature, which means that these cluster serve locally and nothing is exported. For these three industries, all employment is assumed to be basic. By using the location quotient analysis on the remaining industry clusters, however, we are not assuming that all employment in each of these industry clusters is basic or non-basic. Instead, the industry clusters above one were evaluated to determine the basic employment and basic multiplier for each of these clusters. South Central Connecticut: CEDS 2013 150 Part II: Analysis of the Region Table 71: Basic and Non‐basic Employment Industry Cluster Advanced Materials 2010 Employment 19,895 1.56 Non‐Basic Employment 12753 Basic Employment 7142 2010 LQ Basic Mul plier 2.8 Agribusiness, Food Processing & Technology 2,898 0.35 2898 ‐‐‐ ‐‐‐ Apparel & Tex les 1,581 0.61 1581 ‐‐‐ ‐‐‐ Arts, Entertainment, Recrea on & Vistor Industries 7,606 0.55 7606 ‐‐‐ ‐‐‐ Biomedical/Biotechnical (Life Sciences) 58,089 1.53 37967 20122 2.9 Business & Financial Services 22,248 0.73 *22248* ‐‐‐ ‐‐‐ Chemicals & Chemical Based Products 4,901 0.91 4901 ‐‐‐ ‐‐‐ Defense & Security 17,647 0.93 17647 ‐‐‐ ‐‐‐ Educa on & Knowledge Crea on 26,256 1.98 *26256* ‐‐‐ ‐‐‐ Energy (Fossil & Renewable) 10,287 0.67 10287 ‐‐‐ ‐‐‐ Forest & Wood Products 1,669 0.45 1669 ‐‐‐ ‐‐‐ 954 1.38 691 263 3.6 Informa on Technology & Telecommunica ons 13,967 1.05 13302 665 21.0 Transporta on & Logis cs 5,320 0.52 5320 ‐‐‐ ‐‐‐ Manufacturing Supercluster 19,090 1.31 14573 4517 4.2 Primary Metal Mfg 1,776 1.82 976 800 2.2 Fabricated Metal Product Mfg 6,471 1.94 3336 3135 2.1 Machinery Mfg 2,346 0.88 2346 ‐‐‐ ‐‐‐ Computer & Electronic Product Mfg 4,380 1.48 2959 1421 3.1 Electrical Equipment, Appliance & Component Mfg 1,787 1.85 966 821 2.2 Transporta on Equipment Mfg 2,330 0.63 2330 ‐‐‐ ‐‐‐ 194 0.4 194 ‐‐‐ ‐‐‐ 4,800 0.85 *4800* ‐‐‐ ‐‐‐ Glass & Ceramics Mining Prin ng & Publishing Shift-Share Analysis The As seen previously in the sector analysis, the shift-share model examines economic change in a region by decomposing it into three components: national share, industrial mix, and regional share. It gives a description of total regional economic change that is attributable to growth of the national economy, the industrial mix in the region and the competitiveness of the local industries. National Share – measures the regional economic change that could have occurred if the region had grown at the same rate as the reference area, in this case the nation. It is expected that if the nation as a whole is experiencing growth, it would have a positive influence on the local area because the region is a part of the changing national economy. Put simply, the national share component of each industry tells us how many jobs in the industry can be attributed to the growth of the nation. Industrial Mix – measures the share of local economic change that can be attributed to the region’s industry mix, and reflects the rate of change in each individual industry at the national level. It South Central Connecticut: CEDS 2013 151 Part II: Analysis of the Region indicates how much of a local change in employment can be attributed to national growth or decline in the industry in question. In this component, results show positive values for those industries that experienced employment growth above the national average, while negative values are posted for those industries that grew at rates less than national average. Regional Share – measures the change in a particular industry in the region due to the difference between the industry’s local growth rate and the industry’s reference area growth rate, in this case the nation. It indicates growth or decline in industries due to the region’s competitive position in a given industry. As a tool, it can help identify a region’s strengths and point to industries that enjoy local comparative advantage. The national share and the industry mix reveal the changes that would have occurred in the region if it corresponded exactly to national and industrial structure and trends. When these two components are subtracted from the actual shift in employment locally, a residual change remains. This change, the regional share, reveals the effects of region-specific factors on local employment. Typically, and the focus of this analysis, the regional share component is seen as the most important for the model because it is unique to the region and contains employment growth effects of regional policy. The following is a shift-share cluster analysis of the South Central region compared to the nation, between the years 2006-2010. South Central Connecticut: CEDS 2013 152 Part II: Analysis of the Region Table 72: Shi ‐Share Analysis Compared to the Na on Na onal Employment % Change ‐13.2% 2006 22,839 2010 19,895 Change (2,944) % Change ‐12.9% Na onal Share 2006‐2010 (1024.2) Agribusiness, Food Processing & Technology ‐1.5% 3,174 2,898 (276) ‐8.7% (142.3) 95.8 (229.4) Apparel & Tex les ‐24.5% 1,912 1,581 (331) ‐17.3% (85.7) (381.9) 136.6 Arts, Entertainment, Recrea on & Visitor Industries ‐2.9% 8,401 7,606 (795) ‐9.5% (376.8) 134.6 (552.8) Biomedical/Biotechnical (Life Sciences) 7.4% 56,638 58,089 1,451 2.6% (2540.0) 6715.4 (2724.4) Business & Financial Services ‐2.8% 25,026 22,248 (2,778) ‐11.1% (1122.3) 416.3 (2072.0) Chemicals & Chemical Based Products ‐16.9% 6,577 4,901 (1,676) ‐25.5% (295.0) (817.7) (563.3) Defense & Security 2.4% 19,605 17,647 (1,958) ‐10.0% (879.2) 1343.6 (2422.4) Educa on & Knowledge Crea on 5.0% 24,670 26,256 1,586 6.4% (1106.4) 2340.1 352.3 Energy (Fossil & Renewable) ‐4.2% 11,266 10,287 (979) ‐8.7% (505.2) 28.2 (502.0) Forest & Wood Products ‐29.7% 2,490 1,669 (821) ‐33.0% (111.7) (628.2) (81.1) Glass & Ceramics ‐21.7% 1,311 954 (357) ‐27.2% (58.8) (225.3) (72.9) Informa on Technology & Telecommunica ons ‐6.7% 17,397 13,967 (3,430) ‐19.7% (780.2) (387.4) (2262.4) Transporta on & Logis cs ‐6.9% 5,642 5,320 (322) ‐5.7% (253.0) (137.1) 68.2 Manufacturing Supercluster ‐19.0% 23,440 19,090 (4,350) ‐18.6% (1051.2) (3395.6) 96.8 Primary Metal Mfg ‐22.0% 2,196 1,776 (420) ‐19.1% (98.5) (384.0) 62.5 Fabricated Metal Product Mfg ‐17.9% 7,903 6,471 (1,432) ‐18.1% (354.4) (1057.4) (20.2) Machinery Mfg ‐15.9% 2,612 2,346 (266) ‐10.2% (117.1) (297.1) 148.5 Computer & Electronic Product Mfg ‐15.8% 4,669 4,380 (289) ‐6.2% (209.4) (529.0) 449.4 Electrical Equipment, Appliance & Component Mfg ‐17.4% 2,429 1,787 (642) ‐26.4% (108.9) (312.9) (220.1) Transporta on Equipment Mfg ‐23.9% 3,631 2,330 (1,301) ‐35.8% (162.8) (703.7) (434.5) Mining ‐10.8% 287 194 (93) ‐32.4% (12.9) (18.2) (62.0) Prin ng & Publishing ‐14.0% 5,971 4,800 (1,171) ‐19.6% (267.8) (569.5) (333.7) TOTAL All Industry Clusters ‐4.5% 367,114 345,525 (21,589) ‐5.9% (16,463.7) 0 (5125.3) Industry Advanced Materials South Central Connecticut: CEDS 2013 Regional Employment Industry Regional Mix Share 2006‐2010 2006‐2010 (1998.6) 78.8 153 Part II: Analysis of the Region There are several identified clusters in the region with a positive regional shift, proving to have a comparative advantage when compared to the nation. These positive clusters are Advanced Materials; Apparel and Textiles; Education and Knowledge Creation; Transportation and Logistics; Manufacturing Supercluster (as a whole); Primary Metal Manufacturing (Sub-Cluster); Machinery Manufacturing (Sub-Cluster); and Computer and Electronic Product Manufacturing (Sub-Cluster). Over this time period, only one of these positive regional shift clusters saw a positive employment change, Education and Knowledge Creation growing by 6.4%. To this extent, this industry was able to hold 352 more jobs than would have been predicted by national and industrial standards. The only other cluster that saw positive growth over this time frame was the Biomedical/Biotechnical (Life Sciences) cluster. It showed a positive growth of 2.6%, however, the nation saw a growth of 7.4%. This slower than national growth, saw a comparative disadvantage of over 2,700 jobs. The Computer and Electronic Product Manufacturing sub-cluster had the highest comparative advantage in the region. Although there was a 15.8% decline in employment nationally in this cluster, the region only saw a decline of 6.2%, the smallest decline of all manufacturing sub-clusters. It shows a total of 449 more jobs than what the national and industrial trends would suggest. It is also key to point out, that although the Manufacturing Supercluster as a whole saw an 18.6% decline in employment, it was less than the 19.0% seen nationally. This cluster saw a gain of 96 more jobs than what have would have been predicted by national and industrial trends. There was also a revelation of many weaknesses in the region’s economy over the course of the last five years. Some of the highest regional shifts were seen in the Biomedical/Biotechnical; Business and Financial Services; Defense and Security; and Information Technology and Telecommunications clusters. The Business and Financial Services cluster saw an 11.1% decline, compared to an only 2.6% decrease nationally. This resulted in a loss of 2,072 more jobs than what would have been seen if it would have followed national and industrial trends. Information Technology and Telecommunication and Defense and Security both saw significant decreases in employment when compared to the nation, with Defense and Security having a positive growth nationally. These two industry clusters make up a significant portion of the overall employment in the region and when coupled saw a decline of almost 4,700 more jobs than what would have been predicted by national and industrial trends. KEY FINDINGS: The Biomedical/Biotechnical (Life Sciences) and Education and Knowledge Creation clusters are the only clusters that showed employment growth over the last five years. All of the top five industry clusters by employment in the region have average wages above the national average, with the exception of the Manufacturing Supercluster, which is very near the same. Advanced Materials, Education and Knowledge Creation and the Manufacturing Supercluster have been the strongest performing clusters in the region over the last five years. Biomedical/Biotechnical (Life Sciences) is the largest cluster by employment in the region and despite its slight decline over the last five years it remains one of the strongest industry clusters in the region. Among the Manufacturing Supercluster, the Primary Metal, Fabricated Metal and Computer and Electronic manufacturing clusters have been the strongest over the last five years. Of the clusters proven to have a comparative advantage when compared to the nation, only the Education and Knowledge Creation cluster saw a positive employment change over the last five years. Although it saw a significant decline in employment, when compared to the Nation, the Computer and Electronic Manufacturing Subcluster showed the highest comparative advantage in the region over the last five years. South Central Connecticut: CEDS 2013 154 Part II: Analysis of the Region The Manufacturing Supercluster as a whole, although seeing a significant decline in employment, remained very strong when compared to the Nation. Some of the weaker industry clusters identified in the region over the last five years were the Business and Financial Services, Defense and Security and Information Technology and Telecommunication clusters, and coincidentally making up a large portion of the overall employment in the region. South Central Connecticut: CEDS 2013 155 Other Plans The development of the CEDS involved coordinating goals and objectives with existing State, Regional and Local Plans, Studies and Reports. The following is a brief summary of the Regional Plan of Conservation and Development and Long Range Transportation with a list of the additional Plans, Studies and Reports that were consulted while preparing the CEDS. SOUTH CENTRAL REGION PLAN OF CONSERVATION AND DEVELOPMENT The South Central Region Plan of Conservation and Development (POCD) is a general guide for land use conservation and development for the fifteen town region comprised of Bethany, Branford, East Haven, Guilford, Hamden, Madison, Meriden, Milford, New Haven, North Branford, North Haven, Orange, Wallingford, West Haven, and Woodbridge. The Plan reinforces policies which promote development in existing corridors, while conserving environmentally sensitive areas through a focus on Transit Oriented and Smart Growth Development. The goals and recommendations within the Plan cover a 10 years period and revolve around land use, housing, open space and other matters deemed beneficial to the region. The POCD was updated in June 2008 and amended in July 2009 to incorporate updated Sewer Service Area Mapping for the fifteen municipalities in the Region. Important themes within the Plan include: Transportation Choice Affordable Housing Economic Competitiveness Sustainable Development and Conservation SOUTH CENTRAL REGION LONG RANGE TRANSPORTATION PLAN 2011-2040 The South Central Region Long Range Transportation Plan (LRTP) is a guide and key component of the transportation planning process for the fifteen town region comprised of Bethany, Branford, East Haven, Guilford, Hamden, Madison, Meriden, Milford, New Haven, North Branford, North Haven, Orange, Wallingford, West Haven, and Woodbridge. The LRTP was adopted in April 2011 and is updated at least once every three years. Specifically, the LRTP addresses the region's transportation needs, traveler responses, and public sector cost constraints. The Plan includes fiscally constrained highway and transit projects that are expected to be funded in the next 25 years. Projects which increase capacity must be in the fiscally constrained portion of the LRTP. The LRTP encourages smart, sustainable, context sensitive development of the region’s transportation network. Transportation options and access to employment centers are key components in enhancing the region’s economic competitiveness. Additionally, the efficient movement of people and goods is identified as a vital component of the region’s economic health and vitality. South Central Connecticut: CEDS 2013 156 Other Plans Table 73: Addi onal Plans, Studies and Reports Consulted Title Agency Town/City Plans of Conserva on and Development (15 municipali es) Bethany, Branford, East Haven, Guilford, Hamden, Madison, Meriden, Milford, New Haven, North Branford, North Haven, Orange, Wallingford, West Haven, Woodbridge Office of Policy and Management Conserva on and Development: Policies Plan for Connec cut (2005‐2010) Connec cut Economic Strategic Plan (2009) State of Connec cut Long Range Housing Plan (2010) State of Connec cut Consolidated Plan for Housing and Community Development (2010‐2015) South Central Connecticut: CEDS 2013 Department of Economic and Community Development Department of Economic and Community Development Department of Economic and Community Development 157