STATE’S EXPORTS REBOUND, BUT STILL BEHIND
After plunging during the first year of the COVID-19 pandemic, Connecticut’s exports rebounded last year. But the state has more work ahead to return to its pre-pandemic output.
While Connecticut manufacturers have faced limited exposure to the fallout from Russia’s invasion of Ukraine, they are grappling with many other challenges including inflation, supply-chain disruptions and worker shortages — obstacles that have contributed to the state’s exports recovery lagging the national comeback. At the same time, the state needs to develop a more cogent longterm strategy to fulfill its potential as a player in the international economy, according to some experts.
“Connecticut hasn’t quite kept up with the pace of other states,” Stephen Coelen, managing partner at WISERTrade, a supplier of data on international trade flows, said in an interview. “What I believe is that Connecticut needs to develop a strategic plan for the industries that we can grow in. What it needs to do is figure out where it can grow faster and more persistently.”
Dealing with disruption
In the nearly three months since the start of the Russian invasion of Ukraine, a number of the state’s largest manufacturers have curtailed their operations in Russia. The likes of Stanley Black & Decker, Otis Worldwide and Terex are part of a global wave of companies that have reduced their business in the country.
“We’re disheartened to see the escalation of the crisis in Ukraine,” Judy Marks, CEO, president and chairwoman of Farmington-based Otis, which manufactures and services elevators, escalators and moving walkways, said on an April 25 earnings call. “We have growing concerns about the long-term sustainability of Otis’ operations in Russia, especially with mounting regulations and supply chain disruptions. As a result, we are motivated to find solutions and explore alternatives for our Russia business that are in the best interest of all of our stakeholders.”
The Connecticut-based manufacturers that have pulled back in Russia generally only derived a small percentage of their revenues from the country. Similarly, many smaller manufacturers in the state did little to no business in Russia, a trend that correlates with companies’ longstanding concerns about the deterioration of the rule of law under President Vladimir Putin.
Stamford-based Goodway Technologies, a manufacturer of industrial-maintenance products, last year generated about 15 percent of its revenues from exports — but it has done sporadic business in Russia and Ukraine in recent years. The company was named the 2022 exporter of the year for Connecticut and the New England region by the Small Business Administration, and it was one of the recipients last year of the President’s “E” Award for Exports from the Department of Commerce.
“Fortunately, we only had minimal impact from the invasion regarding direct sales to that region. However, the cloud of uncertainty for neighboring countries is undoubtedly something we must watch and plan around as necessary,” Goodway CEO and President Tim Kane said in an interview. “In particular, western Europe, which has always been a strong market for Goodway, may well be challenged to remain unaffected. Its vulnerability to energy dependency is challenged. Overall, we remain confident that the significant
“In particular, western Europe, which has always been a strong market for Goodway, may well be challenged to remain unaffected. ... Overall, we remain confident that the significant growth we have experienced in the Middle East and the Asia-Pacific regions will offset any market reactions to the Russian aggression.”
Goodway CEO and President Tim Kane
either one or two beds. At least six of the hotel rooms will be accessible to people with disabilities, plans show.
If approved, the boutique hotel would feature a lounge, marketplace for sundries, small gym, laundry room and office space on the ground floor.
The building would be served by 55 parking spaces, including three spaces for people who have a disability. A traffic report filed with the town projected the hotel would generate about 430 vehicle trips a day.
“Based on our analysis, it is our professional opinion that the traffic volume associated with the proposed development can readily be accommodated by the existing roadway network,” traffic engineers with F.A. Hesketh & Associates wrote in the report.
The town's conservation commission has already signed off on the project and the proposal has been endorsed by the fire department under the condition a fire hydrant is installed in front of the building, according to town documents.
The project, however, has faced some push back from local residents. Town documents show that at least three people have written
to the town expressing concerns about the hotel.
Michael Scavetta, who lives in a home adjacent to the proposed site, told officials in an email that he was worried the building would not be a good fit for the largely-residential neighborhood.
“We understood when we bought the house something would be going on that lot but never in our wildest dreams would we imagine a hotel sleeping 54+ people,” he wrote.
The proposal is slated to go before the Southington Planning and Zoning Commission at 7 p.m on Tuesday. A representative for Mehta did not respond to a request for comment.