Sikorsky deal a win for state economy

The deal to secure Sikorsky Aircraft’s future in Connecticut is no doubt good news for Gov. Ned Lamont’s reelection campaign. But regardless of who is in the governor’s mansion, this is an important step for the state economy and a necessary move toward securing our future.

There’s no question that Sikorsky, a subsidiary of Lockheed Martin, has received or been promised large amounts of government incentive money over the years. But it’s just as true that the investment is worthwhile. The importance of Sikorsky to the Connecticut economy cannot be overstated.

Though this week’s deal still requires approval by the General Assembly, Sikorsky and Lockheed Martin would be in line to receive $75 million in sales-tax exemptions and tax credits, subject to ongoing audits to ensure compliance with jobs and baseline expenditures on its Connecticut suppliers. This latest agreement would be in addition to the $220 million awarded the company in 2016, as it prepared to produce a new helicopter fleet for the U.S. Marine Corps.

Government incentives to private companies aren’t always popular. Sometimes it amounts to writing a check to a company that agrees to set up shop in Stamford rather than, say, New Jersey, with the accompanying economic gains not amounting to all that much. Then there is the problem of broken promises — sometimes incentives are offered on the promise of new jobs that never materialize, and the state hasn’t always been aggressive enough in getting that initial money back.

None of those scenarios apply to Sikorsky. Companies don’t get any more proven than this one, which has called Stratford its home for its thousands of employees for decades. Ensuring the company stays right where it is should count as an easy call.

It’s sobering, in fact, to think of the economic bomb that would go off in Connecticut if Sikorsky ever left. Some jobs can be replaced, but with 8,100 employees across its Connecticut facilities at a Stratford headquarters plant, a Bridgeport factory, offices in Shelton and Trumbull, and a North Haven warehouse, Sikorsky stands alone. Many of those jobs are well-paid, and simply could not be absorbed by the local economy if the company left.

That doesn’t mean any business should get whatever it wants or be able to dictate terms. But it does mean this is a mutually beneficial relationship for the state and its largest private manufacturer. It’s one that’s important to keep active into the future.

The deal agreed to this week isn’t one way, of course. Also included is a commitment by Sikorsky to spend more than $1.1 billion over the next decade with its nearly 250 suppliers across Connecticut, including at companies in Bridgeport, Stamford, New Haven, Hartford, Danbury, Middletown, Torrington and New London. That’s a lot of business for companies that would otherwise go without.

There are many ways to build a strong economy, and Connecticut leaders are investing in a number of strategies. But high on the list must be securing strengths that we already have, and this agreement with Sikorsky is a good example of that strategy in action. It’s a win for the state.

Companies don’t get any more proven than this one, which has called Stratford its home for its thousands of employees for decades.