The Register Citizen (Torrington, CT)
Defense bill vital to job prospects
The defense and aerospace industries may be the key to leading Connecticut out of its job-growth doldrums, according to a Fitch Ratings review of the 2019 Defense Authorization Act.
The 2019 defense budget includes several billion dollars for projects that will impact Connecticut, including $10.6 billion to purchase 77 F-35 Joint Strike Fighters. Connecticut-based Pratt & Whitney, a subsidiary of United Technologies, is part of the partnership that makes the fighters.
The authorizations also include billion-dollar projects for Sikorsky and Electric Boat. Stratford-based Sikorsky is a subsidiary of Lockheed Martin and Electric Boat of Groton is a subsidiary of General Dynamics.
“Connecticut is such an integral part of defense, for the Navy’s plans in particular,” said Nicholas Varone, Fitch’s associate director for corporate ratings in U.S. aerospace and defense. “It’s an important state when we talk about defense spending.”
A report by the Connecticut Institute for the 21st Century backs up Fitch Rating’s conclusions. “The Future of Defense Workforce: How Can Connecticut Promote Growth and Retention?” details the strength of the defense industry in the state and the ambitious hiring plans by the large companies. Loren Dealy Mahler, a Milford resident and senior fellow with the Institute, prepared the report.
Electric Boat plans to expand its workforce in Connecticut from 11,000 to 18,000 by 2030. The Navy has hinted at increasing the numbers of ships and submarines it will order.
“The nuclear submarine will be a focal point of the Navy for a number of years,” Varone said. “At least as far as we can see on the horizon.”
Pratt & Whitney, according to the report, expects to double production by 2020 and again by 2027. It plans to hire 8,000 workers in the next 10 years.
The good news about the defense authorizations go well beyond the big corporations in the state. Smaller manufacturers sprinkled throughout the state make up much of the supply chain for the large companies. Pratt & Whitney, according to the report, gets 85 percent of its engine parts from outside suppliers. Electric Boat has about 450 suppliers in the state and doled out $485 million in contracts to Connecticut manufacturers in the last five years.
“The supply base is strong in Connecticut with a significant number of suppliers to support defense,” David Petu, Fitch’s director of corporate ratings for U.S. aerospace and defense, said.
Finding the workers
Many manufacturers across the state are finding out that it’s one thing to need to hire employees, but something else to find skilled workers to fill those positions. An aging workforce and lingering perceptions about manufacturing jobs being dirty, low-paid and low-skilled have created a shortfall of workers for the industry.
“That’s a concern for the industry as a whole and in Connecticut,” Petu said.
The state has addressed the situation by creating programs in community colleges and high schools that train workers for advanced manufacturing jobs. The programs have proven to be highly successful for the companies looking for workers and the trainees seeking employment.
Joseph DeFeo, director of the Advanced Manufacturing Technology Center at Naugatuck Valley Community College in Waterbury, said students have a 100 percent placement rate since the center was created in 2012.
“Connecticut is known to have a highly educated and skilled workforce, but when it comes to manufacturing, the skills often do not match up. The state cannot afford a skills gap as it continues to lag behind the region and country in terms of job recovery from the recession, analysts say.