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Twin Peaks
As new businesses flock
to Waterbury and Meriden,
other communities ask:
What's their secret?
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Business New Haven
3/23/1998
By: Frederick W. Nevin
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Economic development in greater Meriden and the Waterbury area is roaring along at a clip that has left both metro areas with a shortage of skilled workers as more and more businesses are moving in.
And judging from what local economic leaders have to say, the economic boom has just begun.
The Meriden area has been an economic hub of activity in recent years, says Diane Stockton, executive director of the Greater Meriden Chamber of Commerce. Besides large manufacturers moving into the area, and Meriden Square Mall preparing to add a fourth anchor - a Lord & Taylor department store is expected to arrive in 1999 - the area is basking in the success of a three-year effort to make phone calling toll-free to Hartford and New Haven exchanges, says Stockton. The change took place on March 21.
“This will allow Meriden area businesses to
reach more businesses affordably; it gives it access to the majority of the Connecticut market,” she says. Businesses in the region will save an estimated $7,000 a year on phone calling, according to a study conducted by the Meriden chamber.
Given Meriden's central location, Stockton says, changes in phone calling will make the region more inviting to businesses looking to relocate to the area.
In addition, the region has begun to address complaints of worker shortages with the opening of the Meriden Business & Learning Center, a consortium of public agencies. The facility, located at 500 South Broad Street, held its grand opening February 27, according to Randall Kamerbeek, Meriden's economic development director. It is designed to give area businesses the type of skilled workers they seek. Working as a satellite campus of Middlesex Community College, the facility will offer the kind training business requires, he says.
“If you want to expand in Meriden,” Kamerbeek says, “just tell us what type of people you want and we'll have a pool of employees to choose from.”
But, as Kamerbeek notes, “It is very hard to talk about the Meriden area alone. The central [Connecticut] region's economy,” he explains, “is catching up to southern New England and the rest of the U.S. in terms of economic growth.”
Kamerbeek says Meriden has seen several large firms move into the area during the last few years. For example, Cable Wave, a telecommunications cable manufacturer, is completing construction of a 350,000-square-foot facility that will house its headquarters and production facilities for antennas, cables and connectors. The $22 million project on Research Parkway, a major Meriden industrial park, will eventually employ 500 in management and manufacturing roles.
Another major tenant is Walbro, a fuel systems manufacturer for cars and light trucks, which moved in 18 months ago. The company is still hiring workers and it will have 900 employees at its peak.
Also coming along are two new hotels. “The Sheraton and Hilton hotels will be moving in near the Marriott Residence Inn on Bee Street in Meriden,” says Stockton. The hotels will include conferencing facilities, she says. Kamerbeek adds that construction of the hotels will begin this spring.
Stockton says she believes the area can support two large hotels, even though there is some question about weekend traffic. As things develop, she says, there is hope that larger conferences will take advantage of the facility's central location and there will be activity on weekends.
With all the new business, Kamerbeek says, the city is starting to seek out other areas for industrial use. Industrial parks are approaching half-full, he says, noting the community uses tax incentives to attract businesses to older facilities. “Tax incentives are important because they level the playing field,” he explains.
Down the road in Waterbury, the same economic good times seem to be contagious.
According to the Connecticut Economy, a University of Connecticut quarterly, greater Waterbury in the last quarter of 1997 added 3,300 employees to its nonfarm payroll, a gain of 4.2 percent over the same period a year earlier. It was the highest advance of all Connecticut labor markets. Manufacturing scored the biggest increase of all regions in the state.
Bob Mezzo, director of government and economic affairs for the Greater Waterbury Chamber of Commerce, says the region's success is based in part on a return to what it was known for in the past: manufacturing.
“We had a study done a few years ago to look at the overall area,” says Mezzo. “What it concluded is that we were once the manufacturing capital of the world and we are still strong in manufacturing. That is the dominant sector of the economy in our area.” Waterbury, he concludes, “needs to go with its strength.”
In the past, Mezzo says, the area was dotted with large industrial companies. Today, he notes, “We are driven by smaller companies whose founders worked in the large companies.” Like Meriden, Mezzo says, Waterbury's chief shortcoming is a dearth of skilled labor.
Mezzo says the Brass Mill Center mall which opened last summer has served as an eye-opener for people passing through the city (see related story, page 1). “We are no longer just an abandoned factory town,” he notes. “It is symbolic of the revitalization we are undergoing.”
Mezzo says his office is excited about a new state courthouse set for the western side of town and a state office building that will overlook the green and employ 300 to 350 workers. Also in the works, he notes, is a $1.6 million downtown study needed to access a $31 million grant. The next step for downtown, he says, is to revitalize the corridor from the mall to the city center.
Like Meriden, Waterbury has problems to overcome beyond a shortage of skilled workers. Mezzo says Waterbury is one of only two Connecticut municipalities that have not conducted property revaluation since 1979. (The other is neighboring Naugatuck.) “This is hurting the area when it comes to attracting new business,” he explains.
City officials have argued that they need to increase the tax base through new business before revaluation. This will dilute tax increases from new assessments.
“But this sets up an obstacle,” Mezzo says, noting the state has granted delays to Waterbury since 1979. “I doubt they will get another one,” he says. “The business community looks forward to playing on a level playing field.”
In Meriden, Chamber Executive Director Stockton says her organization is troubled by proposed state legislation which she and her members view as hostile to business.
One proposal would increase the minimum wage while the other is a so-called corporate responsibility bill which would place additional mandates on business. Mandates would include offering temporary and part-time workers benefits similar to those enjoyed by full-time employees.
“This is a competitive issue with other states,” she says. If a business has a choice of Connecticut or Ohio ,which does not have a corporate responsibilities law, the business will pick Ohio. “The bill is not business-friendly,” she says.
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