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Connecticut Keeps 40-Person Manufacturing Company From Moving

by | Mar 4, 2015 5:15pm () Comments | Commenting has expired | Share
Posted to: Business, Town News, Windsor, State Budget

Christine Stuart photo A visit to its German headquarters by a state official and a $3 million low-interest loan helped convince a manufacturing company that employs 40 people to stay and expand in Windsor.

“The Department of Economic and Community Development has gone above and beyond expectations,” Michael Kraemer, the general manager of Leipold, a precision manufacturer, said Wednesday.

Kraemer said the company was approached by the “Carolinas about a year ago” but a visit to its headquarters in Germany by DECD Deputy Commissioner Ronald Angelo Jr. and a $3 million loan, which will be partially forgiven if the company creates 10, 20, 30 or 40 jobs, convinced company officials to stay.

Kraemer said none of the officials from the other states visited the headquarters and it showed a lot of respect. That respect was a large reason why it stayed.

The company also received a $3 million manufacturers loan. It will pay 1 percent for 10 years with principal deferred for the first six years. The state will forgive $1 million if it retains 40 jobs and creates 10 within four years, according to a press release. Beyond that, each new position may be eligible for an additional $100,000 forgiveness, to a maximum of $2 million in total if 20 net new jobs are created. It currently employs 40 people at its Windsor location.

It plans on increasing its facility from 15,000 to 35,000 square feet.

The company, which manufactures components for the automotive, electrical, hydraulic, pneumatic, and telecommunication industries, first established a presence in Connecticut in 1998 and is a family-owned company in Germany.

During his tour of the facility Wednesday, Gov. Dannel P. Malloy thanked Kraemer for his work with the Asnuntuck Community College manufacturing apprenticeship program. Kraemer sits on Asnuntuck’s machining advisory board and helps train and hire future machinists. Kraemer said two of its full-time employees are graduates of the Asnuntuck program and a third is serving an apprenticeship at Leipold.

“I’ve said for years that precision manufacturing is the manufacturing that we can win at in Connecticut,” Malloy said.

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(24) Archived Comments

posted by: somersct | March 4, 2015  8:28pm

Please raise my taxes to pay for this.

posted by: Biff Winnetka | March 4, 2015  8:32pm

Go to indeed.com and search the jobs in Palm Beach Gardens, Florida.  You will see DOZENS of high paying Pratt and Sikorsky jobs being offered EVERY DAY.  Jobs that should have stayed in CT.  Pratt and Sikorsky are ramping up big time in FL.  All because they were taxed and regulated out of The People’s Democratic Republic of Connecticut.

@HypocriLib

posted by: Noteworthy | March 4, 2015  9:34pm

Buying jobs…that’s the only reason companies stay in this state - this one just cost us a minimum of $75K/job. God love those taxpayers…..cram their head back and the magical taxpayers spit out money like a PEZ dispenser.

posted by: art vandelay | March 4, 2015  11:57pm

art vandelay

It’s too bad the Democrat Socialist Statists in Hartford can’t get it through their thick skulls that the free market is vastly superior to the government run state.  Companies would be flocking to Connecticut if we abolished the income tax, rid itself of binding arbitration, Davis-Bacon and every government regulation restricting private business.  Democrats don’t realize what they have done to this state these past 30 years have not worked and it won’t.  Why not give a true free-market economy a try for once.  It just might work!

posted by: LE 2015 | March 5, 2015  7:47am

It is sad that our state can only retain jobs by paying companies to stay.

posted by: dano860 | March 5, 2015  10:40am

Was this a company in Connecticut or a bunch of Somalli pirates?
Bill, did you see the press release that P&W put out last week. It was a photo of their new geared fan engine, bathed in blue and white lights, hanging in their new final assembly area located in Florida.
They will keep a small footprint in Connecticut with their headquarters, very little manufacturing between East Hartford and Middletown plus the research center in East Hartford. Connecticut will never return to the place it once was, despite how well Dannel thinks he knows manufacturing.
Head south chip makers, head south. Lower taxes, right to work and good infrastructure with a bonus of better weather.

posted by: friedrich5 | March 5, 2015  11:26am

It says a lot about the condition of the state’s economy when the governor has to visit a small 40 person firm to convince them to not move out of the state….....How much did this cost the taxpayers in subsidaries?

posted by: Commuter | March 5, 2015  11:43am

The stubborn ignorance on display in the comments of story after story is something to behold. The fact is that the reason that jobs are going to other states is, as Kramer stated, those other states are recruiting those companies using rich incentive packages and offers of support for worker training.

Massive incentive packages successfully lured OEMs to Florida, the Carolinas, Tennessee, Kentucky, and Texas, to name a few. Those OEMs attract their suppliers, who want to be near their customers.

Had this state done over the prior twenty years what Malloy is now doing, we would be in much, much better shape.

Here you have from the company’s leadership exactly what happened and why, and some people just refuse to accept reality.

Connecticut must compete. And we can compete if we try. For the first time, we are trying, and it is working.

posted by: joemanc | March 5, 2015  3:36pm

“For the first time, we are trying, and it is working. “
Riiiiight…UBS in Stamford is now half it’s original size. All of the high paying trading jobs have moved back to NYC. And RBS just announced they are scaling back operations big time in CT too.
I invite you to drive through downtown Waterbury, Bridgeport or New Britain and tell me what has changed in the past 4 years, past 10 years, past 20 years. But it’s working…

posted by: Noteworthy | March 5, 2015  3:42pm

Commuter: Connecticut is anti-business. Period. There are surcharges on businesses that were supposed to be retired, that will now stay. There are surcharges on energy for trucks to cars; there’s a tax on hospitals that makes healthcare more expensive and workers’s comp rates are among the highest in the nation. Companies would not be so easily lured to the greener pastures of other states, if in fact, our pastures were actually greener here. But the basic raw costs of living in this overtaxed, over-fee-d state are confiscatory. Face it: that’s why companies and people are moving. So Malloy is keeping all the things that drive companies away in place, and simply bribing them to stay. You may not like the description, but it’s true.

posted by: friedrich5 | March 5, 2015  3:53pm

Dear Commuter: I do not criticize the Governor for trying to keep business in the state because, yes we need them. Unfortunately,  companies would not even look at leaving if there were not reasons. When another state “recruits” a company to relocate they usually offer an environment that is attractive to the company and financially beneficial. This is what a market consists of. In Connecticut, we have failed to maintain such an environment so no companies come here without incentives while many choose to leave for greener pastures. High Connecticut taxes are usually one of the issues.

posted by: Councilman1 | March 5, 2015  5:31pm

Connecticut would probably be more attractive if all the negative commenters here agreed to substantially reduce your incomes. Or is it only that everyone else is overpaid?

posted by: dano860 | March 5, 2015  6:12pm

This is a typical story of a company deciding to relocate. What isn’t mentioned is the criteria for finding a State that fit their needs and one of the first ones was infrastructure and then weather. If we had a good infrastructure the weather problem wouldn’t be so high on that list.
What they did for this company is pretty much what any decent Economic Development Agency should be doing.
http://www.eteda.org/Articles/tennessee_benefits_as_gun_makers_head_for_southern_states.aspx
Make sure to read the statement from the guy in Stamford, Ct.

posted by: Bluecoat | March 6, 2015  11:44am

How much of this loan money will be funneled back to the Democrat State of Federal campaign funds?

posted by: art vandelay | March 6, 2015  11:52am

art vandelay

I think the Democrat Socialists in Hartford will finally wake up when UTC & General Dynamics pack their bags and say we’re out of here.  Then again maybe not.  Same goes for ESPN.

posted by: LE 2015 | March 6, 2015  10:11pm

To councilman 1   In the last few year we are paying higher income tax, sales tax and gas tax. workers are also paying higher medical and getting lower raise because the companies we work for are also paying more taxes. How much more do you want us to pay.

posted by: Commuter | March 7, 2015  12:36am

“Every manufacturer is looking for incentives,” he said, “and there are incentives going on.”
That’s all you need to know.

The rest of the linked article, dano860, is about incentives being offered by states to companies with motives that are fundamentally political and market driven, not cost and not tax driven. The “guy from Stamford” is in fact a guy from Nashville, working for a Stamford outfit, btw.

The reality of the situation is that Connecticut can compete, and as Kramer is quoted above as saying, it is doing an effective job of doing so.

Meanwhile, it is nothing but incessant whining from the usual suspects repeating the same compaints over, and over, and over again, here in the comments section. So glad I checked in.

Think about this, if you can bring yourself to, if these other states are so wonderful, why do they have to buy our industries in the first place? Why can’t they grow their own?

Meanwhile, we’re not only growing jobs in Connecticut, we’re - according to you - a net exporter of jobs as well. You probably can’t get your heads around that one though….

posted by: SocialButterfly | March 7, 2015  12:16pm

@art: You can’t embarrass the Socialist regime in Hartford.  They have no shame. They continue to be oblivious of our needs and nothing will change until this motley crew is voted out by hopefully returning educated voters in the future.

posted by: dano860 | March 8, 2015  11:33am

It has never been said that Connecticut isn’t trying. It has never been claimed that we are doing the best we can and as far as I know it has never been said that we have a business friendly culture.
The links here and here supplied are fairly non-partisan in nature and they highlight some of the reasons companies choose other than Connecticut.
They are on the right track when it comes to infrastructure, bond it and get it going! Damn the studies and salamander Susie’s. We don’t have the money but without investment it will never come.
Do I believe that we could pull in some large manufacturers? He#* yes! I helped Asnuntuk get some of the machinery they have, I connected Three Rivers with the UTC laser group to purchase surplus equipment, I’ve helped at QVCC with equipment contacts too.
The fact remains that we are a State that is like a dog being wagged by the tail. Far to many regulatory roadblocks and hurdles to overcome. NIMBY mentality runs rampant and the historical types want nothing to change. keep the decrepit mills and old brick and mortar structures. That doesn’t bring in large progressive factories.
As far as having a condescending, degrading, imperialistic attitude that doesn’t advance the debate it is just another dart in the board for the typical haughty Connecticut resident that keeps aggressive, upscale companies from even looking at Connecticut.
Rest assured though, as long as we remain a staunch blue State things will be slow to turn.

 

posted by: Commuter | March 9, 2015  2:54pm

Not partisan, dan860? You cited the Tennessee department of economic development, and the South Carolina commerce department [ROFL]!! And CEO magazine is a rag.

In addition, the cudos cited by Tennessee with the possible exception of the IBM report are not objective, they are promotional gimmicks run by trade publications, including CEO magazine.

You can be sure there is no scenario under which Connecticut would be a candidate for a plant like the Mercendez Benz plant going in South Carolina, so it really serves to illustrate my point, rather than yours.

And if you read to the bottom of the South Carolina page you cite, the last paragraph says they are doing the exact same things Connecticut - under Malloy - is doing to compete.

And you are flat wrong that it has never been claimed that Connecticut wasn’t trying. Connecticut wasn’t trying for four consecutive Republican administrations, and Malloy ran on that in 2010 and in fact in 2006.

UTC’s current Chairman recently stated that he was glad to be proved wrong about his statements of four years ago that Connecticut wasn’t the place to be. There’s solid proof - from the head of Connecticut’s largest private employer - that things are turned around and headed in the right direction.

posted by: SocialButterfly | March 9, 2015  3:39pm

@Commuter:  Let’s face it.  You can’t write anything that isn’t profoundly approving our missing Democratic prosperity in Connecticut. The Malloy daily news-releases-press team should hire you.

posted by: dano860 | March 9, 2015  10:04pm

I spent 39 years and 51 weeks at P&W. I was instrumental in the condensation of many of the facilities. We moved out of Southington on Queen St. and Newell St. by moving them to the Middletown and Florida locations. We closed the No. Haven plant by relocating some of it to the East Hartford plant the rest to No. Berwick, Me. and to suppliers in Pa., Ohio and Tennessee. We closed the storage facility in East Hartford and disposed of over $13M in old tooling. They closed the Manchester Warehouse and gave that function to a supplier. They moved the proprietary military work to Florida from East Hartford. We closed the spare parts facility in Middletown and Fed Ex now has a new facility in New Hampshire that does that today. They have removed (razed) 50% of the buildings and test cells at the East Hartford facility and they aren’t done yet. The new engine is being assembled in Florida and suppliers are making a majority of it. They gave away all the land in East Hartford for a football field and a Technology Center but that will now be constructed in Storrs. That’s why UCONN needs to run a new water line from the Snipsic Lake in Vernon to Storrs.
These are some of the potential reasons UTC should feel happy. They continue to down size but the deal they signed with the State said that they needed to keep their Headquarters in Ct. for a period of years just to get the tax credits.
They will probably do that up until the deadline and then pack up.
Maybe all of those articles are from rags that you don’t agree with but I have yet to see any articles extolling the virtues of Ct.
we have a golden opportunity in eastern Ct. to bring in business, the new Putnam Tech Park will soon be ready. When they get a buyer or two I will recant my story, I hope to blazes that it flies and they get some jobs out here. I have high hopes though.

posted by: dano860 | March 9, 2015  10:23pm

I neglected to mention the work that we moved from East Hartford to Ga. and that we sold the blade manufacturing operations at that facility to Blade Technologies, an Israel based company.
Keep the faith…the only direction we can go at this point is up.

posted by: SocialButterfly | March 10, 2015  10:05am

@dano860: Save your Confederate money.  The South will rise again!

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