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ANNUAL REPORT 2012ANNUAL REPORT 2012

CBIA CONNECTICUTBUSINESS & INDUSTRYASSOCIATION

Progress, Promise, and Challenges

Connecticut Business Looks to the Future

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CBIA’s Mission Serve as an advocate for the general business and

industry community in Connecticut

Promote a state business climate that is globally

competitive and encourages business expansions,

startups, and relocations in Connecticut

encourage communication and cooperation among

business and industry, government, other private-

sector institutions, and the general public on important

economic and social issues

Provide a wide range of products and services that

benefit member companies

CBIA 10,000 BusinessesWorking for a CompetitiveConnecticut

top row, left to right: Thomas S. Santa, Chair; John R. Rathgeber, President & CEO; Donald R. Droppo, Jr., Vice Chair; James P. Torgerson, Vice Chair

Second row, left to right: Ramona Carlow, Immediate Past Chair; J. Dennis Chalk, John R. Ciulla, Donna R. Galluzzo

third row, left to right: Chandler J. Howard, Richard T. Mason, Robert S. Sobolewski, Maureen M. Weaver

2

2012 CBIA Executive Committee

Chair & President’s Report

Over the past twelve months, state policymakers have increased their focus on our economy and the challenges that employers face operating businesses in Connecticut. It began last fall with Governor Malloy calling for a special legislative session on jobs and engaging the leaders from both political parties in shaping the agenda. As a result, positive steps were taken to help grow

the private sector and create new job opportunities.

During the 2012 General Assembly session, the administration and legislators focused on public education and the adoption of reforms to ensure that more students would graduate from high school with the skills they need to be successful in college or the workplace. Connecticut’s skilled workforce is our greatest eco-nomic strength, but there is growing concern about its future.

CBIA worked with a coalition of reform-minded organizations to support the governor’s proposals to raise overall student performance, close the achievement gap, enhance teacher and school administrator accountability, and provide financial transparency. Near the end of the session, a compromise bill that addressed a significant number of these critical issues passed the legislature with broad bipartisan support. We will continue to work with coalition members to ensure that these reforms are effectively implemented both at the state Department of Education and at the local level.

In other policy initiatives, CBIA was successful in backing efforts to expand programs supporting small businesses and startups, return brownfields to productive use, and streamline permitting processes. And, we were able to convince legislators to reject bills that would have increased the cost of doing business or imposed new mandates on employers.

Nevertheless, the state continues to face significant budget problems and long-term fiscal issues that must be addressed to truly restore business confidence and improve our economic competitiveness. During the 2013 session, we will work hard to convince policymakers to adopt a new two-year state budget that leans state government, avoids further tax increases on individuals and businesses, and addresses our long-term debt.

We encourage you to visit cbia.com to track what your state legislators are doing on the important fiscal and economic issues facing Connecticut. The site provides tools you can use to identify your state represen-tatives and senators and let them know your viewpoint. It also contains a wealth of information on the latest economic and business trends and serves as your gateway to all CBIA products and services.

Throughout the year, we provide our members with an array of products, services, and information designed to help you manage your business, save money, and be successful. Last spring, we adopted a new three-year strategic plan to enhance our offerings and provide greater value to our members. We are totally committed to serving you and welcome your ideas about what more we can do.

Sincerely,

Thomas S. Santa John R. Rathgeber Chair President & CEO

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CBIA President and CEO John Rathgeber responds to questions from the media at the State Capitol.

By the NumBers

11 registered staff lobbyists. 5,538 hours spent lobbying. 208 bills on which staff lobbyists testified. 65 public hearings

attended. 125 harmful bills defeated. 10 positive bills enacted. 12 government regulations and administrative policies worked on by

staff. 106 business groups that joined CBIA-led coalitions.

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GovernmentAffairs

Progress on some of the most important issues affecting

Connecticut’s businesses and economy was achieved this

year because of bipartisan agreement on the critical impera-

tives of job creation and education reform.

Within the span of seven months, the General Assembly expanded the

state’s portfolio of resources designed to help businesses create jobs and

grow here and committed Connecticut’s public education system to new

and higher standards of excellence. The long-sought-after education

reforms that were passed will better equip our young people with the

skills that they and Connecticut employers need to meet the challenges

of the 21st century economy.

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CBIA is grateful to Governor Malloy

and legislators on both sides of the

aisle who worked to improve

Connecticut’s public education

system.

This was also a year in which some key state

agencies streamlined their processes to make it

easier for the business community to interact with

state government. It’s important that we continue

to see those kinds of positive changes, especially

as difficult economic conditions persist and pose a

serious challenge to unlocking private-sector

investment, restoring job creation, and maintain-

ing fiscal responsibility in state government.

CBIAInvolvement

Throughout the year, our board, our members,

and our government affairs staff were highly visi-

ble at the State Capitol, playing an instrumental

role in the success of pro-business, pro-education-

reform legislation.

The Jobs Bill adopted in the October 2011 spe-

cial session echoed many of the proposals devel-

oped by CBIA members and offered in our Pro-

Jobs Agenda before the session began.

The education reforms adopted in May 2012

reflected the landmark work of CBIA’s

Education Foundation in helping to raise aca-

demic standards and inspire young people to

achieve new heights at school and in life. The

reforms also responded to employers’ urgent

need for a pipeline of skilled workers.

The new era of cooperation with many state

agencies answered our members’ longstanding

call for government to restore a greater level of

confidence in the state that will enable busi-

nesses to grow, create jobs, and increase invest-

ments in Connecticut.

In many cases, we were instrumental in creating

and leading coalitions of like-minded organiza-

tions in supporting efforts to provide long-term

benefits to Connecticut’s economy.

All of this was critically important, as many

Connecticut businesses continue to struggle and

job creation continues to be elusive.

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Photos (clockwise from top): Gov. Dannel Malloy signs the education reform bill into law at a May 15 ceremony at the State Capitol. CBIA Associate Counsel Eric Brown (right) with Kevin Hennessy, direc-tor of state and local affairs at Dominion Nuclear Connecticut Inc. CBIA Vice President of Govern-ment Affairs Bonnie Stewart with Electric Boat’s Chief of Government Relations Jack Shea.

Energy & EnvironmentThis was yet another year in which CBIA’s leadership in energy and envi-

ronmental issues resulted in legislative success. We continue to foster a

productive relationship with the Department of Energy and

Environmental Protection to develop policies aligned with Commissioner

Dan Esty’s “triple E” agenda of better environmental protection,

expanding energy options, and growing Connecticut’s economy.

For example, our Environmental Policies Council (EPC) effectively kept at the

forefront the issue of critical shortfalls in the state’s underground storage tank

fund. This yielded a significant step forward in addressing the situation during

the June 2012 special session. In addition, the EPC’s involvement helped win fur-

ther enhancements to last year’s landmark brownfields legislation.

On the energy front, while much of the regular General Assembly session was

consumed with responses to the two major storms that hit the Northeast in

2011, lawmakers nevertheless approved several important energy proposals dur-

ing the June special session. Among the more significant measures, advocated by

CBIA, was the creation of a new program to promote energy efficiency invest-

ments at commercial and industrial facilities.

Labor & Healthcare CostsWith the spotlight this year mainly on education reform and headline-grab-

bing social issues, lawmakers focused less than usual on labor and employ-

ment legislation. A proposal to increase the state’s minimum wage died after

failing to gain enough Senate support to be brought to a vote before the

session ended.

Lawmakers also refrained from adopting more health insurance mandates,

which would have added to the already high cost of healthcare in Connecticut. Key to this

restraint was a decision by a federal healthcare agency, widely communicated by CBIA,

which made the state financially liable for any new mandates adopted after Dec. 31, 2011.

Fiscal PolicyThe state’s fiscal situation remained tenuous

despite the significant tax increases adopted

in 2011. Lawmakers and the administration

once again faced a budget deficit, and in response, the

legislature approved a budget fix that employs an all-

too-familiar patchwork of borrowing, fund transfers,

and deferred payments.

CBIA continued to advocate for greater fiscal responsi-

bility and the adoption of the practical solutions recom-

mended by the Connecticut Regional Institute for the

21st Century in order to make state government more

efficient, effective, and affordable.

Prudently, the legislature’s tax-writing committee

refrained from any new taxes this year. CBIA’s Tax

Committee was once again a key resource for legislators

and the Department of Revenue Services in clearly con-

veying the impact tax policy has on businesses and the

potential for economic growth.

Campaign Finance

CBIA applauded Governor Malloy’s

veto of a bill that would have

imposed unreasonable rules and

procedures on Connecticut businesses making

campaign-related expenditures. We were part

of an unusual but effective group, including the

Connecticut Civil Liberties Union and

Connecticut Daily Newspapers Association, in

opposing this legislation.

!ThanksThe success we enjoyed this year can largely be credited to the indispens-able involvement of CBIA members from businesses small and large throughout the state. Your participation matters a great deal, and we will continue to count on your support as we work to improve on this year’s results and help make you, and Connecticut, as competitive as possible.

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Senate Republican leader John McKinney (R-Fairfield) discusses the state budget at Connecticut Business Day in February.

By the NumBers

66,100 visits to CBIA’s government affairs website during the legislative session. 438,000 cbia.com site visits. 300

businesspeople at the state Capitol for Connecticut Business Day 2012. 11 CBIA News magazines published. 22 Government Affairs reports

published. 35 digital Government Affairs reports and legislative updates/alerts sent.

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Engaging Our Members& the Public

CBIA members and the public play a critical role in

convincing government leaders to adopt policies favorable

to economic growth and job creation. That’s why we

continue to refine and expand opportunities for both

constituencies to learn about key issues affecting businesses and engage

in the policymaking process.

Those opportunities include our weekly Government Affairs Report,

monthly CBIA News magazine, digital communications, and face-to-face

meetings with state legislators.

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Digital OutreachCBIA’sGovernmentAffairsWebsite

We updated gov.cbia.com to make it easier for users to access information and

communicate with state legislators. The new one-stop portal includes:

• issues & Policies—information on business-critical legislation

• contact ct Legislators—a powerful tool that enables members to identify their

state lawmakers and email them right from the website, used by thousands of

CBIA members and many of our partner organizations this year

• Bill tracker—summaries of business-related bills, status updates, and links to

each bill on the General Assembly’s website

• track issues—allows members to sign up for CBIA email alerts and e-newsletters

on important legislation in any of eight issue areas

“FirstNotice”Emails

Our lobbying staff sent up-to-the-minute emails on legislative developments to CBIA

member groups, including the Government Affairs Council and Tax Committee.

Video

CBIA employed web-based and email-embedded video, including regular

“This Week at the Capitol” segments, to inform our members and the public

about breaking business news.

SocialMedia

We continue to expand use of social media to educate and engage our

members and the voting public. We’re using:

• Linkedin and Facebook (facebook.com/cbiafb) for real-time business news

updates and member interaction

• twitter (twitter.com/cbia) for up-to-the-minute policy and business news

• Youtube (youtube.com/cbiavideos) for fast dissemination of videos

• Flickr (flickr.com/photos/cbia) for photo distribution

Election & Grassroots ActivitiesThis summer, CBIA created a special Election 2012 website

(cbia.com/election) featuring:

• Candidate background information

• Details on public policy issues

• Probing questions to ask candidates

• The latest news on local and statewide races

• A schedule of campaign events

Other CBIA grassroots activities included:

• Supporting the Partnership for Connecticut’s Future, a

bipartisan, grassroots organization of citizens, businesses,

chambers of commerce, and community leaders committed

to fostering awareness of economic and fiscal issues. CBIA

upgraded the Partnership website (partnershipct.org) and

kept partnership members apprised of business legislation

via Twitter and Facebook. The group has more than 1,000

member businesses, individuals, and organizations and

4,500 Facebook supporters.

• Conducting presentations throughout the state before

chambers of commerce and other business groups to

inform them about pending legislation.

ConnectingPolicymakerswithBusinesspeopleConnecticut Business Day: On February 29, 300 business leaders from across the state came together at the Legislative Office Building in

Hartford for Connecticut Business Day 2012. Co-sponsored by CBIA and the Connecticut Association of Chamber of Commerce Executives,

the event featured addresses by Lt. Gov. Nancy Wyman, Senate Republican Leader John McKinney (R-Fairfield), and Department of

Economic and Community Development Commissioner Catherine Smith. Discussion centered on small-business competitiveness, focusing

on topics such as the high cost of doing business in Connecticut, jobs, education reform, and fiscal responsibility.

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Small Business advisory council

Led by CBIA board member Kimberlee Pita,

managing principal of the Pita Group, the

council sponsored a networking event to

examine ways of marketing to and working

with five different generations. Members also

joined CBIA’s Manufacturers Advisory Council

in a joint meeting with House Majority Leader

J. Brendan Sharkey (D-Hamden) where they

discussed the 2012 legislative agenda. The

group also reviewed bills that passed during

the 2012 Legislative Session. In May, the

council met to discuss recommendations for

enhancing CBIA’s outreach to small businesses.

manufacturers advisory council

Led by Richard Laurenzi, president of Prospect

Machine Products, the council met with the

Corporate Development Group on doing busi-

ness in overseas markets and with CONNSTEP

and the Delaware Valley Industrial Resource

Center about identifying growth opportuni-

ties. Council members were invited to assist

the commissioner of the state Department of

Corrections in creating a training program for

nonviolent offenders.

In June, the council held a special meeting

with Rep. Selim Noujaim (R-Waterbury) and

Sen. Gary LeBeau (D-East Hartford), leader, of

the newly formed Manufacturing Caucus in

the state legislature. The group discussed how

the caucus will work to educate the public and

legislators on the crucial role of manufacturing

in the state’s economy. The council also

reviewed the results of Connecticut

Manufacturing: Building on the Past, Creating

our Future—a report prepared by CBIA in con-

junction with DataCore Partners LLC—and dis-

cussed the three new manufacturing centers at

state community colleges.

Human resources council

Comprised of some of the top HR profession-

als in Connecticut, CBIA’s Human Resources

Council helps CBIA members stay abreast of

current trends, recent court decisions, and

developing legal issues. The council held the

following five meetings:

• The Painless Performance Appraisal

• Your Employee Handbook: Corporate Asset

or Legal Liability?

• Judicial Overview

• Make Your Company a Great Place to Work

• HR and Mental Health First Aid

government affairs council

With participants from nearly 60 Connecticut

companies, the Government Affairs Council

helped state lawmakers understand the busi-

ness and economic implications of numerous

bills. In particular, council members met with

legislators to explain how tax and labor pro-

posals that increase business costs have a real

impact on companies’ ability to compete—

and on their decisions about whether to stay

in Connecticut.

environmental Policies council

Chaired by Dave Smith, global EH&S manager

at Pratt & Whitney, the EPC continued to

advance its standing as the premier advocate

for business on environmental matters in

Connecticut and broadened the scope of its

activities to include energy issues as well.

On the environmental front, many EPC mem-

bers participated in six months of intensive

meetings with the Department of Energy and

Environmental Protection (DEEP) to develop

proposals for simplifying Connecticut’s com-

plex, confusing array of environmental clean-

up laws and regulations. Discussions contin-

ue, and we hope that a package of common-

sense reforms will be adopted in 2013.

Members also participated in meetings with

DEEP officials on issues ranging from water

discharge permitting to underground storage

tank regulations. We held an Environmental

Summit at the Capitol in October and a major

brownfield conference at the Legislative

Office Building in January that was broadcast

online to more than a dozen states.

Through staff participation in all three of the

state’s major energy policy commissions, the EPC

is in a unique position to advocate for its mem-

bers’ interests in the development and implemen-

tation of energy policy in Connecticut. This year,

we held our first combined Environmental

and Energy Conference in June, drawing

more than 250 attendees.

The EPC had a very successful year at the

Capitol, with the approval of measures to

streamline permitting, reform brownfield reg-

ulations, and offer creative financing options

for businesses seeking to lower their costs

through energy efficiency.

tax committee

Under the chairmanship of Charles Lenore,

partner in the law firm of Day Pitney LLP,

CBIA’s Tax Committee consulted with our

government affairs staff, lending expertise

that guided our advocacy efforts. The com-

mittee also met with state commissioners to

share information regarding the impact of tax

policy on economic development decisions.

Labor & employment Law council

Comprised of attorneys and senior human

resources managers, the Labor and

Employment Law Council helped develop

CBIA’s Government Affairs Agenda, provided

analysis of legislative and regulatory propos-

als, and communicated with legislators on pri-

ority issues. Council members also shared

expertise on labor and employment matters

with policymakers, explaining the business

impact of proposed actions.

Workers’ compensation council

CBIA’s Workers’ Compensation Council—a

group of professionals responsible for their

companies’ workers’ compensation pro-

grams—provided input into CBIA’s

Government Affairs Agenda and informed

state legislators about the financial, adminis-

trative, and claims management implications

of proposed changes to workers’ compensa-

tion laws. The council also represented the

business community before the Workers’

Compensation Commission and other state

agencies, coordinated diverse groups of busi-

ness interests around public policy goals, and

informed CBIA about legal decisions that

affected employers’ workers’ compensation

costs and claims management actions.

member councils & committeescBia members who served on our councils and committees stayed abreast of proposed laws and regulations, provided feedback to policymakers, and helped guide our advocacy efforts.

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By the NumBers

1,430 newspaper articles that included CBIA’s positions on public policy issues and/or quoted statements from CBIA staff. 1 newspaper

ad in 8 leading Connecticut dailies in the form of an open letter to the state legislature. 2,080 Business minute radio spots aired.

616 radio and tV reports that discussed CBIA’s positions on public policy issues or included interviews with CBIA staff. 4 weeks of advertis-

ing on broadcast and cable television. 4 weeks of advertising on radio.

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The Media Spotlight

CBIA press releases, newspaper editorial board meetings,

newsroom briefings, and interviews generated 1,430

newspaper articles and 616 television and radio reports about

issues affecting Connecticut’s business community.

Leveraging our in-house video and audio technology, we fed CBIA expert

commentary quickly and effectively to broadcast news outlets. CBIA public

policy and economic experts were heard on radio stations statewide,

including in weekly spots on WGCH in Greenwich and monthly reports on

WDRC in Hartford. We also regularly contributed articles, survey results,

op-ed pieces, and MP3 radio reports to the Connecticut media, including

weekly opinion articles in the Fairfield County Business Journal.

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CBIA developed a two-stage public awareness

campaign timed to coincide with critical points of

the 2012 General Assembly session. The cam-

paign was designed to:

• Highlight CBIA’s public policy agenda

• Engage the business community

• Reach multiple audiences, including the gover-

nor’s administration, legislators, media, business

leaders, and the public

We launched the first stage of the campaign in

January and February with:

• Press releases highlighting our 2012

Government Affairs Agenda

• Meetings with editorial boards of eight of the

state’s largest newspapers

• The placement of staff on radio and television

news programs

• 30-second radio and television spots emphasiz-

ing the need for a competitive Connecticut and

a leaner, smarter state government

• Targeted ads on websites visited by legislators

and administration officials

• Ads in eight newspapers in the form of an

open letter to lawmakers, calling on them to

listen to the business community’s concerns and

ideas

In the second stage of the campaign, which

began in April, CBIA ran two weeks of television

and radio public awareness advertising featuring

two separate spots supporting the governor’s edu-

cation reform package and highlighting the

urgent need for action.

Public Awareness Advertising

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The first spot, “Put Children First,” noted that a

wide range of constituencies—parent groups,

school administrators, and business and communi-

ty leaders—supported meaningful education

reforms outlined in the governor’s proposal. The

second spot, “It Cannot Be an Excuse,” pointed

out the dramatic differences in academic perfor-

mance between low-income students in

Massachusetts and Connecticut.

CBIA Business MinuteNow in its 23rd year, this 60-second radio spot

airs Monday through Friday on eight Connecticut

radio stations and at cbia.com/newsroom. This

year’s segments included interviews with:

• UConn President Susan Herbst on the

BioScience Connecticut Initiative and UConn

Technology Park and their impact on economic

development

• Commissioner of the state Department of Labor

Glenn Marshall on the benefits of the

Subsidized Training and Employment Program

(STEP UP) for small businesses

• Connecticut Development Authority President

Marie O’Brien on business financing opportuni-

ties available through the CDA

VideoCBIA produces two popular videos, This Week at

the Capitol and This Week at CBIA, as well as

video highlights of our conferences, television

appearances by our staff, and media interviews of

CBIA members. Videos are posted to YouTube,

cbia.com, and our social media sites.

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UConn President Susan Herbst discusses the university’s role as an economic driver at the CBIA/MetroHartford Alliance Economic Summit and Outlook in January.

By the NumBers

29 e-newsletters on human resources and safety/health issues sent. 9,000 member telephone inquiries answered. 1,040

attendees at CBIA’s economic conferences. 414 attendees at CBIA’s Annual meeting. 18 hr-related surveys of 1,557 companies and 117,505

employees. 15 economic and public policy surveys of Connecticut businesses, with over 3,000 companies reporting. 4,673 attendees

at CBIA conferences, workshops, and seminars. 337 attendees at CBIA webinars. 800 member companies in contracts through CBIA

energy Connections, purchasing 1.1 billion cubic feet of natural gas valued at approximately $7 million and 750 million kilowatt hours of electricity

valued at approximately $60 million. 4,700 members accessed our member Discounts website. 1,454 members used CBIA’s

cobranded CareerBuilder.com website.

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CBIA Works for You

Products, Programs, & Services

Every year, CBIA’s products, programs, and services help

thousands of Connecticut companies stay competitive and

responsive to an ever-changing economic and regulatory

environment. For CBIA members, help is never more than

a click or a phone call away.

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Human Resources & Safety Management

HRHotlineTelephoneConsulting

CBIA’s experts answered 9,000 member phone

calls on a wide variety of issues, including:

• Unemployment and workers’ compensation

• Connecticut’s new paid sick leave law

• Federal healthcare reform

• Compensation and benefits strategies

HRSurveys

Our human resources surveys provide members

with essential marketplace data on executive com-

pensation, benefits, and personnel policies. This

year we conducted 18 surveys of 1,557 compa-

nies and 117,505 employees.

Publications&Software

Our HR publications and other tools guide our

members through a range of legal and compliance

issues. This year, we made accessing those resourc-

es easier with upgrades to our online store (cbia.

com/store), improving navigation and usability.

Our most popular items are:

• CBIA Employee Handbook Software

• CBIA Poster Compliance Kit

Throughout the year, CBIA News monthly maga-

zine and our biweekly Human Resources E-News

and Safety & Health E-News kept members

informed about workplace trends, new laws, court

cases, and workforce development assistance.

ProfessionalDevelopment&Networking

CBIA members gained fresh perspectives on

important topics in human resources while net-

working with their peers at our:

• Conferences on human resources, health, and

safety

• More than 40 workshops, seminars, and round-

tables covering employment law essentials, sex-

ual harassment prevention training, supervisor

skills, and OSHA compliance

• Timely new programs covering:

- Connecticut’s new paid sick leave law

- Disaster planning

- Cybersecurity

- Ideas and solutions for entrepreneurs and

small businesses

We also streamlined online event registration with

the introduction of a new registration platform at

cbia.com/events.

On-SiteTraining

CBIA saved members time and money by conduct-

ing training at their facilities for more than 1,000

employees. Topics included:

• Sexual harassment prevention

• Basic employment law principles

• Family and medical leave

• Accommodating workers with disabilities

OnlineTraining

CBIA’s convenient HR webinars allowed attendees

to get the latest information right from their offic-

es. Our 2012 webinars:

• Job Hazard Analysis: Where Safety Meets

Operational Efficiency

• Conducting Business in a Global Society: A

Guide to the Foreign Corrupt Practices Act

• Doing Business in an International World: The

Importance of U.S. Export Control Compliance

• Paid Sick Leave Update

• Controlling Unemployment Taxes: Fact, Not Myth

• 401(k) Fee Disclosures Under the New Labor

Department Mandate: Understanding

Regulation 408(b)(2)

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Economics & Public PolicyCBIA’s economic and public policy surveys and

programs provide members with data and analysis

to make informed business decisions. In 2012, we

addressed such issues as financing, the real estate

market, and Connecticut’s economic recovery.

Conferences

Over 1,000 business executives, state legislators, and

other policymakers attended CBIA events to learn

about Connecticut’s business climate and state and

national economic trends. Programs included:

• The Connecticut Economy

• Economic Summit and Outlook 2012

• The Fairfield County Economic Outlook

Luncheon

• Annual Fairfield County Commercial &

Industrial Real Estate Outlook

In addition, our twelfth annual What’s the Deal?

business energy conference in October 2011 drew

105 exhibitors and 193 attendees. CBIA’s 2012

Connecticut Tax Conference in June drew 125

participants.

Surveys&Reports

CBIA provides members, government officials, and

news media with information on business, eco-

nomic, and state fiscal trends. Our quarterly CBIA/

Farmington Bank Credit Survey illustrated the

challenges of obtaining credit in a post-recession

economy. We also conducted and reported on 14

other surveys, including:

• CBIA/Blum Shapiro 2011 Survey of Connecticut

Businesses

• 2011 CBIA Connecticut Manufacturing

Workforce Survey

• 2011 Fairfield County Business Survey

• CBIA Quarterly Economic Survey

• Farmington Bank/ODMD Quarterly Commercial

and Industrial Real Estate Survey

• Connecticut Manufacturing: Building on the

Past, Creating Our Future

Survey results are available at cbia.com/newsroom.

Group Purchasing, Business Financing, and Member Discounts

CBIAEnergyConnections

For over 13 years, CBIA Energy Connections has

provided members with the most efficient and

effective electricity and natural gas purchasing

processes available. Nearly 800 companies now

purchase their electricity and/or natural gas

through CBIA Energy Connections. Over the past

year, member companies purchased 1.1 billion

cubic feet of natural gas valued at approximately

$7 million and 750 million kilowatt hours of elec-

tricity valued at approximately $60 million.

FinancingThroughCDA

Through our partnership with the Connecticut

Development Authority, CBIA provided informa-

tion on debt financing, investment capital, and

other financing options to over 6,000 members.

MemberDiscounts

CBIA’s Member Discounts program (cbia.com/dis-

counts) gives our members more buying power

and steeply reduced prices on products and servic-

es they need to run their businesses. Members

saved thousands of dollars on office supplies,

employee background checks, document shred-

ding, industrial cleaning services, and other prod-

ucts and services.

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By the NumBers

550 students and teachers attended manufacturing career expos. 114 underrepresented students enrolled in Advanced Placement stem

classes for school year 2012-2013. 20 Academy of engineering and Green technology students completed online energy-related courses through

Virtual high school. 1,400 visitors logged on to GetIntoenergyCt.com, for a total of 5,130 pageviews. 314 high school students and

teachers participated in the Innovative technology experiences for students and teachers program in school year 2011-2012, bringing the three-

year total to 861.

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Building a Better Workforce

A statewide survey of businesses conducted this spring

revealed that Connecticut’s workforce, traditionally

perceived as a major strength, is slipping. Only 30% of CBIA

members surveyed consider Connecticut’s labor force an

asset—a significant departure from previous years.

From advanced manufacturing to bioscience, today’s jobs require

considerably higher levels of skill, knowledge, and expertise, and research

shows that our workforce has not kept pace. Most Connecticut companies,

in fact, are having trouble finding qualified employees.

21

Legislation enacted this year has begun

to address some of Connecticut’s

workforce challenges, moving the

state forward by improving the teach-

ing profession, narrowing the

achievement gap between low-income and minor-

ity students and their peers, and turning around

the state’s lowest-performing schools.

Enhancing the quality of Connecticut’s workforce

and the state’s economic vitality are major priori-

ties for CBIA and its members. Our government

affairs team lobbied vigorously for the compre-

hensive reforms included in Connecticut’s land-

mark education bill, and our Education

Foundation this year redoubled its efforts to:

• Build young people’s interest and achievement in

STEM (science, technology, engineering, and math)

• Create meaningful partnerships among teach-

ers, students, and employers

• Align high school and postsecondary curricula

with the demands of the 21st century workplace

• Give unemployed adults the pre-employment

training and post-placement support services they

need to succeed in Connecticut’s key industries

The fastest-growing sectors of our economy,

including manufacturing, report a shortage of

workers with STEM (science, technology, engi-

neering, and math) skills. High school graduates

increasingly lack the academic background to

pursue STEM degrees in college, and a large

share of the current STEM workforce is prepar-

ing to retire.

CBIA’s Education Foundation administers a pro-

gram designed to increase high school students’

achievement in STEM subjects, their enrollment in

Advanced Placement (AP) classes, and their pur-

suit of STEM careers. Now in its third year, ITEST

(Innovative Technology Experiences for Students

and Teachers) is funded by a $1.2 million grant

from the National Science Foundation.

Over a three-year period, 861 freshmen and

sophomores from three high schools (East

Hartford, New Britain, and Wilby High School

in Waterbury) have participated in ITEST.

Teams of ITEST ninth-graders spent this past school

year answering complex questions developed by

corporate sponsors General Electric, Northeast

Utilities, Pfizer, and United Technologies Corp.

Questions centered on problems related to energy,

healthcare, and the environment, and

students deployed social media, wikis, web anima-

tion, and video technologies to research and

present their findings. In May they made formal

presentations at the Connecticut Science Center

before a panel of biochemists and engineers.

Tenth-graders attended young men’s/women’s

leadership programs, decision-making work-

shops, and career seminars and served as men-

tors for this year’s freshmen. They also visited

research, energy, and technology facilities to see

firsthand how classroom learning aligns with

real-world demands.

A primary goal of ITEST is to prepare ninth- and

tenth-graders for the rigors of AP STEM courses

in grades 11 and 12 and to increase their inter-

est in enrolling in those courses. Key results from

Year Three include the following:

• Interest in Advanced Placement is high: 90%

of ITEST students in April 2012 reported that

they are interested in taking AP math and sci-

ence. Of these, more than three-quarters are

very interested or extremely interested

• 114 students are enrolled in STEM AP classes

for the upcoming school year.

• 93% of ITEST students report a better under-

standing of how technology is used at work

• 92% say they have established new goals for

their careers, a notable increase over 60% in

Year One

• 87% plan to take more AP courses

CBIA’s Education Foundation has also provided

critical support for the Academy of Engineering

and Green Technology (AoEGT) at Hartford

Public High School. In addition to coordinating

the Academy’s business-led advisory board, the

Foundation arranged for students to:

• Attend professional conferences

• Participate in after-school tutoring and career

coaching sessions

• Compete in FIRST Robotics events

• Complete summer internships at manufactur-

ing, law, engineering, and technology firms

United Technologies Corp., a CBIA member

company and AoEGT corporate sponsor, provid-

ed $90,000 for CBIA’s Education Foundation to

continue its work with the Academy over the

past school year. With additional funding from

the U.S. Department of Energy, CBIA’s Education

Foundation this year organized internships at

Northeast Utilities and online energy-related

courses for 20 AoEGT students.

Photos: High school students participate in a series of career expos held in 2012 by the Connecticut Community Colleges’ College of Technology’s Regional Center for Next Generation Manufacturing. Expos were coordinated by CBIA’s Education Foundation.

22

Focus on STEM

Photos: Students from three Connecticut high schools participate in activities at the Connecticut Science Center as part of the ITEST (Innovative Technology Experiences for Students and Teachers) program.

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Connecticut’s utilities face a critical shortage of workers

at the same time they are experiencing tremendous

growth potential from advances in traditional and alter-

native energy delivery and technology.

The Education Foundation committed significant resources

this year to developing an online tool for Connecticut ener-

gy and energy efficiency companies looking to expand their

talent pool. GetIntoEnergyCT.com includes videos and infor-

mation on scholarships and training opportunities. In the six

months since its launch, the site has had 1,400 unique visi-

tors and more than 5,000 pageviews.

The Foundation is also a key business partner in a $3.36 mil-

lion grant from the U.S. Department of Labor to oversee the

creation and refinement of a Connecticut Energy Sector

Strategic Plan—a plan for developing a skilled workforce in

energy efficiency, renewable energy, and green jobs by:

• Upgrading the skills of displaced workers

• Connecting green workforce development to eco-

nomic development efforts

• Ensuring that Connecticut’s curriculum and training

capacity match the needs of energy-sector employers

The Foundation is also a regional partner in and manager of a

$200,000 grant from the Workforce Solutions Collaborative of

Metro Hartford to prepare unemployed and underemployed

adults for entry-level energy-sector jobs. Developed in conjunc-

tion with the Capitol Region Education Council, Academic

Skills Enhancement for Energy-Related Careers combines con-

textualized classroom and online learning to increase critical

thinking, basic math, and applied technology skills. Twenty

individuals completed the program in 2012, and 19 have

earned the ACT National Career Readiness Certificate.

Thirteen certificate-holders completed a subsequent eight-

week electric/gas utility training program at Northeast

Utilities and earned their commercial driver’s license. Within

16 weeks of completing training, 10 participants secured

full-time jobs with an average salary of $41,000.

Two additional Academic Skills Enhancement classes for

50 adults are planned for fall 2012 and spring 2013.

Energy Workforce

A bipartisan group of state lawmakers this year

announced the formation of a Manufacturing Caucus to

ensure that manufacturing, a major driver of economic

activity in Connecticut, continues to thrive.

Connecticut manufacturers are more sophisticated and

productive than ever, and significant global changes are

presenting new economic opportunities for those able to

maintain a skilled workforce, research and development

capability, and technology-driven production.

To strengthen Connecticut’s pipeline of skilled manufacturing

workers, the Education Foundation organized guidance

counselors’ workshops and career expos under contract to

the Connecticut Community Colleges’ Regional Center for

Next Generation Manufacturing (RCNGM), funded by the

National Science Foundation. The expos, which were held at

Gateway Community College in North Haven and Tunxis

Community College in Farmington, highlighted manufactur-

ing career pathways, featuring workshops, exhibits, and

demonstrations of green technology and advanced manufac-

turing processes. Expos drew 550 high school, technical

school, and community college students and instructors.

The Foundation also administered a teacher externship

program for the RCNGM. Now in its eighth year, the

externship program places high school and community

college instructors with local manufacturers for four

weeks each summer, bringing teachers up to speed on

new technologies and processes. Teachers integrate these

experiences and information into their curricula and

work-based learning projects for students.

In 2012, the Foundation placed seven teachers, bringing

the eight-year total to 79.

Manufacturing Workforce

By the NumBers

more than 5,000 Connecticut companies participate in CBIA health Connections.

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Employee Benefits Choice, Price & Unmatched Customer Service

CBIA Health Connections is a nationally acclaimed

health insurance exchange that provides small

businesses (three to 50 employees) with a choice of

insurance carriers and plans at affordable prices.

Our main program, CBIA Health Connections 2 (HC2), offers 30

plan options from two leading insurance companies: ConnectiCare

and Oxford Health Plans (UnitedHealthcare). In addition to medical

coverage, CBIA Health Connections offers life and disability insur-

ance through The Hartford and dental benefits through Aetna. A

similar program, Health Connections 51+, is available for compa-

nies with 51 to 100 employees.

25

A Year of TransitionCBIA’s Health Connections program contin-

ued to gain national recognition as a leading

example of a private-sector health insurance

exchange.

With the passage of the landmark Patient

Protection and Affordable Care Act and

anticipated changes to the health insurance

marketplace, we followed through on

planned investments and development in sev-

eral key areas.

Our focus on product development, integrat-

ed service enhancements, staff reorganiza-

tion, and the initiation of an administration

system upgrade this past year positions us

well for future growth. Continued strategic

development of our enhanced private-sector

exchange means increased value to CBIA

member companies now and in the future

and enables us to explore and capitalize on

emerging opportunities in the changing land-

scape of group health insurance.

AdditionalBenefitsWorkers’ compensation insurance: The CBIA Comp Services workers’ compensation program is

available to member manufacturers of metal, plastics, and electronic products. This valuable self-

insured program includes integrated loss control, managed care, and claims administration services.

Surplus is returned to members through lower rates and experience refunds. The program currently

has 183 participating companies.

cBia retirement Plans: This program brings cost-effective retirement plans to small and midsize

members through ING Life Insurance and Annuity Company. Currently 3,285 employees from 99

companies participate, with $151.1 million in invested assets.

cBia eyewear Savings Plan: This popular program offers members substantial discounts on pre-

scription and nonprescription eyeglasses, contact lenses, and laser corrective surgery. Currently, 8,000

employees and dependents from 600 companies participate. Sponsored by EyeMed Vision Care, the

plan costs just $12 per year per employee (including coverage for spouses and dependents).

cBia Home & auto insurance: Through CBIA’s Home & Auto Insurance program, member compa-

nies offer their employees high-quality, competitively priced personal insurance products provided

through Travelers, Middlesex Mutual (MiddleOak), and Progressive. More than 140 employers partici-

pate in this members-only program, representing over $1.3 million in written premium.

InsuranceServices

coBra & State continuation administration: CBIA COBRA and state continuation administration

continues to help employers maintain compliance with evolving healthcare regulations. CBIA handles

all the administrative details, including required notifications, billing, premium collection, and pay-

ment to carriers. More than 3,500 CBIA Health Connections members are enrolled in this no-cost

benefit. In the past year, CBIA handled COBRA administration for more than 620 individuals.

Hra administration: This year CBIA provided no-cost HRA (Health Reimbursement Arrangement)

administration for nearly 270 employers enrolled in CBIA Health Connections. By implementing an

HRA with a corresponding HC2 plan, members achieved immediate savings in their healthcare costs.

26

2012 BOARD OF DIRECTORS

In addition to the Executive Committee, the Board of Directors includes:

JohnE.AdamouHead, U.S. Strategic Transactions & Alliance Management Boehringer Ingelheim Corporation Ridgefield

EricD.AlbertPresident Albert Bros. Inc. Waterbury LouisJ.Auletta,Jr.President & CEO Bauer Inc. Bristol JoelS.BeckerChairman of the Board & CEO Torrington Supply Company Inc. Waterbury SamuelS.Bergami,Jr.CEOAlinabal Holdings Corporation Milford

AmeliaCaporaleOffice Managing Partner & Assurance Partner Ernst & Young LLP Hartford

MicheleA.CaulfieldVP Administration & CFO Stevens Company Inc. Thomaston TonyCeciOffice Managing PartnerConnecticut McGladrey Stamford KevinJ.CunninghamPresident-CT Bank of America Hartford

NicolaDiBartolomeo,Ph.D.CEO Memry Corporation Bethel StephenJ.FarrellCEOUnitedHealthcare of New England Hartford and Warwick, RI

MaryKayFentonSenior Vice President & CFO Achillion Pharmaceuticals Inc. New Haven

CharlesV.FirlottePresident & CEO Aquarion Company Bridgeport MaryP.FitzgeraldPresident Acme Wire Products Co. Inc. Mystic GeorgeJ.FrantzisIICo-Owner Lake Quassapaug Amusement Park Inc. Middlebury JohnA.GreenPresident & CEO Lux Bond & Green West Hartford EileenC.HassonPresident The Computer Company Inc. Cromwell KeithHubertOffice Managing Partner PricewaterhouseCoopers LLP Hartford PeterF.Hurst,Jr.President and CEO The Community’s Bank Bridgeport NealJ.KeatingChairman, President & CEO KAMAN Corporation Bloomfield

RichardA.LaurenziPresident Prospect Machine Products Inc. Prospect WilliamP.LennonVice President, Engineering & Design Programs Electric Boat Corporation Groton DavidLewisCEO OperationsInc LLC Stamford FrankP.LongobardiManaging Partner J.H. Cohn LLP Glastonbury JohnB.Lynch,Jr.Managing Partner Robinson & Cole LLP Hartford

MichaelS.MarcinekManaging Principal & CFO Fletcher Thompson Inc. Shelton

VickiA.O’MearaExecutive Vice President & President PBMS, Government& Postal Affairs Pitney Bowes Inc. Stamford KimberleePitaManaging Principal The Pita Group Rocky Hill DavidV.RingPresident, New England Region, Head of Enterprise Banking First Niagara Financial Group Inc. New Haven DavidA.RothbergChairman & CEO Laticrete International Inc. Bethany JosephS.SchechterPresident, MSS Americas Computer Sciences Corporation New York RobertD.ScintoChairman R.D. Scinto Inc. Shelton CharlesW.ShiveryChairman of the Board Northeast Utilities Hartford JoeSinghExecutive Vice President PCC Technology Group LLC Bloomfield CraigL.SylvesterPresident and Managing Partner Reid and Riege PC Hartford WilliamA.TeedIIPresident of Construction Travelers Hartford

MarthaR.TemplePresident, New England Region Aetna Hartford

JeffreyJ.TengelSenior Executive Vice President, Commercial Banking People’s United Bank Bridgeport

AndrewE.UhlVice President, Medical Ahlstrom Nonwovens LLC Windsor Locks ChrisUlbrichChief Operating Officer Ulbrich Stainless Steels & Special Metals Inc. North Haven

RichardH.WheelerPresident Capewell Components Company LLC South Windsor MichaelR.WisePresident ConnectiCare Inc. Farmington

CBIA EXECUTIVE STAFF

JohnR.RathgeberPresident & CEO

JosephF.BrennanSenior Vice President, Public Policy; Secretary

PhillipJ.VogelSenior Vice PresidentCBIA Service Corporation

StephenJ.MarcouxSenior Vice President, Administration; Chief FinancialOfficer & Treasurer

2012 EXECUTIVE COMMITTEE

CHAIR

ThomasS.SantaPresident & CEOSanta Energy CorporationBridgeport

VICE CHAIR

DonaldR.Droppo,Jr.President & CEOCurtis Packaging CorporationSandy Hook

VICE CHAIR

JamesP.TorgersonPresident & CEOUIL Holdings CorporationNew Haven

IMMEDIATE PAST CHAIR

RamonaCarlowVice President, Public Policy & Strategy AT&T Inc. New Haven

PRESIDENT & CEO

JohnR.RathgeberCBIA Staff

J.DennisChalkPresident & General Manager RSCC Wire & Cable LLC East Granby

JohnR.CiullaExecutive Vice President Middle Market Banking Webster Bank Stamford

DonnaR.Galluzzo,Ph.D.President & CEO HMS Healthcare Management Solutions Inc. Wallingford

ChandlerJ.HowardPresident & CEO Liberty Bank Middletown

RichardT.MasonPresident, Retirement Services Corporate Markets ING Windsor

RobertS.SobolewskiPresident & CEO ebm-papst Inc. Farmington

MaureenM.WeaverPartner Wiggin and Dana LLP New Haven

27