For the past six weeks, our ‘Pathfinders’ series has looked at local communities that have found ways to prosper despite difficult economic times.
We’ve seen some sharp contrasts. There is Bristol, which has ridden the success of a major employer. And there is Cheshire, which faced the challenge of losing a major employer and found success in diversifying its economy and nurturing its corporate citizens. There are examples of communities leveraging their location — like South Windsor. There is Tolland, betting on technology firms that spin off from nearby UConn. And there is Farmington that’s doing both. This week, we look at Middletown, which found success by investing in Main Street.
The common threads here seem clear — all six understand that working with business is a winning strategy. We’ve encountered expedited permitting processes and structured communication strategies that assure the voice of business is heard clearly by municipal officials. We’ve seen tax incentives and loans. We’ve seen strategies to leverage state funding. And we’ve seen ample evidence of businesses responding with acts of corporate good citizenship.
Since the series began, we’ve heard from several communities that feel we erred in not selecting them as among our Pathfinders. To them, and other communities large and small that are headed in the right direction, we say keep pushing. Success is hard to ignore. You’ll get your day in the sun.
And to the other communities — and the state government — we point to series as a primer that can guide future decisions. If all decisions are measured by whether they improve the business climate, we’ll soon be on a path to better days.
… And on the flip side
In thinking about the route to a healthy business climate, we see a cautionary tale in the actions of our Bay State neighbors.
At the high end, the merger and acquisition business involves game-changing shifts in the landscape of an industry. And those deals rightly attract federal scrutiny to assure that the result won’t hurt consumers or create an anti-competitive situation in the marketplace.
Connecticut is witness to — but not really a player in — two such mega-mergers — Northeast Utilities/NStar and AT&T/T-Mobile. Each has the potential to change conditions on the ground.
The $39 billion phone deal involves a company that put up a ‘for sale’ sign and a willing buyer that sees a chance to expand its capacity. The benefit for Connecticut is improved service, particularly in rural areas; the downside is the loss of one consumer option, an effect made inevitable by T-Mobile’s decision to sell.
The utility deal involves a $17 billion marriage of adjacent firms that are complementary pieces. The hope is that the merger will speed transmission upgrades; the fear is Greater Hartford will lose a good corporate citizen to Greater Boston.
Purists will argue that as regulated industries, Connecticut has a stake and should review the deals. The example of Massachusetts’ handling of the NU-NStar deal makes a compelling case for the status quo. The Bay State’s cumbersome review has buried both parties in red tape and is threatening to delay a decision for another year.
That’s the kind of regulatory silliness that stifles commerce.
Connecticut gains a competitive advantage by not meddling in these deals. Let the feds do the policing of interstate commerce. Let’s graciously accept the opportunity to let Massachusetts be the one tagged as anti-business.
A reward for not getting in the way would be positive reinforcement that facilitating commerce works. AT&T’s decision to add 80 jobs here is a nice signal. We hope NU follows suit and commits to keeping its head, heart and hands in Greater Hartford.
