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Chapter Vi: Economic Development

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Chapter Vi: Economic Development Economic Development CHAPTER VI: ECONOMIC DEVELOPMENT A. THE NEW HAVEN ECONOMY The New Haven region has a diverse economic base focused on health care, education, biotechnology and biomedical research, Due to the presence of world-class professional services, software and application development educational and medical institutions, and advanced manufacturing. Within the city, the employment multi-modal transportation network, changed dramatically, with shifts in aggregate numbers, in types of and diverse arts, cultural, and industries, and in the location of major job centers in the latter half entertainment facilities, New Haven of the 20th century. Employment figures reached 92,000 in 1990 at is uniquely positioned to be the hub of the tail end of a long-term economic expansion. The recession of knowledge/ innovation based economy the early 1990s heavily impacted the city’s employment base, with within the region and the state in the total employment at a decade-low 72,000 in 1997. Since then, 21st century. Maximizing New Haven’s employment has rebounded significantly. The 2000 employment base of 77,890 represented an 8 percent increase from 1997. connection to the global economy and While the city experienced decreases in employment base from enhancing the city’s status as a regional 2002 to 2005 (with 73,160 total jobs in 2005), employment transportation center are both key goals was on the rise during the latter half of the decade with 4.4 of the city’s economic development percent increase in employment from 2005 to 2006 and another 3 strategy. percent increase from 2006 to 2011, despite the severe economic recession experienced nationwide from 2007 to 2009. New Haven Vision 2025 VI-1 Economic Development Unemployment While the unemployment rate in the city decreased from 1997 to 2000, it has increased significantly from 3.3 percent in 2000 to 13.2 percent in 2010. A similar trend was observed state-wide and among other peer cities as well. Recent unemployment figures mirror the slow recovery from the post-2008 recession, with a peak rate reaching 13.2 percent in 2010 and now recovering to a post-recession level of 6.7 percent in early 2015. (See Databook in Appendices for further information.) Employment by Sector While New Haven’s mid-century economy was characterized by The number of jobs within the city has grown in recent years, a diverse set of goods-producing industries, including heavier even in the years following the economic crash of 2008. industries (metal works, armaments, etc.) and non-durable goods (textiles, food products, etc.), industrial production employment has been declining for over 40 years. In the interval since the last Comprehensive Plan, deregulation, international competition, and industry-specific consolidation have had profound impacts on what have historically been the city’s largest private-sector employers, including Frontier Communications (formerly SNET) and UIL Holdings (formerly United Illuminating and Southern Connecticut Gas) as well as the local banking sector. Since the depths of the 2008 recession, the local economy has emerged with greater diversity and even stronger focus on the knowledge base Source of both charts: CT Department of Labor, 2012 provided by the education and health care sectors. Manufacturing Unemployment in the City of New Haven remains higher than continues to be an important component to the city’s employment both the New Haven Labor Market Area and state as a whole. base, but with far greater specialization, fewer employees, and advanced technology manufacturing processes. Meanwhile, service industries (in particular health services and education services) have led a rebound in total employment. New Haven remains the central employment destination within the total 17-town Labor Market Area (LMA). Approximately 30 percent of the LMA’s 265,000 jobs are in New Haven, including 44 percent of all jobs in transportation, communications, and public utilities (TCPU) and professional services. By comparison, total employment in the adjacent cities of Meriden (26,710), Wallingford (24,380), and North Haven (21,490) is more focused on the local government, manufacturing, and retail sectors. Education and health care continue to dominate the employment Geographic boundaries of New Haven Labor Market Area, base in both the South Central Region and the City of New Haven. SCRCOG, and New Haven County. The largest local employers are Yale University, with approximately 12,000 employees, and Yale-New Haven Hospital, which has VI-2 New Haven Vision 2025 Economic Development merged with the Hospital of St. Raphael, and now has a total of approximately 11,000 employees. Quinnipiac University, Southern Connecticut State University, Gateway Community College, and Albertus Magnus College also contribute to the role of New Haven as an educational center. Other large health sector employers include Temple Medical Center and American Medical Response. In 2014, Frontier Communications acquired the former business lines of AT&T (previously SNET) in New Haven, thus becoming the largest non-institutional private employer in New Haven, with approximately 2,000 employees. Frontier has indicated that New Haven will remain a regional headquarters. Other large private sector employers include First Niagara Bank (formerly New Alliance); Comcast Communications; UIL (formerly United Illuminating and Southern Connecticut Gas); Knights of Columbus; Assa Abloy; Higher One, Inc.; WalMart; and Covidien. Overall, the basic economy within the region is organized into three broad sectors: education; advanced manufacturing; and health care. Education: With the largest overall basic employment (17,187) and location quotient (3.09), educational services is a core element to the region’s economy. The strength of this industry includes the higher education cluster: Yale University, Southern Connecticut State University, Gateway Community College, Albertus Magnus, University of New Haven, and Quinnipiac University. Aside from its The bio-science career ladder is a core educational functions, this sector is increasingly active in local collaboration between the City’s economic initiatives. In particular, Yale University’s technology Economic Development Corporation, transfer activities have been instrumental in the siting of new biotechnology companies in the region. CURE (a state-wide biotech organization), SCSU, and other Advanced Manufacturing: Although many of the city’s workforce development partners. traditional manufacturing companies have moved operations overseas, others have opened or modified to meet the needs of the global marketplace. A good example of the shift is the former Acme Chemical on Chapel Street. The company is now a division of Von Roll Isola, producing world-class insulating materials. Cyclone Microsystems, located at 370 James Street, designs and manufactures intelligent communications controllers. Science Park, located in the former Winchester Arms factory complex, has been transformed over the last decade from a vacant manufacturing center to a multi-tenant business and industrial park. A number of biotechnology and high technology manufacturing companies have sited at Science Park, as well as at 300 George Street. New Haven Vision 2025 VI-3 Economic Development Health Care: Given the sheer size of the health care industry across the country, the health services sector is highest in total employment (48,813) and second highest in basic employment (13,235). Within the New Haven region, its 2011 location quotient was 1.37. The medical services industry is concentrated around Yale-New Haven Hospital, as well as many associated facilities, such as the Temple Medical Center and Yale School of Medicine. Pharmaceutical and Biotechnology Research and Production: Combining aspects of both advanced manufacturing and health care, chemicals and allied products, which includes a significant Yale University School of Medicine (Sterling Hall) lies at the portion of businesses in the biotechnology sector, accounts for core of the city’s health care and biomedical research sector. approximately 4,000 jobs regionally. Within the New Haven region, the largest companies in this sector include Alexion Pharmaceuticals, which is expanding its presence within city with an impending move from Cheshire to a 500,000 square foot, twelve-story purpose-built research center at 100 College Street. Other significant biotech companies include Clinical Data Associates, Ikonysis, and Transgenomic at 5 Science Park; Achillion Pharmaceuticals at 300 George Street; Covidien (in both New Haven and North Haven); Idexx Laboratories at 670 State Street; Kolltan Pharmaceuticals at 300 George Street; and Marinus Pharmaceuticals at 142 Temple Street; as well as regional employers such as Axerion Therapeutics, Celldex Therapeutics, Bristol Myers Squibb, and Gilead Sciences in Branford, PerkinElmer, Biotech workers are an important component of the regional in Branford and Shelton, and Novartis. economy. A 16,500-square-foot genomics research facility was opened at Mount Sinai in Branford last fall and has a staff of 19 people. This facility is expected to more than double its workforce over the remainder of this year by adding another 30 employees. Labor Force Characteristics Out of the nearly 100,000 people in 16 years and over age group in New Haven in 2011, 66,685 (64.1 percent) were in the civilian labor force and 37,349 (35.9 percent) were not in the labor force. Compared to the state and peer cities like Stamford,
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