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November 1, 2021 Editor’s Take

CT manufacturing can have a bright future

Photo | HORST
By Scott Livingston

My emotions have been running high during this 75th anniversary year at Horst Engineering.

After just commemorating Manufacturing Month, it is important that I share the message that we need policymakers and other advocates to redouble their efforts so that manufacturers recover from the pandemic slowdown, and thrive again.

The aerospace manufacturing supply chain is made of thousands of small businesses. Those that have been able to hang in there, are now poised for growth.

Long lead times and deep backlogs are the main reason why aerospace and other advanced manufacturing businesses are often last into a recession. It also means they usually are the last out, as we have learned from past business cycles. In the mid-1990s, after the end of the Cold War, the defense aerospace sector struggled, but the commercial aerospace sector was beginning to take off.

As the global economy recovered, and low-cost airlines emerged, air travel became more affordable and a travel boom ensued. Those that innovated, embraced the use of computer technology, and leveraged the beginning of the internet era, made the leap from old-school to advanced manufacturing.

The cycles continued and the aerospace business rode the waves. Growth was interrupted in 2001 when the 9/11 terrorist attacks dealt another blow to the transportation sector. In the period that followed, passenger air travel struggled to recover, while defense industries returned to the fore.

Security became paramount and with the necessary changes that were implemented, commercial aviation eventually soared again. The high cost of energy drove new aircraft programs geared toward fuel efficiency and improved reliability.

As a supplier, if you kept pace with improving technology, you were rewarded with more business even as some high-precision work went offshore. In 2008, when the Great Recession hobbled the global economy, Horst Engineering faced another down cycle. We bottomed out in 2010 and started our rebound in 2013.

We remained committed to our reinvestment plan, and in 2019, we launched the biggest project in company history with the acquisition of a large, but blighted building in our hometown, East Hartford. This was the start of a multimillion-dollar renovation and move that changed the way we operate.

When we built our 2020 plan, “pandemic” wasn’t one of the threats listed. Our first COVID-19 task force meeting was March 16. As a government-defined essential business and as a manufacturer, we had a built-in advantage because safety is part of our everyday habits.

The speed of the downturn was quicker than past cycles and even as businesses that are part of the “stay-at-home” economy flourished, the transportation and hospitality sectors languished.

Committing to an expansion plan in East Hartford in the midst of the doldrums was bold, but we are making it through and repositioning for an upturn. Today, we are a “75-year-old startup.” We have the benefit of an incredible legacy and now our home is a state-of-the-art factory.

Advanced manufacturing in Connecticut is here to stay. Yes, Connecticut has a lot of issues, but over the last two-and-a-half years, we have gotten much-appreciated support from our town and the state. Even the federal government stepped up.

We are even more excited about the future and what that means for our workforce. The technical schools are regaining their footing. Goodwin University, Asnuntuck Community College, Manchester Community College, and the other institutions that help train the next generation of talented manufacturing workers, are making progress again. Skills have always been a competitive advantage for the people of Connecticut.

Retirements and competition will require more investment in manufacturing skills-training programs.

Doing business here doesn’t have to cost so much. Policymakers still need to moderate regulations and ease up on taxes. I’m worried about healthcare costs and about the impact of the pandemic on business travel. I’m worried about a lot of things, but we stayed in Connecticut, we are investing, and are diversifying here.

East Hartford and Connecticut may not entirely reclaim past industrial glory, but that doesn’t mean we all can’t be better. I probably won’t be around in another 75 years, but my kids should be. By then, they may have kids and grandkids of their own. One of the benefits of being the steward of a family business is that you are guaranteed to have a long-term mindset.

Scott Livingston is president and CEO of HORST Engineering in East Hartford.

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