The Connecticut aerospace industry is driven by major manufacturers Pratt & Whitney, Hamilton Sundstrand and Sikorsky Aerospace. These Connecticut grown companies are supported by an extensive chain of aerospace suppliers and service providers in Connecticut. Combined there are more than 100 aerospace companies operating in Connecticut employing thousands of people.

This cluster of knowledge and workforce provides a great foundation for any aerospace company moving to Connecticut. The industry is also supported by a cluster organization, Connecticut Aerospace Components Manufacturers. Companies continue to manufacture in the state and there is a focus in state government to grow manufacturing. The New Haven Manufacturers Association is part of this effort and provides support and a voice to companies in the industry.

The state of Connecticut offers tax credits that can assist with aerospace research and development done in the state. Companies with gross income below $100 million receive a credit of 6% of all research and development expenses incurred in Connecticut. If the credits cannot be used they can be redeemed with the state for 65 cents on the dollar. The credits can also be carried forward until they are used. (Note – credit is available for companies earning more than $100 million, however different rules apply.)

Besides research and development, companies can earn tax credits for investing in everything from machinery and equipment to hardware and software. Sales tax exemptions are available for things like employee safety apparel, materials used in the manufacturing process, energy used in manufacturing, and computer and data processing services. These credits cannot be exchanged or carried forward. For exact details please refer to the Taxes & Incentives page on this website.

Connecticut’s greatest asset is its highly skilled and productive workforce. The manufacturing value added per production worker in Connecticut is $301,166, compared to other states in this category, Connecticut ranks 7th. And Connecticut ranks 3rd in the country for per capita gross state product.

Connecticut also has a very highly educated workforce. The state ranks 4th in the nation with 34.7% of the population over the age of 25 having a bachelors degree or higher. The median wage for an aerospace engineer in Connecticut is lower than the national average. Based on 2008 Bureau of Labor Statistics data the median wage for an aerospace engineer in Connecticut is $38.66, the national average is $44.48.

Like other U.S. states Connecticut has seen a decline in manufacturing jobs over the last several decades. The state has developed several programs to address the needs of manufacturers and help them grow.

CT Energy Efficiency Fund and CT Clean Energy Fund — The cheapest power is the power you don’t use. That’s why Connecticut has been a national leader in energy efficiency for years. The United Illuminating Company (UI) through the CT Energy Efficiency Fund offers cash incentives for companies to purchase energy efficient lighting and equipment. UI engineers will also work with your company to discover new energy saving opportunities. Through the Connecticut Clean Energy Fund your company can invest in renewable on-site generation like solar panels. The fund provides design and installation grants to bring down the price of making your own clean power.

CONNSTEP, Inc. and PRIME Program — CONNSTEP is a non-profit organization whose mission is to help Connecticut manufacturers apply advanced manufacturing and management techniques to become more competitive. CONNSTEP offers below market rates for their consulting services, helping companies with: Lean, Green Mfg., Quality Management Systems, Culture/Change Management & People Systems and Enterprise Growth & Business Assessments. CONNSTEP works with the PRIME program which is administered by UI. The program integrates Lean principles and energy efficiency to improve your companies operations and lower your electricity costs.

Regional Center for Next Generation Manufacturing — The Regional Center for Next Generation Manufacturing addresses the need for highly skilled workers in the new manufacturing workplace by building programs that provide resources to educators and students interested in learning new technologies in manufacturing. The Center is directed by the Connecticut Community Colleges' College of Technology (COT), a virtual organization representing technology curriculum geared toward engineering and technician training offered at Connecticut's 12 community colleges.

Connecticut Center for Advanced Technology (CCAT) — Small and medium-sized manufacturers, particularly those serving the aerospace and defense industries, have access to a wide range of services through CCAT. And because many of these programs are funded through a range of federal or state grants, services are either free or significantly discounted for eligible companies. These programs include: continuous improvement, training and education, energy services, manufacturing optimization and research.