On mission to Germany, Lamont promotes CT as ‘island of stability’

Connecticut leaders traveled to Germany last week on an economic development mission, where they met with dozens of companies — some with operations in the state, others curious about establishing a Connecticut presence — to extoll the virtues of doing business in the Nutmeg state.

But the bulk of those conversations hewed to Germans’ more immediate concerns about the state of politics in the United States, Gov. Ned Lamont and Department of Economic and Community Development Commissioner Dan O’Keefe said.

“What they really want to talk about is the culture here,” O’Keefe said. “If you’re an international observer, you’re seeing these national headlines that are looking increasingly chaotic, and you are increasingly worried about potential trade barriers, rising protectionism, rise of isolationism.”

O’Keefe said German business leaders looking to build operations stateside were anxious to know, “Is Connecticut a place where we can find stability, where we can find predictability, and will it be an incredible place for our employees to live and raise their families?”

The trip coincided with a particularly tumultuous week in American politics that began with an assassination attempt on former President Donald Trump and continued with the Republican National Convention , where delegates nominated Trump as their candidate and speakers promoted his “America First” agenda .

Gov. Lamont said business leaders in Germany were “nervous as heck about the Republican convention.”

Germans are concerned that the Republican party isn’t committed to supporting Ukraine in defending against the Russian invasion, Lamont said.

“If you’re from Germany, Ukraine is right down the street. They believe strongly in the power of NATO, what that means for collective defense, and they were worried they didn’t hear as much about NATO as perhaps they wanted to.”

Germany is Connecticut’s top economic partner, O’Keefe said. German companies and investors account for roughly 17% of foreign direct investment in Connecticut, and the state’s annual exports to Germany top $2 billion in value. Much of that business is concentrated in the aerospace, biotechnology and advanced manufacturing sectors.

Several German companies, including manufacturers TRUMPF and Roehm, as well as biomedical research institute BioMed X, have recently expanded their operations in the state.

Strong economic ties to another country can benefit a state’s economy by boosting exports , which builds revenue and can lead to more jobs and local hiring. It’s common for economic development leaders in Connecticut, like those in other states, to make regular trips abroad to court businesses in regions with similar, or complementary, industries — and to host their counterparts on similar missions they make here.

While in Germany last week, O’Keefe said state officials met with over 30 companies. Leaders with the state’s quasi-public venture capital arm, Connecticut Innovations, also met with dozens of startups and investors, he added.

They sought to promote Connecticut’s skilled workforce and quality of life, as well as its proximity to companies that supply materials and components to many German businesses. Lamont said companies can save money by locating production facilities here, both because they’re physically closer to their supply chains and because it eliminates the risk of rising tariff penalties on goods and materials entering the U.S.

“What we’re trying to do is put Connecticut on the map and make sure that, when people think about whether they want to get a foothold here in the United States, or foothold here on the East Coast, they think about Connecticut,” he said.

But the strongest argument, at least in the current climate, was Connecticut’s steady reputation. Lamont said he told businesses in Germany “why Connecticut is an island of stability.”

“We want to do business, and we can get things done a lot more quickly than they can in other places,” he said.