Sikorsky’s $220M Deal Gains Overwhelming Support in General Assembly

STRATFORD, CT — The $220-million incentive-laden deal to keep Stratford-based Sikorsky Aircraft in Connecticut until at least 2032 received overwhelming support in both chambers of the General Assembly on Wednesday afternoon. The State Senate approved the agreement by a vote of 35-1, while the House of Representatives approved it by a 136-6 vote.

As part of the agreement, Sikorsky will retain and grow approximately 8,000 direct jobs and it has also pledged to nearly double its spending of $350 million per year among in-state suppliers.

“Connecticut is proud of its reputation as a worldwide aerospace leader, and I want to thank the leaders of the General Assembly and all of its members who voted today in support of a nearly unanimous, bipartisan bill to reaffirm our state’s commitment to supporting high-quality, good-paying manufacturing jobs,” Gov. Dannel P. Malloy said in a statement. “This is a bold, forward-thinking agreement that will not only support thousands of jobs at Sikorsky’s headquarters, but also has a direct impact on hundreds of small businesses all across our state that serve as suppliers to Sikorsky and will benefit from the company’s continued growth here. Competition in today’s worldwide economic climate is fierce, and Connecticut is showing that we remain a valued leader where businesses can maintain a competitive edge well into the future.”

State Representative Joe Gresko (D-Stratford) lauded the General Assembly for approving the agreement.

“Stratford has been the home of Sikorsky Aircraft for decades, and I am very happy that we have an agreement that will keep one of the state’s major manufacturers in Connecticut’s for many more years,” Gresko said.

The helicopter giant will be eligible for financial incentives in exchange for building nearly 200 CH-53K King Stallion helicopters, in Connecticut.

The deal will:

• Build nearly 200 CH-53K King Stallion Helicopters – the largest maritime helicopter in the world - in Connecticut for the United States Navy until at least June 2032
• Keep the Sikorsky headquarters in the state and maintain its Stratford site as a primary production facility for its government based helicopter business
• Retain and grow its full time employment in Connecticut to more than 8,000 by the end of year 14
• Nearly double its spending of $350 million per year with local Connecticut suppliers throughout the state
• Increase its capital spending for machinery and equipment by 22 percent
• Drive an estimated $69.2 billion between 2016 and 2032 into the Connecticut economy
• Allow Sikorsky to spend an estimated $21.1 billion on wages and benefits between 2016 and 2032
• Support approximately 24,601 jobs directly and indirectly
• Invest an estimated $744.8 million in contractor employment
• Inject an estimated $384.4 million in direct and indirect average annual tax revenue into the Connecticut economy, totaling $6.54 billion from 2016 and 2032

“There’s been a shadow over Sikorsky for years,” Gresko said. “Talk that they were moving south, laying off or were closing. But now we have the historic chance to keep them in Stratford.

“As a Stratford native, I am proud of the role my town has played in our nation’s defense. And I take special pride in supporting Sikorsky and voting for this important agreement, which will dramatically increase business for our Sikorsky suppliers in our area and help ensure job security for thousands of Connecticut workers.”

Speaker of the House Brendan Sharkey (D-Hamden) said the agreement “not only ensures Sikorsky’s commitment to our state remains strong and will grow here in the future, but also shows that Connecticut is successfully competing with other states. Along with Sikorsky’s hundreds of sub-contractors and suppliers, this will benefit thousands of hard working families throughout our entire state, and just like Pratt & Whitney’s recent job announcement, shows that Connecticut’s business climate continues to improve.”

Read more reactions to the deal from local lawmakers in the statements below:

“Today’s passage of legislation approving this deal will keep good-paying middle-class jobs here in our community,” State Senator Kevin Kelly (R-21) said. “I am thrilled that Sikorsky recognizes the value in keeping their business here in Stratford where we have an incredibly talented workforce. No one does a better job when it comes to making helicopters than workers our region. This is a positive step forward to secure Sikorsky jobs and solidify the company’s role in the lives of future generations in our community.

“However, it is also very telling of the challenges Connecticut companies face every day. To make Connecticut a realistic option for job expansion, as opposed to moving to another more affordable state, Sikorsky needed help to make it happen. While this one deal is a smart investment that is projected to have a significant return on investment, we also need to do more as a state to make Connecticut a competitive option for all businesses. We have to reduce burdens for all job creators as a whole. I’m glad that we were able to take immediate action to keep Sikorsky jobs here, but we have to do more in the long term to improve our business environment overall.”

“Sikorsky is a vital economic hub to Stratford, the region and the state,” State Rep. Laura Hoydick (R-120) said. “This proposal helps keep Sikorsky in Stratford, and has enormous job creation potential. Additionally, there is the expectation to keep and expand the many high-paying skilled jobs in manufacturing that Sikorsky provides, while having far-reaching economic benefits to suppliers throughout Connecticut, particularly right here in Stratford.”

Jason Perillo (R-113) said: “I hate deals like this that help one specific employer. That said, Governor Malloy has created this toxic business environment for all companies, including Sikorsky. Shelton and the region can't afford to lose these skilled jobs. I have to protect Sikorsky employees who live in Shelton and their families.” Perillo noted that in light of this deal, he has urged Sikorsky to reconsider its recently announced layoffs.

“This is an important deal that will secure Sikorsky and their high-skilled manufacturing jobs in our region for many years,” Rep. Ben McGorty (R-122) said. “While I support this measure, it’s no substitute for having a real economic policy that makes our state legitimately competitive and attractive to major manufacturers. A great deal of work remains before us to ensure a better environment for employers here.”

Image via Shutterstock