Wholesaling is an important sector of the State's economy. The 1997 Economic Census estimated sales in
Connecticut of more than $76 billion. More than 60 percent of these sales were of wholesale, nondurable goods. The
remaining sales came from wholesale, durable goods. This sector is comprised of establishments engaged in
wholesaling merchandise, generally without transformation, and rendering services incidental to the sale of
merchandise.
Employment
In the early 1990s, wholesale trade employment in Connecticut declined sharply (10,720 jobs were lost, or 12.5
percent) due to the recession. An upward trend in employment began in 1994 and the sector regained 8,340 jobs. By
1999, wholesale trade had 84,380 jobs, accounting for 5.8 percent of the State's total private employment. This
sector has the fifth highest level of employment in Connecticut after services, retail trade, manufacturing and
finance, insurance and real estate (FIRE). Within wholesale trade, groceries and related products; industrial
machinery and equipment; drugs, proprietaries, and sundries; and computers, peripherals and software are
the major industries. Combined, these industries had almost 24 percent of the sector's employment. Nationally,
wholesale trade employment rose 13.4 percent from 1990 to 1999. The New England region had a 4.5 percent gain,
while Connecticut lost about 1.9 percent of its wholesale trade jobs during the same period.
Establishments
Most of Connecticut's wholesale trade firms are small, with an average of 14 employees. The 1998 County
Business Patterns reported there were 5,242 wholesale trade firms in the State. Eighty-five percent of them
employed less than twenty employees. Fairfield County boasted the largest number of establishments with 1,758
firms, followed by Hartford County with 1,346, and New Haven County with 1,289. These three counties combined
had 84 percent of the wholesale firms in the State.
Gross State Product
In terms of Gross State Product (GSP), which measures the value-added component of the production of goods and
services in the economy, Connecticut wholesale trade contributed $9.982 billion to the economy, or 7.2 percent of
total GSP in 1999. Compared to the national share of eight percent, the State's wholesale trade sector was slightly
smaller. The sector's GSP grew 56 percent from $6.385 billion in 1990 to $9.982 billion in 1999, while the State's
total GSP increased 53 percent from $98.337 billion to $150.297 billion during the same period.
Productivity
Generally, Connecticut is known for having one of the most productive work forces in the nation. Productivity is
measured by output per worker, and defined as a ratio of total output to total workers. The State's total private
industry average output per worker was $72,998 in 1999, which is 23 percent higher than the national average of
$59,571. This confirms the opinion that our workforce is more efficient and more productive than the national
average.
As the chart on the front page shows, among all industrial sectors, workers in Connecticut's wholesale trade sector
ranked second highest in productivity at $111,574, while FIRE ranked first. Wholesale trade also showed 4.8 percent
growth in productivity between 1990 and 1999, the third highest growth rate behind FIRE (6.9 percent) and
manufacturing (5.4 percent).
Wages
According to the Connecticut Department of Labor, wholesale trade wages were $26,905 in 1990 and went up to
$56,836 in 1999, an increase of 111 percent. Workers in the petroleum products, coal and other minerals and
ores, and computers, peripherals and software industries are the highest paid within the sector, with annual
salaries of $160,088, $125,257 and $100,569 respectively. The lowest average wage of $29,172 was paid to the
workers in the used motor vehicles parts industry.
Conclusion
In summary, based on employment, establishments, output, productivity, and earnings data, the wholesale trade
sector enjoys the status of a significant contributor to the State's economy. As the second highest ranking industry in
terms of productivity, the wholesale trade sector provides a boost to overall statewide productivity. Although the
wholesale trade sector may not be the industry that puts Connecticut "on the map," it is nevertheless one that
measurably influences other industries that make up today's dynamic Connecticut economy.
Connecticut welcomed many new businesses and saw the
expansion of other enterprises during the past year. Business openings and
expansions, as well as layoffs and shutdowns, that are published in
various news media are compiled monthly by the Connecticut Department of
Labor's Office of Research (e.g. the cover of the December 2000 issue is
shown below). Particularly notable in "Business and Employment
Changes Announced in the News Media" was the expansion of retail
chains in the State. One of these retailers was McDonald's, which opened
a new restaurant in Plainville. Wal-Mart opened stores in Norwalk and
Rocky Hill and will open new ones shortly in Bristol, Southington and
Newington. Applebee's, a nationwide chain of restaurants, moved into
Connecticut with locations in Waterford, Torrington, and Plainville.
Old Navy, a clothing store, opened in Plainville and
Waterford. Raymour and Flanigan opened a furniture store in North Haven.
The Hops restaurant chain opened at locations in Newington, Manchester and
Waterbury during the past year. Craft stores were represented as Michael's
and A.C. Moore opened stores in Stamford and New London. A new Home Depot
opened in Derby on the site formerly occupied by the Farrel Corporation.
Two retail giants finally made it to Connecticut in 2000 as Kohl's has
opened or will be opening stores in Norwalk, New Haven, Wallingford and
Plainville. Target opened stores this past year in Manchester, New Britain
and Waterford.
Some may argue that too much attention is being paid to
a relatively small segment of the economy. This, however, is not
necessarily the case. Some of the large retail chains previously mentioned
employ upwards of 300 people. This means that thousands of jobs have come
into Connecticut in the past year alone.
Other companies in other industries have also opened up
or expanded in the last year. The former Baskin-Robbins plant in Southbury
is now the home of Kan-Pac, a manufacturer of frozen desserts. A former
warehouse in Groton is now a maintenance facility for Amtrak. FCT
Electronic, which manufactures electronic connectors, has opened their
first United States plant in Bristol. Increased business has led Southwest
Airlines to expand their staff in Windsor Locks. New financing has led to
an expansion at Sirrocco Systems in Wallingford, a maker of communication
equipment. Achillion Pharmaceuticals, a new biotechnology firm has opened
in New Haven. A decision to sell insurance in Connecticut has led to many
new jobs at State Farm Insurance. Permasteelia Group, a European company
that makes building exteriors, has opened their first United States
location in Windsor. Kenetec, a developer of data systems, has expanded
their operations in Naugatuck. The entertainment sector shared in the
expansion as the Crown Theater chain opened a seventeen-screen complex in
Hartford.
These are only a few of the business openings and
expansions that occurred during the past year. These events more than
offset the closing of Bradlees stores and the layoffs at the Pratt &
Whitney and Hamilton Sunstrand manufacturers, contributing to the growth
of more than 16,000 jobs in the State during 2000.
Business and Employment Changes Announced in the News Media, published monthly,
is available on the Internet at http://www.ctdol.state.ct.us/lmi/publctn.htm.
To request a copy or to be placed on the mailing list, please call the
Office of Research at (860) 263-6275.
Introduction
Employment and wages in the security and commodity brokerage industry have increased considerably during the
last decade in Connecticut. Despite its relatively small share of employment, the impact of this industry on the
State's economy is significant. Its average yearly wage ($204,500 in 1999) is the highest of all the industries in the
State.
Description
The security and commodity brokerage industry includes establishments engaged in the underwriting, purchase, sale,
or brokerage of securities and other financial contracts on their own account or for the account of others. It also
includes exchanges, exchange clearinghouses, and other services allied with the exchange of securities and
commodities.
Establishments
While the number of total private sector businesses increased seven percent from 1989 to 1999, the number of firms
in the security and commodity brokerage industry more than doubled, from 624 in 1989 to 1,360 in 1999 (See table).
Particularly, the number of investment advice establishments tripled since 1989.
Employment
Total private industry employment in 1999 was still slightly lower than ten years earlier. However, the security and
commodity brokerage industry added over 7,000 jobs (+120%) between 1989 and 1999. Except for 1991,
employment in this industry grew every year during the nineties (See chart), fueled by low interest rates and the
dramatically rising number of retirement investments in the stock market by many baby boomers. Security brokers
and dealers account for over half the industry jobs, but the fastest growth was seen in the investment advice sector.
Most of the security and commodity brokerage firms (60%) and jobs (70%) are located in Fairfield County, followed
by Hartford County.
Wages
Over the 1989-1999 period, the average annual wage per worker in the security and commodity brokerage industry
grew 150 percent, while the overall private sector's rose by 58 percent. With the exception of declines in 1991 and
1994, wages climbed steadily, with the biggest growth experienced in 1992. The investment advice sector
commanded the highest annual pay of $269,380 in 1999, which also grew the most from 1989, by 204 percent.
Employees of security and commodity brokerages working in Fairfield County earned an average of $241,000 in
1999, the only county to far exceed the statewide average wage.
Outlook
Barring any drastic changes, funds flowing into the stock market and the demand for security and brokerage
services are expected to lead to continued growth of this industry in the State. The Connecticut Department of
Labor projects that the industry employment will increase to 18,538 by 2008.
For further information on the security and commodity brokerage industry or other
industry, visit http://www.ctdol.state.ct.us/lmi/lmidata.htm,
or contact the Connecticut Department of Labor's labor market
information unit at (860) 263-6275 for a copy of free publications.
|
Establishments |
Employment |
Wages |
Industry
Code. Description |
1989 |
1999 |
89-99
%Chg |
1989 |
1999 |
No. |
89-99
Chg% |
1989 |
1999 |
89-99%
Chg |
Total
Private Industries |
97,168 |
103,512 |
6.5 |
1,455,638 |
1,444,230 |
-11,408 |
-0.8 |
$27,373 |
$43,195 |
57.8 |
62.
Security & Commodity Broker |
624 |
1,360 |
117.9 |
6,240 |
13,694 |
7,454 |
119.5 |
$82,105 |
$204,564 |
149.1 |
6211.
Security Brokers & Dealers |
302 |
515 |
70.5 |
4,170 |
8,710 |
4,540 |
108.9 |
$72,769 |
$184,445 |
153.5 |
6221.
Commodity Brokers & Dealers |
25 |
41 |
64.0 |
799 |
586 |
-213 |
-26.7 |
$125,984 |
$232,239 |
84.3 |
6231.
Security & Commodity Exchanges |
n |
n |
n |
n |
n |
n |
n |
n |
n |
n |
6282.
Investment Advice |
259 |
784 |
202.7 |
1,164 |
3,703 |
2,539 |
218.1 |
$88,628 |
$269,380 |
203.9 |
6289.
Security & Commodity Serv. NEC |
21 |
16 |
-23.8 |
108 |
211 |
103 |
95.4 |
$47,595 |
$121,637 |
155.6 |
n = nondisclosable |
Year 2000 saw numerous successes in the
Software/Information Technology cluster. The Greenwich to Meriden corridor
along the Merritt and Wilbur Cross parkways was dubbed "Silicon
Parkway" after an explosion in technology companies there in the
State. Not to be outdone, the arrival of eCharity.com in Hartford
triggered similar attention in the "Insurance" capital.
The State was ranked fifth on a measure of its
high-speed Internet access. There are high-speed service subscribers in
more than 80 percent of Connecticut zip codes, placing Connecticut in a
tie with Massachusetts and ahead of California, New York and Texas.
According to the same joint study of states by the
American Electronics Association and the NASDAQ Stock Market, the State
also ranked fifth highest in wages for technology workers and 11th in the
percentage of residents working in the high-tech field.
Finally, the annual survey by the Connecticut Business
and Industry Association (CBIA) found that 54 percent of small and
mid-sized companies are using the Internet, while another 15 percent plan
to launch a Web site in 2001. The same survey determined that 72 percent
of companies are confident that Connecticut is a good place to do
business; that's up from 42 percent in 1994.
Commissioner James F. Abromaitis of the Connecticut Department of Economic
and Community Development today announced that Connecticut communities
authorized 598 new housing units in December 2000, a 7.7 percent decrease
compared to December of 1999 when 648 units were authorized.
The Department further indicated that the 598 units permitted in December
2000 represent a decrease of 30.7 percent from the 863 units permitted in
November 2000. The year-to-date permits are down 13.7 percent, from 10,794
through December 1999, to 9,311 through December 2000.
"The 13.7 percent drop in permits for 2000 reflects the overall
slowdown of the economy," said DECD Commissioner Abromaitis. "While
lower than the preceding three years, the 9,311 total is substantially higher
than those recorded during the recessionary period of the early '90s."
Nine out of ten labor market areas demonstrated decline in new housing
authorization compared to a year ago. Only the Stamford Labor Market Area
showed a gain in 2000. At year-end, Stamford led all Connecticut communities
with 571 units, followed by Danbury with 346 and Hamden with 262.
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