Strategic Supply Chain Initiative Seeks to Bolster Connecticut’s Economy 

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Seeking to bolster production capacity, support supply chain expansions and encourage new businesses to come to Connecticut, the Department of Economic and Community Development recently created a new $25 million initiative. 

The new Strategic Supply Chain Initiative will offer companies access to grants valued from $500,000 to $5 million to improve production capacity. Those projects can range from purchasing new equipment to adding robotics and new technology to their operations, making infrastructure improvements, investing in product innovation, and enhancing research and development to support Connecticut’s core industries.  

“The support from this initiative will bolster Connecticut’s core industries – including high-tech manufacturing, renewable energy, information technology, and other key growth sectors – and take practical steps to strengthen these sectors and grow good-paying jobs here in our state,” Gov. Ned Lamont said in a press release. 

DECD Commissioner Daniel O’Keefe noted that with a new federal administration seeking to implement new trade policies, having such a program on hand in Connecticut can fortify the state’s resources to ensure state industries remain competitive and gain opportunities to further succeed in the national and global marketplaces. 

Senate Majority Leader Bob Duff, D-Norwalk, said he was heartened to see the state investing in its manufacturing sector.

“We’ve seen in recent years what supply chain delays can do to interrupt many industries; increasing focus on local supply can erase many headaches accordingly,” Duff said. 

Companies selected to receive funding will be required to provide a match of at least 50% unless they are in distressed municipalities, where a match of at least 10% will be needed. 

Industries receiving priority consideration will include manufacturing, production of semiconductors and biomedical instruments as well as life sciences, clean energy, information technology and insurance and financial technology. 

According to the “Innovate to Compete” report created by Ernst and Young in 2024 for CONNSTEP, Connecticut manufacturers in aerospace, shipbuilding and medical devices represent more than 50,000 jobs and $16 billion in state gross domestic product. 

The report found that all three industries sourced fewer manufacturing materials and parts from in-state suppliers compared to other states. Creating a stronger supply chain in Connecticut could generate hundreds of jobs and add hundreds of millions of dollars to the state GDP, according to the report.

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